Japanese Society for Rights of Authors,
Composers and Publishers

Fiscal 2017 Business Affairs
Fiscal 2018 Outlook
1 Collection and Distribution ofRoyalties

P. 2–42 Opening of JASRAC to the World= Internationalization

P. 5

3 Administration of Performing Rights P. 6
4 The JASRAC Music Culture Awards

P. 7

5 Outlook for Fiscal 2018

P. 8, 9May 23, 2018Material for the Regular Press Conference

Human Rights for People,
Copyright for Music
Copyright is one of the basic human rights guaranteed by
Article 29 of the Constitution of Japan. Also, internationally, theright to benefit from the protection of moral and materialinterests resulting from any artistic work, as stipulated in Article
27 of the Universal Declaration of Human Rights of 1948, andArticle 15 of the International Covenants on Human Rights of1966 (Social Rights Convention, ratified in 1979) isguaranteed.

For more information: JASRAC International Relations Department
Tel: +81-3-3481-2144 Email: intl@pop02.jasrac.or.jp

11 Collection and Distribution of Royalties
Japanese Society for Rights of Authors,
Composers and Publishers(1) Royalties and Other Fees Collected in FY2017
Performances
Category
Performances

Collection (JPY)

Against FY2016 (%)

Royalties collected for “Performances, etc.” exceeded lastyear’s results for the following reasons: the continued growthof the concert market, and new contracts concluded with large
and popular facilities such as hotels, clubs, and discos.

59,126,006,128

100.9

Performances, etc.

21,890,208,418

102.4

Broadcasts, etc.

31,156,447,971

100.1

Cable broadcasts, etc.

4,798,933,244

101.4

Film exhibitions

229,017,427

104.2

Background music

600,425,408

82.2

Foreign income (performances)450,973,660

111.0

21,912,262,256

87.3

Audio discs

11,705,333,920

95.6Videograms

9,815,742,370

78.7

Foreign income (reproduction)

99,322,998

102.3

Other reproduction

291,862,968

102.0

916,350,317

91.7

3,758,284,672

69.0

Reproduction for advertisement

1,386,861,504

110.1

Reproduction for games

2,371,423,168

56.7

Composite Use

Lending

2,677,745,670

84.9

Composite use

21,246,859,476

114.8

Online Karaoke

7,048,684,615

99.7

Interactive transmissions

14,198,174,861

124.1

10,112,110

67.7

Royalties collected for “Interactive transmissions” far exceeded
last year’s results for the following reasons: significant increasein the number of subscription service subscribers, robust
growth of video-posting (sharing) websites, and payments ofroyalties for past years from multiple video subscription service
operators.

109,647,620,629

98.1

Reproduction

Publication
Reproduction for specific purposes

Remuneration for private audio recording
Total

Reproduction, Lending
The production quantity of “Audio discs” and “Videograms”
decreased due to the shrinking offline market, while “Rental
records” and “Rental videos” also declined in both number ofstores and operating income. As a result, these collection
categories were below last year’s results.

Reproduction for Specific Purposes
Royalties collected for “Reproduction for advertisement”
exceeded last year’s results due to an increase in the usage
fee per advertisement, arising from multiple-media advertising.

2Japanese Society for Rights of Authors,
Composers and Publishers(2) Royalties and Other Fees Distributed in FY2017
Category

Distribution (JPY)

Performances

Against FY2016 (%)

59,909,054,683

99.9

Performances, etc.

21,807,664,507

97.1

Broadcasts, etc.

32,117,729,809

100.7

Cable broadcasts, etc.

