[Ecommerce] Liability of online karaoke machine leasing firm

[Takeshi Muramoto]

>From Yomiuri Shinbun February 15, 2003



Court orders karaoke firm to ensure clients pay royalties
http://www.yomiuri.co.jp/index-e.htm

The Osaka District Court on Thursday ordered an online karaoke machine
leasing firm in Osaka to take necessary measures to prevent its customers,
who have not paid copyright fees for music to the Japanese Society for
Rights of Authors, Composers and Publishers (JASRAC), from using music
delivered online.
The ruling found the the firm had been assisting its customers in infringing
on copyrights.
The verdict is the first in the nation out of several lawsuits over music
used for karaoke to order online karaoke music distributors that do not take
an active role in violating the law, to take remedial measures.
According to the ruling, Hit One Inc. in Miyakojima Ward, Osaka, leased
karaoke machines and distributed music online to bars and restaurants in
Osaka and Hyogo prefectures.
About 97 percent of the songs distributed by the firm are reportedly
controlled by JASRAC. However, Hit One knowingly delivered music to 93 of
its customers who had not paid copyright royalties to JASRAC.
Presiding judge Kazuo Komatsu said in his ruling, "The firm was responsible
for confirming that its customers already closed a deal with JASRAC to use
music, on which the copyright is controlled by the organization, before
delivering karaoke machines to the customers."
The firm was also held liable for not cancelling leasing contracts with the
customers or taking other measures to prevent them from using the machines
when the firm discovered the customers had not paid copyright royalties to
JASRAC after it had already delivered karaoke machines to them, said the
judge.



Takeshi Muramoto