Japan Just Created a New Royalty for Every Recording You Own
Japan's parliament passed a law on June 17, 2026 giving performers and recording companies the right to royalties when recorded music plays in public venues. The world's second-largest music market just created a royalty lane that did not exist before.
Short answer
On June 17, 2026, Japan's parliament enacted a revised Copyright Act establishing the "record performance and communication right." For the first time, performers and recording rights holders earn royalties when their recordings play as background music in cafes, shops, hotels, gyms, and other public venues in Japan. Previously, only songwriters and composers received these payments. Japan is the world's second-largest recorded music market and was one of only two OECD nations without a public performance right for recordings (the United States is the other). The law takes effect within three years of promulgation. A collecting society designated by Japan's Agency for Cultural Affairs will administer the fees, which have not yet been set. Artists with recordings need to be registered with a neighboring rights collecting society in their country to collect through reciprocal agreements.
Key takeaways
- On June 17, 2026, Japan's parliament passed a law creating a public performance right for sound recordings. Performers and recording rights holders now earn royalties when their music plays in public venues like cafes, shops, hotels, and gyms.
- Before this law, only songwriters and composers received payment when recorded music played publicly in Japan. Performers and recording owners received nothing from those uses.
- Japan is the world's second-largest recorded music market. Only the United States now lacks this right among OECD countries.
- The new right takes effect within three years. Fee levels have not been set. To collect, you need to be registered with a neighboring rights society in your country.
What happened?
On June 17, 2026, Japan’s parliament enacted a revised Copyright Act establishing what it calls the “record performance and communication right.” Starting within three years of the law taking effect, performers and recording rights holders will earn royalties when their recordings play in cafes, shops, hotels, gyms, and other public venues in Japan.
This closes a gap Japan had held for over two decades. Since 2002, Japan had paid songwriters and composers when their music played publicly. Performers and recording companies got nothing from those same plays. That split was the norm in most of the world in the early 2000s. Since then, 142 other countries have introduced a public performance right for recordings. Japan is now number 143. The United States remains the only OECD member without one.
Japan's rank as a recorded music market globally
Countries that already had a public performance right for recordings before Japan
Maximum time before the new right takes effect after promulgation
Fee levels set so far. Japan's Agency for Cultural Affairs will designate a collecting body to negotiate rates.
How the royalty flows to you
A designated collecting society in Japan will collect fees from venues and businesses that use recorded music. That society then pays out to collecting societies in other countries through reciprocal international agreements. If your home country’s neighboring rights society has a reciprocal deal with Japan, and you are registered with that society, you receive your share.
The organizations that handle these neighboring rights collections vary by country. In Canada, Re:Sound manages neighboring rights for performers and record labels. In the UK, PPL does the same. Most European countries have equivalent bodies. The key requirement is the same everywhere: you have to be registered with your home country’s organization to show up in any distribution they make.
Why this matters for independent artists
Japan is a large market. The public performance right in Europe and elsewhere generates real money for artists who are registered to collect it. Japan running the same system means a new source of royalties from a market where your recordings may already be in rotation in public spaces.
| Likely eligible to collect | Not yet clear | |
|---|---|---|
| Which artists | Artists from countries that have a public performance right for recordings and a reciprocal agreement with Japan | US-based artists. The US does not have a domestic public performance right for recordings, so there is no basis for a reciprocal agreement with Japan at this time. |
| What you need | Registration with your home country's neighboring rights society and a completed performer profile or label registration | No action possible for US artists until the US adopts a domestic equivalent |
| When payments start | After the law takes full effect (within three years) and the collecting body begins distribution | Fee levels are not yet set. First distributions are likely several years away. |
Japan is the world’s second-largest music market and among the last to adopt this form of protection for performers and record labels.
What to do now
Register with your country's neighboring rights society
If you are a performer or own master recordings and are not already registered with your country’s neighboring rights collecting organization, do it now. Registration is the prerequisite for any neighboring rights collection, not just Japan. You are likely leaving money on the table from other countries too if you are not registered. In Canada, check Re:Sound. In the UK, check PPL. In most European countries, your national collective management organization handles it.
US-based artists face a separate problem
The United States does not have a public performance right for sound recordings. That means there is no domestic equivalent for Japan to build a reciprocal agreement with. US artists cannot collect Japanese neighboring rights through a US society the way Canadian or UK artists can. SoundExchange collects neighboring rights for certain digital transmissions in the US, but it does not have the same international reciprocal framework for the venue-use royalties Japan just created. This situation will not change until the US adopts a domestic public performance right, which has been debated in Congress for years without passing.
What is still unclear?
Open questions
Japan has not set the fee levels yet. The law requires Japan’s Agency for Cultural Affairs to designate a collecting body, and that body then publishes a fee schedule and negotiates with music users. Disputes go to the Commissioner for ruling. None of that has happened yet. The three-year window gives time for the system to be built, but it also means the first distributions are probably years away. Which countries will have reciprocal agreements in place when payments begin is not confirmed. Watch your home country’s neighboring rights organization for updates on Japan-specific collection arrangements.
Sources
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