5th Report of Market Access Ombudsman Council (March 17, 1998)

6-(1) Improvement of policy on registration of Internet domain names by JPNIC

1. Complainant: Australian Embassy, Australia and New Zealand Chamber of Commerce

2. Ministry concerned: Ministry of Posts and Telecommunications

3. Background:

(1) Establishment of JPNIC

In Japan, registration and assignment of Internet domain names is handled solely by the Japan Network Information Center (JPNIC), as private incorporated juridical body.

JPNIC had as its predecessor JNIC, which was established in December 1991 with the support of the Japan Council of Research Networks (JCRN), a group composed of representatives from Internet service providers and academics. JPNIC was established in March 1993 and recognized as a corporation under the Ministry of Posts and Telecommunications, Ministry of Education, Ministry of International Trade and Industry, and the Science and Technology Agency, on March 31, 1997.

(2) Requirements for domain name registration

In order to prevent trademark-related problems and the emergence of domain name brokers, JPNIC's policies on domain name registration are to process applications in the order they are received, to assign only one domain name per organization, to restrict transfers, and to require a local base (that companies, etc., be registered in Japan).

When necessary, JPNIC requires applicants to produce a copy of company registration and a certificate of the seal impression of the company's representative, in order to verify particulars regarding identity when a domain name is registered.

(3) Requirements for registration in other countries

Australia does not allow individual companies to have multiple domain names. It also requires presentation of the company's business registration when application for domain name registration is made.

In New Zealand, multiple domain names are allowed, and there are no restrictions on the location of the business.

4. Complaint:

The Complainant maintains that

(1) Although JPNIC policies place a limit of one domain name per company, those policies should be changed to allow the use of separate domain names for different departments within a company or for separate projects.

(2) Although under JPNIC policies companies not registered in Japan are not given Japanese domain names (www.***.co.jp), those policies should be changed to allow foreign companies not registered in Japan to use Japanese domain names.

(3) JPNIC registration fees should be lowered by introducing the principle of competition, and it should be possible to carry out application procedures online.

5. Results of deliberation:

There are no uniformed international standards regarding restrictions on the number of domain names that may be applied for or requiring the applicant to have a local base. Since various standards are in use in industrial countries, JPNIC's operating policies cannot necessarily be deemed a market barrier, in view of the existing international situation. Furthermore, online registration procedures have been available since December 1991. Neither are registration fees expensive by international standards; when registering directly with JPNIC, the fee is ¥20,000, but when registration is done through an Internet provider that is a member of JPNIC, each member sets its own registration fee and in that sense, there is competition, among members.

However, considering that many countries, for example the United States, Britain, Germany and so on, already permit multiple domain names per organization and have less stringent requirements than Japan concerning local residence, differences in policies regarding domain name registration should be examined to determine whether they impede access, including inward investment, to Japanese markets.

Under the civil law, JPNIC is a non-profit organization supervised by the ministries concerned. The ministries can give the necessary orders, and as was recommended by the Council (June 18, 1997), notwithstanding the fact that JPNIC's policies are internal ones, the ministries should take the necessary measures, if these policies are inappropriate from the viewpoint of market access.

The ministries established a study group in March 1998 which will examine methods of supervising domain names and investigate the matter from a broad perspective. However, the group should also study the issues of market access and promotion of inward investment, taking international trends into consideration, and reach a conclusion during 1998. After this, the ministries should urge JPNIC to revise its operating policy regarding domain names, if necessary.

Government decision (March 23, 1998)

3-(1) Improvement of policy on registration of Internet domain names by JPNIC

Bearing in mind international trends regarding administration of domain names, the Ministries will study this matter from the perspective of market access and promotion of inward investment in Japan and a conclusion reached in FY 1998. In addition, if necessary, the Ministries will urge the Japan Network Information Center (JPNIC) to revise its operating policy regarding domain names.