Musicbusinessworldwide.com
Japan has passed sweeping copyright reforms that will, for the first time, entitle performers and record companies to royalties when their recordings are played in public venues, bringing the country’s music rights framework closer in line with international standards.
The revised Copyright Act, approved by Japan’s parliament on June 17, introduces a new neighboring rights payment system covering the public use of commercially released recordings in spaces such as restaurants, retail stores, hotels, gyms and other businesses. The legislation marks a significant shift in a market where only songwriters, composers and music publishers have traditionally received compensation for background music usage.
Under the previous system, royalties generated from public performances of recorded music were distributed solely to music creators and publishers, while featured artists and the labels that financed and released those recordings were excluded from payments. The new framework extends compensation rights to performers and record producers, creating an additional revenue stream for the recorded music sector.
The reform is expected to have implications beyond Japan’s borders. Because many countries operate reciprocal royalty systems, the absence of an equivalent right in Japan has historically prevented Japanese artists and labels from collecting certain public performance royalties overseas. Industry stakeholders believe the change could unlock new international revenue opportunities as Japanese music continues to gain traction globally.
Government officials have framed the legislation as part of a broader effort to strengthen the country’s creative industries and support the international expansion of Japanese music. The move comes as artists including YOASOBI and Fujii Kaze continue to build audiences outside their home market, helping fuel renewed growth in Japan’s recorded music business.
A designated collection organization, to be appointed by the Agency for Cultural Affairs, will be responsible for administering the new royalties and distributing payments to rights holders. The body will also establish fee structures and negotiate rates with businesses and organizations that use recorded music commercially.
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