Right Protocol

Guidelines Concerning Imputation of Literary Works Produced by Our Company

Deluxe Inc.

For Authors

We express our basic attitude about rights of literary deliverables between us and authors such as writer, painter, photographer and figurative artists who attended our contents production such as publication, images, websites as following:

- Rights of literary works shall belong to authors (Writers, Painters, Photographers and Figurative Artists) in principle.
- Responsibility of descriptive contents and expressions of literary works shall normally belong to authors.
- As a business contractor, we shall have a right of primary use (first release the media) of literary works.
- As an administrator, we shall have a right of preferential management and marketing for secondary use (release the media after the first) of literary works.
- In case the secondary use makes a profit, according to our rule, we distribute it to authors.
- Authors have a right to express freely their works that created by their own volition.
- Authors need permission when they privately exhibit their literary works requested by us.
- We have a policy to define author's expression as uncommercial, and define any expression with revenues as the secondary use.
- Any secondary artwork based on other author's work shall belong to original authors, unless otherwise specially agreed.
- We have a right of the secondary use and the sales as far as authors grant them.
- We have a right to modify, change, and copy literary works for commercialization.
- Whenever we use literary works, we normally describe author's name or pen name.

For authors dealing with us, we thank you in advance for considering our request above.

[Description]
Basically, we do believe the rights of literary works should belong to authors.
We just have the right to use commercially these works that we ordered.
We think authors can exhibit their works as uncommercial, for example, as a private exhibition, portfolio,
workbook, and movie.

However, it is only the case when authors 100% create their own works. If there are other right holders or artist related to these works, we expect agreement from all of them.

For example, if someone create a deformed character of LUPIN III at our request, this work's original right shall belongs to Monkey Punch, the original author of LUPIN III, Toms Entertainment, animation production, and Nippon TV, broadcasting station. And their rights are managed by Nippon TV Music.

As far as authors create character or illustration, they cannot conduct its exhibition, primary use, and secondary use without permission of right holder. Also, as far as authors create their works as original, if there are any suggestion or request for production, advice or direction for expression, or presentation of information from original author, writer, editor, person in charge, or our client in the progress, these literary works are not original. It is because these works cannot be finished up without other person involved, not just authors. So we believe that we hold merchandising right to control all of above, and that we pursue benefit for the secondary use as far as possible, and divide up profits with authors.

Also, any literary works created by our company member and contract staff shall belong to us as the work made for hire.

For Publishers and Clients

Based on above guideline, we have all right to commercialize or right as an agency to control copyright.

If there is any benefit such as reprinting, additional printing, or additional, or if it is possible to produce another commercial products by secondary use on the commercial products such as publication, movie, website produced by your request or our proposal, we ask extra compensation or contingent fee for using graphic works as a representatives of right holders who are related to the original works.

Except some magazines that make profits by advertisement or making books, usually publishers, printers, wholesale booksellers, and bookstores will obtain extra profits if the independent books are reprinted with good sales. As a company, an author, and a representative of right holder, we ask many publishers to consider paying royalties for editing or works to us. According to the magazines, we usually except from these rules, but if publishers will translate our contents to sell overseas, will reprint as extra numbers, or will make them books, we ask publishers to let us know beforehand and negotiate them. Also, we ask publishers to consider paying royalties for editing or producing in the proposal and practice of planning and editing.

However, according to MOOK (books with magazine style), some publishers does not pay above royalties to outside such as authors and editors because it has magazine format. We think it is unfortunate these nonpayment to authors who create original works despite there are reprinting and extra distributions of books that need ISBN code. All MOOK and book has this code.

We believe the core of publishing business is to create intellectual contents, and bringing up young authors and editors will be the basis of production of these contents. We also believe we should not buy them at low price from authors, unless there is no future on the publishing business.

As an organizer and a leader of young artists, we try to bring up future creators of intellectual works on publishing business, and try to divide up profits to them by commercializing such as secondary use.