4,611,859,419

103.1

Film exhibitions

221,870,833

116.6

Background music

710,775,821

145.7

Foreign income (performances)439,154,294

91.3

22,652,984,408

83.6

Audio discs

11,874,613,080

95.5Videograms

10,364,349,350

74.5

Foreign income (reproduction)

125,080,090

147.9

Other reproduction

288,941,888

44.8

918,621,259

89.9

5,002,639,508

151.4

Reproduction for advertisement

1,428,589,978

160.9

Reproduction for games

3,574,049,530

147.9

Lending

3,001,795,372

94.9

Composite use

19,373,552,147

108.2

Online Karaoke

7,087,851,815

101.5Interactive transmissions

12,285,700,332

112.5

11,060,008

67.7

110,869,707,385

98.6

Reproduction

Publication
Reproduction for specific purposes*

1

Remuneration for private audio recording
Total*1 This category has been newly established and includes “Reproduction for advertisement,” which had
been included under “Other reproduction” and “Publication” until 2016-6 distribution, and“Reproduction for games,” which had been included under “Videograms” until 2016-6 distribution.

The distribution total amounted to 110,860 million yen (98.6%
year-on-year, a decrease of 1,600 million yen). This takes into
account collections from the 2nd half of FY2016 and 1st half of
FY2017.
Distribution statements are prepared by calculating royalties
per type of use, and distributions are made quarterly (in June,
September, December, and March). In FY2017, rights owners
of approximately 2.3 million works received distributions.

Reduction of Applied Administrative Expense Rates
Operating expenditure(operating expenses andmanagement fees
necessary for business
operations) was
anticipated to be wellwithin the FY2017 budget.
Therefore, in order toreturn reserves notscheduled to be spent toright holders as soon as
possible, applied
administrative expense
rates were partiallyreduced for the 2018-03
distribution.

RoyaltyClassification

AppliedRate for
FY2017

Applied Rate Onlyfor 2018-03
Distribution Term

Performances,
etc.

25%

23%

Broadcasts,
etc.

10%

9%

10%

9%

10%

9%

10%

9%

Cable
broadcasts,
etc.
OnlineKaraoke forbusiness use
Interactive
transmissions

3

Japanese Society for Rights of Authors,
Composers and Publishers(3) Topics
1) Commencement of Provision of Detailed Distribution
Statement Data
Aiming to increase transparency of distributions from JASRAC
to right holders, JASRAC worked on increasing the information
provided on distribution statements by utilizing the large
volumes of work usage report data it receives.
As a result, “Detailed Distribution Statement Data” oninteractive transmissions has become available, beginning with
its September 2017 distribution. The data contains detailed
information, such as the digital service that used the work,transmission date, number of requests and distribution amountfor each work eligible for distribution. This provision of data isscheduled for expansion to concerts this year, and to areas
such as broadcasting next year.
<Table of Distribution-related Materials>
Provision Start
Date

Usage Form

Method ofProvision

Provision

—

All

Paper

Distribution
Statement

June 2012

Transmission
BroadcastMarch 2014All

September
2017

Transmission

Planned for 1st
half of 2018

ConcertPlanned for
FY2019Broadcast

Usage
Details

Content

Royalty calculations, etc.

Provision of the usage status of music pieces

Data
Distribution
Details

Provision of some items from a Distribution Statement(paper)• Detailed breakdown of distribution amount• Number of requests and distribution amount perservice

Data

Detailed
Distribution
Statement• Distribution amount per concert, event, etc.

2) Revision of Copyright Trust Contract Aligned to the Needs
of Trustors
In terms of the “Copyright Trust Contract” in place between
JASRAC and the right holder (trustor) who entrusts copyrights
to JASRAC, amendments that more closely reflect the trustors’
will in copyright management operations were approved at theannual general meeting of Members, held in June 2017.
The main points of the amendments are as follows.
 Expanded Range of Own Use by the Copyright Owner
The range in which the copyright owner, the trustor, may
use his/her own work for his/her own purpose without theneed to pay a usage fee has been expanded.
 Revision of Provision to Enable Entrustment of Copyright
Limited to Overseas Territory
It is now possible to entrust management of copyright use inoverseas territory without having to entrust management of
use within Japan.
 Amendment of Extent of Rights Entrusted Allowed at
Shorter Intervals
The intervals between amendments to the extent of rights
entrusted to JASRAC has been reduced from three years to
one year. In accordance with this change, the amendment of
the extent of rights entrusted with JASRAC will not have tocoincide with the renewal of the entrustment contract.

