Copyright reform in Japan

What Japan's New Copyright Law Means for Artists, Labels and the Future of Music Royalties.

Japan has quietly introduced one of the most significant music copyright reforms in recent years—one that could reshape how performers and record companies are paid for the commercial use of their recordings.

While streaming continues to dominate industry conversations, public performance royalties remain an important source of income in many territories. Until now, however, Japan has been something of an outlier. Artists and record companies have not been entitled to royalties when commercially released recordings were played in venues such as restaurants, cafés, hotels, gyms and retail stores.

That is now set to change.

Closing a Long-Standing Gap

Japan's revised Copyright Act introduces a new remuneration right for performers and record companies whenever their recordings are publicly performed. In practical terms, businesses that use recorded music in commercial settings will contribute to a royalty system that compensates not only songwriters and publishers, but also the artists and companies responsible for the recordings themselves.

This brings Japan much closer to the neighbouring rights systems already established across Europe and many other music markets, where performers and record labels have long shared in the value created by public performances.

Why This Matters Beyond Japan

The importance of this reform extends well beyond Japan's borders.

The country is the world's second-largest recorded music market and home to an increasingly global music industry. Japanese artists are finding larger international audiences through streaming platforms, anime, gaming and social media, making it more important than ever that they are fairly compensated wherever their music is used.

The new legislation also creates opportunities for Japanese performers and rights holders to receive royalties from overseas through reciprocal agreements with collecting societies in other countries. Likewise, international artists whose recordings are played publicly in Japan could also benefit as the system develops.

A More Balanced Music Economy

For years, public performance income in Japan primarily flowed to composers, lyricists and music publishers. While these creators are fundamental to the music ecosystem, performers and record companies have argued that their contribution should also be recognised when recordings generate commercial value.

The reform addresses that imbalance.

As revenue from physical sales continues to evolve and streaming payments remain a topic of debate across the industry, neighbouring rights have become an increasingly important pillar of artist income. Expanding these rights gives performers another avenue to earn from recordings that continue generating value long after their initial release.

What Happens Next?

Although the legislation has now been approved, the practical framework for collecting and distributing royalties will take time to develop. Collecting societies, licensing structures and reciprocal international agreements will all play a role in determining how efficiently the new system operates.

Nevertheless, the direction of travel is unmistakable. Japan is moving towards a copyright framework that better reflects today's global music business and recognises the value created by everyone involved in making a recording.

The Bigger Picture

This reform is about more than simply introducing another royalty stream. It reflects a broader shift in how the music industry values recorded performances.

As music becomes increasingly borderless, copyright systems also need to evolve. Japan's decision signals a growing recognition that artists, session musicians and record companies deserve to share in the commercial success of the recordings they help create—not just at home, but wherever those recordings are enjoyed around the world.

For the global music industry, it's another reminder that neighbouring rights are no longer a niche issue. They're becoming an essential part of how creators are rewarded in the modern music economy.