5. LAW ON INTERMEDIARY BUSINESS CONCERNING
COPYRIGHTS
(Law No.67, of April 5, 1939,
as amended up to November 12, 1999 by Law No.160)
Article 1.- The term "intermediary business concerning copyrights" as
used in this Law shall mean the conduct, as an occupation, of an act of agency
or mediation on behalf of copyright owners regarding contracts for the use of
their works for publication, translation, public performance, broadcasting,
cinematographing, sound recording, or other uses.
It shall be deemed an intermediary business concerning copyrights to ob
tain the tram,fer of copyrights and conduct, as an occupation, an act of man
aging the copyrighted works in pursuance of a specific object on behalf of
other persons.
The categories of works mentioned in the two preceding paragraphs shall
be determined by imperial ordinance.
Article 2.- Any person who intends to engage in an intermediary business , �
concerning copyrights shall, in accordance with the provisions of the
Ministry of Education and Science Ordinance, specify the scope of the busi-
ness and the methods of conducting it, and obtain permission of the
Commissioner of the Agency for Cultural Affairs therefor.
Article 3.- A person who has been granted the permission mentioned in the
preceding Article (hereinafter referred to as an "intermediary") shall, in ac
cordance with the provisions of the Ministry of Education and Science
Ordinance, specify the rules relating to the royalty rates for the use of the
works, and obtain the approval of the Commissioner of the Agency for
Cultural Affairs therefor. The same shall apply when the intermediary in
tends to alter the said rules.
Upon receipt of the application for approval mentioned in the preceding
paragraph, the Commissioner of the Agency for Cultural Affairs shall issue
a public notice giving a summary of the contents of the application.
Any organization formed for the purpose of publishing or public
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performance, or any other persons designated by the Ministry of Education
and Science Ordinance, may, within one month after the date of the public no
tice, submit to the Commissioner of the Agency for Cultural Affairs an opin
ion regarding the summarized contents of the application mentioned in the
preceding paragraph.
After the expiration of one month from the date of the public notice, the
Commissioner of the Agency for Cultural Affairs shall, before granting the
approval mentioned in the first paragraph of this Article, consult the Culture
Council. When an opinion has been submitted in accordance with the provi
sions of the preceding paragraph, the said opinion shall be presented to the
Culture Council.
Article 4. - An intermediary shall obtain the permission of the
Commissioner of the Agency for Cultural Affairs when intending to change
the scope of, or the methods of conducting, the business.
Article 5.- An intermediary shall submit to the Commissioner of the
Agency for Cultural Affairs business reports and statements of accounting in
accordance with the provisions of the Ministry of Education and Science
Ordinance.
Article 6.- The Commissioner of the Agency for Cultural Affairs may,
whenever he deems it necessary, require an intermediary to report on his busi
ness or to present his books and documents relating thereto.
Article 7. - The Commissioner of the Agency for Cultural Affairs may,
whenever he deems it necessary, cause an official to visit and inspect the of
fice or other place of business of an intermediary, and to investigate the con
dition of his business and assets. In such cases, the official shall, when
carrying out this duty, identify his status.
Article 8.- The Commissioner of the Agency for Cultural Affairs may,
whenever he deems it necessary in view of the condition of the business or as
sets of an intermediary, order the intermediary to change the methods of con
ducting the business, and issue such other orders as may be necessary.
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Article 9.- When an intermediary has acted in contravention of this La,w or
of an order issued under this Law or of a disposition made under such order,
or when he has committed an act prejudicial to the public good in the conduct
of his business, the Commissioner of the Agency for Cultural Affairs may re
voke the permission granted him under Article 2, or suspend or restrict the
operation of his business.
Article 10.- Any person who conducts an intermediary business concerning
copyrights without the permission mentioned in Article 2 shall be liable to a
fine of not more than 3,000 Yen.
Article 11.- An intermediary shall be liable to a fine of not more than 1, 000
Yen if he-
Ci) conducts his business beyond the scope for which permission has been
obtained in accordance with the provisions of Article 2 or Article 4;
(ii) violates an order of suspension or restriction of his business issued
in accordance with the provisions of Article 9.
Article 12.- An intermediary shall be liable to a fine of not more than 500
Yen if he-
(i) conducts his business by methods not in. conformity with those for
which permission has been obtained in accordance with the provisions of
Article 2 or Article 4;
(ii) conducts his business in contravention of the rules relating to the
royalty rates for the use of the works, as approved in accordance with the
provisions of Article 3, paragraph 1;
(iii) fails to submit a business or accounting report mentioned in Article
5, or makes a false statement therein;
Civ) fails to submit the report or the books and documents mentioned in
Article 6, or makes a false statement therein;
(v) violates an order issued under Article 8.
Article 13.- Any person who refuses to permit or who obstructs or evades
the visit and inspection or the examination mentioned in Article 7 shall be li
able to a fine of not more than 500 Yen.
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Article 14.- Whenever an agent, a co-inhabitant, an· employee or a co
worker of a juridical or natural person has. committed a violation mentioned
in Articles 10 to 12 regarding the business of such person, the said juridical or
natural person shall not be exempted from the penalty prescribed on the
ground that the act of violation was not directed by him.
Article 15.- The penal provisions of Articles 10 to 12 shall apply to the di
rector or other officer in charge of the business when the violator is a juridi
cal person, and to the legal representative when the violator is a minor or an
incompetent person; provided, that this shall not apply in the case of a minor
who has the legal capacity of an adult regarding the conduct of his business.
Supplementary Provisions
The effective date of this Law shall be prescribed by Imperial Ordinance.
[This Law became effective on December 15, 1939 by Imperial Ordinance
No.834, of December 13, 1939.]
Any person who has actually conducted an intermediary business concern
ing copyrights, or who has succeeded thereto, before the effective date of this
Law, may, notwithstanding the provisions of Article 2, continue to conduct
the said business for a period not exceeding three months from the effective
date of this Law.
When the person mentioned in the preceding paragraph has applied for the
permission under Article 2 within the period mentioned in the preceding para
graph, the provisions of the said paragraph shall apply until the permission
is granted or denied.
Supplementary Provisions (Extract) (Law No.l60, of 1999)
Article 1.- This Law (except Articles 2 and 3) shall come into force on
January 6, 2001. However, the following provisions shall come into force as
from the day mentioned in each item concerned:
(i), (ii): [omitted]
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* The maximum amount of fines to be imposed was assessed at 2,000 Yen in
accordance with the provisions of Article 2, paragraph (1) of the Fines
Special Assessment Law (Law No.251, of 1948).
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