Article 12

BACKGROUND MUSIC (BGM)In case works transmitted in public through cable broadcasting in public arecommunicated in public as BGM by means of receiving apparatus, or by means ofphonogram records legally made, the fee shall be a sum equal to the amount obtained byadding to the amount calculated hereafter, the amount equivalent to the consumptiontax.
1.

The fee for facilities(1)

When an annual blanket licensing agreement is concluded(i)

For shops etc. in general

Category

Annual fee

1

Not exceeding 500 sq.m.

¥6,0002

Not exceeding 1,000 sq.m.

¥10,000

3

Not exceeding 3,000 sq.m.

¥20,000

4

Not exceeding 6,000 sq.m.

¥30,000

5

Not exceeding 9,000 sq.m.

¥40,000

6Exceeding 9,000 sq.m.

¥50,000(ii)For lodging facilities

Category(2)

Floor space of a shop, etc.

Capacity of accommodation

Annual fee

1

Not exceeding 100 persons¥6,0002

Not exceeding 200 persons¥10,000

3

Not exceeding 300 persons¥20,000

4

Not exceeding 400 persons¥30,000

5

Not exceeding 500 persons¥40,000

6Exceeding 500 persons¥50,000

In the event above (1) does not apply, the fee shall be as follows:(i)Monthly fee

(a) For shops etc. in general
Category

Floor space of a shop, etc.

Fees

1

Not exceeding 500 sq.m.

¥1,2002

Not exceeding 1,000 sq.m.

¥2,0003

Not exceeding 3,000 sq.m.

¥4,0004

Not exceeding 6,000 sq.m.

¥6,0005

Not exceeding 9,000 sq.m.

¥8,000

6Exceeding 9,000 sq.m.

¥10,000(b) For lodging facilities
Category

Capacity of accommodation

Fees

1

Not exceeding 100 persons¥1,2002

Not exceeding 200 persons¥2,0003

Not exceeding 300 persons¥4,000

4Not exceeding 400 persons¥6,0005

Not exceeding 500 persons¥8,000

6Exceeding 500 persons¥10,000(ii)In the event above (i) does not apply, the fee shall be determined on a
per-work and per-performance basis as follows.
(a) The fee for use of a work whose playing time does not exceed 5
minutes is shown on the following table:a.

Category

For shops etc. in general
Floor space of a shop, etc.

Fees

1

Not exceeding 500 sq.m.

¥22

Not exceeding 1,000 sq.m.

¥33

Not exceeding 3,000 sq.m.

¥74Not exceeding 6,000 sq.m.

¥105

Not exceeding 9,000 sq.m.

¥136

¥17

Exceeding 9,000 sq.m.

b.
Category

For lodging facilities
Capacity of accommodation

Fees

1

Not exceeding 100 persons¥22

Not exceeding 200 persons¥33

Not exceeding 300 persons¥74

Not exceeding 400 persons¥105

Not exceeding 500 persons¥136Exceeding 500 persons¥17(b) The fee for use of a work whose playing time exceeds 5 minutes
shall be a sum equal to the amount obtained by adding to the feefor use of a work whose playing time does not exceed 5 minutes,
the same fee for each additional 5 minutes or part thereof.
2.

The fee in the case that an enterprise who supplies master recordings concludes a
blanket licensing agreement
Notwithstanding the provisions of 1 above, in case an enterprise who supplies
master recordings of BGM, such as an enterprise engaged in cable broadcasting ormanufacture/lending of sound recordings, concludes a blanket licensing
agreement on behalf of their customers to whom they supply master recordings,
the fee shall be a sum equal to 1% of the business income earned by enterprise
who supplies sound recordings during the previous year (not inclusive of theconsumption tax).

Notes for BGM(i)

The business income means income earned by enterprises supplying masterrecordings, regardless of its name, such as receiving fee, broadcasting fee, etc.

(ii)“1%” as provided for in this Article shall read “0.6%” in the fiscal year 2002,“0.7%” in the fiscal year 2003, “0.8%” in the fiscal year 2004, and “0.9%” in thefiscal year 2005.
(Note) Each fiscal year is from April to March of the next year.

(iii) The fee payment is excluded, for the time being, for use of works in welfare
institutions, medical facilities or educational institutions and for use of works
mainly targeted to only workers in offices, factories, etc. or for slight use of works
in short time in street stalls, etc. and for use thereof not falling under Article 38(1).