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May 22, 2002
JASRAC

Japanese Society for Rights of
Authors, Composers and Publishers

Regular Press Conference 2002

Royalty Collection Figures for 2001

JASRAC’s total royalty collection for 2001 was 105,280,000,000 JPY (approx. 910 million EUR). This is a 1,040,000,000 JPY (approx. 8 million EUR), or 1.0% decline from last year.
A breakdown is provided in the appendix “Royalty Collection for 2001.”

Administration Utilizing New Technology

The following operations were undertaken during 2001 to realize the “DAWN 2001”concept announced in 1999.

1.	In order to establish an Internet copyright administration system that also covers non-commercial online transmissions from personal websites, which JASRAC has been licensing since July 2001, JASRAC launched operations of its J-TAKT online license application system, J-CLEF automatic license logo issuance system which incorporates an electronic watermark to prevent counterfeiting, and J-MUSE Internet surveillance system to identify illegal data files of copyright works.
2.	JASRAC conducted the “STEP 2001”electronic watermark evaluation project, to verify current technology levels of watermarks and to promote their usage. An enhanced version of the “STEP 2000”project conducted the year before, it recognized watermarking technologies whose technology levels met the technical requirements for actual deployment in the field of Internet transmissions of copyright works. The results were announced in October 2001.
3.	As the first phase for the digitization of musical works registration, JASRAC developed an online work registration system and conducted a pilot program with the cooperation of some of its members. The system is now ready for deployment.
4.	JASRAC discussed and negotiated with relevant organizations in order to digitize music usage reports. JASRAC has begun development of a computer application for broadcasters (J-BEAT) and a registration system for the reporting of works that have been broadcast, and is also developing an online licensing system for record companies.

Efforts Against Copyright Infringement Using File-Sharing Programs

JASRAC initiated a criminal case, a provisional injunction request and litigation on merits in 2001 to prevent further damage being done in terms of copyright infringement by file-sharing programs.

[Provisional Injunction Request]
	On January 29, 2002, JASRAC applied for a provisional injunction to the Tokyo District Court seeking to halt the file-sharing of JASRAC repertoire via a Japanese file-sharing system called "File Rogue," a technology originally developed by a company in Canada, and provided in Japan by MMO Japan Ltd. 19 record companies affiliated with the Recording Industry Association of Japan also filed a similar provisional injunction request on the same day.
[Litigation on Merits]
	MMO Japan indicated its intentions to contend the aforementioned provisional injunction requests. Recognizing that acts of copyright infringement were being continued at the substantial expense of the copyright holders, JASRAC initiated litigation on merits demanding a halt to the file-sharing plus damages of 214,330,000 yen (approx. 1.8 million Euros), without waiting for a decision on the provisional injunction request.
[Criminal Suit]
	On December 7, 2001, JASRAC filed a complaint with the Kyoto Prefectural Police’s Yamashina Police Department against a vocational school student for making MP3 music files reproduced from commercial CDs available for sharing using the file-sharing program “winMX,”on charges of infringing the right to make transmittable and the right of reproduction. On March 26, 2002 the Kyoto Summary Court issued a summary order of a \400,000 (approx. 3,400 EUR) penalty against this individual.

Efforts to Comply with the Law on Management Business of Copyright and Neighboring Rights

To comply with the Law on Management Business of Copyright and Neighboring Rights, which came into effect on October 1, 2001, JASRAC newly established or amended various rules and regulations, including its Stipulations for Copyright Trust Contract. On October 2, the new Stipulations for Management Consignment Contract (effective April 1, 2002) and Tariffs (effective November 1, 2001) were submitted to the Commissioner of the Agency for Cultural Affairs.
This introduced a “Selective Scope of Management Consignment” whereby copyright owners can select the extent to which they wish to entrust JASRAC with their rights along predetermined rights and usage categories. The transition process was prepared carefully, promulgating application requirements and making substantial changes to the computer systems, to make sure there was no confusion.

JASRAC Cultural Activities Conducted During 2001

From 1998, JASRAC has been conducting public benefit cultural programs, funded mainly by membership dues, with “programs for the promulgation of the concept of copyrights,”“assistance programs for the creation and popularization of musical works,”and “assistance programs for research on the utilization of music” forming the three main pillars.
In its fourth year, 31 programs were conducted in 2001, the most for any single year so far. Also, programs for the promotion and popularization of copyright works in general with subsidies from the Common Interest Fund of the Remuneration for Audio Home Recording, as well as activities to publicize and explain JASRAC’s cultural activities were undertaken.

Administration of Background Music

With regard to the administration of background music (public performance of sound recordings as well as communication to the public through public transmissions), licensing agreements have been concluded with most background music providers in an arrangement known as “source licensing,”where the background music provider pays the usage fees on behalf of the individual establishments that are utilizing the background music they provide. Administration began in April 2002.

2002 JASRAC Awards -“Everything” Receives Gold Awar

The 2002 JASRAC Award recipients have been determined.
The JASRAC Awards are presented to the right owners of the works that received the largest sums of royalty distributions during the previous fiscal year, to honor their accomplishments, and as a token of gratitude for their contributions to JASRAC. This marks the 20th anniversary of the Award, and is based on royalties distributed from April 2001 to March 2002. Also, letters of thanks are sent to the record companies responsible for the production and distribution of the works receiving the Gold, Silver and Bronze Awards, for their accomplishments in disseminating and popularizing these works.

The 2002 JASRAC Award recipients are:

Gold Award (Domestic work receiving largest amount of royalty distribution)	“Everything”
	Lyricist	Misia
	Composer	Toshiaki MATSUMOTO
	Publisher	FujiPacific Music, Inc. Rhythmedia Music, Inc.
	Record Company	BMG Funhouse
	Performing Artist	Misia

Silver Award (Domestic work receiving 2nd largest amount of royalty distribution)	“Can You Keep A Secret?”
	Lyricist	Hikaru Utada
	Composer	Hikaru Utada
	Publisher	FujiPacific Music, Inc. U3Music
	Record Company	Toshiba EMI
	Performing Artist	Hikaru Utada

Bronze Award (Domestic work receiving 3rd largest amount of royalty distribution)	“Lion Hearts (Yes)”
	Lyricist	Shinji Nojima
	Composer	Minoru Komorita
	Publisher	Nippon Television Music Corp. Johnny Company
	Record Company	Victor Entertainment
	Performing Artist	SMAP

International Award (Domestic work receiving largest amount of foreign royalty distribution)	“Pocketmonster BGM”
	Composer	Shinji Miyazaki
	Publishers	TV Tokyo Music Co., Ltd. Shogakukan Music & Digital Entertainment Co., Ltd. Media Factory, Inc.

Foreign Work Award (Foreign work receiving largest amount of royalty distribution)	“Stand By Me”
	Lyricists & Composers	Ben E. King (BMI) Jerry Leiber (ASCAP) Mike Stoller
	Original Publishers	Leiber Jerry Music (ASCAP) Stoller Mike Music (ASCAP) Mike And Jerry Music LLC (BMI)
	Sub-publishers	FujiPacific Music, Inc. Yamaha Music Foundation

Appendix:
“Royalty Collection for 2001”

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