Fiscal 2018 Business Affairs
May 22nd, 2019

1 Overview(Figures indicate either collected or distributed
amounts. Unit: hundred million yen)

Collection

1,155.7 hundred million yen
Against
FY2017

Distribution

1,126.4 hundred million yen
Against
FY2017

 Collection
Royalties and other collections increased by 5,930 million yen from FY2017 results, reaching thesecond highest amount next to FY2007. This was mainly due to robust growth of music and video
subscription services and video posting (sharing) services in the interactive transmissions category,and successful products in the videograms category.

 Distribution

Distribution of royalties increased by 1,770 million yen from FY2017 results, reaching the second
highest amount next to FY2008. This takes into account collections from the 2nd half of FY2017 andthe 1st half of FY2018.

1 Overview (Collection and Distribution)
Royalties Collected in FY2018
Category
Performances
Performances, etc.
Broadcasts, etc.
Cable broadcasts, etc.
Film exhibitions
Background music
Foreign income(performances)

Mechanicals

Audio discs
Audio tapes
Music boxes
Synchronization
Videograms
Foreign income (mechanicals)

Publication
Reproduction for specific purposes
Reproduction foradvertisement
Reproduction for games

Lending
Composite use
Online Karaoke
Interactive transmissions

Total private copying remuneration
Total

Collection(thousand yen)

59,669,371
22,768,261
30,753,381
4,802,266
253,169
616,711

Royalties Distributed in FY2018
Against FY2017
(%)

100.9
104.0
98.7
100.1
110.5
102.7

475,581
22,801,434
10,328,845
211,839
10,69050,43012,104,578
95,050911,195
4,412,860

105.5
104.1
88.2
106.2
66.4
66.1
123.3
95.7
99.4
117.4

1,387,058
3,025,802
1,724,470
26,050,580
6,995,653
19,054,927
7,765
115,577,680

100.0
127.6
64.4
122.6
99.2
134.2
76.8
105.4

Category
Performances
Performances, etc.
Broadcasts, etc.
Cable broadcasts, etc.
Film exhibitions
Background music
Foreign income(performances)

Mechanicals

Audio discs
Audio tapes
Music boxes
Synchronization
Videograms
Foreign income (mechanicals)

Publication
Reproduction for specific purposes
Reproduction foradvertisement
Reproduction for games

Lending
Composite use
Online Karaoke
Interactive transmissions

Total private copying remuneration
Total

Collection(thousand yen)

60,020,095
22,920,954
31,124,166
4,722,632
241,320
591,472

Against FY2017
(%)

100.2
105.1
96.9
102.4
108.8
83.2

419,549
22,796,342
10,376,540
205,511
10,897
66,342
12,021,695
115,355
887,1413,939,726

95.5
100.6
87.4
99.1
62.1
103.7
116.0
92.2
96.6
78.8

1,397,010
2,542,716
1,879,134
23,116,167
7,021,863
16,094,304
9,083
112,647,692

97.8
71.1
62.6
119.3
99.1
131.0
82.1
101.6

• Amounts are rounded down to the nearest thousand yen and therefore the sum of the amounts of each category may differ from the total amount.

1 Overview (History of Collections)(Unit: Hundred million yen)

1,200
1,156

1,129

1,000

1,094

1,065

1,058

1,118

1,108

1,124

1,116

1,118

1,096

1,155

Performances

800
600
400

Mechanicals

200
Composite Use

0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

* “Mechanicals” in this graph includes “reproduction for specific purposes,” which was newly created in FY2016.

2018

1 Overview (History of Distributions)(Unit: Hundred million yen)

1,200
1,000

1,120

1,155

1,088

1,064

1,084

1,096

1,099

1,114

1,115

1,124

1,108

1,126
Performances

800
600
400

Mechanicals

200

Composite Use

0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

* “Mechanicals” in this graph includes “reproduction for specific purposes,” which was newly created in FY2016.

2018

2 Collection Results (Performances)
Performances
Performances, etc.

227.6 hundred million yen
Against
FY2017(Figures indicate the collected amounts.
Unit: hundred million yen)

Broadcasts, etc.

