Copyright Act

A registered verification body must establish rules concerning the implementation of verification and other affairs (hereinafter in this Article and the following Article referred to as "rules on verification and other affairs") and obtain the approval of the Commissioner of the Agency for Cultural Affairs before commencing verification and other affairs. The same applies when it seeks to change them.

The rules on verification and other affairs must provide for the method of implementing the affairs pertaining to acceptance of applications and verification of requirements, the method of calculation of the royalty-equivalent amount, and other matters specified by Order of the Ministry of Education, Culture, Sports, Science and Technology.

When a registered verification body intends to apply for the approval under paragraph (1) for the rules on verification and other affairs (limited to the part pertaining to the method of calculation of the royalty-equivalent amount; referred to as "calculation method rules" in the following paragraph and paragraph (5)), it must hear the opinions of the following persons:

a copyright management service;

an association (including a federation of associations) that has copyright owners or owners of neighboring rights as its members and that is found to represent the interests of copyright owners or owners of neighboring rights in Japan.

The Commissioner of the Agency for Cultural Affairs must not grant the approval under paragraph (1) for rules on verification and other affairs that include calculation method rules unless the Commissioner finds that those calculation method rules are appropriate in view of the purport of the provisions of Article 67-3, paragraph (1).

Before granting the approval referred to in paragraph (1) for the rules on verification and other affairs, including the calculation method rules, the Commissioner of the Agency for Cultural Affairs must consult the Culture Council.

If the Commissioner of the Agency for Cultural Affairs finds that rules on verification and other affairs approved under paragraph (1) have become inappropriate for the proper and reliable implementation of the verification and other affairs, the Commissioner may order the registered verification body to change those rules.

A registered verification body must carry out the verification and other affairs fairly and in accordance with the standards specified by Order of the Ministry of Education, Culture, Sports, Science and Technology and the rules on verification and other affairs approved under paragraph (1) of the preceding Article.

If a registered verification body is a corporation, when it has appointed or dismissed an officer, it must without delay notify the Commissioner of the Agency for Cultural Affairs to that effect.

A registered verification body must periodically report to the Commissioner of the Agency for Cultural Affairs on the status of implementation of the verification and other affairs, as provided by Order of the Ministry of Education, Culture, Sports, Science and Technology.

For each business year, within three months after the end of that business year, a registered verification body must, as provided by Order of the Ministry of Education, Culture, Sports, Science and Technology, prepare the inventory of assets, balance sheet and profit and loss statement or statement of income and expenditure, and business report for that business year (including, where an electronic or magnetic record has been prepared in lieu of preparing these, that electronic or magnetic record; referred to as "financial statements, etc." in the following paragraph and Article 125), enter or record in them the matters specified by Order of the Ministry of Education, Culture, Sports, Science and Technology, and keep them at its office for five years.

A person who wishes to obtain the compulsory license under Article 67-3, paragraph (1) and other interested persons may, at any time during the business hours of a registered verification body, make any of the following requests; provided, however, that to make a request set out in item (ii) or item (iv), they must pay the fee specified by that registered verification body.

if the financial statements, etc. have been prepared in writing, a request to inspect that document or a copy of that document;

a request for the delivery of a transcript or extract of the document referred to in the preceding item;

if the financial statements, etc. have been prepared as an electronic or magnetic record, a request to inspect the matters recorded in that electronic or magnetic record, displayed by a method specified by Order of the Ministry of Education, Culture, Sports, Science and Technology;

a request that the matters recorded in the electronic or magnetic record referred to in the preceding item be provided by a method specified by Order of the Ministry of Education, Culture, Sports, Science and Technology, being a method that uses an electronic data processing system connecting a computer used by the registered verification body (including input/output devices; the same applies hereinafter in this item) with a computer used by the person who is to be provided with those matters via a telecommunications network, or another method that applies information or communication technologies, or a request for the delivery of a document stating those matters.

A registered verification body must, as provided by Order of the Ministry of Education, Culture, Sports, Science and Technology, keep account books with regard to the verification and other affairs, enter in them the matters specified by Order of the Ministry of Education, Culture, Sports, Science and Technology, and preserve them.

