①If an association is in existence that has as its purpose the exercise of rights on behalf of persons that own the right to receive the compensation referred to in Article 30, paragraph (3) (including as applied mutatis mutandis pursuant to the provisions of Article 102, paragraph (1); the same applies hereinafter in this Section) (hereinafter in this Section referred to as "compensation for private sound and visual recording") (hereinafter in the following paragraph and item (iv) of the following Article that persons are referred to as "right holders"), whose consent has been obtained and which the Commissioner of the Agency for Cultural Affairs has designated as the only association in the country for the relevant category of compensation for private sound and visual recording among those set forth in the following, the right to receive compensation for private sound and visual recording may be exercised exclusively through the designated association (hereinafter in this Section referred to as the "designated association"):

②A designated association has the authority to act in and out of court on behalf of a right holder, in its own name, in connection with the right to receive compensation for private sound and visual recording.

The Commissioner of the Agency for Cultural Affairs may not make a designation under the provisions of paragraph (1) of the preceding Article unless the association satisfies the following criteria:

①A person that purchases a machine or recording medium specified by Cabinet Order which is as referred to in Article 30, paragraph (3) (hereinafter in this Article and the following Article referred to as a "specified machine" and a "specified recording medium", respectively) (limited to persons that make the initial purchase of a specified machine or specified recording medium after it is retailed), if so requested by the designated association, must pay compensation for private sound and visual recording at the time of the purchase, in an amount established for the relevant specified machine or specified recording medium pursuant to the provisions of Article 104-6, paragraph (1), as a lump-sum payment representing compensation for private sound and visual recording, for the private sound recording or private visual recording that will be done using that specified machine or specified recording medium.

②A person that pays compensation for private sound and visual recording pursuant to the preceding paragraph may claim a refund of that compensation for private sound and visual recording from the designated association, by proving that the person uses the specified machine or specified recording medium for which the person has paid that compensation exclusively for purposes other than private sound recording and private visual recording.

③Notwithstanding the provisions of Article 30, paragraph (3), a person that uses a specified machine for which compensation for private sound and visual recording has been paid as per a request for payment under the provisions of paragraph (1) of this Article to do private sound recording or private visual recording on a specified recording medium for which compensation for private sound and visual recording has been paid as per a request for payment under that paragraph is not required to pay compensation for private sound and visual recording at the time of doing such private sound recording or private video recording; provided, however, that this does not apply if compensation for private sound and visual recording has been refunded for the relevant specified machine or specified recording medium pursuant to the provisions of the preceding paragraph.

If a designated association requests the payment of compensation for private sound and visual recording pursuant to the provisions of paragraph (1) of the preceding Article, a person that manufactures or imports specified machines or specified recording media in the course of trade (referred to as a "manufacturer, etc." in paragraph (3) of the following Article) must cooperate with the designated association in connection with the request for the payment of compensation for private sound and visual recording and in connection with its receipt.

①Before exercising the right to receive compensation for private sound and visual recording pursuant to the provisions of Article 104-2, paragraph (1), a designated association must fix the amount of such compensation and obtain the approval of the Commissioner of the Agency for Cultural Affairs. The same applies if the designated association seeks to change such amount.

②Notwithstanding the provisions of Article 30, paragraph (3), if the approval referred to in the preceding paragraph has been given, the amount of compensation for private sound and visual recording is the amount for which such approval has been received.

③Before applying for the approval referred to in paragraph (1) in connection with compensation for private sound and visual recording the payment of which is requested pursuant to the provisions of Article 104-4, paragraph (1), a designated association must hear the opinions of associations of manufacturers, etc. that are recognized as representing the opinions of manufacturers, etc.

④The Commissioner of the Agency for Cultural Affairs must not approve the amount of compensation for private sound and visual recording to which an application for permission under paragraph (1) pertains, unless it is found to be an appropriate amount in consideration of the purport of the provisions of Article 30, paragraph (1) (including as applied mutatis mutandis pursuant to the provisions of Article 102, paragraph (1)) and Article 104-4, paragraph (1), the ordinary rate of royalties for sound or visual recording, and any other circumstances.

⑤Before granting the approval referred to in paragraph (1), the Commissioner of the Agency for Cultural Affairs must consult the Culture Council.

①Before initiating the functions connected with compensation, a designated association must establish rules on the execution of functions connected with compensation and notify the Commissioner of the Agency for Cultural Affairs thereof. The same applies if the designated association seeks to amend these rules.

②The rules referred to in the preceding paragraph must include the particulars of the distribution of compensation for private sound and visual recording (limited to such compensation as paid pursuant to the provisions of Article 104-4, paragraph (1)), and the designated association must establish the particulars of the distribution in consideration of the purport of the provisions of Article 30, paragraph (3).

①A designated association must expend an amount equivalent to the Cabinet-Order-specified rate of within 20% of the amount of compensation for private sound and visual recording (limited to such compensation as paid pursuant to the provisions of Article 104-4, paragraph (1)), for undertakings related to the protection of copyright and neighboring rights, as well as undertakings that contribute to promoting the creation of works and to their dissemination.

②Before establishing the Cabinet Order referred to in the preceding paragraph or drafting an amendment to it, the Commissioner of the Agency for Cultural Affairs must consult the Culture Council.

③If the Commissioner of the Agency for Cultural Affairs finds it to be necessary in order to ensure the proper operation of functions related to an undertaking referred to in paragraph (1), the Commissioner may issue any order that is necessary for supervising the relevant functions.

If the Commissioner of the Agency for Cultural Affairs finds it to be necessary in order to ensure a designated association's proper operation of functions connected with compensation, the commissioner may have the designated association report on its functions connected with compensation or request it to submit its books, documents, and other materials, or may issue any recommendations necessary for improvement in the way in which the designated association executes its functions connected with compensation.

Other than what is provided for in this Section, the necessary particulars of designated associations and of the functions connected with compensation are provided for by Cabinet Order.

①If an association is in existence that has as its purpose the exercise of rights on behalf of persons that own the right to receive the compensation referred to in Article 31, paragraph (5) (including as applied mutatis mutandis pursuant to the provisions of Article 86, paragraph (3) and Article 102, paragraph (1); the same applies hereinafter in Article 104-10-4, paragraph (2) and Article 104-10-5, paragraph (2)) (hereinafter in this Section referred to as "compensation for public transmission by libraries or similar facilities") (hereinafter in the following paragraph and item (iv) of the following Article wherein persons are referred to as "right holders"), whose consent has been obtained and which the Commissioner of the Agency for Cultural Affairs has designated as the only association in the country, the right to receive compensation for public transmission by libraries or similar facilities may be exercised exclusively through the designated association (hereinafter in this Section referred to as the "designated association").

②A designated association has the authority to act in and out of court on behalf of a right holder, in its own name, in connection with the right to receive compensation for public transmission by libraries or similar facilities.

The Commissioner of the Agency for Cultural Affairs may not make a designation under the provisions of paragraph (1) of the preceding Article unless the association satisfies the following criteria: