Japanese Society for Rights of Authors,Composers and Publishers

May 25, 2016 Material for the Regular Press Conference

Fiscal 2015 Business Affairs
1. Collective Management of Music Copyrights

P. 2–4

2. Endeavors in International Areas

P. 5

3. Endeavors on Copyright Protection and System Development P. 6
4. Public Relations Activities

P. 7

5. Great East Japan Earthquake Restoration Support Project

P. 8

6. Awards

P. 9

7. Other Issues

P. 10

For more information: JASRAC International Relations Department

Tel: : +81-3-3481-2144

Email: intl@pop02.jasrac.or.jp

11. Collective Management of Music Copyrights(1) Royalties and Other Fees Collected in FY2015
Category

Haku IDE assumes the post of Chairman
Coinciding with the expiration offormer Chairman Shunichi
TOKURA’s term of office, elections
were held in March 2016, and lyricist
Haku IDE was elected to assume theoffice of Chairman from April 1,
2016. His term of office is 2 years
until March 31, 2018.

Collection (JPY)

Against
FY2014 (%)

Performances, etc.

21,161,112,337

103.0

Broadcasts, etc.

31,512,963,671

99.7

Cable broadcasting, etc.

4,486,953,970

77.9

Film exhibition

206,758,025

122.3

Background music503,326,491

101.4

Foreign income (performing)

505,835,659

106.8

58,376,950,153

98.8

Audio disc12,815,605,562

97.9

Videogram

17,224,721,441

95.0

Total - Performing Profile

Foreign income (mechanical)

124,616,013

65.4

Born in 1941 in Nagano Prefecture. After graduating fromWaseda University, he studied under the composer
Minoru ENDO and began his career as a lyricist. He hascreated many hit songs and received the Japan Record
Awards’ Long-Seller Award and Best Lyrics Award, as wellas the Commissioner for Cultural Affairs Award (2006) andForeign Minister's Commendation (2015).

Recording and other sources

2,010,370,721

112.9

Total - Mechanical32,175,313,737

97.0

Publication

983,256,926

85.6

Lending

3,248,766,771

94.7

Online Karaoke

7,001,310,434

103.0Interactive transmission

9,844,330,302

111.1

Total – Composite use

16,845,640,736

107.6

Total collection

111,629,928,323

99.2

Remuneration for private audio recording

38,287,690-

Remuneration for private video recording

1,825,458

1768.1

Total – Private recording

40,113,148-

111,670,041,471

99.3

His major works include “SUKIMAKAZE” (Ryotaro SUGI),“KITAGUNINO HARU” (Masao SEN), “SHOUWA
NAGAREUTA” (Shinichi MORI), “JINDOU” (SaburoKITAJIMA), “ICHIGO ICHIE” (Toshimi TAGAWA) andmany others.

Grand Total2

The total amount of royalties and other fees collected in FY2015
was 111.67 billion yen (99.3% from the previous year, adecrease of 820 million yen), and the amount of distributions totrustors was 111.59 billion yen (100.2% in comparison to theprevious year, an increase of 170 million yen).
 Total collections since 2006
(100 million yen)

1,110 1,156 1,129 1,094 1,0651,058

Performances, etc.
The amount of royalties collected from "performances, etc."
exceeded last year's result for the following reasons: thegrowth of the concert market was maintained; administrationof dance classes (other than social dance classes) began in
April and the conclusion of licensing agreements proceededsmoothly.

1,118 1,108 1,124 1,116

1,000

Audio discs and videograms
Production volume for CDs has been in decline for many
years, but production in 2015 did not show an appreciable
decline, resulting in the amount of royalties collected from“audio discs” decreasing only slightly in 2015.

50002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FY
年度

 Changes in collections for major categories

Although production of DVDs and other video products
remained stable in 2015, a decline in usage in “pachinko”
pinball machines, and a continued shift from packaged gamesoftware production to digital distribution of game software tosmartphones resulted in a year-on-year decline.

