June [Legal] Newsletter

Current status of protection of virtual space trademarks in each country

We will introduce the results of the Japan Patent Office's 2024 Trademark Application Trends Survey, which looked at the current state of trademark protection in virtual space in each country and trademark application trends.

The survey covered Japan, the United States, EUIPO, China, and South Korea. The survey method involved extracting trademarks whose designated goods or services contained keywords that were thought to indicate that the trademarks were related to virtual space, such as "VIRTUAL REALITY" and "AUGMENTED REALITY," and then tabulating the number of applications and the distribution of the designated goods and services that contained the keywords.

The survey results showed that in all countries, the total number of applications from 2019 to 2023 increased from 2019 to 2022, but decreased in 2023. In addition, with regard to the classification in which virtual space-related trademarks were applied for, the most applications were in Class 9 in all countries, followed by service classes such as Classes 35, 38, 41, and 42.

In Japan, when describing "virtual goods (digital data for displaying the shape of goods, etc. in a virtual space)" as the designated goods, it is necessary to describe it as "downloadable virtual ○○" in Class 9. In addition, examples of indications that are recognized as services related to virtual space include the following.

Services dealing in virtual goods

• Class 35: "Providing convenience to customers in the online retail business of downloadable virtual clothing"
• Class 41: "Online provision of images for displaying clothing in a virtual space"
• Class 42: "Providing computer programs for displaying clothing in a virtual space"

Services provided in virtual space

• Class 35: "Virtual space advertising"
• Class 38: "Communication in the form of chat rooms in virtual space"
• Class 41: "Providing entertainment in virtual space"
• Class 41: "Provision of a simulated restaurant in a virtual space for entertainment"
• Class 41: "Provision of online games through virtual space"
• Class 42 "Virtual space hosting"

The result that Class 9 had the most applications suggests that many people and companies sought trademark protection for "virtual goods." While services related to virtual space are likely to be designated primarily by providers of virtual space, "downloadable virtual ○○" in Class 9 appears to be designated by companies in a wide range of fields as a measure to build brands in virtual space or to prevent abuse or theft.

The Agency for Cultural Affairs publishes information page on the "Unmanaged Works Adjudication System"

On April 10, 2025, the Agency for Cultural Affairs published an information page regarding the "Unmanaged Works Adjudication System" (scheduled to start in fiscal year 2026), a new adjudication system regarding the use of copyrighted works etc. resulting from the 2023 amendments to the Copyright Act.

This system aims to facilitate the smooth use of past works and content created by the general public. In relation to works that are not centrally managed and for which the intention of the copyright holder regarding the permission of use is unclear, the system allows for time-limited use up to three years by receiving a ruling from the Commissioner of the Agency for Cultural Affairs and paying compensation. For example, this system can be used in the following cases.

Examples of when the Uncontrolled Works Arbitration System can be used

• When digitally archiving past works, some copyright holders are unknown or cannot be contacted, making it impossible to process the rights.
• When other people want to use content created by amateur authors posted on the website, there is no way to contact the author to request use, or there is no response when contacted
• When there are multiple copyright holders for one work and some of the copyright holders cannot be contacted, etc.

The benefit for copyright holders, etc. is that when their works are used under this system, they can receive compensation equivalent to the normal usage fee as consideration for the use. In addition, unlike the current arbitration system, under this system, copyright holders, etc. can stop the use upon request, and the use of the works, etc. after the use is stopped will be subject to license negotiations between the copyright holders, etc. and the user, so it is thought that there is also an advantage in that it will lead to the creation of new licensing opportunities, which can be utilized in the future business of copyright holders, etc.

<Reference URL>
Agency for Cultural Affairs website: Unmanaged works adjudication system
https://www.bunka.go.jp/seisaku/chosakuken/seidokaisetsu/chosakukensha_fumei/tyosakubutsu/index.html

Agency for Cultural Affairs: Publicity material "What is the Uncontrolled Works Arbitration System?"
https://www.bunka.go.jp/seisaku/chosakuken/seidokaisetsu/chosakukensha_fumei/tyosakubutsu/pdf/94199701_01.pdf

Agency for Cultural Affairs: Revision of Copyright Law during the 5 Ordinary Diet Session
https://www.bunka.go.jp/seisaku/chosakuken/hokaisei/r05_hokaisei/

"Survey on the Effects of Design Management in Small and Medium-sized Enterprises"
Three effects that have become apparent

In April 2025, the Design Management Project Team run by the Japan Patent Office published a report investigating the changes and effects of design management practiced by small and medium-sized enterprises, as well as the relationship between design management and intellectual property. Design management is a management method that utilizes the power of design to build brands and create innovation. Design management allows you to understand customer needs and issues and solve them with design thinking, building a unique brand image and promoting the development of new services and products. Products, services, brands, etc. created through design management are protected by intellectual property rights such as patents, design rights, and trademarks, and brand images are built by utilizing these rights. Below is an overview of the report.

Summary of the report

(3) Three effects that have become apparent

We found that design management has the following three effects:

1. Clarifying the company's identity
2. Recruiting and retaining talent
3. Creating new jobs

We visualize what situations small and medium-sized enterprises were in and what actions they took to achieve results, and present case studies as a "model for realizing the effects of design management."

(2) The relationship between design management and intellectual property

Design management has the potential to promote the "creation" of intellectual property. By continuing design management, we can focus on unique management resources (intellectual assets) that were not previously visible, and by making them "visible (formalized knowledge)," we can create new intellectual property.

