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August 22, 2006
JASRAC


Japanese Society for Rights of Authors,
Composers and Publishers

JASRAC Commences Licensing of Music Use in Internet advertisements


Japanese Society for Rights of Authors, Composers and Publishers (JASRAC) has settled on its negotiations with industry organizations concerned regarding the handling of JASRAC administered works being used in advertisements distributed by media such as Internet portal sites, etc.

Copyright of music used in advertisements on websites of advertisers, such as corporations, are already being cleared at the responsibility of the relevant corporations. However, music used in advertisements distributed by media such as portal sites require formation of rules based on how the relevant music is actually used, and JASRAC had been negotiating this matter with concerned organizations since last year.
As a result, JASRAC has agreed on the following royalty rates with the industry representative, Network Music Rights Conference (NMRC).

JASRAC expects that advertisement distribution over the Internet will be promoted by this agreement.



[Usages subject to license]

The following rates are applied when advertisement contents, which have obtained permission to be recorded for advertisement distribution, are used in distribution by streaming format or by downloading format with playback limitation (limited-period downloads) and where the royalty for the relevant copyrighted work is paid by businesses related to advertising (advertisers, advertising agencies, etc).



[Royalty rate]

1.Unit media fee method

The monthly fee shall be the amount obtained by multiplying 5% of the unit media fee per content per request by the total number of requests during a month, or 5,000 yen, whichever is higher.

2.Total media fee method

When distributions are made not on a unit media fee basis but on a total media fee basis, the monthly royalty shall be 7% of the total media fee (in case the advertisement insertion period crosses over months, the amount obtained by dividing the total media fee by the number of insertion months), or 5,000 yen, whichever is higher.



[Licensing commencement date]

Licenses will be granted by applying the foregoing from April 1, 2006.


Internet advertisements are:
Advertisements which are inserted for advertising and marketing purposes in the advertising services through communication lines (excluding websites administered by advertisers) and which are developed by using visual images and sound (narration, music) on a time-line basis. Identification of distribution method (streaming or downloading), territory, scope, etc. is required.

Recording for advertisement distribution - Recordings which the purpose is usage in advertisements on the Internet. The fee shall be an amount determined by consultation with right-owners such as music publishers.

Unit media fee - Unit advertisement fee of the advertising media
Total media fee - The total amount of advertisement fees

End