Database

Browse Database

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 1949, last amended in November 2021
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)
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.
Coverage Horizontal

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

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
"SELECT DISTINCT(post_id) FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'JP')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
[{"post_id":"110825"},{"post_id":"110826"},{"post_id":"110827"}]
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'impact' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'JP')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2')\n\t\t\t\t\t\t\t\t)"
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'JP')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
ITA: [{"meta_value":"0.00"}]

JAPAN

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.25%
Coverage rate of zero-tariffs on ICT goods (%)
92.22%
Coverage: ICT goods

JAPAN

Since March 1997
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)
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

JAPAN

Since June 1966, last amended in August 2015

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Act on Ensuring the Receipt of Orders from the Government and Other Public Agencies by Small and Medium-Sized Enterprise Operators (Act No. 97 of 1966) (官公需についての中小企業者の受注の確保に関する法律 (昭和四十一年法律第九十七号))
The Japanese government maintains policies to encourage the participation of small and medium-sized enterprises (SMEs) in government procurement. According to Arts. 4 and 5 of Act No. 97, the central government and public corporations are required to set their own procurement target values for the procurement from SMEs on an annual basis. It has been reported that in 2021, the target amount for the procurement from micro, small, and medium-sized enterprises (MSMEs) by the Government was set at JPY 4.8 trillion (approx. USD 31 billion), which represents 61% of the total budget for public procurement spending. Furthermore, the target amount for new MSMEs that are less than 10 years old was set at 3%. In accordance with Art. 8, sub-central government entities follow the policies set up for the central government entities on an "endeavour basis".
Coverage Horizontal

JAPAN

Reported in 2020, last reported in 2025

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Reported barriers to foreign suppliers in public procurement
It is reported that foreign firms in several sectors have expressed concern that the Japanese Government at times employs technical specifications that may exclude foreign products and services and, in certain cases, may also exert pressure on relevant entities to favour domestic companies in procurement processes.
Coverage Horizontal

JAPAN

N/A

Pillar Public procurement of ICT goods and online services  |  Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of coverage of CPC 754 and partial coverage of CPC 752 in the WTO Government Procurement Agreement (GPA)
Japan is a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). Although its commitments include a service sector regarded as central to digital trade, namely computer and related services (CPC 84), they do not extend to telecommunication‑related services (CPC 754), while telecommunication services (CPC 752) are only partly included.
Coverage Telecommunications sector

Report issue     Report new measure