Once a commercial phonogram has been sold for the first time in Japan and three years have elapsed since the date of its first sale, a person seeking to make a sound recording of a musical work whose sound has been recorded onto that phonogram with the authorization of the copyright owner and to thereby produce a different commercial phonogram may, if all of the following items are satisfied, make such a sound recording or make such a commercial phonogram available to the public through its transfer pursuant to a compulsory license by the Commissioner of the Agency for Cultural Affairs and after paying compensation to the copyright owner in the amount that has been fixed by the Commissioner as equivalent to the ordinary rate of royalties.
the person has requested the copyright owner to agree to authorize that person to make such a sound recording or to make such a commercial phonogram available to the public through its transfer, but an agreement cannot be reached or deliberations about this cannot be entered into;
it is not clear that the author intends to discontinue the sound recording or other exploitation of that musical work.
The provisions of paragraphs (3) and (4) of the preceding Article apply mutatis mutandis to the compulsory license referred to in the preceding paragraph.
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