• Distribution amount per broadcaster, program, etc.

4

2 Opening of JASRAC to the World = Internationalization
Japanese Society for Rights of Authors,
Composers and Publishers(1) Continued Support for Asian Countries(2) Intensified Administration of Domestic Work Overseas

JASRAC has actively participated in programs to protect
copyright in the international arena by fulfilling its role as aboard member of CISAC (International Confederation ofSocieties of Authors and Composers).

As media content continued to be exported, JASRAC preparedto utilize two frameworks to ensure royalties accruing from theuse of Japanese movies and animations that have beencollected by foreign societies are paid to Japan.

Adaptation to rapid globalization of music use andenhancement of copyright protection standards in the AsiaPacific region are pressing themes in recent days, and asaction with a global perspective continues to be sought, with
“Internationalization” as its key phrase, JASRAC is dealing withvarious international issues. From November 6 to 8, 2017,
JASRAC provided full support and cooperation to the AsiaPacific Music Creators Alliance’s (APMA) first general meeting
held in Tokyo. At this meeting, the “Tokyo Declaration,” which
demands fair compensation for music creators, wasannounced.

Previously, societies had been exchanging rights informationindividually for each use, but thanks to this framework, thetrustors will be able to swiftly receive royalties that had beencollected by foreign societies. This is due to the fact that every
society will be able to access rights information at any time.
 Provision of Information on Video Content
JASRAC contributed information on 82,698 works ofJapanese movies and animation to an international works
information database, CIS-Net, enabling members of CISAC
to access information on Japanese content at any time.
 Provision of Information on Individual Works

Tokyo Declaration (Excerpt)
In addition to the three issues identified in the Seoul Declaration (May 2017),
namely the resolution on the issue of buy-outs, the necessity of copyrightterm extension to life plus 70 years for music creators, and the prevention of
the abuse of safe-harbor rules, the following issues also must be addressed.

JASRAC introduced CWR, a global standard workregistration form, and is now able to swiftly deliver vast
amounts of work information requested by foreign societies.
The number of work information provided in FY2017
reached 260,000.

1. (Omitted) Private copying remuneration systems have been developedand implemented in Europe and many other parts of the world. The rapid
introduction of remuneration systems into the countries of the AsiaPacific is of paramount importance.
2. (Omitted) Film music creators are not remunerated fairly in many
countries and regions of the Asia-Pacific for the public showing of films
that include their music. Film music creators should be remunerated at alevel where they too can enjoy the success of a movie.

53 Administration of Performing Rights
Japanese Society for Rights of Authors,
Composers and Publishers(1) Commencement of Licensing of
Performances at Musical Instrument Classes
On June 7, 2017, JASRAC reported an amendment of the Tariffs to
the Commissioner of the Agency for Cultural Affairs, and wasplanning to start licensing of “performances at musical instrumentclasses” from January 1, 2018.
However, on December 21, 2017, the “Group to Protect Music
Education” (hereinafter, “Group”) applied for arbitration with theCommissioner of the Agency for Cultural Affairs based on Article 24,
Paragraph 1 of the Law on Management Business of Copyright andNeighboring Rights. The commencement of licensing wassuspended in accordance with Paragraph 3 of the same Article.
On March 7, 2018, the Commissioner of the Agency for Culture
Affairs adjudged that the tariff take effect on the same day, with thesuspension of the tariff, as requested by the Group, not taking effect.
Hence, considering the time period necessary for informing musicalinstrument class operators, JASRAC has decided to commence its
licensing from April 1, 2018.
The “Lawsuit for a Confirmation of the Absence of Right to Claim,”
which was filed June 2017 by musical instrument class operators, iscurrently in litigation at the Tokyo District Court. It is JASRAC’s
opinion, based on court precedents which applied provisions of the
Copyright Act and interpretations of the Act, that in this litigation, it isbeyond doubt that “Performing Rights” apply to performances atmusical instrument classes.

