When a music creator writes a song, it gets played on the streets, streamed on YouTube, and featured in TikTok videos. Behind this seamless backdrop lies a highly complex infrastructure tasked with tracking exactly who used what, where, and how much, ensuring that fair remuneration reaches the original creator.
In this guide, we take an expert look at Japan’s two major collective management organizations (CMOs) supporting the domestic music industry: JASRAC and NexTone. We will explore why these entities are indispensable and analyze the practical differences between them.
1. The Necessity of Music Copyright Management: The Power of Collective Management
Imagine you write a song that becomes a massive hit across Japan. It is broadcast on television and radio, used as background music (BGM) in thousands of cafes, and featured in countless user-generated videos on social media platforms.
For an individual creator, tracking down every single use to demand royalty payments is physically impossible. On the flip side, users of music (such as broadcasters, streaming platforms, and commercial venues) would face prohibitive transaction costs if they had to identify, contact, and negotiate separate licensing agreements for every single track they play.
This is where licensing entities, operating under Japan’s Law on Management Business of Copyright and Neighboring Rights, come into play:
- For Creators: They entrust their copyrights to a management organization, which handles the complex tasks of licensing, royalty collection, and distribution.
- For Commercial Users: The organization provides a single point of contact (often through blanket licensing agreements), enabling smooth, legal access to vast music repertoires.
This system of collective management lowers barriers to using music while sustaining a healthy ecosystem where creators are properly compensated.
2. Japan’s Two Licensing Giants: Profiles of JASRAC and NexTone
The Japanese music copyright market (specifically concerning authors’ rights or mechanical and performing rights) is dominated by two primary players: the historic incumbent JASRAC and the private-sector challenger NexTone.
JASRAC (Japanese Society for Rights of Authors, Composers and Publishers)
Established in 1939, JASRAC is the nation’s largest and most established copyright management organization.
- Operational Structure: A non-profit general incorporated association.
- Core Strengths: An unrivaled domestic infrastructure. JASRAC’s enforcement and collection network covers not only broadcasting, physical synchronization, and digital streaming, but also physical “public performance” spaces nationwide—such as live venues, karaoke bars, retail stores, and local festivals. It maintains an exhaustive, definitive domestic repertoire database.
NexTone Inc.
Formed in 2016 through the merger of three existing digital rights management entities, NexTone is a private-sector company listed on the Tokyo Stock Exchange (TSE Growth).
- Operational Structure: A for-profit joint-stock corporation (Kabushiki Kaisha).
- Core Strengths: Moving beyond traditional copyright administration, NexTone functions as a full-service entertainment business solutions provider. It integrates digital distribution services, promotional support, and marketing analytics. Creators heavily favor its tech-driven transparency, which includes detailed, granular royalty distribution reports accessible through a dedicated client portal.
3. Practical Differences: JASRAC vs. NexTone
Choosing between these two entities requires understanding their unique operational parameters. The table below outlines the key structural differences:
| Comparison Item | JASRAC | NexTone |
| Entity Type | General Incorporated Association (Non-profit) | Publicly Traded Corporation (For-profit, TSE Growth) |
| Scope of Administration | Full spectrum: Public performance (live/BGM), reproduction, mechanical, digital streaming, etc. | Primarily digital media: Interactive streaming, broadcasting, physical media (CD/DVD), and karaoke. (Excludes general public performance rights like live venues and store BGM). |
| Assignment Flexibility | Comprehensive assignment is standard (though partial assignment restrictions have eased recently). | “Partial assignment” is its primary selling point; creators can selectively assign rights by category or type of use. |
| Management Commission | Fixed, uniform rates across specific divisions based on official tariff regulations. | Flexible tariff structures tailored to transaction volume, contract specificities, and usage types. |
| Value-Added Services | Traditional rights enforcement, anti-piracy campaigns, cultural and educational funding. | Digital distribution support, cross-media promotion, and targeted marketing analytics. |
| Global Network | Deeply integrated into global networks (CISAC, etc.) with reciprocal agreements worldwide. | Rapidly expanding direct partnerships with major global digital platforms and foreign CMOs. |
💡 The Crucial Practical Distinction: Public Performance Rights
The most critical line item in this comparison is the scope of administration. NexTone excels at managing digital and media rights, such as video-on-demand platforms (YouTube), broadcasting (TV/Radio), physical media, and karaoke systems.
However, NexTone does not administer general public performance rights. This category includes live performances at concert halls, background music in boutique shops or cafes, and theatrical film exhibitions. Managing these areas requires a massive national footprint and regional offices to collect royalties from millions of localized venues. Consequently, JASRAC remains the sole entity managing general public performance rights in Japan.
4. Operational Strategy: How Creators and Publishers Divide Their Rights
In an era where JASRAC no longer holds a de facto monopoly, splitting copyrights among different providers—known as partial assignment—has become standard industry practice in Japan.
Practical Application Case Study
Songwriters, composers, and music publishers frequently unbundle a single track’s right categories, assigning them strategically:
- Interactive Streaming & Digital Rights (YouTube, Spotify, etc.): Assigned to NexTone for its high data transparency and seamless integration with digital distribution services.
- Karaoke, Film Synchronization, and Broadcasting Rights: Increasingly assigned to NexTone to leverage flexible, cross-promotional business campaigns.
- Live Performance & Commercial Venue BGM Rights: Assigned to JASRAC, as it possesses the only operational nationwide collection grid capable of managing physical venue royalties.
By utilizing this hybrid model—”Digital with NexTone, Physical with JASRAC”—artists can customize their intellectual property management to match their specific creative profile, whether they are a Vocaloid producer focusing on internet distribution or a touring rock band.
5. Global Perspectives: How Japan Compares Internationally
While the concept of collective management is standard worldwide, competitive landscapes vary significantly by territory:
- United States (Highly Competitive Market): The US has long relied on competition between major CMOs like ASCAP and BMI. In recent years, for-profit, boutique entities like SESAC and Global Music Rights (GMR) have risen to prominence. US creators treat choosing a PRO (Performing Rights Organization) much like selecting a talent agent, seeking the best distribution rates and promotional leverage.
- Europe (The Traditional Single-Entity System): Europe has historically favored state-backed monopolies, such as SACEM in France or GEMA in Germany. However, the rise of cross-border pan-European digital streaming has forced these legacy organizations into a competitive multi-territorial licensing race to attract major publishers and creators.
- Asia (Rapid Modernization): Driven by exponential growth in streaming markets, jurisdictions across Asia are rapidly amending copyright laws and upgrading the technological infrastructure of local CMOs to improve data transparency.
6. Conclusion: Navigating a Competitive Landscape
Online discussions occasionally frame the relationship between JASRAC and NexTone as a zero-sum conflict. In practice, however, they represent a complementary ecosystem where each provider leverages distinct operational strengths:
- JASRAC offers a rock-solid, 80-year legacy with a comprehensive enforcement network that ensures no royalties—from a local cafe to overseas uses—slip through the cracks.
- NexTone injects private-sector agility and digital-first optimization, providing alternative commercial frameworks for modern multimedia marketing.
This market competition has driven positive evolution across the entire Japanese music infrastructure, resulting in optimized commission rates and highly transparent data reporting. Ultimately, this ensures that when music is streamed, watched, or played, the value generated flows efficiently back to the creators.
This text was translated by a large language model (LLM).