Copyright Act

The Commissioner of the Agency for Cultural Affairs may designate, as the person to carry out compensation management functions, only one general incorporated association or general incorporated foundation in the whole country that is found to be capable of properly and reliably carrying out the functions provided for in Article 104-20 (hereinafter referred to as "compensation management functions" in this Section and Article 122-2, item (iii)).

A designation under the provisions of the preceding Article (hereinafter referred to as "designation" in this Section) is made upon the application of a person that intends to carry out compensation management functions.

A person that seeks to receive designation must submit a written application stating the following particulars to the Commissioner of the Agency for Cultural Affairs, pursuant to the provisions of Order of the Ministry of Education, Culture, Sports, Science and Technology:

the name of the person that seeks to receive designation, the name of its representative, and the location of its principal office;

other particulars specified by Order of the Ministry of Education, Culture, Sports, Science and Technology.

A person that falls under any of the following items cannot receive designation:

a person who has been sentenced to a fine under the provisions of this Act and for whom two years have not elapsed since the day on which the person finished serving the sentence or ceased to be subject to its execution;

a person whose designation was rescinded pursuant to the provisions of Article 104-31, paragraph (1) or (2) and for whom two years have not elapsed since the date of the rescission;

a person that has among its officers a person who falls under any of (a) through (c):

a person who has been sentenced to imprisonment or a heavier punishment, or sentenced to a fine under the provisions of this Act, and for whom two years have not elapsed since the day on which the person finished serving the sentence or ceased to be subject to its execution;

a person who has been dismissed by an order under the provisions of Article 104-24, paragraph (2) and for whom two years have not elapsed since the date of the dismissal;

a person who, within sixty days before the date of the notice under Article 15 of the Administrative Procedure Act concerning the disposition of rescission under the provisions of Article 104-31, paragraph (1) or (2), was an officer of the corporation that received that rescission, and for whom two years have not elapsed since the date of the rescission.

When the Commissioner of the Agency for Cultural Affairs has made a designation, the Commissioner is to give public notice in the Official Gazette of the particulars provided for in paragraph (2), item (i) and other particulars specified by Order of the Ministry of Education, Culture, Sports, Science and Technology.

A person that has received designation (hereinafter referred to as a "designated compensation management organization" in this Section) must, when changing the particulars set forth in the items of paragraph (2), notify the Commissioner of the Agency for Cultural Affairs to that effect by two weeks before the change, pursuant to the provisions of Order of the Ministry of Education, Culture, Sports, Science and Technology.

When a notification under the provisions of the preceding paragraph has been made concerning the particulars provided for in paragraph (4), the Commissioner of the Agency for Cultural Affairs is to give public notice to that effect in the Official Gazette.

A designated compensation management organization is to carry out the following functions:

functions related to the receipt of compensation paid pursuant to the provisions of paragraphs (1) and (2) of the following Article;

functions related to the receipt of compensation and collateral paid pursuant to the provisions of Article 67-2, paragraphs (1) and (5) (including as these provisions are applied mutatis mutandis pursuant to Article 103) as applied with terms replaced pursuant to paragraph (3) of the following Article;

functions related to the management of compensation and collateral received pursuant to the provisions of the preceding two items;

functions related to payment to copyright owners and owners of neighboring rights pursuant to the provisions of Article 67-2, paragraph (8) (including as applied mutatis mutandis pursuant to Article 103) as applied with terms replaced pursuant to paragraph (3) of the following Article and pursuant to paragraph (4) of the following Article;

functions related to the work protection and use facilitation project provided for in Article 104-22, paragraph (1).

The provisions of Article 67, paragraph (2) and Article 67-3, paragraph (11) (including as these provisions are applied mutatis mutandis pursuant to Article 103) do not apply if a designated compensation management organization carries out compensation management functions.

