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- Agreement between the Association For Protecting Music Education and JASRAC Concerning Royalty Rates for Musical Instrument Classes
The Association For Protecting Music Education and the Japanese Society for Rights of Authors, Composers and Publishers (JASRAC) announced on February 28 that they have reached an agreement on new royalty rates for musical instrument classes. These rates aim to ensure the development of music culture and the continuity of music education that supports it, as well as the proper protection of copyrights. The rates also clarify how works are used in musical instrument classes.
Outline of royalty rates for "performances, etc. of musical instruments by instructors of musical instrument classes"
Musical instrument class operators pay royalties as follows:
- Royalties for lessons for adults are 750 yen (excluding tax) per student per year;
- Royalties for lessons for children (junior high students and younger) are 100 yen (excluding tax) per student per year; and
- For minimal use (Administered Works are used a few times a year and not on a regular basis): Royalties are set for each lesson and each piece of music.
During the negotiations, the parties discussed appropriate royalties for the copyrighted scope covered by copyright that has been determined by the Supreme Court (instructors' performances or performances of sound recordings). Reaching an agreement took two years from the Supreme Court's decision, since considerable time was spent on discussing how to interpret it during the earlier stages of the negotiations.
The main purpose of these rates is to protect the future of music. Especially, consideration has been given not to impose restrictions on the selection of music for children's lessons. As before, royalties do not apply to classes that are run by individuals.
The new rates will come into effect in April this year. After that, musical instrument class operators will pay royalties retroactive to the start of the administration of the new rates (April 2018) and the parties will proceed with their respective operations in accordance with the new rates for musical instrument classes.
Comments by OIKE Masato, President, Association For Protecting Music Education
Music enriches people's minds, promotes connections between people and is an integral part of society. The development of music culture requires a virtuous cycle of (i) the promotion of use, (ii) the protection of right holders and (iii) an increase in the number of music performers. This case was about how this cycle should be maintained. During the past eight years, we have been able to achieve massive successes: new legal interpretations of copyrights, and new royalty rates that take into consideration the children upon whom our future dependent. We musical instrument class operators take this decision seriously and will further our initiatives to increase the number of music performers.
Comments by IZAWA Kazumasa, President, JASRAC
We have reached an agreement with the Association For Protecting Music Education on royalty rates. During the past eight years, we have reviewed the balance between the protection of copyrights and the use of music. We recognize that providing those attending musical instrument classes, especially children, with opportunities to enjoy a wide variety of music is critical to the continuous development of music culture. With this in mind, we were able to reach an agreement on new royalty rates that are satisfactory to both parties. With its administration starting under the new royalty rates, JASRAC will be engaged in efforts to ensure that musical instrument class operators are able to use musical works with peace of mind, having received adequate explanations beforehand.
Association For Protecting Music Education
The Association For Protecting Music Education was formed in February 2017 by seven companies and organizations running music education businesses in order to respond to JASRAC's initiatives to collect royalties from musical instrument classes. Subsequently, the Association called on other relevant companies and organizations to join the organization. It currently has more than 300 corporate members.
Timeline
June 7, 2017 | JASRAC submits royalty rates for performances, etc. in musical instrument classes to the Agency for Cultural Affairs |
June 20, 2017 | Musical instrument class operators file a lawsuit against JASRAC Musical instrument class operators filed a lawsuit with the Tokyo District Court to confirm that JASRAC does not have claims (i.e., that copyrights do not extend to) the usage of music by means of performances in musical instrument classes. |
July 4, 2017 | Negotiations under the Act on Management Business of Copyright and Neighboring Rights (hereinafter AMBC) The Association For Protecting Music Education requested negotiations with JASRAC regarding the pending lawsuit to request that JASRAC withdraw and not implement royalty rates for performances, etc. in musical instrument classes. |
December 21, 2017 | Request for the decision by the Commissioner of the Agency for Cultural Affairs (hereinafter ACA) under AMBC Citing unsuccessful negotiations with JASRAC, the Association For Protecting Music Education requested that the Commissioner make a decision to suspend the implementation of the royalty rates until a ruling is rendered in the aforementioned lawsuit. |
March 7, 2018 | Decision and administrative guidance by the Commissioner of ACA under AMBC The ACA decided not to suspend the implementation of royalty rates since the lawsuit was pending and the suspension period could not be specified. At the same time, the Agency issued administrative guidance to JASRAC stating that it was to take appropriate measures to avoid confusion among the public, such as not individually demanding royalties from the musical instrument class operators who were the plaintiffs in the lawsuit. |
April 1, 2018 | JASRAC implements royalty rates for performances, etc. in musical instrument classes |
February 28, 2020 | Judgment by Tokyo District Court The Court ruled that copyrights extend to the usage of music by means of performances in musical instrument classes, and dismissed the claims of the musical instrument class operators. |
March 4, 2020 | Musical instrumental class operators file appeal to Intellectual Property High Court |
March 18, 2021 | Judgment by Intellectual Property High Court The judgment held that musical instrument class operators are responsible for performances by instructors and the performances of sound recordings, but that they could not be held responsible for performances by students. The original judgment was modified in this respect. |
March to April 2021 | JASRAC and musical instrument class operators both file appeal |
October 24, 2022 | Judgment by Supreme Court The Supreme Court rendered a decision on July 28, 2022 rejecting the petition for the acceptance of the final appeal filed by the musical instrument class operators with regard to instructors' performances and performances of sound recordings. On October 24, it dismissed JASRAC's appeal on performances by students. |
From December 2022 | Negotiations under AMBC Following the judgment of the Supreme Court, the Association For Protecting Music Education and JASRAC started negotiations regarding royalties, etc. for performances in musical instrument classes, specifically performances by instructors and performances of sound recordings. |