Japan: Parliament adopted amendment to Copyright Act

On 17 May 2023, the House of Councillors adopted the Act to amend the Copyright Act (Act No. 33 of 2023). The Act applies to courts, administrative agencies, broadcasters, record companies, publishers, collective management organisations, and persons seeking to use published works whose rights holders cannot be identified or whose intent regarding use cannot be confirmed. The Act will introduce new exceptions permitting the reproduction and public transmission of works for judicial proceedings and administrative trial procedures, and for administrative examination and review procedures, including patent, trademark, pharmaceutical, and agricultural variety reviews. The Act will also create a new arbitration system for the use of unmanaged published works, defined as published works not administered by a collective management organisation and for which the rights holder's intent regarding use cannot be confirmed, requiring applicants to deposit a compensation amount equivalent to ordinary licence fees. The Act will further revise the method for calculating damages for copyright infringement by separating profit-based damages and royalty-equivalent compensation into distinct components. Provisions relating to judicial and administrative use of works and to the revised damages calculation enters into force on 1 January 2024, with the remaining provisions entering into force within 3 years of promulgation.