Article 3.

FILMS

The fee for the use of works in a film and for the exhibition thereof shall be a sum equal to theamount obtained by adding to the amount calculated hereafter, the amount equivalent to theconsumption tax.
1.

Synchronization(1)

The fee for the use of a work in a film shall be as follows:
Not exceeding
5 minutes

Exceeding 5 minutes
but not more than
10 minutes

Exceeding 10 minutes
but not more than
20 minutes

General entertainment¥50,000¥75,000¥100,000

Others¥20,000¥30,000¥40,000

Duration
Film category

However, in the event of the duration not exceeding 1 minute, the fee shall be 1/4of the fee for charge “Not exceeding 5 minutes.”
The fee for use of a work whose playing time exceeds 20 minutes shall be a sum
equal to the amount obtained by adding to the applicable fee for charge“Exceeding 10 minutes but not more than 20 minutes,” 1/2 of the applicable feefor charge “Not exceeding 5 minutes” for each additional 10 minutes or partthereof.
(2)

The fee for the use of a work in an “event recording” shall be as follows:
Not exceeding
5 minutes

Exceeding 5 minutesbut not more than
10 minutes

Exceeding 10 minutes
but not more than
20 minutes

Concerts¥70,000¥105,000¥140,000

Other than concerts¥50,000¥75,000¥100,000

Duration
Film category
Eventrecordings

However, in the event of the duration not exceeding 1 minute, the fee shall be 1/4of the fee for charge “Not exceeding 5 minutes.”
The fee for use of a work whose playing time exceeds 20 minutes shall be a sum
equal to the amount obtained by adding to the applicable fee for charge“Exceeding 10 minutes but not more than 20 minutes,” 1/2 of the applicable feefor charge “Not exceeding 5 minutes” for each additional 10 minutes or part
thereof.

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Exhibition(1)

The fee for one exhibition of a film, except for the exhibition of those films fallingunder (2) or (3) is shown on the following table:
TypeCapacity

General entertainment

Admission
chargeNot exceeding 500

Not exceeding 1,000

Not exceeding 1,500

Exceeding 1,500

Not exceeding ¥150
Not exceeding ¥300
Exceeding ¥300
Not exceeding ¥150
Not exceeding ¥300
Exceeding ¥300
Not exceeding ¥150
Not exceeding ¥300
Exceeding ¥300
Not exceeding ¥150
Not exceeding ¥300
Exceeding ¥300

Others

¥400
¥600
¥800
¥600
¥800
¥1,200¥800¥1,200¥1,600¥1,200¥1,600¥2,000

¥120
¥180
¥240
¥180
¥240
¥360
¥240
¥360
¥480
¥360
¥480
¥600

For the time being, the fees falling under the film category of “Event recordings”
shall be the same fee for General entertainment. In addition, the fee for films thatwere categorized as “Theatrical,” “Cultural” and “Newsreel” under the provisions
that were effective until December 31, 2013, shall be the same fees as “Generalentertainment,” “Other” and one-third of “Other,” respectively.
(2)

Fee for one place of exhibition for an exhibitor concluding an annual blanket
licensing agreement
The monthly fee for each month during the term of the blanket licensing
agreement shall be calculated under (i) or (ii) below.
(i) In the event that the information about recorded music and the number ofadmitted persons in a relevant month are reported for all films exhibited insuch month:
The monthly fee for each work for all films exhibited in such month(excluding films to be exhibited in such place of exhibition for which the fee
will be paid under the agreement in (i) or (ii) of (3) hereof) (which means thefee to be calculated by the formula below) will be combined.
Number of admitted persons for a relevant film work in a relevant month *average admission charge for such film work * 0.02 * music share coefficientof such film work(ii) Not in the event of (i)The fee shall be calculated by the formula below.

-2-Number of total admitted persons in a relevant month * average amount of
average admission charge for all films exhibited in such month * 0.02
(3)

Fee for a film producer, distributor or user group concluding an agreement(i) In the event that a film producer or a distributor concludes an agreement for
the exhibition of films, the exhibition fee per print shall be 20% of themechanical fee.
(ii) In the event a user group for film exhibition concludes an agreement onbehalf of its film exhibitor members for the exhibition of films, the exhibition
fee for such film shall be determined upon negotiation with such user groupwithin the scope of this Article.