350億円(100 millionyen)

300

Broadcasts,etc.
放送等Interactive transmission

250
200
150
100

Performances,etc.
演奏等
Videogram
ﾋﾞﾃﾞｵｸﾞﾗﾑ
Audiodisc
ｵｰﾃﾞｨｵﾃﾞｨｽｸInteractivetransmission
ｲﾝﾀﾗｸﾃｨﾌﾞ配信

5002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FY
年度

The amount of royalties collected significantly exceeded last
year's result due to the great demand for subscription
services*, video-sharing websites and game distribution
services for smartphones.
* These services allow members to listen and view music and videos only
during the term of an agreement, by registering as a member. (Serviceseither require a flat rate payment on a monthly or yearly basis, or are
free of charge.)3(2) Changes in Tariffs Corresponding toSubscription Services
Fee rates for subscription services were agreed upon with therepresentative organization of users, and JASRAC reported apartial amendment to its Tariffs to reflect the agreement to theCommissioner for Cultural Affairs in December 2015, to be
enforced from February 2016.
This change in the Tariffs was made to establish a specialized
category applicable to such services, in light of the increase instreaming-based services being facilitated by an enhanced
communications environment, whereas previously services
were predominantly download-based.
JASRAC will continue to work on the improvement of the Tariffs
to promote the formation of markets for new business models
and to manage copyrights in a manner corresponding tochanges in the form of use.

(3) "Background Music Licensing Promotion
Months"JASRAC has designated June and July as “Background
Music Licensing Promotion Months”, and worked to ensure
stores and other businesses use background music in a legalmanner.
On June 9, 2015, JASRAC filed a petition for civil conciliationin summary courts across Japan against 171 business
operators (258 facilities) which were using background music
and did not obtain music copyright licenses despite repeateddemands by JASRAC. This is the first time that 15 JASRAC
regional licensing offices located throughout Japan took legal
measures simultaneously.

(4) Agreement on Method to Determine Usage
Share of Repertoire in Broadcasting
In the “Review Committee on the Method to Determine Usage
Share of Repertoire in the Field of Broadcasting” (Five-PartyTalks) comprising of broadcasters (NHK and the Japan
Commercial Broadcasters Association) and copyright
management organizations (JASRAC, Japan Rights Clearance
Inc.* and e-License Inc.*), agreement on a calculation method todetermine the usage share of works administered by copyright
management organizations was reached. This method isapplicable to royalties collected from fiscal year 2015 onward.
Although JASRAC did consider the use of musical works
administered by organizations other than JASRAC whenagreeing on royalty rates for broadcasting in the past, the actual
usage in broadcasting has become better reflected as a result ofpromoting census work usage reports in electronic formats bybroadcasters.
* Currently “NexTone Inc.”

Reduction of applied administrative expense rates
The applied administrative expense rates for "performances, etc."and “film exhibition" in fiscal year 2016 were reduced from 26% to25%.
This reduction was made possible by increases in collections anddistributions due to the expanded licensing of existing areas andthe commencement of licensing of new areas, as well as a stablelevel of overhead made possible by continued efforts for better
operational efficiency.

42. Endeavors in International Areas(1) Enhancing Copyright Management in Asia
JASRAC has been working actively to enhance copyright
management standards in Asia.
55 government officials and copyright management
organization staff from 12 countries including Korea,
Thailand, China and Vietnam visited JASRAC to receive
lectures about JASRAC’s copyright management operations
and exchange opinions.
JASRAC also dispatched its staff to seminars, such as the“Seminar on Copyright Issues Related to Broadcasting” heldin Ulan Bator, Mongolia, and the “Seminar on Collective
Management of Copyrights and Neighboring Rights” held in
Ho Chi Minh City, Vietnam.
In addition, JASRAC is providing support toward theestablishment of copyright management organizations incountries such as Myanmar where no such organizations
exist.
 Visitors received from following Asian countries in FY
2015 (in alphabetical order)
Bangladesh*

China

Indonesia

Korea

Laos*

Malaysia

Mongolia

Myanmar*Philippines

Singapore

Sri Lanka*

ThailandDistributions from Asia Since 2011
In FY2015, the amount of distributions from Asia reached arecord high, exceeding 140 million yen.
Unit:
Thousand yen
単位:千円

160,000

140,000
香港
Hong Kong

120,000

Korea
韓国
China
中国

100,000

台湾
Taiwan80,000Singapore
シンガポール
Malaysia
マレーシア

60,000

Other
その他
countries

40,00020,000Vietnam0* Country where no copyright management organizations exist.

