February issue [Legal Affairs] Newsletter

The Japan Patent Office publishes "Explanation of Classification of Goods and Services (Compatible with the International Classification 13-2026 Edition)"

In January 2026, the Japan Patent Office published the “Explanation of Classification of Goods and Services [Compatible with the International Classification 13th Edition - 2026 Edition].”
This document was created with the aim of supporting understanding of the classification of goods and services and their display in trademark registrations, based on the revised "Appendix to the Trademark Act Enforcement Regulations" that came into effect on January 1, 2026, and the corresponding "Examination Guidelines for Similar Goods and Services (International Classification No. 13-2026 Edition)."

The "Explanation of Classification of Goods and Services" explains what goods and services fall under the headings enclosed in boxes (so-called "strip notation") in the Similar Goods and Services Examination Guidelines, organized in order of similar group codes. It also includes examples of goods and services with the same similar group codes in other classifications.

For example, in the explanation for Class 3 "Cosmetics" (similar group code: 04C01), the products that fall under "cosmetics" are listed as follows:
- Most "cosmetics" and "quasi-drugs" that have a mild effect on the human body
- Products that are used by rubbing or spraying on the body for the purpose of cleaning, beautifying, or increasing the attractiveness of the human body, changing appearance, or maintaining healthy skin or hair.
・Including not only women's products but also men's and infant products

In addition, for goods and services that have undergone changes in labeling or class transfer due to annual revisions to the international classification, an explanation of the revisions may be included.
For example, the following explanation is provided for Class 3 "Fragrances (limited to those for aromatic purposes)" (similar group code: 04D01), which underwent a labeling change in 2026:

In this way, by referring to the "Explanation of Goods and Services Classifications," users can more accurately understand the scope of goods and services that belong to each classification. This will enable users to properly select classifications and designated goods (services) when filing trademark applications, which is expected to contribute to brand strategies and the establishment of rights.

Agency for Cultural Affairs to distribute background music royalties to singers and record companies, amending copyright law

On January 9, 2026, the Agency for Cultural Affairs decided to revise the system to allow singers and record companies to charge royalties for the use of background music played in commercial facilities such as cafes, restaurants, apparel shops, beauty salons, and hotels, and presented a draft report to the Council for Cultural Affairs.

Performers such as singers and musicians, as well as record companies, are neighboring rights holders and have the right to grant licenses for the use of CD recordings. However, while payment to singers is the norm overseas, performance rights (record performance and communication rights) are not yet recognized in Japan (with some exceptions). In other words, when music is played as background music in a commercial facility, royalties are paid only to copyright holders such as lyricists and composers, and neighboring rights holders are not subject to royalty claims. The aim of this revision is to align with the international community, thereby protecting the rights of artists and supporting their activities, and increasing the earning power and creative potential of Japanese content.

The Agency for Cultural Affairs will continue to make adjustments based on the council's discussions and aims to submit a bill to amend the Copyright Act to the ordinary Diet session this year. Considering the need to consider the burden on small businesses and to publicize the bill, the Agency has set aside a three-year preparation period for its implementation, during which the specific amount of royalties and the method of collection will be finalized.

Handouts from the 21st Design System Subcommittee released

The 21st Design System Subcommittee meeting was held at the Japan Patent Office on December 15, 2025. It appears that the "form of the design system for designs in virtual space" was discussed. Materials distributed at the subcommittee meeting are available on the Japan Patent Office website. These materials provide insight into the future direction of Design Act revisions, so we will introduce some of them below. The materials cover the following three points. This article will focus primarily on ① implementation acts.

① Regarding implementation actions
②About the protection subject
③ Judgment on similarity of designs

Opinions from this hearing regarding the implementation of the act

(1)During the production stage
- Producing 3D models commercially for practice, idea generation, etc.
　　Many people were negative about the effect of design rights being extended

(2)At the distribution stage
- Providing 3D models to third parties "as a business" on virtual space platforms, content platforms, etc.
　　There were many positive opinions regarding the effect of design rights being extended

- Transferring, lending, exporting, importing, or offering to transfer or lend (including displaying for the purpose of transferring or lending) image recording media (e.g. USB, SD card, disk) on which 3D models are recorded "for business purposes."
　　There were many positive opinions regarding the effect of design rights being extended

(3)During use
- The act of a user of a virtual space platform using 3D models placed or incorporated within the world "commercially" by using the models for their intended purposes and functions within the world.
　　There were both positive and negative opinions regarding the effect of design rights.

(4)When incorporated as one element in a space that is made up of many elements
　A variety of opinions were received
　- Design rights should not be in force if the product is not an independent subject of trade.
　- The effect of design rights should be based on how the 3D model is used in the space in which it is incorporated.

