eLicense administers copyrights of musical works.
Before the enactment of the Act on Management Business of Copyright and Neighboring Rights (the “Act”) in October 2001, JASRAC was the only entity which provides musical copyright administration in Japan. eLicense is the first private entity which was registered as a collecting society after enactment of the Act.
The licenses administered by eLicense include the license relating to music records, video gram, recording on CDs or DVDs, game software, movie music, music for TV commercial, interactive delivery of music, broadcasting, publishing, rent, and karaoke
The amount of fees/royalties to be paid to collecting societies are exclusive of VAT (in Japan, it is called "consumption tax"). The person who wants to receive license from the collecting societies has to pay the amount plus 5 % consumption tax.
Notes:
Information for eLicense Inc. was contributed by the CMO through Baker & McKenzie
+ Television Broadcasting
The license permits the licensee to use music within any materials broadcast through televisions (other than TV commercials broadcasted by the licensee).
Under the comprehensive licensing contracts the license fees are as follows:
Under the individual licensing contracts, the license fee is determined based on the length of the music used in the program for ground-based broadcasting and satellite broadcasting, and based on both the length of the music and the number of the subscribers for cable televisions.
N/A
+ Radio Broadcasting
The license permits the licensee to use music within any materials broadcast through radio.
Under the comprehensive licensing contracts for radio stations, the license fee is a flat fee of 1.5% of the licensee’s revenue from radio business.
Under individual licensing contracts, the license fee is determined based on the length of the music used in the program.
Under the licensing contracts for cable radio stations, the license fee is a flat fee of 2% or less of the licensee’s revenue from radio business.
+ Online and Mobile Services
The license permits the licensee to conduct music transmission services including both music streaming services and download services. On 29 November 2012, the conditions focusing on online music games have been added.
The license fee is calculated based on the amount of licensee’s revenues from advertising, the number of requests for transmission of the music and other factors. The limitation on the number of copies of the downloaded music that can be made is also taken into consideration. The license fee can be reduced if there is a limitation on the number of copies permitted.
In addition, a minimum payment is required.
+ Playing Content to the Public or Offering Content to the Public for Rent
The license permits the licensee to rent compact discs.
Under the comprehensive licensing contracts, the license fee is determined based on how many times music recordings were rent per month.Under individual licensing contracts, the license fee is determined based on the regular sales price of CDs, etc. subject to the rent. In case there is no regular sales price for the CDs, etc., the license fee is determined based on the type of recordings. For example, the fee for license to rent a single CD is JPY 15 per compact discs, and the fee to rent a CD album is JPY 70 per CD.
+ Physical Product
The license permits the licensee to record music into compact discs, hard disks, or any other recoding devices.
The license fee is determined by the length (The license fee per song is calculated based on the retail price of the medium [i.e., compact disc, etc.] and the total number of works [songs and/or music] contained in the medium. If the retail price is not available, the fee is determined on case-by-case basis.) If the compact discs etc. produced under this license will be sold, the price of the compact discs etc. is also taken into consideration.
The license permits the licensee to record music together with movies into compact discs, hard disks, or any other recoding devices.
The license fee is determined by the contents of the movie to be recorded with the music and the length of the music.
+ Others
This license permits the licensee to use music in the movie.
The license fee is determined by the copyright owner.
The license permits the licensee to deliver music for karaoke machines online based on demand of users.
Under the comprehensive licensing contracts, the license fee is determined based either on the number of requests or on the number of karaoke sets which receive the music to play karaoke. Minimum payment is required.Under individual licensing contracts, the license fee is determined based on the amount and length of the music available for karaoke.