Unfair Competition Prevention Act

The Unfair Competition Prevention Act (Act No. 14 of 1934) is amended in its entirety.

The purpose of this Act is to provide measures for preventing unfair competition and compensating loss or damage caused by such competition, in order to ensure fair competition among businesses and the proper implementation of related international agreements, thereby contributing to the sound development of the national economy.

①The term "unfair competition" as used in this Act means any of the following:

②The term "trademark" as used in this Act means a trademark as prescribed in Article 2, paragraph (1) of the Trademark Act.

③The term "marks" as used in this Act means marks as prescribed in Article 2, paragraph (1) of the Trademark Act.

④The term "form of goods" as used in this Act means the external and internal shape of goods, as well as the pattern, color, gloss, and texture combined with the shape, which can be perceived by consumers when they use the goods in an ordinary manner.

⑤The term "imitate" as used in this Act means the act of using the form of another person's goods to create goods that have a form substantially similar to that of the original goods.

⑥The term "trade secret" as used in this Act means technical or business information useful for business activities, such as manufacturing or marketing methods, that is kept secret and not publicly known.

⑦The term "shared data with limited access" as used in this Act means technical or business information that is accumulated to a significant extent and managed by electronic or magnetic means (meaning electronic, magnetic, or any other form that cannot be perceived by the human senses alone; the same applies in the following paragraph), and is intended to be provided to specific persons on a regular basis (excluding trade secrets).

⑧The term "technological restriction measures" as used in this Act means measures that restrict the viewing of images, listening to sounds, running of programs, or processing of information, or the recording of images, sounds, programs, or any other information by electronic or magnetic means; and which use methods in which signals to which a viewing device, etc. (meaning a device used for viewing images, listening to sounds, running programs, processing information, or recording images, sounds, programs, or any other information; the same applies in this paragraph below) responds in a specific way, and where such signals are recorded onto a recording medium or transmitted, or where images, sounds, programs, or other information are recorded or transmitted after being converted in a manner that requires a viewing device, etc. to specifically convert them.

⑨The term "program" as used in this Act means a set of instructions for a computer to achieve a specific result.

⑩The term "domain name" as used in this Act means letters, numbers, signs, or other symbols, or a combination of them, that corresponds to a combination of numbers, signs, or letters assigned to identify individual computers on the Internet.

⑪The term "things" as used in this Act includes programs.

①A person whose business interests have been or are likely to be harmed by infringement through unfair competition may file a claim against the person to suspend or prevent the infringement that has or is likely to harm business interests.

②When filing a claim under the preceding paragraph, the person whose business interests have been or are likely to be harmed through unfair competition may request the destruction of things that constitute the act of infringement (including things created through the act of infringement), the removal of equipment used in the act of infringement, or any other actions necessary to suspend or prevent the infringement.

A person that intentionally or negligently commits an infringement that harms the business interests of another person through unfair competition is liable to compensate for any loss or damage resulting from it; provided, however, that this Article does not apply to loss or damage resulting from the use of trade secrets or shared data with limited access after the rights prescribed in Article 15 have extinguished pursuant to that Article.

①If a person whose business interests have been harmed by an infringement through unfair competition stated in Article 2, paragraph (1), items (i) through (xvi) or (xxii) (referred to as "infringed party" in this paragraph below) files a claim for compensation for loss or damage suffered due to the infringement against a person that has intentionally or negligently committed the infringement that has harmed business interests (referred to as "infringer" in this paragraph below), and the infringer has transferred things (including electronic or magnetic records; the same applies in this paragraph below) that constitute the act of infringement (including when the infringer has transferred things produced by the act of infringement) or provided services produced by the act of infringement, the total amounts stated in the following items may be fixed as the amount of loss or damage suffered by the infringed party:

②If a person whose business interests have been harmed by infringement through unfair competition files a claim for compensation for loss or damage caused by another person that intentionally or negligently committed the infringement, and that other person has made a profit through the act of infringement, the amount of such profit is presumed to be the amount of loss or damage suffered by the infringed party.

