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© 2017 CCC Copyright & licensing in Japan: Today and tomorrow Michael Healy Executive Director, International Relations STM Connect Japan, November 2017

Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

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Page 1: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

© 2017 CCC

Copyright & licensing in Japan:Today and tomorrow

Michael HealyExecutive Director, International RelationsSTM Connect Japan, November 2017

Page 2: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

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Making Copyright Work

Rightsholders Content Users

Licensing solutions

Rights Management

Content Delivery

Copyright Education

Service Bureau

800+ million rights from:

•Publishers

•Authors

•Agents

•Creators

35K companies

Workers in 180 countries

1,200 colleges and universities

Publishers and Authors

Page 3: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

Collective Licensing

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Page 4: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

Individual Licensing

� 13 November 2017 Beijing, April 20174

1 Rightsholder Specific Use of1 Work

1 User

Page 5: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

Collective Licensing

� 13 November 2017 Beijing, April 20175

Multiple

Rightsholders Multiple Works Multiple Users

Page 6: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

How Collective Licensing Works

Rights from many sources are available in one place

Copyright holders

Content users

Page 7: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

How Collective Licensing Works

Royalties are collected from content usersand distributed to rightsholders

Copyright holders

Content users

Page 8: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

Key duties and responsibilities

11/13/20178

License Collect Distribute

Page 9: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

Benefits of Collective Licensing

• Faster, more convenient way for users to

access rights & share legally

• More efficient way for copyright holders

to license their works

Page 10: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

Collective Management Organizations

• Exist in all creative sectors

• Are usually subject tospecific legal regulationsat national level

• Increasingly subject to government regulation

Page 11: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

Reproduction Rights Organizations (RROs)

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Page 12: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

Some CMOs are RROs

Reproductive Rights

Organizations

License the reuse and sharing of:

Books

Journals

Newspapers

Magazines

In some cases, RROs also

license:

Press Clippings Separate

Organization

Separate Organization

Separate Organization

Separate Organization

Visual Works

Sheet Music

Library Lending

11/13/201712

Page 13: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

RROs Around the World

• 84 RROs worldwide

• Most RROs belong to IFRROwww.ifrro.org

- USA: Copyright Clearance Center (CCC)

- Japan: JAC, JCOPY, JRRC

Page 14: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

Copyright Licensing in Japan

13 November 2017 IFRRO BOARD MAY 201714

Japan Academic

Assn. for Copyright

Clearance (JAC)

Japan Publishers

Copyright Organization

(JCOPY)

Japan Reproduction

Rights Center

(JRRC)

Ministry of Culture, Education, Sports, Science & Technology (MEXT)

Agency for Cultural Affairs (ACA): Copyright Division

Page 15: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Japan Academic Association for Copyright Clearance

• Established in 1989; re-organized in 2003

• Registered with the ACA as a CMO in 2002

• Five member associations (scholarly societies)

• Board (Directors, Advisors & Inspectors)

• Annual collections (latest): €12.1 million

• IFRRO: full RRO member

JAC: key data

� 13 November 2017 IFRRO BOARD MAY 201715

Page 16: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Primary rights holders: academic/scholarly societies

• Key licensees: corporations (esp. pharmaceutical)

• Products:

• Annual photocopy license (AAS)

• Annual photocopy license (MR-AAS): medical representatives

• Transactional photocopy license (TRS)

• Digital Copyright License (DCL): sold by RightsDirect Japan

• RRO agreements (30+)

JAC: markets and products

� 13 November 2017 IFRRO BOARD MAY 201716

Page 17: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Japan Reproduction Rights Centre

• Established in 1991; CMO registration in 2002

• Four member associations

• Copyright Council of Newspaper Publishers

• Federation of Authors Organizations

• JAC

• JCOPY (terminating governance role in 2017)

• Annual collections (latest): €2.4 million

JRRC: key data

� 13 November 2017 IFRRO BOARD MAY 201717

Page 18: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Primary rights holders: newspapers

• Key licensees: 6,100 corporations and libraries

• Products:

• Annual photocopy license

• Transactional photocopy license

• No RRO agreements (some pending)

• IFRRO: full RRO member

JRRC: markets and products

� 13 November 2017 IFRRO BOARD MAY 201718

Page 19: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Japan Publishers Copyright Organization

• Established in 2009

• Annual collections (latest): €5.7 million

• IFRRO: full RRO member

JCOPY: the basics

� 13 November 2017 IFRRO BOARD MAY 201719

Page 20: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Primary rights holders: 350+ journal & book publishers

• Key licensees: corporations (+ universities)

• Products:

• Annual repertory license (digital + photocopy)

• Annual transactional license

• Single transactional license

• Document delivery services (in partnership)

•RRO agreements

JCOPY: markets and products

� 13 November 2017 IFRRO BOARD MAY 201720

Page 21: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

How RROs Are Organized

• RROs usually are non-profit associations of rightsholders

• Aggregation of rights through voluntary or legal mandates

• Internal and external control mechanisms

Page 22: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

What’s the Value?

