JASRAC denies monopolistic practice charge

TOKYO — The Japanese Society for Rights of Authors, Composers and Publishers (JASRAC), a major rights org, has filed an appeal to the Fair Trade Commission against a February FTC ruling that Japan’s current set-up for compensating holders of rights to music used on TV and radio constitutes a monopolistic practice.

Broadcasters currently sign umbrella contracts with JASRAC, which in turns compensates rights holders for tunes used on shows, using a fixed percentage of earnings from the broadcasts. According the FTC ruling, this practice violates Japan’s Anti-Monopoly Law, since it effectively excludes new entrants to the rights management biz.

In its appeal, JASRAC claims that this ruling runs counter to industry practices in not only Japan, but in other advanced countries. The outcome of the appeal will have a big impact on the way the local biz manages rights.

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