307.5 hundred million yen
Against
FY2017

 Performances, etc.

Royalties collected for performances, etc. exceeded FY2017 collection for thefollowing reasons: a solid growth of the concert market mainly for large-scale live
concerts, elimination of unlicensed usages at live music clubs and other clubs,
contract renewals to adjust royalties according to the changes in music usages atbanquet halls of hotels, etc.

 Broadcasts, etc.

Broadcasters’ business revenues for FY2017, which are the basis for royalty
calculation for individual commercial broadcasters, decreased from the previous
year due to the reverse effect of 2016 Olympics and Paralympic Games in Rio deJaneiro. Also, the use of music administered by JASRAC in commercial
broadcasting was sluggish.

Breakdown of Collections for Performances, etc.
(Unit: hundred million yen)
FY2018results

Against
FY2017

Performances, concerts, etc.

73.1

111.8%

Entertainment places

21.8

104.1%

Karaoke

120.6

96.5%

Video projection

3.4-

Game machines*(projection/performances)

8.5

-

Total

227.6

104.0%* Pachinko and pachislot companies are subject to royalties.

Breakdown of Collections for Broadcasts, etc.
(Unit: hundred million yen)
FY2018 results

Against FY2017

Program broadcast

260.6

99.9%

Commercials
broadcast

46.8

92.5%

Total

307.5

98.7%

2 Collection Results (Mechanicals)
Mechanicals
Audio discs

103.2 hundred million yen
Against
FY2017(Figures indicate the collected amounts.
Unit: hundred million yen)

Videograms

121.0 hundred million yen
Against
FY2017

 Audio Discs
Royalties collected from audio discs fell below FY2017 results since the distribution format ofmusic has shifted to digital transmissions mainly in the form of subscription services.

 Videograms
Royalties collected from videograms exceeded FY2017 results due to successful products, etc.

2 Collection Results(Interactive Transmissions)Interactive Transmissions

Breakdown of Collections for Interactive Transmissions (Unit: hundred million yen)Interactive transmissions

190.5 hundred million yen
Against
FY2017FY2018 results

Online Music

Against FY2017

92.2

127.1%

57.1

174.0%

Online Video

91.7

141.3%

Others6.6

147.3%

190.5

134.2%Of which, subscription
services

Total(Figures indicate the collected amounts.
Unit: hundred million yen) Interactive Transmissions
In the online music category, the number of subscription service users increased significantly. In the
online video category, subscription services and video posting (sharing) services saw a solid growth,and there were also successful products among game software downloads, smartphone gameapplications, and others.

History of Collections | Interactive Transmissions(Unit: hundred million yen)

200

190

180

Video, etc.

160

141

140
120

114

100
76

80
60
40
20
0

+34.2%
against
FY201782

92

92

Others

76

83

88

94

91

88
77

87

88

98

Subscription

40
Ringtone
Commercial
recordings ringtone

Download

Stream

2 Collection-related Topics(1) Musical Instrument Classes
In April 2018, JASRAC started licensing of performances at musical instrument classes operated by musical instrument
manufacturers and musical instrument stores. In line with this move, JASRAC publicized it to seek understanding
widely through its website and advertisements. Meanwhile, during the course of the lawsuit filed by musical instrumentclass operators affiliated with the Group to Protect Music Education, demanding a confirmation of the absence of
JASRAC’s right to claim royalties for the reason that copyright protection does not apply to performances at musicalinstrument classes, 10 preparatory proceedings (6 in 2018) have been held. See JASRAC website for details by
scanning the QR code on the right. Chairman Haku Ide of JASRAC will appear as a witness (Tokyo District Court,
Room 510) at the second oral argument session scheduled on July 9, 2019 (starting at 1:15 pm).

(2) Exhibition of Films
During the ongoing negotiations with the Japan Association of Theatre Owners to revise royalties to reflect the usage
scale, JASRAC reached an agreement with the Association for certain parts, including revision of royalties for foreign
films (revised from a flat royalty rate of 180,000 yen per film to royalties based on the number of screens categorized to
six groups to be applied until March 2021). See JASRAC website for details by scanning the QR code on the right.

