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August 17, 20002
JASRAC

Japanese Society for Rights of
Authors, Composers and Publishers
Network Music Rights Conference
NMRC


NMRC AND JASRAC FORMALLY AGREE TO TARIFF FORCOMMERCIAL TRANSMISSION SERVICES,JASRAC SUBMITS TARIFF FOR NON-COMMERCIALTRANSMISSIONS TO ACA COMMISSIONER FOR APPROVAL


On August 4, 2000, the Japanese Society for Rights of Authors, Composers and Publishers (JASRAC / headquarters: Shibuya ward, Tokyo / President: Shigeru Yoshida) formulated a usage fee tariff for the general usage of music on the Internet and portable terminals (see attached), and submitted it for approval to the Commissioner of the Agency for Cultural Affairs (ACA) of the Japanese government.

Until now, an interim usage fee (effective until September 30, 2000) for commercial transmission businesses negotiated with the Network Music Rights Conference (NMRC / headquarters: Minato ward, Tokyo / Representative Manager: Ryuichi Sasaki) was applied to music usage on the Internet and portable terminals. However, on condition that both parties will continue to negotiate the application of certain portions of the tariff, both parties officially came to terms, acknowledging the fact that a prolonged copyright usage fee negotiation could hinder the legitimate growth of the music transmission business which has garnered much public interest, and that prioritizing the establishment of fair and generally acceptable rules will help the nurturing of music culture using such networks.

At the same time, the range of the license has been widened to include music usage on the Internet and portable terminals in general, answering to public demand, as requests for licenses applicable for non-commercial usage of music on the Internet and portable terminals by schools and individuals has increased significantly.



Tariff applicable to commercial services
The interim usage fee negotiated with the NMRC has been applied to most commercial services including record producers, regardless of whether they are affiliated with the NMRC or not, and therefore it is believed that it has become widely known. In submitting the tariff to the ACA, with most of the terms of the interim usage fee in tact, and with adjustments negotiated with the NMRC made to further reflect current conditions, a formal agreement was established. Commercial services are services which require the payment of information service charges, and also include services with advertising and other forms of revenue.
Tariff applicable to non-commercial services

While the NMRC has commented that significant consideration must be awarded to the opinions of users who are individuals (not corporate entities), there are no associations representing schools and individuals in this field. Therefore, in establishing a new tariff applicable for non-commercial transmissions, JASRAC tariffs applicable to the reproduction of tapes and publications for schools and individuals were referred to, while consideration was given to the diversity of individual users, and also to ease of license application.
Upon the acknowledgment that an ample period of promulgation will be necessary, the non-commercial transmission tariff will go into effect on April 1, 2001.
It should be noted that, even if the non-commercial transmission tariff is approved by the ACA, for operators of illegal homepages who post MP3 files and other material infringing the rights (neighboring rights) of record producers, performing artists, broadcasters and cable operators, JASRAC will not issue a license unless such rights infringements are resolved, and furthermore, will continue to elect severe measures including the pursuit of responsibility through criminal and civil actions for copyright infringement.
Significance of the submission for approval

With regard to networks, the most significant of which is the Internet, a misunderstanding presuming that "music is free" has prevailed. The current copyright law has gone through several revisions to establish international harmonization and to correspond to network and digital usage, and while the copyright protection scheme is nearing completion from a legal standpoint, the establishment of rules for the licensing of usages has lagged behind. Consequently, a situation where requests for licenses by schools and individuals could not be answered continued. The establishment of a tariff for non-commercial transmissions will create an environment where all music usage over networks can be conducted legally. For instance, because the fee for the usage of a pre-existing work on a homepage will be made public, potential users may consider whether they wish to pay the fee to use works controlled by JASRAC, and apply for a license if they chose to do so.
Not everything is without restraints, and not everything is for free on the Internet. To enjoy music, it is necessary to obtain a license and to pay a copyright usage fee. In the information society, taking good care of the intangible is the key to developing an IT industry, and in this respect as well, the approval of this tariff will be of great significance.
[Information]
Copyrights and neighboring rights
The rights of the author or composer to allow the use of his or her musical work by a third person are called copyrights. For usages over networks, the reproduction right and public transmission right (including the right to make a work available) are exercised. Those whose activities are to transmit music to the public, such as record producers, performing artists, broadcasters and cable operators, also have rights that are called neighboring rights, and the reproduction right and the right to make a work available (there are minor differences depending on the type of neighboring rights owner) are exercised. For instance, when a CD sold on the market or a recording of a radio broadcast is made available on a homepage, licenses for the music copyright as well as the neighboring rights will be required.
Organizations affiliated with the NMRC
Association of Musical Electronics Industry (AMEI)
Association of Multimedia Developers (AMD)
Telecom Services Association, Japan (TELESA)
Electronic Network Consortium (ENC)
Internet Association of Japan (IAJ)
Japan Internet Providers Association (JAIPA)
Association of Copyright for Computer Software (ACCS)
Unix Business Association (UBA) (observer)
Homepages
JASRAC : https://www.jasrac.or.jp
NMRC : http://www.enc.or.jp/nmrc
Negotiations between JASRAC and NMRC
° August 28, 1997
Network Music Rights Conference (NMRC) established
° November 26, 1998
Interim agreement on the charged usage of copyrighted works via interactive transmissions (effective until March 31, 1999)

° March 26, 1999
2 nd interim agreement on the charged usage of copyrighted works
via interactive transmissions (effective until March 31, 2000)
° April 3, 2000
Extension of 2nd interim agreement (effective until September 30, 2000)