Newsletter translated into English

Protection of Virtual Space-related Trademarks in Various Countries

We would like to introduce a survey that was conducted for the JPO's 2024 Study on Trademark Application Trends on the actual protection status and application trends for trademarks in virtual spaces in various countries.

The survey covered Japan, the US, EUIPO, China, and South Korea. As the survey method, trademarks were selected that included keywords in the designated goods or services considered to indicate that relation to virtual spaces, such as “VIRTUAL REALITY” and “AUGMENTED REALITY”. The number of applications and the distribution of classes of the designated goods or services containing the keywords were then tabulated.

The study found that in all countries, the total number of applications in the years 2019 to 2023 increased between 2019 to 2022, but decreased in 2023.

As for the classes in which the virtual space-related trademarks were filed, the largest number of applications were filed in class 9 in all countries, while the other most common classes for services were 35, 38, 41, and 42.

In Japan, when indicating “virtual goods (digital data for displaying the shape of goods, etc. in a virtual space)” as a designated good, it is necessary to indicate “downloadable virtual XX” in class 9. Examples of indications that are recognized as services related to virtual space include the following.

Services that deal with virtual goods

• Class 35: “online retail services for downloadable virtual clothing”
• Class 41: “providing online images for displaying clothing in virtual spaces”
• Class 42: “providing computer programs on data networks for displaying clothing in virtual spaces”

Services provided in virtual spaces

• Class 35: “advertising services in virtual spaces”
• Class 38: “providing chatrooms in virtual spaces”
• Class 41: “entertainment services provided in virtual spaces”
• Class 41: “simulated restaurant services provided in virtual spaces for entertainment purposes”
• Class 41: “online game services provided via virtual spaces”
• Class 42: “hosting virtual spaces”

The fact that the largest number of applications were filed in class 9 suggests that many people and companies sought trademark protection with respect to “virtual goods”. While services related to virtual spaces are likely to be designated primarily by providers of virtual spaces, “downloadable virtual XX” in class 9 is likely to be designated by companies and others in a wide range of fields to build brands in virtual spaces or as a countermeasure against misuse or theft.

Agency for Cultural Affairs Publishers Information Webpage on “Compulsory License System for Unmanaged Works”

On April 10, 2025, the Agency for Cultural Affairs published an information webpage on the “Compulsory License System for Unmanaged Works” (scheduled to start in 2026), a new compulsory license system for the use of works, etc. under the 2023 revision of the Copyright Act.

The system's goal is to enable smooth use of past works and contents created by the general public, etc. Under this system, compulsory licenses can be received from the Agency for Cultural Affairs for works, etc. that are not centrally managed and for which the intention of the copyright holder, etc. regarding their use is not clear. The licensed works can be used for a period of up to three years by paying a compensation fee and the system can be used, for example, in the following cases.

Examples of cases in which the Compulsory License System for Unmanaged Works is available

• When past works are being digitally archived but the rights cannot be processed because some copyright holders are unknown or cannot be contacted
• When content created by an amateur author and posted on a website is used by others but there is no way to ask the author for permission, or no reply after the author is contacted
• When there are multiple copyright holders of a work and some of them cannot be contacted

The merit for copyright holders, etc., is that when works, etc. are used under this system, they receive, as compensation payment for the use, an amount equivalent to a normal royalty fee. Furthermore, unlike the current compulsory license system, copyright holders, etc. can have the use suspended upon request under the new system. holders, etc. to take advantage of this in their subsequent business.

＜Reference URL＞
Agency for Cultural Affairs HP: Compulsory License System for Unmanaged Works
https://www.bunka.go.jp/seisaku/chosakuken/seidokaisetsu/chosakukensha_fumei/tyosakubutsu/index.html

Agency for Cultural Affairs: PR material, “What is the Compulsory License System for Unmanaged Works?”
https://www.bunka.go.jp/seisaku/chosakuken/seidokaisetsu/chosakukensha_fumei/tyosakubutsu/pdf/94199701_01.pdf

Agency for Cultural Affairs: 2023 Ordinary Diet Session: Revision of the Copyright Act
https://www.bunka.go.jp/seisaku/chosakuken/hokaisei/r05_hokaisei/

Survey on Effectiveness of Design Management in Small and Medium Enterprises: Three Effects that have Emerged

In April 2025, the Design Management Project Team run by the Japan Patent Office published a report on the changes and effects of design management as practiced by small and medium enterprises and the relationship between design management and intellectual property.

Design management is “a management approach that leverages the power of design for brand building and innovation creation”. Through design management it is possible to build a unique brand image and promote the development of new services and products by understanding customer needs and issues and solving them with design thinking.

Products, services, brands, etc. created through design management are protected by intellectual property rights such as patents, design rights, and trademarks, and brand images are built by utilizing these rights.

The following is a summary of the report.

Report Summary

(1) Three effects that have emerged

Design management was found to have the following three effects:

1. Clarification of company identity
2. Recruitment and retention of personnel
3. Creation of new business

The report visualizes what kind of actions were taken by small and medium-sized enterprises under what conditions to realize the effects, and introduces case studies as “Design Management Effectiveness Model”.

(2) Relationship between design management and intellectual property

Design management has the potential to promote the creation of intellectual property. By continuing design management, unique management resources (intellectual assets) that have not yet been visualized will come into focus, and by “making them visible” (transforming them into explicit knowledge), new intellectual property can be generated.