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
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
Sources
- http://wits.worldbank.org/WITS/
- 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
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 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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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
JAPAN
Since December 1984
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
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
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
AZERBAIJAN
Since July 2023, entry into force in November 2023
Pillar Online sales and transactions |
Indicator Restrictions on online payments
Law No. 987-VIQ, on Payment Services and Payment Systems (“Ödəniş xidmətləri və ödəniş sistemləri haqqında” Azərbaycan Respublikasının Qanunu № 987-VIQ)
Art. 12 of the Law on Payment Services and Payment Systems stipulates that the issuance of electronic money within the territory of Azerbaijan may be undertaken solely by banks and local branches of foreign banks, the national postal operator, and electronic money institutions, meaning that only electronic money issued and authorised domestically is legally recognised. The issuer must immediately generate electronic money equivalent to the funds received for that purpose and ensure that the electronic money holder can use it. The currency, maximum permissible amount of electronic money, and the upper limit of obligations arising from electronic money issued by a single issuer are to be determined by normative acts of the Central Bank. Pursuant to Art. 13.2, legal entities, local branches of foreign legal entities, and individual entrepreneurs may acquire electronic money only by transferring funds from their respective payment accounts to the issuer. Art. 14 further requires electronic money institutions to submit information concerning payment accounts opened for such persons to the designated body of the relevant executive authority, in the manner and within the timeframe prescribed by that body. Arts. 52 and 57 govern the licensing of local branches of foreign payment institutions, foreign electronic money institutions, and foreign operators, thereby requiring any foreign payment service providers, electronic money issuers, or payment system operators seeking to operate in Azerbaijan to do so through licensed branch offices.
Coverage Online payments
AZERBAIJAN
Since October 2013, last amended in December 2025
Pillar Online sales and transactions |
Indicator Threshold for ‘De Minimis’ rule
Resolution of the Cabinet of Ministers of the Azerbaijan Republic of 14 October 2013 No. 305 about approval of "The Preferential and Simplified Rules of Movement by Physical Persons through Customs Border of the Goods which Are Not Provided for Production or for Dealing Purposes" (Azərbaycan Respublikası Nazirlər Kabinetinin 2013-cü il 14 oktyabr tarixli 305 nömrəli Qərarı “Fiziki şəxslər tərəfindən istehsal, yaxud kommersiya məqsədləri üçün nəzərdə tutulmayan malların gömrük sərhədindən keçirilməsinin güzəştli və sadələşdirilmiş qaydaları”nın təsdiq edilməsi haqqında)
Section 2.1.4 of "The Preferential and Simplified Rules of Movement by Physical Persons through Customs Border of the Goods which Are Not Provided for Production or for Dealing Purposes" provides that certain goods may be brought across the customs border without payment of customs duties. This applies to goods delivered into the customs territory once per calendar month in the name of the same individual via international postal consignments or a courier service, provided that their total customs value does not exceed USD 300.
Coverage Horizontal
AZERBAIJAN
Since May 2005, last amended in December 2018
Pillar Online sales and transactions |
Indicator Framework for consumer protection applicable to online commerce
Law of the Republic of Azerbaijan on Electronic Commerce (Elektron ticarət haqqında Azərbaycan Respublikasının qanunu)
The Law on Electronic Commerce provides a comprehensive framework for consumer protection that also applies to online transactions.
Coverage Horizontal
