JAPAN
Since May 2003, as amended in September 2015, last amended in April 2022
Pillar Cross-border data policies |
Indicator Conditional flow regime
Act on the Protection of Personal Information - Act No. 57 of 2003 (個人情報の保護に関する法律 - 平成十五年法律第五十七号)
Under Art. 28 of the Act on the Protection of Personal Information, the transfer of personal data to a third party in a foreign jurisdiction generally requires the explicit consent of the data subject. This requirement does not apply, however, in certain cases. One such case is where the recipient is located in a country or region designated by the Personal Information Protection Commission (PPC) as having a data protection regime that provides a level of protection equivalent to that of Japan, particularly in relation to individual rights and interests. At present, only member states of the European Economic Area (EEA) and the United Kingdom have received such designation. Another exception applies where the recipient has implemented a data protection framework that meets the standards prescribed by the PPC. Certification under the APEC Cross-Border Privacy Rules (CBPR) System, held either by the data sender or the recipient, may serve as evidence of such compliance.
Coverage Horizontal
Sources
- https://web.archive.org/web/20250813220141/https://www.japaneselawtranslation.go.jp/en/laws/view/4241/en
- https://web.archive.org/web/20250813231747/https://www.wto.org/library/events/event_resources/ecom_0805202510/779_2422.pdf
- https://web.archive.org/web/20250813220310/https://practiceguides.chambers.com/practice-guides/comparison/932/15606/24360-24367-24371-24376-24381
- https://web.archive.org/web/20250813233016/https://digitalpolicyalert.org/event/10641-adopted-amendment-of-the-act-on-the-protection-of-personal-information-appi-introducing-cross-border-data-transfer...
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JAPAN
Signed in March 2018, entry into force in December 2018
Signed in October 2019, entry into force in January 2020
Signed in October 2020, entry into force in January 2021
Signed in July 2018, as amended in January 2024, entry into force in July 2024
Signed in October 2019, entry into force in January 2020
Signed in October 2020, entry into force in January 2021
Signed in July 2018, as amended in January 2024, entry into force in July 2024
Pillar Cross-border data policies |
Indicator Participation in trade agreements committing to open cross-border data flows
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Agreement Between The United States of America and Japan Concerning Digital Trade
Agreement between the United Kingdom of Great Britain and Northern Ireland and Japan for a Comprehensive Economic Partnership
Agreement between the European Union and Japan for an Economic Partnership
Agreement Between The United States of America and Japan Concerning Digital Trade
Agreement between the United Kingdom of Great Britain and Northern Ireland and Japan for a Comprehensive Economic Partnership
Agreement between the European Union and Japan for an Economic Partnership
Japan has joined agreements with binding commitments to open transfers of data across borders. These include: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP, Art. 14.11), the Agreement Between The United States Of America And Japan Concerning Digital Trade (Art. 11), the Agreement between the United Kingdom of Great Britain and Northern Ireland and Japan for a Comprehensive Economic Partnership (Art 8.84), and the Agreement between the European Union and Japan for an Economic Partnership (Art. 8.81).
Coverage Horizontal
Sources
- https://web.archive.org/web/20241213123802/https://www.unilu.ch/fileadmin/fakultaeten/rf/burri/TAPED/TAPED_Burri_Vasquez_Kugler_November_2024.xlsx
- https://web.archive.org/web/20260617212104/https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02018A1227(01)-20240514
- https://depository.asean-deal.org/agreement-docs/CPTPP_full_text_of_agreement.pdf
- https://ustr.gov/sites/default/files/files/agreements/japan/Agreement_between_the_United_States_and_Japan_concerning_Digital_Trade.pdf
- https://www.mofa.go.jp/files/100111408.pdf
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JAPAN
Since May 2003, entry into force in April 2005, last amended in April 2022
Pillar Domestic data policies |
Indicator Framework for data protection
Act on the Protection of Personal Information - Act No. 57 of 2003 (個人情報の保護に関する法律 - 平成十五年法律第五十七号)
The Act on the Protection of Personal Information provides a comprehensive regime of data protection in Japan.