(2) Initiatives to Amend Tariff for Exhibition of
Films
JASRAC has always engaged music users in a sincere manner sothat they are able to benefit from the use of music while paying faircompensation.
In regards to the tariff for film exhibitions, which was establishedmore than 50 years ago, JASRAC is currently in discussions withuser organizations to amend them to match actual usage
conditions. Priority is placed on tariff for the exhibition of foreign
films, which are markedly lower in comparison to European
societies. At a press conference held on November 8, 2017, while
informing the public of this endeavor, we shared with the public
messages contributed by domestic and foreign creators andforeign societies who call for fair compensation for music
contained in films.

(3) Initiatives to Promote Legitimate Use of BGM
In regards to the use of background music (BGM), which JASRAC
began to administer in April 2002, many users have concluded
license agreements.
On the other hand, JASRAC has filed for civil conciliation
simultaneously across Japan for three consecutive years since2015, against facilities that have not obtained licenses. On March
19, the Sapporo District Court passed judgement for the first time,
fully accepting JASRAC’s claim against a venue subject to a civil
lawsuit. (The ruling became final and binding on April 7.)
From the perspective of fairness, JASRAC will continue to takemeasures to promote the legitimate use of BGM.

6

4 The JASRAC Music Culture Awards
Japanese Society for Rights of Authors,
Composers and Publishers

The 4th JASRAC Music Culture Awards
On November 17, 2017, a presentation ceremony for the 4th
JASRAC Music Culture Awards was held at the Toshi Center
Hotel. This award program was established in 2014 to reward
sometimes unheralded activities of individuals and groups, as well
as works, that may not necessarily lead to impressive statistics orbusiness results in terms of sales or use, and to praise the meritsof contributing to the development of music culture.

Mr. Haku Ide Re-elected as Chairman
In March 2018, an election forchairman was held upon the expirationof the previous term, and JASRAC
Member Haku IDE, lyricist, was reelected (second-term) and assumed
his role April 1, 2018.
The term of office will be for two years,
until March 31, 2020.

 Recipients
Mr. Robin Thompson
Mr. Thompson expressed the “sanshin” scores and vocal part of Ryukyu classical music in staff
notation, and also explained the structure of Ryukyu classical music, which has been orally handed
down through generations, to performers, fans and researchers by analyzing the forms of the works
and translating the lyrics to English.

“Enjoying Musical Works of Ikuma Dan”—Mr. Masanori Nakano,
Representative
Over the years, Mr. Masanori Nakano led the activity of singing Ikuma Dan’s works with local people atplaces associated with his magnificent works. He utilized the power of music to deeply and richly link
the hometown, where the works were created, to the thoughts of people and writers living there.
(Mr. Masanori Nakano passed away on April 4, 2018. We wish to take this opportunity to express our
deepest condolences.)“The Archive for the Left Hand”—Mr. Takeo Chinai, Project Organizer

 Greetings
With the nomination of our fellow JASRAC members, I will betaking on the role of chairman for a second term.
Looking back at the past two years, we have made significant
progress in promoting our reason for being and JASRAC’s roleto the society in general, such as licensing performances atmusical instrument classes and correcting the gap between
foreign and domestic royalties from exhibition of films.
In the next two years, we will be engaging in the 80th
Anniversary of JASRAC and the Tokyo Olympics andParalympics. With this prime opportunity to promote Japan’sculture to the world, we are resolved to firmly declare ourassertion that “Culture must have its creators, and only when
their rights are protected will we see a positive cycle.”

In addition to shedding light on valuable works of “Piano Works for the Left Hand,” Mr. Chinai
introduced and taught one-handed performances to a broad base of performers, from children to
adults. He has engaged in improving recognition and promoting one-handed performances, unearthing
new territory of fascination and expanding the possibility of music.