Musical Instrument
Classes

Exhibition ofFilms(3) BGM (Background Music)
JASRAC promoted initiatives to conclude license agreements to legitimize the BGM use. Specifically, JASRAC filed for
civil mediation against 151 operators (166 venues) that continued unlicensed use, promoted efficient license
management based on the business agreement with the Environmental Health Associations, and provided simple online
procedures. See JASRAC website for details by scanning the QR code on the right.

BGM3 Distribution-related Topics(1) Provision of Detailed Distribution Statement Data
JASRAC started providing detailed distribution statement data on concert performances, etc. from its September
2018 distribution, following the provision of data on interactive transmissions in 2017. This provision of data isscheduled to be expanded to other areas.

(2) Change of Distribution Method for Royalties from Live Music Clubs
JASRAC will change the distribution method from the conventional sampling distribution to the census distribution for live
performances at live music clubs where performers are changing every day.

(3) Reduction of Administrative Expense Rates applied to 2019-03
Distribution

JASRAC reduced the administrative expense rates for 2019-03 distribution. See JASRAC website
for details by scanning the QR code on the right.

(4) Revision of Administrative Expense Rates as from 2019-09 Distribution
In light of changes in the market structure, JASRAC has launched an initiative to review the current
administrative expense rates, and will continue the review process for a period of three years.

Administrative
Expense Rates

4 JASRAC Members and Trustors-related Topics(1) Conclusion of Trust Contract, etc.
JASRAC held seminars and other events to promote member
recruitment. Through newsletters for members and its website,
JASRAC also highlighted the point that flexible entrustment ispossible since progress is being made on the organization of
the entrustment system, as seen in the expansion in the rangeof own use, removal of limits on advertising tie-ups, etc.
“JASRAC Creator’s Path”

Figures in parentheses are for FY2017.
Authors

Publishers

Others

Total

Number of new
trustors

315
（338）

76
（79）

2
（1）

393
（418）

Number of new
members

80
（102）

7
（6）

3
（2）

90
（110）

Appearance at Niconico Chokaigi(2) Revision of Copyright Trust Contract
JASRAC has amended the Copyright Trust Contract mainly to more closely reflect the trustors’ intentions in copyright
management operations and enhance management in overseas territories (Effective August 1, 2018).

5 International Affairs(1) Collaboration with International Copyright Organizations
JASRAC attended international conferences such as the General Assembly,
Board of Directors, and Committees of CISAC, as well as the General
Assembly and Management Committee of BIEM, and visited or had web
conferences with relevant foreign organizations to discuss and exchange
information aimed at solving international copyright management issues andpromoting smooth copyright management.

(2) Assistance in improving the copyright protection in the Asia-PacificRegionCISAC General Assembly

JASRAC worked to improve the copyright protection by sending speakers andaccepting trainees (96 trainees from 23 countries). JASRAC also supported
activities to improve the status of music creators, as the Asia-Pacific Music
Creators Alliance (APMA) Executive Committee. In November 2018, APMA
issued the “Jakarta Statement,” which draws attention to the unfair industry
practice of copyright buy-out.
APMA General Assembly6 Public Relations(1) Awards, etc.

Award Program

A. JASRAC Awards
JASRAC commended the authors and publishers of top-ranked works in JASRAC’s
royalty distribution in FY2017. See JASRAC website for details by scanning the QR
code on the right.

B. JASRAC Music Culture Awards

JASRAC honored four individuals (three groups) to reward their unheralded activities
that may not necessarily lead to impressive statistics or business results in terms ofsales or use but which contribute to the development of music culture. See JASRAC
website for details by scanning the QR code on the right.

C. Presentation of Letter of Appreciation to Longtime Users of MusicTo express its gratitude, JASRAC presented letters of appreciation to 2,163
individuals/entities who have kept license agreements with JASRAC over 30 years to
support the creation of new works by royalty payments. See JASRAC website fordetails by scanning the QR code on the right.