Coverage Horizontal
JAPAN
Since December 1984
Pillar Telecom infrastructure & competition |
Indicator Maximum foreign equity share for investment in the telecommunication sector
Act on Nippon Telegraph and Telephone Corporation, etc. - Act No. 85 of 1984 (日本電信電話株式会社等に関する法律 - 昭和五十九年法律第八十五号)
Ar. 4.1 of the "Act on Nippon Telegraph and Telephone Corporation, etc." stipulates that the government must at all times hold more than one‑third of the total number of issued shares in the telecommunications company Nippon Telegraph and Telephone (NTT).
Coverage Telecommunications sector
JAPAN
Since December 1984
Pillar Telecom infrastructure & competition |
Indicator Presence of shares owned by the government in telecom companies
Act on Nippon Telegraph and Telephone Corporation, etc. - Act No. 85 of 1984 (日本電信電話株式会社等に関する法律 - 昭和五十九年法律第八十五号)
It is reported that the government holds one-third of the shares in the telecommunications company Nippon Telegraph and Telephone (NTT), as envisioned in Art. 4.1. of the "Act on Nippon Telegraph and Telephone Corporation, etc.", which requires the government to retain more than one‑third of the company’s issued shares at all times.
Coverage Telecommunications sector
JAPAN
Since December 1949, last amended in November 2021
Since October 1980, last amended in May 2020
Since May 2020, last amended in 2024
Since October 1980, last amended in May 2020
Since May 2020, last amended in 2024
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949) (外国為替及び外国貿易法(昭和二十四年法律第二百二十八号))
Cabinet Order on Inward Direct Investment (対内直接投資等に関する政令(昭和五十五年政令第二百六十一号))
List of Classifications of Listed Companies regarding the Prior-notification Requirements on Inward Direct Investment (○本邦上場会社の外為法における対内直接投資等事前届出該当性リスト)
Cabinet Order on Inward Direct Investment (対内直接投資等に関する政令(昭和五十五年政令第二百六十一号))
List of Classifications of Listed Companies regarding the Prior-notification Requirements on Inward Direct Investment (○本邦上場会社の外為法における対内直接投資等事前届出該当性リスト)
Japan has implemented foreign direct investment (FDI) screening mechanisms through the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949), supplemented by procedural regulations such as the Cabinet Order on Inward Direct Investment. Under this Act, foreign investors in "Designated Business Sectors" or "Core Business Sectors" are required to submit a prior notification to the relevant ministry. After reviewing the notification, the ministry may either approve, amend, or suspend the proposed investment.
According to the Cabinet Order on Inward Direct Investment, "Core Business Sectors" include industries where foreign investors (e.g., non-residents or foreign corporations) must file prior notification for direct investment, such as acquiring 1% or more of voting rights in a listed company or purchasing shares in an unlisted company. These sectors, considered highly sensitive, are generally not exempt from prior notification requirements due to national security concerns.
The List of Classifications of Listed Companies outlines core business sectors such as semiconductors and dual-use technologies, metal mining of significant mineral resources, cybersecurity-related services (e.g., network security monitoring and critical infrastructure protection), and telecommunications. Non-core business sectors include software, data processing services, and internet-use support businesses.
According to the Cabinet Order on Inward Direct Investment, "Core Business Sectors" include industries where foreign investors (e.g., non-residents or foreign corporations) must file prior notification for direct investment, such as acquiring 1% or more of voting rights in a listed company or purchasing shares in an unlisted company. These sectors, considered highly sensitive, are generally not exempt from prior notification requirements due to national security concerns.
