Protection of Intellectual Property Rights

(1) Copyright

Under the current Japanese legal system, investigations into violations of copyrights are only initiated in the event that the holder of the copyright takes the initiative in making a formal accusation.

(2) Patents

There is no denial of the use of specific theories in court interpretations of the scope of protection granted to patents in Japan. Indeed, courts make decisions on a case-by-case basis in order to achieve harmony between the protection of rights and requirement to clarify the scope of the rights of third parties. This is not a matter which ought to be treated as a trade barrier.

However, the measures which the United States is to take within the Framework Talks (the introduction of an early publication system and expansion of the re-examination procedures) are yet to be accomplished through legislation. The United States has acknowledged this and Japan strongly urges that it make more efforts to achieve full implementation.

(3) Trademarks

Efforts are being made to shorten the trademark registration process by introducing machine-based search functions, contracting out some work of the process and expanding the number of examiners. Furthermore, protection of well-known marks is clearly stipulated in the Trademark Law, and, in addition, clear standards have been established for examining trademark applications and efforts are being made to enhance the systems.

(4) Trade Secrets

A. The allegation that Japanese courts require disclosure of trade secrets is incorrect. The Japanese Constitution strictly stipulates the exceptions to the principle of full public disclosure of court proceedings. As a result, the court proceedings concerning trade secrets must be made in the Court open to the public. In the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPs) of the World Trade Organization, although trade secrets are granted procedural as well as substantive protection, there is reservation that "unless this would be contrary to existing constitutional requirements".

B. The bill to amend the Civil Procedures Law which is currently pending in the Japanese Diet stipulates that trade secrets and other court records will be made public only to parties to court cases. As a result, when this bill passes there will be a substantial improvement to the protection afforded in the procedures of cases involving trade secrets.

Furthermore, although there is no stipulation requiring that parties to court cases and their attorneys be given a clear obligation of confidentiality in the revised Civil Procedures Bill, the improper use or disclosure of information related to trade secrets obtained by these parties in the court process constitute a tortuous act in private legal system.