Longtime Users ofMusic6 Public Relations(2) Initiatives to Contribute to the Promotion ofMusic Culture

Have Fun Learning Ensemble Music!

A. JASRAC’s Music Course “Have Fun Learning Ensemble
Music!”JASRAC carried out a project to encourage young people to becomemusic culture pioneers, in which mainly junior and senior high school
students enjoyed learning live music and choir skills while deepening
their understanding of copyrights. See JASRAC website for details
by scanning the QR code on the right.

B. JASRAC’s Talk & Concert: “Songwriters of the Heart”
JASRAC held events with a focus on songwriters to pass forward the“splendor of music-making,” tracing the attractiveness of their works,
as well as on past writers and works that have left a lasting influenceon these writers. See JASRAC website for details by scanning the
QR code on the right.

Information on Various
Business Affairs

7 Initiatives to address individual issues(1) Extension of Copyright Protection Term
With the TPP 11 Agreement coming into force on December 30, 2018, the TPP-related Act enacted in 2016 came into effecton the same day, thereby the term of copyright protection has been extended from 50 years to 70 years after the author's
passing. Countries in Europe and North America extended the copyright protection term to 70 years after the author's death in
the 1990s, triggering active discussions on the issue in Japan. JASRAC has also continued its efforts to extend the copyrightprotection term to align with international standards, because works are distributed or delivered across national borders.

January 1 of thefollowing year

1968

70 years

January 1, 1969

December 31, 2038★
The year theauthor passedaway

Starting date

* Works with expired copyright terms as of the end of 2017
will not regain copyright protection even if the revised
Copyright Law is enforced.

Expiration date ofprotection term
December 30, 2018
Enforcement date of therevised Copyright Law

7 Initiatives to Address Individual Issues(2) Toward Resolution of “Wartime Prolongation Obligation”
On the premise that copyright enforcement was not possible during World War II, Japan is currently obligated to add around10 years—equivalent to the period from 1941, when Japan entered the war, until the day before the Peace Treaty came into
effect—to the normal protection term concerning the protection term of copyrights obtained by the Allied Powers and Allied
nationals.
JASRAC has been actively approaching various parties, both internationally and in Japan to resolve this issue as early as
possible. As a result, Australia as a country and a few music rights management organizations announced their intention to
not enforce their rights. JASRAC will make efforts such as asking cooperation of copyright management organizations of therelevant countries.

[Wartime Prolongation Obligation]
The wartime addition system originally started as a national legislative policy in Europe with the aim of recovering the lost
profits of copyright owners due to wars. While wartime prolongation should be borne by both sides of a war, the San
Francisco Peace Treaty stipulates that Japan alone has an obligation for wartime prolongation, as if to penalize Japan for
pre-war unauthorized use of music, publications, etc., which is unlike any other cases. In addition, this system involves
problems: the identification of the music in question and the calculation of the protection term, which can be clearly calculated
otherwise, are very complicated.

7 Initiatives to Address Individual Issues(3) Efforts to Revise the Copyright System
A. Fair Remuneration to Rights Owners for Private Copying

JASRAC submitted an opinion to the government council, etc. that the current system should be changed to a system that
ensures that rights owners can receive fair remuneration for private copying.

B. Strengthening the Measures to Leech Sites, etc.

JASRAC requested that the government council, etc. urgently take legislative measures against induction to infringing
content by leech sites, etc. and submitted an opinion that it also should consider legalizing site-blocking as one of theeffective measures against infringement.

(4) Utilization of Digital Technologies
To improve the operational efficiency and services, JASRAC promoted the use of big data by introducing a tool that canquickly aggregate and analyze a large amount of data, in addition to working on technical verification of RPA (a softwarerobot that can automate desktop operations), AI, blockchain, etc.