The List of Classifications of Listed Companies outlines core business sectors such as semiconductors and dual-use technologies, metal mining of significant mineral resources, cybersecurity-related services (e.g., network security monitoring and critical infrastructure protection), and telecommunications. Non-core business sectors include software, data processing services, and internet-use support businesses.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231107090607/https://www.cas.go.jp/jp/seisaku/hourei/data/FTA.pdf
- https://web.archive.org/web/20260305201427/https://www.mof.go.jp/english/policy/international_policy/fdi/Related_Guidance_and_Documents/20240913.html
- https://web.archive.org/web/20230925105342/https://www.mof.go.jp/english/policy/international_policy/fdi/Related_Guidance_and_Documents/20230519.html
- https://web.archive.org/web/20231211030928/https://investmentpolicy.unctad.org/investment-laws/laws/289/japan-cabinet-order-on-inward-direct-investment
- https://web.archive.org/web/20231209012245/https://iclg.com/practice-areas/foreign-direct-investment-regimes-laws-and-regulations/japan
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JAPAN
Since April 1959, last amended in 2024
Pillar Intellectual Property Rights (IPRs) |
Indicator Practical or legal restrictions related to the application process for patents
Patent Act (Act No. 121 of 1959) (昭和三十四年法律第百二十一号特許法)
According to Arts. 8 and 184.11 of the Patent Act, the appointment of an agent is required if the applicant is not resident in Japan. Such an agent must be a resident of Japan or a firm registered to practice before the Japan Patent Office. In addition, pursuant to the Art. 184.4, translation of international applications is required into Japanese.
Coverage Horizontal
JAPAN
Since June 1970, entry into force in October 1978
Pillar Intellectual Property Rights (IPRs) |
Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty
Japan is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
JAPAN
Since May 1970, last amended in July 2024
Pillar Intellectual Property Rights (IPRs) |
Indicator Copyright law with clear exceptions
Copyright Act (Act No. 48 of 1970) (著作権法(昭和四十五年法律第四十八号))
Japan has a copyright regime under the Copyright Act. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Arts. 30-50 list the exceptions, which include which include quoting and thereby exploiting a work that has been made public. In such a case, the work must be cited consistent with fair practices and within a scope that is justified for the purpose of news reporting, critique, study, or another place in which the work is quoted; to broadcast or cablecast a work that has been made public, in broadcast or cablecast programming for schools that conforms to the curriculum standards provided for in laws and regulations on school education; among others.
Coverage Horizontal
Sources
- https://web.archive.org/web/20201020113716/http://www.japaneselawtranslation.go.jp/law/detail/?id=2506&vm=04&re=02
- https://www.wipo.int/wipolex/en/legislation/details/22612
- https://web.archive.org/web/20231203173106/https://iclg.com/practice-areas/copyright-laws-and-regulations/japan
- https://web.archive.org/web/20220929025336/https://www.lexology.com/library/detail.aspx?g=7fa22bff-54ea-4512-9c81-29908ae28a9f
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JAPAN
Since June 2000, entry into force in March 2002
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Copyright Treaty
WIPO Copyright Treaty
Japan has adopted the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal
JAPAN
Since July 2002, entry into force in October 2002
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Performances and Phonograms Treaty
WIPO Performances and Phonograms Treaty
Japan has adopted the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal
JAPAN
Since May 1993, last amended in 2023
Pillar Intellectual Property Rights (IPRs) |
Indicator Effective protection covering trade secrets
Unfair Competition Prevention Law (Law No. 47 of 1993) (不正競争防止法(平成五年法律第四十七号)
The Unfair Competition Prevention Law (Law No. 47 of 1993) provides a framework for the effective protection of trade secrets. A ‘trade secret’ is defined in the law as a production method, sales method, or any other technical or operational information useful for business activities that are kept secret and are not publicly known (Art. 2). According to Art. 3 of the law, those businesses or persons whose business interests have been, or are threatened to be, infringed on by misappropriation or illegal disclosure shall have the right to seek an injunction. The Unfair Competition Prevention Act provides civil and criminal remedies in such cases where secret information about the company is stolen or disclosed illegally. To protect information according to the Act, companies need to manage such data as “trade secrets”.
Coverage Horizontal
JAPAN
N/A
Pillar Telecom infrastructure & competition |
Indicator Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that there is an obligation for passive infrastructure sharing in Japan to deliver telecom services to end users.
Coverage Telecommunications sector
JAPAN
Since March 1997
Since December 2015
Since December 2015
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA)
ITA Expansion Agreement (ITA II)
ITA Expansion Agreement (ITA II)
Japan is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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