Since our establishment as Japan's sole music copyright administration society in 1939, JASRAC has protected the rights of copyright owners, has facilitated the utilization of musical works, and has contributed to the growth and development of music culture. However, as a result of the enactment of the Law on Management Business of Copyright and Neighboring Rights in October 2001, a number of commercial organizations have been permitted to enter the business of musical copyright administration, and our non-profit society is now confronting the challenges of an age of competition. In order to comply with the new law, we have amended our Stipulations for Copyright Trust Contract, such as adopting a system that allows trustors to select the range of rights that they wish to entrust to us etc., and implemented significant improvements to our operations. Moreover, amid the rapid advances in digital and network technologies related to music and their impact on music use, we have launched the operation of "JASRAC NETWORCHESTRA" - an integrated computer system that covers a broad spectrum of functions related to the use of musical works via interactive transmission from the processing of licensing applications issuance of invoicing to, royalty distribution, and even monitoring of illegal sites. In the future, the scope of the system will be expanded to encompass the administration of other areas, and we will aim at achieving high-efficiency administration by the adoption of EDI (Electronic Data Interchange) systems to enhance the speed, accuracy and performance of our services.		The "ring tone" melody services for cellular telephones that originated in Japan have already transcended our borders and have found growing popularity all over the world. While we take great pride in our position as the global pioneer in the administration of such online use of musical works, we also realize the importance of moving forward in close coordination with overseas sister societies. This is especially true in the case of establishing administration practices for new uses of musical works that are based on cutting-edge technologies and that are rapidly spreading on a global scale such as "ring tone" melodies. We will continue to take steps to further reinforce our coordination with CISAC, BIEM and other international organizations, and proactively contribute to the protection of copyrights globally not only for interactive transmissions, but for other more traditional types of usage as well. Especially for the Asia region, we wish to establish a stronger partnership with each country through the conclusion of representation agreements with local copyright societies and working closely with the Asia-Pacific Committee of both CISAC and BIEM. Currently the global music industry is confronting difficulties of an unprecedented scale. While the Internet is bringing the enjoyment of music to more and more people, this revolutionary medium and various other digital technologies are also the prime source of illegal copying of music CDs and the consequent trend in sharply declining CD sales observed in recent years. In order to eliminate such activities, concerned domestic and international organizations must join forces and implement all available technological and legal preventative measures, conduct effective public relations activities and apply pressure on governments around the world. We must correct the erroneous notion that "music is free", which is promoted by illegal music file sharing services, and replace it with the understanding that "proper enjoyment of music begins with fair compensation to the people who create it" in the minds of people around the world. Another important focus of JASRAC as a non-profit organization is our cultural activity program funded by membership dues. From sponsoring concerts, events, music culture lectures and copyright symposiums, and developing university-level curriculum on intellectual property rights, to researching and promoting musical therapy, JASRAC is making a substantial contribution to the healthy growth of music culture by supporting a wide range of activities for all ages covering a variety of musical genres. Amid the increasing diversification and complexity in methods of music usage, JASRAC will redouble its efforts to refine and advance the fundamentals of our copyright administration: efficient, detailed administration and swift, accurate distribution of royalties. While inspiring understanding of copyrights in Japan and aggressively promoting the development of music culture, we are committed to making our utmost efforts to mold JASRAC into an organization that is worthy of the trust and selection of both copyright owners and users.