To establish a CMO, the promoters shall prepare an application form, with the following documentation attached, and apply to the specialized agency in charge of copyright matters for a permit:
1.A register of promoters.
2.The articles of organization.
3.The royalty collection and distribution rules.
4.Templates for individual license agreements, blanket license agreements, and management agreements.
5.Other documents designated by the specialized agency in charge of copyright matters.
The register of promoters under subparagraph 1 of the preceding paragraph shall include the following items:
1.The names of the promoters, and their nationalities, dates of birth, and domiciles or residences. For a juristic person promoter, the information shall include its name, the date of its establishment, the locations of its offices or places of business, and the name, date of birth, and domicile or residence of its representative.
2.The titles, authors, and categories of the works for which a promoter is the economic rights holder; furthermore, provide an electronic format file.
3. The minutes and sign-in lists of all promoter meetings held within 6 months before the application date.
The minimum number of the promoters referred to in paragraph 1 shall be determined by the specialized agency in charge of copyright matters for different respective categories of works. One-half or more of the promoters shall have domestic domiciles or offices.
The application form mentioned in paragraph 1 shall state the purposes of applying for an establishment permit and shall bear the signature or personal seal of each promoter.
When a CMO adds a new category of works to those it manages, it shall submit a permit application to the specialized agency in charge of copyright matters, attaching a list of the economic rights holders for the new category along with the documents named in paragraph 1, subparagraphs 2 through 5.
The provisions of paragraph 2 and paragraph 3 regarding promoters shall apply mutatis mutandis to the list of economic rights holders and their numbers.

When the specialized agency in charge of copyright matters processes an application case for a permit to establish a CMO under paragraph 1 of the preceding article, after the application documents are complete, it shall post an announcement of the application case on the website of the specialized agency in charge of copyright matters for 30 days, for public comments.
Public comments under the preceding paragraph may be taken into consideration in the review by the specialized agency in charge of copyright matters.

When multiple CMOs wish to merge and become a single CMO, they shall apply to the specialized agency in charge of copyright matters for a permit approval, attaching a list of economic rights holders and the documents named in paragraph 1, subparagraphs 2 through 5 of the preceding article.
The specialized agency in charge of copyright matters shall revoke the permits of the CMOs that are extinguished as a result of the merger; their rights and obligations shall be succeeded to by the post-merger surviving CMO or newly established CMO.

No person to whom any of the following circumstances applies may be a promoter of a CMO:
1.Having no legal capacity or having limited legal capacity, or receiving an order for commencement of assistance, where the order has not been voided.
2.Having been declared bankrupt or had a court issue a ruling for the commencement of liquidation proceedings, where the person's rights have not yet been reinstated.
3.Having committed a crime of fraud, breach of fiduciary duty, embezzlement, or violation of the Copyright Act, and after receiving a final and irrevocable guilty judgment, having received a sentence of no less than six months imprisonment where the sentence has not yet been served, or has not been fully served, or two years have not yet passed after serving of the sentence, expiration of the probation period, or pardon. In the case of a juristic person, having committed a criminal violation of the Copyright Act and having received a final and irrevocable guilty judgment where the judgment has not been executed, has not been fully executed, or two years have not yet passed after execution of the judgment.
4. Having been sentenced by a final and irrevocable ruling to a rehabilitative disposition, where the sentence has not yet been served, or has not been fully served, or two years has not yet passed after serving of the sentence.

No person to whom any of the following circumstances applies may be a promoter who applies for a permit to establish a CMO:
1. Currently being a member of a CMO that conducts the same collective management services.
2. Simultaneously being a promoter who applies or has applied for permits to establish two or more CMOs that conduct the same collective management services.

The articles of organization of a CMO shall include the following information:
1.The CMO's name.
2.The CMO's purpose.
3.The address of its principal office, and address of any branch offices.
4.The category of works whose economic rights are under its management, and the scope of the rights.
5.The manner in which membership qualification is obtained and forfeited.
6.The rights and obligations of members.
7.Rates or amounts of management fees.
8.The numbers, functions, terms of office, and methods of election and discharge of directors, supervisors and members of the complaint committee set out in Article 20, paragraph 1.
9.The kinds of meetings it will hold, procedures for convening the meetings, and methods of resolution.
10.Sources of funds, and their accounting treatment.
11.The method of public announcement.
12.Types of disputes between any member and a CMO that are subject to handling by the complaint committee, and the procedures and methods of dispute resolution.
13.Procedures for amending the articles of organization.
14.Procedures for changing royalty rates.
15.Procedures for changing the method of royalty collection and distribution.
16.Procedures for amending templates for individual license agreements, blanket license agreements, or management agreements.
17.The dates on which the articles of organization were adopted and amended.
18.Other matters required by laws and regulations.

Under any of the following circumstances, the specialized agency in charge of copyright matters shall deny an application for establishment of a CMO:
1.The name of the organization is the same as that of a CMO already granted an establishment permit.
2.The information supporting the application for establishment permit reveals that the applicant is unable to effectively administer collective management services.
3.Application particulars are found to be in violation of a law or regulation or to contain misrepresentations.
4.Statutory procedures are not observed and no correction is made within a period given by the specialized agency in charge of copyright matters.
Where the scope of management being applied for overlaps in whole or in part with the categories of works and the scope of rights under the management of a CMO that has already been granted an establishment permit, the specialized agency in charge of copyright matters may deny approval for the overlapping portion if the other CMO is already capable of functioning as a management collective.
The specialized agency in charge of copyright matters shall notify the applicant in writing whether the application for establishment permit has been granted or denied, and publish the approved application on its website.

A CMO shall incorporate as a juristic person within six months after the specialized agency in charge of copyright matters issues an establishment permit.
The CMO of the preceding paragraph shall submit a photocopy of its incorporation certificate to the specialized agency in charge of copyright matters for recordation within thirty days after its incorporation. It shall also make public announcement of its incorporation certificate, articles of organization, the royalty collection and distribution rules, and templates for individual license agreements, blanket license agreements, and management agreements; the same shall apply to amendments of the above items.
The public announcement of the preceding paragraph shall be published in an appropriate manner, such as publication in a newspaper at the place where the principal office of the CMO is located, or on the CMO's website.

A person not organized and approved for establishment as a CMO in accordance with this Act shall not conduct collective management services or perform any other juristic act in the name of a CMO.
Where any party violates the preceding paragraph, any individual or blanket license agreement executed by it shall become null and void and the offender shall be liable for compensation of damages for any resultant loss to another person. Where there are two or more offenders, they shall bear joint and several liability.