③A person whose business interests have been harmed by infringement through the unfair competition stated in Article 2, paragraph (1), items (i) through (ix), items (xi) through (xvi), item (xix), or item (xxii), may file a claim for compensation for loss or damage against a person that intentionally or negligently committed the infringement. The claim may seek an amount equivalent to what the infringed party should have been entitled to receive for the act prescribed in the following items, as defined in the classification of unfair competition under those items, representing the amount of loss or damage suffered by the infringed party:

④When a court determines the amount of money to be received for any act prescribed in paragraph (1), item (ii), (a) through (e), and the items of the preceding paragraph, the court may consider the compensation that the person whose business interests have been harmed by the infringement would have received if they had reached an agreement on compensation for the act with the person that engaged in unfair competition, on the premise that unfair competition occurred.

⑤The provisions of paragraph (3) do not preclude a claim for damages exceeding the amount prescribed in that paragraph. In such cases, if the person that committed the infringement that harmed business interests did not do so intentionally or due to gross negligence, the court may consider this in determining the amount of damages.

①If any of the acts stated in Article 2, paragraph (1), item (iv), (v), or (viii) (limited to acts of acquiring trade secrets) have been conducted with regard to a technical secret (limited to a technical secret concerning manufacturing methods or other information specified by Cabinet Order; the same applies below in this Article), and a person that has conducted such an act produces things using the technical secret or engages in other acts specified by Cabinet Order as acts from which it can be clearly understood that the technical secret has been used (referred to as "production, etc." in this Article below), the person is presumed to have engaged in production, etc. as an act stated in each item (limited to acts of using trade secrets).

②If a person possesses a recording medium containing a technical secret (meaning a document, drawing, or recording medium on which technical secrets are described or recorded; the same applies below in this Article), an object that represents the technical secret, or a transmitter identification code (meaning letters, numbers, symbols, or any other codes used to identify the transmitter of an automatic public transmission (meaning a transmission made automatically in response to a public request for direct reception by the public, excluding an automatic public transmissions that are classified as broadcasts or cablecasts); the same applies in paragraph (4)) associated with the recording medium containing the technical secret, after acquiring the technical secret, learns that there had been an intervening act of wrongful acquisition of trade secrets with regard to the relevant technical secret, or is unaware of that fact due to gross negligence, and the person engages in production, etc., the person is presumed to have engaged in production, etc. as an act of unfair competition as stated in Article 2, paragraph (1), item (vi) (limited to the act of using a trade secret).

③If, after a technical secret has been disclosed by its holder, a person obtains the technical secret by any of the following means in violation of the duty to manage the technical secret, for the purpose of wrongful gain or causing damage to the holder of the technical secret, and the person engages in production, etc., the person is presumed to have engaged in production, etc., as an act of unfair competition (limited to the act of using a trade secret) as stated in Article 2, paragraph (1), item (vii):

④If a person possesses a recording medium containing the technical secret, an object that represents the technical secret, or a transmitter identification code associated with a recording medium containing the technical secret, after acquiring the technical secret, learns that an act of improper disclosure of the trade secret has occurred with regard to the technical secret, or that there had been an intervening act of improper disclosure, or is unaware of this fact due to gross negligence, and the person engages in production, etc., the person is presumed to have engaged in production, etc., as unfair competition as stated in Article 2, paragraph (1), item (ix) (limited to the act of using a trade secret).

In litigation involving infringement that may harm business interests through unfair competition, if a person claims that their interests have been or are likely to be harmed by such infringement, and the opposing party denies the specific circumstances surrounding the things or process that constitute the alleged infringement, the opposing party must clarify the specific circumstances of their actions; provided, however, that this does not apply if the opposing party has adequate grounds for being unable to clarify them.

①In litigation involving the infringement that may harm business interests through unfair competition, the court may, on the motion of a party, order the other party to submit any documents or electronic or magnetic records necessary to prove the act of infringement or calculate the amount of loss or damage caused by the infringement; provided, however, that this does not apply if the holder of the documents or a person with the authority to use the electronic or magnetic records has reasonable grounds to refuse submission.