-3-Notes for Films
Term definitions(i)Film“Film” in this Article means a fixed series of moving images, regardless of therecording media, for the purpose of public projection at theaters and other places.

(ii)

General Entertainment“General entertainment” in this Article means a film produced mainly for the purpose ofbeing offered for performances, regardless of the type of audiovisual image or its
contents. Films which do not fall under this shall be categorized as “Others.”(iii) Event Recordings“Event recordings” in this Article means films produced mainly for the purpose of being
offered for performances, which works of music used in events such as concerts, operas,ballets, musicals, revues, and plays are recorded along with the relevant events. Thefilms shall be categorized into “Concerts” and “Other than concerts” depending on theircontents.
(iv) Exhibition“Exhibition” in this Article means the projection of films to screens, and does notinclude radio broadcasting or television broadcasting.
(v)“Admission charge” in 2. Exhibition (1) shall be the normal admission fee for adults(not inclusive of the consumption tax; when the seats are all reserved, the minimumfee).

(vi) “Information about recorded music” in this Article means the information sufficient toidentify the copyright holder for all works recorded in an exhibited film and theinformation about the type of use of such works.
(vii) “Number of admitted persons” in this Article means the actual number of persons
admitted to watch a film regardless of the class of admission charge.
(viii) “Average admission charge” in this Article means the amount defined in (a) or (b)below according to the categories set forth in (a) or (b).
(a) If the number of total admitted persons and total amount of admission charge can becalculated in accordance with evidences: Average amount of admission charge peradmitted person (or ¥500 if such average amount is below ¥500)(b) In cases not prescribed in (a): ¥1,200-4-Music share coefficient(ix) “Music share coefficient” in this Article means the coefficient in the table below inaccordance with the ratio of total hours to use recorded works to the exhibition hours ofa story of each film work, provided that it shall be 1.0 for films categorized in the“event recording (concert)”
Ratio of total hours to use recorded music
to the exhibition hours of a film story

Music share coefficientMore than 90%

1.0More than 70% up to 90%

0.9More than 50% up to 70%

0.7More than 30% up to 50%

0.5

Up to 30%

0.3

Special rules for fee calculation(x)

The mechanical fee in this Article does not include the commission fee or the fee tocreate new works.

(xi) In the event the mechanical fee for foreign musical works is designated by trustor, themechanical fee shall be the relevant designated fee notwithstanding the provisions of
this paragraph.
(xii) Upon applying provision 2. Exhibition (1), in the event of the admission charge
exceeding ¥300, the fee shall be a sum equal to the amount obtained by adding to theapplicable fee for charge “Exceeding ¥300” on the table in item (1) above, either (i) 1/2
of the charge for “Not exceeding ¥150” if the capacity is “Not exceeding 500,” or (ii)the charge for “Not exceeding ¥150” under the category of “Not exceeding 500” if thecapacity is “Not exceeding 1,000,” for each additional ¥150.
(xiii) Upon applying provision 2. Exhibition (1), in the event there is no set capacity, theactual number of admitted persons shall be considered as the capacity, and in the eventno admission fee is required, the minimum fee in the corresponding capacity column ofeach table shall be considered as the exhibition fee.
(xiv) Upon applying 2. Exhibition (2), the monthly fee for the exhibition by the same
exhibitor in multiple places of exhibition in the same facilities may be combined.

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(xv) Upon applying provision 2. Exhibition (3)(i), in the event foreign films are used forexhibition, or in the event works to which provision 1. Synchronization under such
Article is not applied are used for exhibition, such as works which provision (xi) in theNotes is applied, the “mechanical fee” in relevant provision (3)(i) shall be determinedwithin the scope of 1. Synchronization.
Arrangements for usages where this Article is not applicable(xvi) In the event the type of use or some specific circumstances prevent the rates under thisArticle from being applicable, its fee shall be determined within the scope of the rates
and amounts in this Article upon negotiation with the user.

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