Provisional Translation

OTO No. 523 Classification MOF-95
MITI-129
Date of Acceptance September 19, 1994 Ministry/Agency Receiving Complaint Economic Planning Agency
Responsible Ministries Ministry of Finance
Ministry of International Trade and Industry
Related Laws Customs Tariff Law
Patent Law
Complainant Domestic firm Exporting Countries USA
Subject Clarification of standards for parallel imports
Details of Measures The complainant was advised as follows regarding patent rights pertaining to parallel imports:
1. Under the Paris Treaty etc. on the protection of industrial rights, the prevailing doctrine and legal precedent in Japan has been that even in the case of genuine products obtained legally in foreign countries, import of these as a business without the patent holder's permission constitutes an infringement of patent rights. This is also the usual interpretation in other advanced countries. Accordingly, parallel import of even genuine products cannot be allowed.
Regarding whether importing is done "as a business" or not, the usual interpretation is that importing as a business does not include private or household imports unrelated to a business.
2. Regarding trademark rights, since a 1970 ruling by the Osaka District Court, it has become usual to accept that parallel imports should not be stopped. The basis for this reasoning is that trademark rights differ from other types of intellectual property and that they represent very strong public and social rights protecting the benefits of the user.
3. The information concerning parallel imports in "Wakariyasui Yunyu Tetsuzuki Q & A" [ABCs of Import Procedures (Japanese Only)], published by the Research Institute of International Trade and Industry, will be amended to avoid misunderstandings at the next revision of this publication.
4. Regarding customs, in accordance with Article 21 of the Customs Tariff Law, goods infringing patent rights are controlled, but when they are not imported "as a business" as described in the Patent Law but "for the private use of the importer, " such goods may be imported.
5. Regarding customs, when it is clear that goods are clearly infringing on intellectual property rights when they are passed through customs, import of such goods is stopped even without a restraining petition from the intellectual property rights holder.
Classification of Processing 1. D
2. D
3. A
4. Cc
5. D
Directions III
Remarks

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