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Massive increases in network users and the constant innovation of digital technology are evidenced in the transition of the internet from narrowband to broadband, the penetration of high-function mobile communications with media capabilities, and the prevalence of BS digital satellite broadcasting.

As a result, content including movies, music, and many other forms of digital data can now be distributed throughout a 'global communication culture'. However, the reality is that parties who wish to provide or to enjoy such innovative digital entertainment face numerous obstacles in the processing, licensing, and the legitimate distribution of content based on defined rights. Since the rights pertaining to content are often fragmented and belong to many rights owners, a large coordination cost is generated whenever contents are acquired for new types of media and network distribution. The processing of distribution rights requests can also require an enormous amount of labor and time.

Under such circumstances, multidisciplinary studies are under way within and outside Japan regarding legislation for content rights licensing, technology development, service development, and business development. Fundamentally, such multi-layered consideration about on digital content rights should be made in sync with to one another, and we think that ultimately, the rights licensing contracts themselves must be digitalized.

With the realization of a digital contract, the flexibility of content business itself will improve and artists and their respective intermediary parties and digital distributors will benefit greatly. Users will gain the benefit of being able to enjoy a wider variety of digitized content through a wide variety of consumption models.
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