②If the court finds it necessary for determining whether or not the documents or electronic or magnetic records subject to the motion under the main clause of the preceding paragraph fall within the scope of documents or electronic or magnetic records referred to in the main clause of the same paragraph or whether or not there are reasonable grounds as provided in the proviso of the same paragraph, the court may have the holder of the documents or a person with the authority to use the electronic or magnetic records present those documents or electronic or magnetic records to the court. In this case, no person may request the disclosure of the presented documents or electronic or magnetic records.

③In the case referred to in the preceding paragraph, if the court finds it necessary to disclose the documents or electronic or magnetic records referred to in the second sentence of the preceding paragraph and to hear opinions with regard to whether or not the documents or electronic or magnetic records subject to the motion under the main clause of paragraph (1) fall within the scope of documents or electronic or magnetic records referred to in the main clause of the same paragraph or whether or not there are reasonable grounds as provided in the proviso of the same paragraph, the court may disclose the documents or electronic or magnetic records to the parties, etc. (meaning the parties (or if a party is a corporation, its representative) or the parties' agents (excluding counsel or assistants in court), employees, or other workers; the same applies below), their counsel, or their assistants in court.

④In the case referred to in paragraph (2), if the court finds it necessary to disclose the documents or electronic or magnetic records as provided in the latter sentence of paragraph (2) and hear an explanation based on expert knowledge, the court may disclose the documents or electronic or magnetic records to a technical advisor as provided in Part I, Chapter V, Section 2, Subsection 1 of the Code of Civil Procedure (Act No. 109 of 1996), with the consent of the parties.

⑤The provisions of the preceding paragraphs apply mutatis mutandis to the presentation of the objective of an inspection that is necessary to prove the act of infringement in litigation involving infringement that may harm business interests through unfair competition.

In litigation involving infringement that may harm business interests through unfair competition, if the court, at the request of a party, orders an expert opinion on matters necessary to calculate the amount of loss or damage caused by the act of infringement, the parties must explain the necessary matters to the expert for forming the opinion.

In litigation involving infringement that may harm business interests through unfair competition, if the court finds that loss or damage has actually been incurred but it is extremely difficult to prove the facts necessary to determine the amount of loss or damage due to the nature of the facts, the court may determine a reasonable amount of loss or damage based on the entirety of the oral arguments and the results of the examination of the evidence.

①In litigation involving infringement that may harm business interests through unfair competition, if a prima facie showing is made that trade secrets held by a party to the litigation fall under both of the following grounds, the court, at the request of the party, may, by ruling, order a party, etc., counsel, or assistant in court not to use the trade secrets for any purpose other than conducting the litigation, or not to disclose them to any person other than one subject to the order under this paragraph concerning the trade secrets; provided, however, that this does not apply if the party, etc., counsel, or assistant in court had already acquired or held the trade secrets by means other than reading the brief prescribed in item (i) or the examination or disclosure of evidence prescribed in the same item by the time the request was made:

②A petition for the order under the preceding paragraph (referred to as "protective order" below) must be made in writing and include the following information:

③If a protective order has been issued, the electronic written ruling (meaning an electronic or magnetic record created pursuant to the provisions of Article 252, paragraph (1) of the Code of Civil Procedure as applied mutatis mutandis pursuant to Article 122 of that Act (limited to one recorded, pursuant to the provisions of Article 253, paragraph (2) of that Act as applied mutatis mutandis pursuant to Article 122 of that Act, in a file kept on a computer (including input/output devices) used by the court); the same applies in the following paragraph and paragraph (2) of the following Article) must be served on the person to whom the protective order has been issued.

④A protective order takes effect when an electronic written ruling is served on the person to whom the protective order has been issued.

⑤If the court dismisses a petition for a protective order, the party may file an immediate appeal against the judicial decision.

①A person that filed a petition for a protective order or a person to whom a protective order has been issued may file a motion to rescind the protective order with the court where the case record is kept (or, if no such court exists, with the court that issued the protective order) on the grounds that a requirement prescribed in the preceding Article, paragraph (1) has not been met or is no longer being met.

②If the court makes a judicial decision on a motion to rescind a protective order, it must serve an electronic written ruling on the party that filed the motion and the opposing party.

