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June 1, 2006
JASRAC


Japanese Society for Rights of Authors,
Composers and Publishers

JASRAC STARTS APPLICATION OF NEW RATES FOR
"DOWNLOADS WITH EXPIRATION DATES" AND "AUDIO PROGRAMS"

- MORE FLEXIBLE IN DEALING WITH MEDIA-STORAGE TYPE TRANSMISSIONS AND PODCASTING,
IN TUNE WITH ACTUAL BUSINESS -


Japanese Society for Rights of Authors, Composers and Publishers (JASRAC) has set new rates to deal with download transmission services by means of new forms of music distribution over networks, "downloads with expiration dates*" (so-called media-storage type transmission services) and "audio programs**" such as Podcasting, and will start licensing usages from June 1, 2006.

The new rates to be applied are set as follows: "downloads with expiration dates" are divided into "downloads which are mainly music" and "downloads which are not mainly music." Then, the number of days which data can be played back at the downloaded end are divided into two categories, and for each, a monthly per-work fee rate is set depending on the information service charge and/or the revenue. For "audio programs"
(excluding those which consist of music only), a per-program rate and not a per-work rate has been set.
The new rates have been agreed with the NMRC (Network Music Rights Conference), a user representative, and will be applied provisionally within the scope of the current Article 11 "Interactive Transmissions" in the Tariffs for Use of Musical Works.

JASRAC expects that use of music will be promoted in new business models over networks. Its policy is to continue showing flexibility in dealing with the application of tariff provisions.

Details of the new rates and the scope of application are as follows:



[Downloads with Expiration Dates]

Article 11 "Interactive Transmissions" Section 1-1 and 1-3 and Note 4 in the Tariffs for Use of Musical Works shall be applied.

(Downloads subject to application)

  Downloads which cannot be reproduced from the receiving terminal to other memory devices and which has a limit to the period which relevant data can be played back at the receiving end.

1. Application based on 1-1 Commercial transmissions (where the main purpose is to transmit musical works)

Rates per work per download

Limitation on playback With information service charge and advertising and/or other revenue With advertising and/or other revenue only With no revenue
Within 30 days 5.6% of information service charge or 5.6 yen, whichever is higher 5 yen 4.5 yen
Within 7 days 4.5% of information service charge or 4.5 yen, whichever is higher 3.85 yen 3.5 yen

2. Application based on 1-3 Commercial transmissions (where the main purpose is to transmit non-musical copyrighted works)

Rates per work (per content) per download

Limitation on playback With information service charge and advertising and/or other revenue With advertising and/or other revenue only With no revenue
Within 30 days 4.5% of information service charge or 4.5 yen, whichever is higher 3.85 yen 3.5 yen
Within 7 days 3.6% of information service charge or 3.6 yen, whichever is higher 3.2 yen 2.8 yen

· In case the amount obtained by the above is less than 5,000 yen, the monthly fee shall be 5,000 yen.
· Consumption tax shall be added to the fee.


[Audio Programs] such as "Podcasting"

Article 11 "Interactive Transmissions" Note 14 in the Tariffs for Use of Musical Works shall be applied.

(Definition of audio program)

  A unit of a program consisting of audio material such as musical works (one or more works, also includes parts of works) or comments, transmitted upon one request in a format which cannot be received dividedly. However, those consisting only of musical works shall be excluded.

Rates per audio program per download

Limitation on playback With information service charge and advertising and/or other revenue With advertising and/or other revenue only With no revenue
None 7.7% or 7.7 yen or 3.8 yen multiplied by the number of works, whichever is highest 6.6 yen or 3.3 yen multiplied by the number of works, whichever is higher 5.5 yen or 2.7 yen multiplied by the number of works, whichever is higher
Within 30 days 5.6% or 5.6 yen or 1.4 yen multiplied by the number of works, whichever is highest 5 yen or 1.2 yen multiplied by the number of works, whichever is higher 4.5 yen or 1.1 yen multiplied by the number of works, whichever is higher
Within 7 days 4.5% or 4.5 yen or 1.1 yen multiplied by the number of works, whichever is highest 3.85 yen or 0.96 yen multiplied by the number of works, whichever is higher 3.5 yen or 0.8 yen multiplied by the number of works, whichever is higher

However, in case playback is limited to 3 days or 3 times within 7 days and the playback time is 10 minutes or less, 3.85 yen in the "With advertising and/or other revenue only" category shall be read as 2.5 yen, and 3.5 yen in the "With no revenue" category shall be read as 2.25 yen multiplied by the number of total monthly requests, regardless of the number of works.

· In case the amount obtained by the above is less than 5,000 yen, the monthly fee shall be 5,000 yen.
· Consumption tax shall be added to the fee.
· In case a medley work is used, each of the songs comprising the medley shall be counted as one work.
· In case a work is used more than once, each use shall be counted as one work.

* "Downloads with expiration dates" - Transmission which by DRM technology can only be played back by the terminal which received the data and which is limited the playback period after downloading.
** "Audio programs" - Programs such as Podcasting, which is comprised of audio material such as one or more musical works and comments, and which cannot be received dividedly (excludes programs consisting of musical works only).

End