20112012

2013

2014

2015(FY)（年度）

5

3. Endeavors to Improve Copyright Systems and Protection(1) Optimization of the Copyright Protection Period
Following the basic agreement in October 2015 and official
signing in February 2016 of the Trans-Pacific Partnership(TPP), the copyright protection term in Japan is now expected
to be extended from life of the author plus 50 years to life of
the author plus 70 years.
In this connection, the USA, Canada, New Zealand andAustralia, which are party to the TPP and to which the wartime
prolongation obligation* applies, have begun considering theirpositions.
With copyright works being used across borders overexpanding digital networks, JASRAC has been pleading for anextension of the copyright protection term to the internationallyprevalent term of life plus 70 years for the purpose ofinternational harmonization. At the same time, JASRAC has
proactively sought through international forums thecooperation of sister CMOs of the relevant countries to abolishwartime prolongation obligations.
JASRAC will continue to actively participate in activities tooptimize the copyright protection period.
* In Japan, based on the San Francisco Peace Treaty, the copyrights ofsome works created by nationals of the Allied Powers of World War II areprotected for a period equivalent to the length of the war, in addition to
the normal copyright protection period (50 years from the death of theauthor). This wartime prolongation obligation is imposed only on Japan.

Reference URL: http://www.jasrac.or.jp/senji_kasan/(2) Creation of a New System for Private Copying
The current system for private audio and video copying
remuneration has practically ceased to function as a result of
the existing gap between the system and market realities.
JASRAC has established a web page to disseminateinformation about and gain backing for a proposal for a newremuneration system to replace the current private copying
system, so that rights owners can receive fair remuneration for
private copying.
* The proposals are as follows:(1) The subject of the remuneration should be the copying function
provided for the purpose of private copying.
(2) The supplier of the copying function should be obligated to pay theremuneration.
Reference URL: http://www.jasrac.or.jp/newinstitution/(3) Resolution of the Problem of Orphan Works
Eight rights owner organizations including JASRAC
established the “Rights Owners Study Group on OrphanWorks” in September 2015, and are discussing ways tofacilitate rights clearance for orphan works (works for which
the rights owners are unknown). The group held asymposium titled “The Road to Resolving the Orphan WorksProblem” in March 2016 to publicize an interim report on plans
to facilitate the use of orphan works. JASRAC will continue towork with other rights owners to find ways to resolve thisissue.

64. Public Relations Activities
JASRAC engages in various public relations activities to promote
copyright literacy and music culture. Below are some of theprojects implemented with the cooperation of Members andTrustors.

(1) “THE JASRAC SHOW!” Webcast
JASRAC webcasted "THE JASRAC SHOW!" through
NicoNico Live each month, providing information about
JASRAC. JASRAC affiliate writers are invited on the show totalk about their experiences creating music.

(2) School Visit
JASRAC affiliated writer Hiromi Mori (lyricist) visited anelementary school in Tokyo to give students a lesson about
creating lyrics and texts, and to familiarize them to theconcept of copyrights.
The event was reported as an advertorial in the “Kodomo
Newspaper summer edition” (1.35 million issues) and “TheMainichi Elementary School Student Newspaper” on July 29,2015 (99 thousand issues), both issued by The Mainichi
Newspapers Co., Ltd., and also made available via theJASRAC website in “Children’s Research Project on Music.”
Reference URL: http://www.jasrac.or.jp/jasracpark/research/lesson/(3) Website ContentThe guest of the 30th memorial special program was Toru
Funamura, Honorary Chairman of JASRAC. The program was
webcast from “Japanese Soul Song Museum, Toru Funamura
Kinenkan” (Nikko City, Tochigi).

 Guests invited onto the program (April 2015–March 2016)
April 2015
May 2015
June 2015
July 2015
August 2015
September 2015

Mr. Toru Funamura
October 2015
Ms. Yuriko Mori
November 2015
Mr. Isao Tomita
December 2015
Mr. Shintaro Ito
January 2016
Mr. Chumei Watanabe February 2016
Mr. Satoshi Takebe
March 2016

Mr. Ryo Yoshimata
Mr. Yoshihiro Ike
Ms. Reiko Yukawa
Mr. Kosuke Yamashita

Mr. Yugo Kanno
Mr. Toshio Kamei
Ms. Chieko Kamei

Reference URL: http://ch.nicovideo.jp/jasrac/

Recent interviews with JASRAC affiliate writers about theircreative experiences and thoughts on copyright were madeavailable on the “Sakka de Kiku Ongaku (Writer-BasedMusic Listening)” and “Otobito Kobo (Music CreatorWorkshop)” portions of the website.
<Writer-Based Music Listening><Music Creator Workshop>

1st half year

Mr. Chumei Watanabe (composer)

Ms. Harumi Fuuki (composer)

2nd half year

Mr. Akira Yuyama (composer)

Mr. Simon Isogai(singer and songwriter)7

5. Great East Japan Earthquake Restoration Support Project(1) Announcement of Support from "Kokorone Fund"Approaching the fifth anniversary of the Great East Japan
Earthquake, JASRAC donated 10 million JPY from the KokoroneFund to help with construction costs of a new civic hall inKamaishi City, Iwate.
Through music, JASRAC will continue to support reconstruction
efforts in the affected regions.

