Key facts
- Japanese artists are missing out on overseas royalties due to differing industry customs and collection systems.
- A new "record performance and transmission right" is being introduced in Japan's Copyright Law.
- This change aims to align Japan with international standards established by the 1961 Rome Convention.
- The amendment is expected to unlock billions of yen for Japanese artists.
- In 2023, Yoasobi's "Idol" topped Billboard's Global Excl. U.S. chart.
- Nearly 50% of Japanese artists' royalties in 2024 came from outside Japan, according to Spotify.
Japanese lyricists and composers are missing out on overseas royalties due to differing industry customs and a lack of sophisticated collection systems, highlighting the need for more advanced mechanisms. While copyright groups like JASRAC collect royalties from platforms such as YouTube, the compensation for singers, session musicians, and record producers has been insufficient when their music is played in public venues.
The Japanese government approved a bill on May 15 to overhaul the Copyright Law, introducing a new "record performance and transmission right." This move ends a 60-year delay in adopting an international standard, aligning Japan with the 1961 Rome Convention, which over 140 countries have since joined. For decades, Japan, along with the United States, lagged behind in adopting this provision, largely due to a financial calculation based on reciprocity. Industry insiders noted that until recently, Western music dominated listening in Japan, and Japanese music had limited overseas play, thus offering little incentive to pay royalties out.
The global success of J-pop artists like Yoasobi and Kaze Fujii in recent years has dramatically shifted this landscape. Yoasobi's "Idol" topped Billboard's Global Excl. U.S. chart in 2023, and other artists have also seen significant international success. Shunsuke Muramatsu, chairman of the Recording Industry Association of Japan, emphasized the urgent need for a system where Japanese artists can be properly compensated for their global reach.
Mitsubishi UFJ Research & Consulting Co. estimates that if these rights had been in effect in 2024, Japanese artists would have earned an additional 2.4 billion yen ($15.1 million) in overseas revenue. This figure is projected to rise to 13.9 billion yen by 2034, significantly increasing Japan's net surplus in music royalties.