Article 2.

BROADCASTING, etc.

The fee for the use of works for broadcasts and recordings for broadcasting purposes (notinclusive of recordings of music for commercials) (hereinafter referred to as “broadcasts,etc.”) shall be a sum equal to the amount obtained by adding to the amount calculated
hereafter, the amount equivalent to the consumption tax.
1.

Nippon Hoso Kyokai (hereinafter referred to as “NHK”)
The annual fee for the use of works for broadcasts made by NHK, if it is fixed by anannual blanket licensing agreement, shall be obtained by multiplying the broadcasting
operation income for the fiscal year preceding the current fiscal year by 1.5%.

2.

Commercial broadcasters engaged in broadcasts by means of terrestrial transmission
The annual fee for the use of works for broadcasts made by a broadcaster engaged inbroadcast by means of terrestrial transmission, if it is fixed by an annual blanket
licensing agreements, shall be obtained by multiplying the broadcasting operation
income for the fiscal year preceding the current fiscal year by 1.5%.

3.

Commercial broadcasters engaged in satellite broadcasts
The annual fee for use of works for broadcasts made by broadcasters engaged insatellite broadcasts, if it is fixed by an annual blanket licensing agreements, shall be thetotal amount obtained by multiplying their broadcasting operation income by the royalty
rates shown (1) for each channel of the relevant satellite broadcasts.
However, in the event that the relevant broadcasters cannot sum up broadcasting
operation income for each channel, the fee shall be obtained by multiplying
broadcasting operation income for all channels by the rate obtained on a pro-rated basis
among the rates applicable to the related classification for each channel.
In any case, the fee calculated under the above provisions is lower than that shown
below on the table (2), the fee shown below on the table (In the case that the relevant
broadcaster has more than a channel, the amount obtained on a pro-rated basis among
the fee for each classification) shall be applicable as the annual fee.
(1)
Category

Fee rate

Channel featuring music programs

2.25%

General channel

1.5 %News or sports, etc. channel

0.75%

Category

Fees

Channel featuring music programs¥5,400,000

(2)

4.

General channel¥3,600,000

News or sports, etc. channel¥1,800,000

Broadcasts made by the University of the Air Foundation
The fee for the use of works for broadcasts made by the University of the Air
Foundation, if it is fixed by an annual blanket licensing agreement, shall be determinedwith due regard to the particulars, including the purpose in the use and the type of use,
upon negotiation with the University.

5.

In the event an annual blanket licensing agreement does not apply
In the event that an annual blanket licensing agreement does not apply, the fee shall be asum fixed for each manner of use, on a per use, per work basis shown on the tablebelow:(1)(2)

Broadcasting
Broadcasting made through national wideFees

Not exceeding 5 minutes¥64,000

For each additional 5 minutes¥64,000

Recordings for broadcasting purposes
Per copy reproducedFees

Not exceeding 5 minutes¥6,400For each additional 5 minutes¥6,400Notes for BROADCASTING etc.
(i)

In case that an annual blanket licensing agreement is concluded, the fiscal year begins inApril and ends in March of the next year.

(ii)“The broadcasting operation income” as mentioned in 1. shall be a sum equal to thebalance obtained by deducting the following, not inclusive of the consumption tax, fromthe total receiving fee income:- Operation expenditure for contracts conclusion and fee collection- Expenditure for reception improvements- Expenditure for studies and researches, etc.
- Expenditure aiming at making up a deficit of receiving fee income- Expenditure involved in protecting copyrights and in improving technology for
information of administration(iii) “The broadcasting operation income” as mentioned in 2. means a sum equal to their
total income obtained by deducting a sum equal to the agency fees and the expenditure
aiming at receiving the pay broadcast fees (not inclusive of the consumption tax).
(iv) “The broadcasting operation income” as mentioned in 3. means a sum equal to their
total income obtained by deducting a sum equal to the agency fees and the expenditure
aiming at receiving the pay broadcast fees (not inclusive of the consumption tax).
(v)

When the provisions of 2. shall apply in the event there is an entity which is composedof broadcasters and entrusted with the right to fix the amount of an annual blanket fee
for each of the broadcaster members, the amount fixed by the entity for each of themembers may be regarded as an annual fee for each of them to pay, provided that thetotal of such amounts is equal to the total of the annual fees as fixed in accordance withthe provisions of 2.
However, for a newly-established station the above provisions shall not apply. In suchcases, a sum equal to its broadcasting operation income shall be determined uponnegotiation with the broadcaster.

(vi) With respect to the provisions of 2, the fees for broadcasts of works in commercials(except in the case of the use of works in commercials produced by broadcasters bymeans of their own facilities for their own broadcasts), shall not be included in theannual fee calculated under the provisions 2 for the time being. The fee provided on thetable below shall apply to such broadcasts on a per work and per use basis:
TypeRadio commercials

TV commercials

1¥6,000¥12,000

2¥4,200¥8,4003¥3,600¥7,2004¥2,400¥4,8005¥1,800¥3,6006¥1,500¥3,000(a) The category in which the broadcaster shall belong to shall be determined uponnegotiation with the broadcaster.
(b) In the event of a work being repeatedly and continuously broadcasted in the samecommercial, the fee amount may be lowered.
(vii) Of broadcasters to which the provisions of 2. shall apply, the fee for community
broadcasters shall be determined separately within the limit of the provisions of 2 uponnegotiation with the broadcaster.
(viii) When the provisions of 3. shall apply, the fee for a newly-established station shall becalculated in line with the table (2). In such cases, when the term of broadcast does notexceed one year, the fee listed on the table (2) may be lowered in accordance with themonths of the broadcast.
(ix) When the provisions of 3. shall apply, the term during which broadcasting operation
income is accrued in the previous year does not exceed one year, the annual fee shall becalculated based on the amount converting to annual broadcasting operation income.
(x)

When the provisions of 5. shall apply, the area where broadcast is transmitted at thesame time is limited, the fee listed on the table (1) may be lowered in consideration of
the number of households receiving broadcast.

(xi) When the provisions of 5. shall apply, and in the case corresponding to any of thefollowings, the fee shall be reduced to a sum equal to 6/12 of a work of the respectiverates.
(a) For a vocal work, whose music is not copyrighted or is not under the administrationof the Society.
(b) For a vocal work, whose lyric is not under the administration of the Society.
(xii) In the event the type of broadcasts such as those solely featuring music or those using
new technologies prevent the rates under this Article from being applicable, Article 17
shall apply.