Japan’s new copyright law will finally pay artists and labels public performance royalties
Japan has approved a landmark copyright reform that will finally pay performers and record labels when their music is played in public spaces.
Japan has passed a major amendment to its Copyright Act that will finally give performers and record companies the right to be paid when their recordings are played in public spaces.
Approved by Japan’s parliament on the 17th of June, the reform creates a new “record performance and communication right”, meaning artists and labels will receive royalties when commercially released music is used in places such as cafés, shops, hotels, gyms, and restaurants.
As Music Business Worldwide reports, under Japan’s previous system “only songwriters, composers, and music publishers were paid when commercially released music was played as background music in Japanese venues.” While the creators of a song could earn royalties, the performers and record labels behind the recording received nothing.
That’s now set to change.
Bringing Japan in line with the global music industry
The amendment addresses a long-standing gap in Japanese copyright law that has been criticised by the international music industry for years.
According to the Japanese government, 142 countries already recognise similar rights for performers and record companies. Before this reform, Japan and the United States were the only OECD countries that had not fully adopted these protections.
The change means Japan is moving closer to the international framework used across much of the global music business, where both songwriters and recording rightsholders are compensated when music is played publicly.
As Complete Music Update reports, Laurence Oxenbury, Director of International at UK neighbouring rights organisation PPL, described the reform as “an important development for both the domestic Japanese market and the wider international music industry”, adding that it helps bring Japan into alignment with the global system of fair remuneration for performers and recording rightsholders.
Why neighbouring rights matter
At its core, this reform is about neighbouring rights.
While publishing royalties compensate songwriters and composers, neighbouring rights are tied to the sound recording itself, ensuring performers, featured artists, session musicians, and record owners are paid when recordings are broadcast or played publicly.
Neighbouring rights sit alongside traditional publishing royalties and help ensure everyone involved in creating a recording is compensated for its commercial use. Historically, Japan’s public performance royalties only covered the composition; the new law extends compensation to the recording as well.
What this means for artists
For independent artists and labels, the reform highlights the growing of neighbouring rights and royalty collection beyond streaming.
As the world’s second-largest recorded music market, Japan’s adoption of public performance rights is a significant win for performers and recording rightsholders. It also reflects a wider industry trend towards ensuring artists are paid whenever their music is used commercially.
For creators building global audiences, understanding music publishing and neighbouring rights is becoming increasingly important as new revenue opportunities emerge worldwide.