JAPAN
Reported in 2005, last reported in 2023
Pillar Telecom infrastructure & competition |
Indicator Licensing restrictions to operate in the telecom market
Complaints about arbitrary spectrum allocation
Under the Radio Act (Act No. 131 of 1950) (電波法 (昭和二十五年法律第百三十一号), the allocation of the spectrum is at the discretion of the Ministry of Internal Affairs and Communication (MIC), based on consultation with the Radio Regulatory Council and consideration of plans submitted by the operators. The Act was amended in May 2019 to adopt what is called a "partial auction system," whereby the MIC considers the amount of special fees submitted by the applicant based on their own valuation of the spectrum, although it is not a decisive element. It is reported that the MIC's decision-making is arbitrary and opaque. Moreover, it reported that "several current spectrum allocations create bands unique to Japan (e.g., for self-driving vehicles) that prevent foreign technologies from functioning in Japan".
Coverage Telecommunications sector
Sources
- https://laws.e-gov.go.jp/law/325AC0000000131
- https://web.archive.org/web/20240401062609/https://ustr.gov/sites/default/files/2024%20NTE%20Report_1.pdf
- https://web.archive.org/web/20230208031521/https://ustr.gov/archive/assets/Document_Library/Reports_Publications/2005/2005_NTE_Report/asset_upload_file427_7478.pdf
- https://web.archive.org/web/20221115152718/https://www.lexology.com/library/detail.aspx?g=d581c9e6-e02d-4e72-92d2-2db75295ff92
- https://web.archive.org/web/20231201171513/https://iclg.com/practice-areas/telecoms-media-and-internet-laws-and-regulations/japan
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JAPAN
Since April 1994
Pillar Telecom infrastructure & competition |
Indicator Signature of the WTO Telecom Reference Paper
WTO Telecom Reference Paper
Japan has appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20220119041350/https://www.wto.org/english/tratop_e/serv_e/telecom_e/sc46.pdf
- https://web.archive.org/web/20220307092617/https://www.wto.org/english/tratop_e/serv_e/telecom_e/telecom_commit_exempt_list_e.htm
- https://web.archive.org/web/20220119043046/https://www.wto.org/english/tratop_e/serv_e/telecom_e/telecom_highlights_commit_exempt_e.htm#country
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JAPAN
N/A
Pillar Telecom infrastructure & competition |
Indicator Presence of an independent telecom authority
Lack of an independent telecom authority
Japan has a telecommunications authority: The Ministry of Internal Affairs and Communications. However, it is reported that this entity's decision-making process is not fully independent of the government.
Coverage Telecommunications sector
JAPAN
Since 2020
Pillar Cross-border data policies |
Indicator Ban to transfer and local processing requirement
Guidelines on Security Management of Information System and Services Handling Medical Information (医療情報を取り扱う情報システム・サービスの 提供事業者にお る安全管理ガイドライン)
The Guidelines on Security Management of Information System and Services Handling Medical Information provide that information systems for the handling of medical data must be located in the territory of Japan so that in the event of an emergency, Japanese governmental authorities can enforce their power to collect information or issue administrative orders. Although this is not a mandatory requirement based on a specific law, it is reported that some medical institutions have requested that service providers maintain servers inside Japan to comply with these Guidelines.
Coverage Information systems for the handling of medical data
JAPAN
Since March 2005
Since February 2006
Since February 2006
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Nationality/residency requirement for directors or managers
Companies Act (Act No. 86 of 2005) (平成十七年法律第八十六号 会社法)
Ordinance for Enforcement of the Companies Act (Ordinance of the Ministry of Justice No. 12 of 2006) (会社法施行規則(平成十八年法務省令第十二号))
Ordinance for Enforcement of the Companies Act (Ordinance of the Ministry of Justice No. 12 of 2006) (会社法施行規則(平成十八年法務省令第十二号))
Under the Companies Act (Act No. 86 of 2005) and the Ordinance for Enforcement of the Companies Act (Ordinance of the Ministry of Justice No. 12 of 2006), residency requirements are imposed on the members of the board of directors of joint-stock corporations (Kabushiki Kaisha), which are considered the predominant entities in Japan. Specifically, at least one director and one executive officer with the right of representation must maintain an address and reside in Japan. This regulation pertains to joint-stock companies.
Coverage Joint stock companies
Sources
- https://web.archive.org/web/20241111185218/https://www.japaneselawtranslation.go.jp/en/laws/view/2705/en
- https://web.archive.org/web/20220208200239/https://www.japaneselawtranslation.go.jp/law/detail_main?re=01&vm=02&id=2841
- https://web.archive.org/web/20241111190222/https://www.japaneselawtranslation.go.jp/en/laws/view/2841/en
- https://web.archive.org/web/20221128021643/https://www.jetro.go.jp/en/invest/setting_up/section1/page2/
- https://web.archive.org/web/20211026022008/https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-japanguide-2017.pdf?nc=1
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JAPAN
Since December 1949, last amended in November 2021
Since October 1980, last amended in May 2020
Since May 2020, last amended in May 2023
Since October 1980, last amended in May 2020
Since May 2020, last amended in May 2023
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/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 May 2022
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 January 2022
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://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 ratified 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 ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal
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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JAPAN
Since September 2009, extended in March 2014 and 2019, until 2023
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In September 2009, the Japanese authorities imposed a definitive antidumping duty on imports of electrolytic manganese dioxide (HS 282010) (a component of the battery cathode mix in alkaline and lithium-ion batteries) from China. This measure was first reviewed and extended in March 2014 and, subsequently, in March 2019. The rate of duty imposed on imports originating in China ranges from 34.3% to 46.5%, depending on the company. In March 2023, the Japanese authorities announced the initiation of a sunset review of the definitive duty imposed on imports of the subject merchandise from China. This follows the application filed on January 2023 by Tosoh Hyuga Corporation and Tosoh Corporation.
Coverage Product: Electrolytic manganese dioxide (HS 282010)
Country: China
Country: China
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
Sources
- https://web.archive.org/web/20230930225036/https://elaws.e-gov.go.jp/document?lawid=341AC0000000097
- https://web.archive.org/web/20240809003457/https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/TPR/S438R1.pdf&Open=True
- https://web.archive.org/web/20230924071751/https://www.meti.go.jp/press/2021/09/20210924004/20210924004.html
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