To the extent necessary to ensure the proper and reliable implementation of the verification and other affairs, the Commissioner of the Agency for Cultural Affairs may ask a registered verification body to make necessary reports or submit data concerning the verification and other affairs, or may have the Commissioner's staff members enter the office of a registered verification body or any other necessary place, question persons concerning the verification and other affairs, or inspect account books, documents and other articles.

The provisions of Article 104-28, paragraphs (2) and (3) apply mutatis mutandis to an on-site inspection under the preceding paragraph.

If the Commissioner of the Agency for Cultural Affairs finds that a registered verification body has ceased to conform to any of the items of Article 104-34, paragraph (3), the Commissioner may order that registered verification body to take the measures necessary to conform to those provisions.

If the Commissioner of the Agency for Cultural Affairs finds that the verification and other affairs carried out by a registered verification body violate the provisions of Article 104-36, the Commissioner may order that registered verification body to take the measures necessary to improve the method of carrying out the verification and other affairs.

A registered verification body must not suspend or discontinue the verification and other affairs without obtaining the permission of the Commissioner of the Agency for Cultural Affairs.

When the Commissioner of the Agency for Cultural Affairs has granted the permission under the preceding paragraph, the Commissioner is to give public notice to that effect in the Official Gazette.

When the Commissioner of the Agency for Cultural Affairs has granted permission under paragraph (1) to discontinue the verification and other affairs, the registration of that registered verification body ceases to be effective.

The Commissioner of the Agency for Cultural Affairs is to rescind the registration of a registered verification body if the registered verification body falls under any of the following items:

it received registration through deception or other wrongful means;

it has come to fall under either item (i) or item (iii) of Article 104-34, paragraph (4).

The Commissioner of the Agency for Cultural Affairs may rescind the registration of a registered verification body, or order it to suspend the verification and other affairs for a specified period, if the registered verification body falls under any of the following items:

it has violated Article 104-34, paragraph (7), Article 104-37, Article 104-38, Article 104-39, paragraph (1), Article 104-40, or paragraph (1) of the preceding Article;

it has violated an order under Article 104-35, paragraph (6), Article 104-42 or Article 104-43;

it has refused a request under Article 104-39, paragraph (2) without just cause;

it has failed to make a report or submit data under Article 104-41, paragraph (1), or has made a false report or submitted false data, or has failed to answer or has given a false answer to a question under that paragraph, or has refused, obstructed or evaded an inspection under that paragraph.

When the Commissioner of the Agency for Cultural Affairs has rescinded a registration or ordered the suspension of the verification and other affairs under the preceding two paragraphs, the Commissioner is to give public notice to that effect in the Official Gazette.

The Commissioner of the Agency for Cultural Affairs may personally carry out the verification and other affairs when a registered verification body has suspended or discontinued the verification and other affairs with the permission under Article 104-44, paragraph (1), when the Commissioner has rescinded a registration or ordered a registered verification body to suspend the verification and other affairs under paragraph (1) or (2) of the preceding Article, or when the Commissioner finds it necessary in a case where it has become difficult for a registered verification body to carry out the verification and other affairs due to a natural disaster or any other cause.

When the Commissioner of the Agency for Cultural Affairs is to carry out the verification and other affairs personally pursuant to the preceding paragraph, or is to cease carrying out verification and other affairs that the Commissioner has been carrying out personally, the Commissioner is to give public notice to that effect in the Official Gazette.

If the Commissioner of the Agency for Cultural Affairs has decided to carry out the verification and other affairs pursuant to paragraph (1), the handover of the verification and other affairs and other necessary matters are specified by Order of the Ministry of Education, Culture, Sports, Science and Technology.

If a registered verification body carries out the verification and other affairs, a person who wishes to obtain the compulsory license under Article 67-3, paragraph (1) must, notwithstanding Article 67, paragraph (4) as applied mutatis mutandis pursuant to Article 67-3, paragraph (6) (including as these provisions are applied mutatis mutandis pursuant to Article 103), pay to that registered verification body the application fee in the amount specified by the Cabinet Order referred to in Article 67, paragraph (4). In this case, the fee paid is to be the revenue of that registered verification body.