7

5 Outlook for 2018
Japanese Society for Rights of Authors,
Composers and Publishers(1) Royalty Collection Target for Fiscal 2018
The royalty collection target for fiscal 2018 has been set at
109,850 million yen (100.2% year on year).
Increased collections are anticipated due to the expanding
market of subscription services and video distribution in themusic transmission category, progress in administration ofBGM, and amendment of the tariffs for concerts, etc. On theother hand, conditions surrounding audio discs, videograms,
and rental records continue to be difficult, and as a whole, totalcollection is anticipated to come in close to the previous year’s
results. The aim is to achieve targets through initiatives in new
areas of business and thorough execution of fair administration
practices in existing fields.

(3) JASRAC Creator’s PathJASRAC is organizing events in which lyricists and composers,
who are JASRAC members, will speak to an audience of young
creators on how they came about becoming members of
JASRAC. The aim is to promote membership and deepen theirunderstanding of JASRAC and the copyright system.
This event, which began in 2016, has invited guest speakers
from various fields, such as J-Pop, BGM for television and film,
interactive game music, and wind-instrument music. In total,
over 90 young creators have taken part in the events so far.
We are planning to hold four of these events, also in cities
outside the Tokyo metropolitan area, during 2018.

(2) Presentation of Letter of Appreciation to Longtime
Users of MusicTo express its gratitude, JASRAC has decided to present
letters of appreciation to those who have concluded license
agreements with JASRAC and continued to use music in live
performances and karaoke over the past years.
Business operators who are eligible for the letter ofappreciation have contributed to the expansion of music culture
by playing a part in the cycle of music creation anddevelopment, by contributing an environment in which anyone
and everyone may enjoy live performances and karaoke in a
lawful manner.
Award candidates will be announced at the press conference inNovember.

Scenes from the 4th event held on May
8. From left: Mr. Satoshi Takebe and
Ms. Harumi Fuuki, both composer/
arranger.

8

Japanese Society for Rights of Authors,
Composers and Publishers(4) 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 of their choice to the“Kokorone” Fund, to help with the restoration of, as well as thepromotion of music culture in, regions affected by the Great East
Japan Earthquake.

(6) 2019, Launching Towards the Future—JASRAC’s 80th Anniversary—
JASRAC, which was founded in 1939 as an organization of
lyricists and composers, joined the long-established CISAC in
1960, 15 years after the end of the Second World War. In 1984, aquarter of a century later, the organization welcomed CISAC’s
General Assembly in Tokyo, the first such gathering held in Asia.

Number of works chosen:
465
Participating Members/Trustors:
217
Total amount of money donated: 42,498,704 yen(As of the end of March 2018)

Next year, in 2019, JASRAC will celebrate its 80th anniversary,
inviting the General Assembly of CISAC back to Tokyo for the firsttime in 35 years.

(5) New Music Culture Promotion Project,“Singers of the Heart”

JASRAC will take a proactive role in copyright management
operations, both within and outside of Japan, ensuring that theyear 2019, one year preceding the “festival of sports,” isremembered by the people as a “ceremony of culture,” andmaking contributions to guarantee that Japan’s music works havea steadfast platform from which to launch.

“Singers of the Heart” is a new program in which we take a closeup look at lyricists and composers from the Showa through to the
Heisei era. The program features artists who have continued tocreate new pieces of Japanese music, sometimes tracing back topast writers who have left a lasting influence on these artists,
passing forward the “splendor of music-making.”
The first event will be held on
September 3, 2018 at Kamaishi
Civic Hall, “Tetto,” to which the
Kokorone Fund donated 10 million
yen to fund a portion of its
construction.
Artist in close-up will be
songwriter, Shunichi Tokura.

To commemorate its 80th anniversary, JASRAC is planningvarious programs between January 2019 and March 2020.

 Main Commemorative Events of the 80th Anniversary Planned for 2019
May 28May 28 & 29
May 29May 30
May 31 & June 1
November 18

Exterior view of the Kamaishi Civic Hall, which
opened to the public on December 8, 2017

BIEM Management Committee
CISAC Board of Directors,
CISAC Asia-Pacific Committee
APMA Executive Committee,
BIEM General Assembly
CISAC General Assembly
CIAM Executive Committee
JASRAC’s 80th Anniversary Commemorative
Ceremony & Celebration

9