Source: "Issues to be considered regarding the design system" (Japan Patent Office)
URL:https://www.jpo.go.jp/resources/shingikai/sangyo-kouzou/shousai/isho_shoi/document/21-shiryou/03_shiryo-1.pdf
(Used on January 23, 2026) *Processed and created by our office

Newsletter translated into English

JPO Publishers “Explanatory Notes on the Classification of Goods and Services [Compatible with International Classification 13th Edition, 2026 Version]”

In January 2026, the Japan Patent Office (JPO) published the “Explanatory Notes on the Classification of Goods and Services [Compatible with International Classification 13th Edition, 2026 Version]”.
This material was created to assist users in understanding the classification of goods and services in trademark registration and their indications. It is based on the amended “Appended Table of the Ordinance for Enforcement of the Trademark Act” (effective January 1, 2026) and the corresponding “Examination Guidelines for Similar Goods and Services [Compatible with International Classification 13th Edition, 2026 Version]”.

The “Explanatory Notes on the Classification of Goods and Services” organizes goods and services that appear as headings enclosed in rectangular boxes in the Examination Guidelines for Similar Goods and Services according to their Similarity Group Codes. It provides explanations of which goods and services fall under each heading, including examples of goods and services that belong to different classes but share the same Similarity Group Code.

For example, in the explanation for Class 3 “Cosmetics” (Similarity Group Code: 04C01), the products falling under “Cosmetics” are indicated as follows:
– The majority of “cosmetics” and those “quasi-pharmaceutical products” with mild action on the human body.
– Products applied, sprayed, or otherwise used on the body for the purpose of cleaning, beautifying, increasing attractiveness, changing appearance, or maintaining healthy skin or hair.
– Includes products not only for women but also for men or infants.

Furthermore, for goods and services where indications have been changed or class migrations have occurred due to the annual revision of the International Classification, explanations regarding the details of those revisions may be provided.
For example, regarding Class 3 “perfumery for fragrancing” (Similarity Group Code: 04D01), for which an indication change was made in 2026, the following explanation is given:

By referring to the “Explanatory Notes on the Classification of Goods and Services”, the scope of goods and services belonging to each class can be understood more precisely. This facilitates the appropriate selection of classes and designated goods (services) at the time of trademark application, and is expected to contribute to brand strategy and the establishment of rights.

Agency for Cultural Affairs to Distribute BGM Royalties to Singers and Record Companies – Moving Towards Copyright Act Revision

On January 9, 2026, the Agency for Cultural Affairs (ACA) finalized a policy to revise the current system to allow singers and record companies to claim usage fees for background music (BGM) played in commercial facilities such as cafes, restaurants, apparel shops, hair salons, and hotels. The Agency presented a draft report to the Council for Cultural Affairs.

Performers, such as singers and musicians, as well as record companies, are neighboring rights holders. While they have the right to authorize the use of CD sound recording and payment of compensation to singers is common practice overseas, the “right of performance” (ie the right to publicly perform and communicate sound recording) has not yet been fully recognized in Japan, except in limited circumstances. As a result, royalties for BGM in commercial facilities are currently paid only to copyright holders, such as lyricists and composers, while neighboring rights holders have been excluded from receiving such fees. The purpose of this policy revision is to align Japan with international standards, protect artists' rights, and support their activities, thereby enhancing the “earning power” and “creative potential” of Japanese content.

The ACA will move forward with adjustments based on council's discussions and aims to submit a bill to amend the Copyright Act during the ordinary session of the Diet this year. Recognizing the need to take into account the burden on small-scale businesses and the importance of public awareness, the Agency plans to introduce a preparation period of approximately three years before enforcement. Specific royalty amounts and collection methods will be finalized in the coming months.

Release of Distributed Materials from “21st Design System Subcommittee”

On December 15, 2025, the 21st Design System Subcommittee was convened at the Japan Patent Office (JPO). Discussions appear to have focused on “The Future of the Design System for Designs in Virtual Spaces”. The materials distributed at the subcommittee meeting have been made publicly available on the JPO website. As these materials provide insight into the direction of future amendments to the Design Act, am excerpt is introduced below. The identify materials the following three key discussion points. In this article, we will primarily focus on “(1) Acts of working”.

(1) Acts of working
(2) Subject matter of protection
(3) Determination of similarity of designs

Opinions expressed in the recent hearing regarding “Acts of Working”

1. At the production stage
･ The act of producing 3D models “as a business” for practice, ideation, etc.
  – There were many negative opinions regarding the effectiveness of design rights extending to such acts.

2. At the distribution stage
･ The act of providing 3D models to third parties “as a business” on virtual space platforms, content platforms, etc.
  – There were many positive opinions regarding the effectiveness of design rights extending to such acts.

･ The act of assigning, leasing, exporting, importing, or offering for assignment or lease (including display for the purpose of assignment or lease) image recording media, etc. (eg, USB, SD cards, discs) recording 3D models “as a business”.
  – There were many positive opinions regarding the effectiveness of design rights extending to such acts.

3. At the usage stage
･ The act of a user of a virtual space placed platform utilizing a 3D model, or incorporated within a world, “as a business” in a manner that allows it to fulfill its intended use and function within that world.
  – Both positive and negative opinions were observed regarding the effectiveness of design rights extending to such acts.

4. Cases where a model is incorporated as one element of a space composed of numerous elements
 Various opinions were received:
 ･ The effectiveness of the design right should not extend to cases where the model is not an independent object of trade.
 ･ The effectiveness of the design right should extend depending on how the said 3D model is used within the incorporated space.