TOKYO (TR) — Tokyo Metropolitan Police have arrested the former executive of a television sound effects company on suspicion of fraud after he allegedly swindled approximately 6.3 million yen in royalties, reports the Asahi Shimbun (Apr. 22).
Kenichi Inoue, a 59-year-old former executive at BONZO — a company providing music and sound effects for TV programs — is accused of falsely reporting that his own tracks were broadcast on popular shows to illicitly collect copyright royalties.
According to investigators, Inoue submitted fabricated reports in 2019 through Nippon Television Network, claiming that tracks managed by a music publishing firm he represented were used across four NTV programs, including the Sunday morning information show “Shuichi” and talk show “Konya Kurabete Mimashita.”
During police questioning on suspicion of fraud, Inoue fully admitted to the allegations.
JASRAC
The Japanese Society for Rights of Authors, Composers and Publishers (JASRAC) distributes collected royalty fees to copyright owners based on broadcast usage reports.
By exploiting his dual position as both the TV music coordinator selecting the tracks and the copyright holder receiving the checks, Inoue executed an audacious “self-dealing” scheme to pocket the 6.3 million yen payout.
The arrest may only be the tip of the iceberg. According to Tokyo Shoko Research, JASRAC had previously filed a massive civil lawsuit against BONZO and two of Inoue’s affiliated music publishers.
The organization accused them of defrauding JASRAC out of more than 500 million yen between 2014 and 2021 using the exact same methods. The Tokyo District Court has already ordered the defendants to pay over 560 million yen in damages.
Police are continuing to probe the suspect’s involvement in these additional crimes.
