1. In Japan, collective management organizations include JASRAC and some of the organizations. Historically, when Law on Intermediary Business Concerning Copyright was enacted, the collective management organization had to be approved by the governmen...
1. In Japan, collective management organizations include JASRAC and some of the organizations. Historically, when Law on Intermediary Business Concerning Copyright was enacted, the collective management organization had to be approved by the government. Under the regime of this Law, only 1 organization, in principle, could be permitted depending on the type of copyrighted works. Following the enactment of the Law on Management Business of Copyright and Neighboring Rights, another collective management organization could be approved by the government and emerged. Prior to the enactment of the Law on Management Business of Copyright and Neighboring Rights, the only collective management organization for music had been JASRAC for 60 years. 2. When the JASRAC collected the music royalties on the use of broadcasts, JASRAC multiplied by a percentage of revenue in the broadcasting profits regardless of whether the music was used and how many times the music was used. It was the comprehensive collective management. However, it was considered “private monopoly” of Article 2 (5) of the Antimonopoly Act of Japan §2 ⑤. Also, it was the issue as to whether it was the violation of Article 3 of the Antimonopoly Act of Japan. The Japanese Fair Trade Commission gave the retraction order to JASRAC but the Commission ruled out the retraction order. Afterwards, Tokyo High Court cancelled the ruling of the Fair Trade Commission of Japan. The Japanese Supreme Court also supported the Tokyo High Court’s judgement. 3. Based on the Japanese Supreme Court``s holding, the broadcasting organizations and the collective management organizations including JASRAC have reviewed and discussed the royalty system depending upon the percentage of music use in broadcast. Also, Avex Group Holdings Ltd. Corp. purchased the stock of Japan Rights Clearance Inc and E-license(the main collective management organization in Japan) using by Avex Music Publishing Inc., its subsidiary company. Avex Group announced that it will discuss the integration of the two companies`` businesses and it was reported that it will use E-license instead of entrusting most of their property rights to JASRAC in terms of 100,000 musics of theirs. 4. Consequently, the collective management organizations will compete with each other. Also, new services about the digital contents will emerge, resulting in active changes of and competition among, collective management organizations.