8 Other Business Affairs(1) The “Kokorone” Project
The Disaster Recovery Fund (the “Kokorone” Fund) is supported through the “Kokorone” Project,which continuously supports the restoration of regions affected by the Great East Japan Earthquakewith music works. The Fund donated 15 million yen to Ishinomaki City, Miyagi Prefecture toward thecost of rebuilding complex cultural facilities that were damaged by the tsunami. A total of 225
individuals/entities and 486 works have participated in this project and 44,552,537 yen has been
donated to the Kokorone Fund as of March 31, 2019.

(2) JASRAC’s 80th Anniversary Commemorative Events
With the concept of “musical connections: connecting through music” and the symbol mark JASRAC
has created, we have disseminated information about our 80th anniversary events and scheduled
events on a special web page, etc.
In addition, as part of the project, JASRAC called for the CISAC General Assembly (held in May 2019)
in Tokyo for the first time in 35 years and made arrangements.

9 Efforts to Support the Restoration of Regions Affected by
the Great East Japan Earthquake Decided to donate to Rikuzentakata City

A project to allocate part of royalties that JASRAC Members and Trustors received for the use of their works and offer todonate, and to donate that amount to support the restoration of regions affected by the Great East Japan Earthquake.

<Area to support> Rikuzentakata City, Iwate Prefecture

As part of the construction cost of “Rikuzentakata Civic Cultural Center”(tentative name)(To be completed in December 2019)
Rikuzentakata City

<Donation amount> 5 million yen<Donation made> in July 2019
* Image of completed facility

Efforts to Improve the Transparency of Distribution andRevisions of Administrative Expense Rates

10 Efforts to Improve the Transparency of Distribution• Provision of Detailed Distribution Statement Data

JASRAC started providing detailed distribution statement data on performances, etc. from its
September 2018 distribution, following the provision of data on interactive transmissions in 2017.
The data contains detailed information, such as the names of concerts and events that used thework, names of venues, and distribution amount for each work eligible for distribution, and isprovided in an electronic file.

• Change of Distribution Method for Royalties from Live Music Clubs

JASRAC will change the distribution method from the conventional sampling distribution to thecensus distribution for live performances at live music clubs where performers change every day.
In addition to music usage reports submitted by users and trustors, we also utilize set list
information collected by external service providers.

11 Revisions of Administrative Expense Rates• Reduction of Effective Administrative Expense
Rates for the 2019-03 Distribution
JASRAC reduced the applied administrative
expense rates only for the 2019-03 distribution
as shown in the right table.

Royalty category

Effective
rate

Effective rate
only for 2019-03
distribution

Performances, etc.

25%

23%

Broadcasts, etc.

10%

9%

Online karaoke forbusiness use

10%

9%

10%

9%

• Revisions of Effective Administrative Expense Interactive transmissions
Rates from the 2019-09 Distribution

JASRAC will review fixed administrative expense rates in stages over the three
years from this fiscal year to FY2021. In light of recent structural change incollection and distribution, we will put into effect administrative expense rates thatare more in line with the actual cost based on the expense amount for eachcategory.

Administrative
Expense Rates

International Relations

12 CISAC General Assembly Was Held in Tokyo for theFirst Time in 35 Years
Dates of International Conferences, etc.

* We will announce details of the press conference scheduled on Friday, May 31, 2019 separately by a press release.
Date
Content
Location
Writers & Directors Worldwide Executive Committee
JASRAC Headquarters
Mon, May 27
Mr. Brett Cottle Presentation
Keyaki HallCISAC Asia-Pacific Committee
JASRAC Headquarters
CISAC Board of Directors
Tue, May 28
Hotel New Otani
BIEM Management Committee
CISAC Asia-Pacific Committee
JASRAC Headquarters
APMA Executive Committee
CISAC Training
Wed, May 29
CIAM Workshop
Keyaki HallCISAC Board of Directors
Hotel New Otani
BIEM General AssemblyThur, May 30
CISAC General Assembly
09:00–
Hotel New Otani “Tsuru”
Press Conference *10:00–
Hotel New Otani “AZALEA”
International Symposium
14:00–
Iino Hall
Fri, May 31
CIAM Executive Committee
JASRAC Headquarters
Sat, June 1
CIAM Executive Committee
JASRAC Headquarters