• Supports research

• Supports teaching

• Enables sharing

• Efficiency

• Protects rights

• Rewards creators

Page 23: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

We need a global infrastructure that permits simple, global licensing. One that makes the task of licensing cultural works legally on the Internet as easy as it is to obtain such works there illegally.

Francis GurryDirector General, WIPO

Page 24: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

Copyright reform in Japan?

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Page 25: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Agency for Cultural Affairs: Copyright Subdivision

• Interim report: 29 February 2017

• Copyright Educational Use: 2015 study

• Copyright Comprehensive Limitation: February 2017

• August 2017 public notification

• Legislative timetable

• Delayed by recent elections

• Text available when the Diet’s next session begins

• Draft text in February or March 2018?

• Introduction to Diet in May or June 2018?

What do we know?

� 13 November 2017 STM Tokyo 201725

Page 26: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

1. Exceptions that meet “the needs of the new era”

2. Facilitating technology-based teaching and learning

3. Promoting information access to those with disabilities

4. Enabling libraries’ access to orphan and out-of-commerce works

Criteria for future exceptions

� 13 November 2017 STM Tokyo 201726

Page 27: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• “Multi-layered” system

• Clarity and flexibility

• Three layers

• “Degrees of disadvantage” incurred potentially by rights holders

• Maximizing effect through promotion and user education

Exceptions for “the needs of the new era”

� 13 November 2017 STM Tokyo 201727

Page 28: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Promoting the use of ICT in the classroom

• Facilitating “on demand and interactive transmission”

• Encouraging use while protecting rightsholders

• Remunerated exceptions

• Encourages co-operation of users and rightsholders:

• Administration of licensing & remuneration procedures

• Copyright education for users

• Promotion of responsible classroom uses

• Need for further research on uses

Technology-based teaching & learning

� 13 November 2017 STM Tokyo 201728

Page 29: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Proposes amendments to Article 37 (3)

• Designated beneficiaries to include reading-disabled users

• Email transmission to be an authorized use

• Extension of those permitted to make reproductions (e.g. voluntary groups”)

Information access for disabled users

� 13 November 2017 STM Tokyo 201729

Page 30: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Out-of-commerce “materials”

• Extend current system to add libraries in other countries as “destination facilities” for works transmitted by National Diet Library

• Extend current system to encompass electronic access to works using “thumbnail images”

• Remuneration of rightsholders of orphan works

• After rightsholder comes forward

• Further discussion required on various issues:

• Copyright clearance

• Promoting use of works, etc.

Libraries/Archives

� 13 November 2017 STM Tokyo 201730

Page 31: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• Longstanding pro-Fair Use lobby

• Advocates contend that Fair Use would stimulate growth of Japan’s IT sector

• Signals of government opposition?

• Favors introduction of specific, narrower exceptions?

• Unclear what exceptions will be prioritized and when they will be introduced

• Balancing interests of users and rightsholders

Is Fair Use coming to Japan?

� 13 November 2017 STM Tokyo 201731

Page 32: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

1. “Non-intrinsic uses”, not normally harmful to the interests of rightsholders, for example

• Creation of database search and retrieval tools

• Reverse engineering services

• Automated translation services

2. ”Non-intrinsic uses”, where harm to the interests of rightsholders is slight or insignificant

3. “Intrinsic uses” that support “the public interest”

Criteria for new exceptions?

� 13 November 2017 STM Tokyo 201732

Page 33: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

In conclusion …

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Page 34: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

• We have much more to learn

• “Diversity of views was a distinguishing feature”

• US-style Fair Use appears to have little support

• “Fair Use for machines”. Is this a risk for publishers?

• Little or no consensus on educational exceptions

• More work required on key uses, e.g. MOOCs

• Will any new exceptions be remunerated?

Conclusions

� 13 November 2017 STM Tokyo 201734

Page 35: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

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THANK YOU!

Page 36: Copyright & licensing in Japan: Today and tomorrow · JRRC: key data 17 13 November 2017 IFRRO BOARD MAY 2017 •Primary rights holders: newspapers •Key licensees: 6,100 corporations

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[email protected]

QUESTIONS?