Intellectual Property Protection

(1) Patents

   The Government of Japan has implemented all measures to be taken by Japan according to joint statement at the Intellectual Property Working Group meeting under the Japan-U.S. Framework for New Economic Partnership in 1994. On the other hand, although the U.S. Government has enacted the Patent Reform Act (American Inventors Protection Act) which includes the institution of an early publication system and the revision of current reexamination system on November 29, 1999, the amendment did not fully implement the measures to be taken by the U.S. The Government of Japan urges the U.S. to implement completely the above measures at the earliest possible date. Concerning patent litigation, the Law Partially Amending the Patent Law and Other Industrial Property Laws came into effect on January 1, 2000 (part of the amendment came into force on June 1, 1999). This amendment has enabled patent litigation to be resolved swiftly and appropriately.

   The patent system of Japan is fully consistent with the TRIPS Agreement. Business methods related to the Internet are treated in the same way as other subject matters in other technical fields in that being an "Invention (creation of technical ideas by which a law of nature is utilized)" is a requirement for affording patent protection. Therefore, the assertion of the U.S. Government in the report on this issue can only be based on a misunderstanding of our patent system.

(2) Copyrights

   The Government of Japan protects copyrights appropriately in accordance with relevant international rules. As regards the issue of temporary copies and the personal use exemption, raised by the U.S. Government, Japanese Copyright Law fulfills all obligations under international rules, such as the Bern Convention, WIPO Copyright Treaty and TRIPS Agreement. Concerning the enforcement system against piracy of computer software, the Government of Japan already has an appropriate enforcement system that is fully consistent with the TRIPS Agreement.

   The Copyright Law of Japan provides similar protection to the "device" subject to "a device having a principal function for the circumvention of technological protection measures etc." as it includes "component" and "part" as defined in the U.S. Copyright Law.

   Concerning the treatment of joint work, the Copyright Law of Japan is fully consistent with Japan's obligations under related international rules such as the Bern Convention.

(3) Trademarks

   The report insists that Japan's protection of well-known marks is weak, but there are no concrete facts to substantiate that claim. The Government of Japan has been affording appropriate protection to well-known marks, regardless of its registration, under Japan's Trademark Law and Japan's Unfair Competition Law in compliance with the provisions of the Paris Convention and the TRIPS Agreement.

(4) Trade Secrets

   The report insists that trials dealing with trade secrets are held in open court in Japan, but it is in accordance with the principles of the Japanese Constitution. The TRIPS Agreement stipulates a condition concerning trade secret protection, that is "unless this would be contrary to existing constitutional requirements." Thus Japan's practice is consistent with relevant international rules.

(5) Border Enforcement

   Japan's Customs Administration has been actively defending against the inflow of products that infringes intellectual property rights in accordance with fair and just procedures that are consistent with the TRIPS Agreement.