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October 11, 2006
JASRAC


Japanese Society for Rights of Authors,
Composers and Publishers

JASRAC AND FIVE RIGHTS GROUPS WIN A SUPREME COURT APPEAL
- DECISION MADE BY SUPREME COURT TO REFUSE PETITION BY CATV OPERATORS
SUSPENSION OF USE OF JASRAC REPERTOIRE IN CATV IS ACKNOWLEGED -


On October 10, 2006, the third petty bench of the Supreme Court (chief justice Toyozo Ueda) decided on two cases being disputed between JASRAC and five copyright and neighboring right groups* over the use of copyrighted works by CATV. The court reached a decision on the refusal of petition for appeals from three CATV operators, finalizing the previous rulings made on August 30, 2005 at the Intellectual Property (IP) High Court which fully justified the claims of the right-owners.

The two rulings at the Supreme Court are legally consequent, and they are also creditable as they acknowledge the legitimacy of rules applicable to clearance of rights which have been developed over many years between JASRAC, each right group, Japan Cable Telecommunications Association (representing the CATV industry), program providers, consigned broadcast operators, and other related media. They also acknowledge the legitimacy of calculation of damages based on JASRAC tariffs. In addition, this is an outstanding judgment as a first case in which the suspension of usage of copyrighted works was recognized against CATV operators which do not obtain licenses to use copyrighted works.



[Summary of this CATV case]

Two cases were subject to the above rulings.
In the first case (hereinafter referred to as "JASRAC lawsuit"), JASRAC filed a lawsuit against two CATV operators which have used JASRAC repertoire in their own programs or in the retransmission of CS broadcasts without obtaining licenses from JASRAC, and also against another CATV operator who has not paid royalties based on their licensing agreement with JASRAC. In the lawsuit, JASRAC demanded suspension of use of JASRAC repertoire and damages by such use .
The other case (hereinafter referred to as "Five Groups Lawsuit") is a case in which five right-owner groups related to rights in broadcast programs, including JASRAC, WGJ (society of scenario writers), and GEIDANKYO (society of performers), filed a lawsuit as plaintiffs for payment of royalties and such based on the agreement concluded between these groups and the three aforementioned CATV operators concerning simultaneous retransmissions of terrestrial broadcasting and Broadcast Satellite broadcasting by CATV (called "Five Groups Contract").

The Tokyo District Court gave a decision on May 21, 2004, recognizing the claim from CATV operators stating that "there is no need to obtain licenses from JASRAC for retransmission of programs such as through CS broadcasts separately from the Five Groups Contract" on the JASRAC Lawsuit and stating that "the sections concerning GEIDANKYO in the Five Groups Contract is invalid due to defect" on the Five Group Lawsuit. JASRAC and five rights groups had filed an appeal to the Intellectual Property High Court, disagreeing with this decision.

On August 30, 2005, the Intellectual Property (IP) High Court upset the aforementioned decision of the first trial and acknowledged the following:
- On the JASRAC Lawsuit, apart from the Five Groups Contract, there is a need to obtain usage licenses from JASRAC to retransmit their own broadcast programs and CS broadcasting, etc. Three CATV operators were charged 11,286,689 yen in total and the suspension of use of JASRAC repertoire by two CATV operators was acknowledged.
- On the Five Groups Lawsuit, the section concerning GEIDANKYO in the Five Groups Contract is free from defect and is effective. Those three CATV operators were charged 2,976,848 yen in total.
In opposition to the rulings, on September 7, 2005, the three CATV operators had appealed to the Supreme Court against the rulings; however, the decision was made by the Supreme Court to refuse the appeals against JASRAC and the Five Rights Groups.


*Five copyright and neighboring right groups:
  Writers Guild of Japan (WGJ)
The Japan Writer's Association
Association of Scenario Writers Japan
Japan Council of Performers' Organization (GEIDANKYO)
JASRAC

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