Author: Mei Suzuki, Attorney at Law

Under the Japanese Customs Act, the customs authorities have the power to stop the import or export of goods/ products that infringe intellectual property rights, such as patents, utility model rights, design rights, copyrights, and trademarks, etc. (hereinafter “Infringing Intellectual Property Goods”) under Article 69-2 and Article 69-11 of the Japanese Customs Act.

Recently, the Ministry of Finance announced the status of seizures of Infringing Intellectual Property Goods at customs in the first half of 2023.

In the first half of 2023, the number of import suspensions for Infringing Intellectual PropertyGoods exceeded fifteen-thousand (15,000) for the first time in three (3) years, an increase of 23.7% compared to the same period last year.

Additionally, the majority of import injunctions by type of intellectual property were for trademark infringing goods (for example counterfeit branded goods), followed by design rights infringing goods (imitation of designs) and copyright infringing goods (for example counterfeit character goods).

The Ministry of Finance’s website lists examples of Infringing Intellectual Property Goods that have actually been seized, with images that give an idea about the actual situation.

The following graph summarizes the changes in the composition ratio of import suspensions by country (region) of origin

China accounts for about 80% of the source countries, and in recent years, Vietnam, Thailand, South Korea, Taiwan, and other countries also appear to be among the top destinations.

As described above, a large number of Infringing Intellectual Property Goods have been seized by customs authorities. These seizures and confiscations are the result of injunction petitions filed by the holder of the intellectual property rights and the certification procedures conducted by customs authorities.

(1) System for Application of an Injunction

The injunction application system is a mechanism through which the holder of the intellectual property rights, files a petition with the Director-General of Customs to halt the import or export of Infringing Intellectual Property Goods and to initiate certification procedures for cases where specific goods intended for import/export are identified as violating/infringing these rights (as outlined in Article 69-4 and Article 69-13 of the Japanese Customs Act).

(2) Certification Procedures

If, as a result of an injunction application or inspection by customs authorities, Infringing Intellectual Property Goods are discovered, the customs authorities will initiate certification procedures (Article 69-3 and Article 69-12 of the Japanese Customs Act).

If no infringement is found, the import or export is permitted, but if infringement is found, the customs authorities will take measures such as confiscation or destruction of the goods after the appeal period has elapsed. During the appeal period, the importer may voluntarily make modifications, such as destroying or disposing of the goods, voluntarily abandoning them, or obtaining the consent of the holder of the intellectual property rights.

If a company is involved in the import or export of goods, it is recommended that the company keep the certification procedure in mind in advance, as one day it may suddenly receive a notice from the customs office regarding the certification procedure. Additionally, if the company is concerned about importing or exporting goods that infringe on the company’s intellectual property, it may also want to consider applying for an injunction petition.