When a designated compensation management organization carries out compensation management functions, a person that is required to deposit compensation pursuant to the provisions of Article 67, paragraph (1) and Article 67-3, paragraph (1) (including as these provisions are applied mutatis mutandis pursuant to Article 103; the same applies hereinafter in this Article) is to pay that compensation to the designated compensation management organization, notwithstanding those provisions. In this case, with regard to the application of Article 67, paragraph (7) (including as applied mutatis mutandis pursuant to Article 67-3, paragraph (6); the same applies hereinafter in this paragraph) and Article 67-3, paragraphs (9) and (10) (including as these provisions are applied mutatis mutandis pursuant to Article 103; the same applies hereinafter in this paragraph), the term "applicant" in Article 67, paragraph (7) is deemed to be replaced with "applicant and the designated compensation management organization provided for in Article 104-19, paragraph (5) (referred to as the "designated compensation management organization" in Article 67-3)", the phrase "deposited pursuant to the provisions of that paragraph in connection with the right to receive the compensation referred to in paragraph (1)" in Article 67-3, paragraph (9) is deemed to be replaced with "paid to the designated compensation management organization pursuant to the provisions of Article 104-21, paragraphs (1) and (2)", and the term "deposited" in Article 67-3, paragraph (10) is deemed to be replaced with "paid to the designated compensation management organization".

A designated compensation management organization that has received payment of compensation pursuant to the provisions of paragraphs (1) and (2) must, if a request is made by the copyright owner or owner of neighboring rights of the work that is the subject of the compulsory license under Article 67, paragraph (1) or Article 67-3, paragraph (1), pay an amount equivalent to the compensation that the copyright owner or owner of neighboring rights is entitled to receive for the exploitation of that work.

A designated compensation management organization must expend, out of the amount remaining after deducting the amount paid to copyright owners and owners of neighboring rights pursuant to the provisions of Article 67-2, paragraph (8) as applied with terms replaced pursuant to paragraph (3) of the preceding Article and pursuant to paragraph (4) of the preceding Article from the amount of compensation and collateral paid pursuant to the provisions of paragraphs (1) and (2) of the preceding Article and Article 67-2, paragraphs (1) and (5) as applied with terms replaced pursuant to paragraph (3) of the preceding Article, an amount equivalent to the amount calculated as specified by Cabinet Order, with the aim of ensuring that no obstacle arises to future payment to copyright owners and owners of neighboring rights and taking into account the amount expected to be paid, the expenses required for the administration of compensation management functions and other circumstances, for projects relating to the protection of copyright and neighboring rights and projects that contribute to facilitating the exploitation of works and promoting creation (referred to as "work protection and use facilitation projects" in the following paragraph).

When a designated compensation management organization seeks to decide the content of a work protection and use facilitation project, it must hear the opinion of persons with academic knowledge and experience on that content, so that the work protection and use facilitation project will contribute to promoting the appropriate management of works.

Before establishing the Cabinet Order referred to in paragraph (1) or drafting an amendment to it, the Commissioner of the Agency for Cultural Affairs must consult the Culture Council.

A designated compensation management organization must establish rules concerning the carrying out of compensation management functions (hereinafter referred to as "compensation management function rules" in this Section) and obtain the approval of the Commissioner of the Agency for Cultural Affairs. The same applies if the designated compensation management organization seeks to change those rules.

The compensation management function rules must provide for the method of implementing compensation management functions and other matters specified by Order of the Ministry of Education, Culture, Sports, Science and Technology.

When the Commissioner of the Agency for Cultural Affairs has given the approval referred to in the first sentence of paragraph (1), the Commissioner is to give public notice to that effect in the Official Gazette.

A designated compensation management organization is to commence compensation management functions on the day following the date of the public notice under the preceding paragraph.

If the Commissioner of the Agency for Cultural Affairs finds that compensation management function rules approved under paragraph (1) have become inappropriate for the proper and reliable implementation of compensation management functions, the Commissioner may order the designated compensation management organization to change those compensation management function rules.

The appointment and dismissal of officers of a designated compensation management organization do not take effect unless approved by the Commissioner of the Agency for Cultural Affairs.

If an officer of a designated compensation management organization has committed an act in violation of this Act, an order or disposition based on this Act, or the compensation management function rules, or has committed a grossly inappropriate act in connection with compensation management functions, the Commissioner of the Agency for Cultural Affairs may order the designated compensation management organization to dismiss that officer.