The "Kokorone" ProjectThrough the "Kokorone" project, in operation
since 2011, JASRAC Members and Trustors(lyricists, composers and publishers) can
donate royalties paid for the use of works
that they choose, to help with thereconstruction of regions affected by theGreat East Japan Earthquake, as well as thepromotion of music culture.
The progress of the project, as of the end of March 2016,is as follows:
Number of works chosen

405

Members/Trustors participating

202

Total amount of money donated

These musical works are also available on the JASRAC
website and the “JASRAC Channel” on the NicoNico Dougaservice.

Distribution(June, September,December and March)

Assignment

Donation tothe state, etc.

Kokorone Funds
JASRAC’s
restoration support
Royalties“Kokorone Song Act” is a collection of works written by
JASRAC affiliate writers to provide moral support toearthquake victims. 31 new works were produced andpresented to broadcasters and digital music distribution
services as volume 3 of the series.

Trust of copyrights(2) CD "Kokorone Song Act Collection Vol. 3"

The right to demand distribution ofcopyright royalties is assigned toJASRAC.
ORThe distributed amount is donatedto JASRAC.

Members and trustors

LicenseMitsuo Sugawara, JASRAC president, presented a list of donations
to Mr. Takenori Noda, the Mayor of Kamaishi City.

38,432,248 yen

Users

Reference URL: http://www.jasrac.or.jp/kokorone/86. Awards(1) 2015 JASRAC AwardOn May 20, 2015, the 2015 JASRAC Award recipients wereannounced.
Please refer to the JASRAC website for details of theJASRAC Awards and the winning works.
Reference URL: http://www.jasrac.or.jp/ejhp/about/award33.html(2) The 2nd JASRAC Music Culture AwardOn November 18, 2015, a presentation ceremony for theJASRAC Music Culture Award was held at Keyaki Hall.
This award program was established on JASRAC's 75thAnniversary (in 2014) to reward sometimes unheralded
activities that may not lead to impressive statistics orbusiness results in terms of sales or popularity, and to praise
the merits of contribution to the development of music
culture.
The second award was presented to the following individuals
and groups.

<The Second JASRAC Music Culture Awardees andthe reasons behind their receiving the award>
 Mr. Gyoji Osada
With a unique perspective, Mr. Osada has systematicallystudied Japanese popular music history for over 30 years,
publishing a number of valuable tomes that will pass on thehistory of Japanese songs to later generations.

 Kiso Music Festival Executive Committee
In the mountain region where there are few chances to enjoy
live music, the town of Kiso and its residents have worked
together for over 40 years to continue their hand-made music
festival. It represents an effective model which allowed music
to take deep root in the local community.

 Nagasaki Opera Association– OMURA Chamber Orchestra(Creative Opera "INOCHI")
Both groups have overcome various obstacles to continue
their activities, which have come to fruition with the Tokyo
premier of "Inochi (*Life)," an original opera depicting
radiation exposure in the aftermath of the atomic bomb thatwas dropped in Nagasaki. The importance of nurturing
culture in rural areas was transmitted nationwide.

Reference URL: http://www.jasrac.or.jp/ejhp/about/culture_award/02.html

97. Other Issues(1) Hearings at the Fair Trade Commission
An appeal by the Fair Trade Commission and JASRAC
regarding the ruling by the Tokyo High Court (ChiefJudge Toshiaki Iimura, Nov. 1, 2013) to nullify thedecision by the FTC was dismissed by the Third Petty
Bench of the Supreme Court (Chief Judge KiyokoOkabe) on April 28, 2015.
As a result, the ruling that nullified the FTC’s decision(Jun. 12, 2012) to rescind its own cease and desist
order (Feb. 27, 2009) against JASRAC became final,and the FTC decided (Jun. 12, 2015) to reopen thehearing process necessary to produce another decision.
Thereafter, five hearings were held between Aug. 3,2015 and Mar. 9, 2016.

10