③An immediate appeal may be filed against a judicial decision on the motion to rescind a protective order.

④A judicial decision to rescind a protective order does not take effect until it becomes final and binding.

⑤If a court has made a judicial decision rescinding a protective order, and, in the same litigation in which the protective order was issued, a protective order protecting trade secrets was issued against any person other than the party that filed the motion for rescission or the opposing party, the court must immediately notify that person of the decision rescinding the protective order.

①If a court has made a ruling under Article 92, paragraph (1) of the Code of Civil Procedure with regard to the case record in a litigation in which a protective order has been issued (excluding a litigation in which all the protective orders have been rescinded), a party has requested to inspect, etc. the part of the record that contains the secret prescribed under the same paragraph, and the person that followed the procedures for filing the request has not had a protective order issued against them in the litigation, the court clerk must, immediately after the request has been filed, notify the party that filed the motion under the same paragraph (excluding the person filing the request; the same applies in paragraph (3)) of the fact that the request has been filed.

②In a case as referred to in the preceding paragraph, the court clerk must not allow the person that followed the procedures for filing the request under the same paragraph to inspect, etc. the part of the record that contains the secret under the same paragraph until two weeks have elapsed since the date of the request (or, if a motion is filed for a protective order against the person in question on or before that date of the request, until the date on which the judicial decision on that motion becomes final and binding).

③The provisions of the preceding two paragraphs do not apply if there is consent among all parties that have filed a motion under Article 92, paragraph (1) of the Code of Civil Procedure to allow the person that filed the request under paragraph (1) to inspect, etc. the part of the record that contains the secret.

①In litigation involving infringement that may harm business interests through unfair competition, if a party, legal representative, or witness is to be examined regarding a matter that serves as the basis for determining whether the infringement occurred and the matter falls under trade secrets held by that party, and if the court, by the unanimous agreement of the judges, finds that the party, legal representative, or witness is unable to provide a sufficient statement because it is clear that giving such a statement in open court would significantly hinder the party's business activities based on the trade secrets, and that, without the statement, the court would be unable to make an appropriate judicial decision regarding whether the infringement occurred, the court may rule to conduct the examination of the matter in a closed session.

②The court must hear the opinions of the parties, etc. in advance before making the ruling under the preceding paragraph.

③In the case referred to in the preceding paragraph, if the court finds it necessary, the court may order a party, etc., to present the court with a document outlining the matters to be stated or an electronic or magnetic record recording the matters that are to be written in such a document. In such a case, no person may request the disclosure of the presented document or electronic or magnetic record.

④If the court finds it necessary to disclose the documents or electronic or magnetic records under the second sentence of the preceding paragraph and to hear opinions, the court may disclose them to the relevant parties, etc., the counsel, or the assistant in court.

⑤If the court is to conduct an examination on a matter without opening it to the public pursuant to the provisions of paragraph (1), it must make a statement to that effect along with the reason for it to the members of the public before having them leave the courtroom. When the examination on the matter ends, the court must allow the members of the public to re-enter the courtroom.

Upon the request of a person whose business reputation has been harmed, the court may order the person that has intentionally or negligently engaged in unfair competition and thereby injured the business reputation of that other person to take necessary measures to restore the other person's business reputation, in lieu of or in addition to compensation for loss or damage.

①The right to claim suspension or prevention of infringement under the provisions of Article 3, paragraph (1) against the act of using trade secrets in the unfair competition stated in Article 2, paragraph (1), items (iv) through (ix) is extinguished by prescription in the following cases:

②The provisions of the preceding paragraph apply mutatis mutandis to the right to claim the suspension or prevention of infringement under the provisions of Article 3, paragraph (1), against the act of using shared data with limited access in the unfair competition stated in Article 2, paragraph (1), items (xi) through (xvi). In this case, the term "the trade secret holder" in item (i) of the preceding paragraph is to be replaced with "the holder of shared data with limited access".

①No person may use anything that is identical or similar to a foreign state's national flag, coat of arms, or any other emblem specified by the Order of the Ministry of Economy, Trade and Industry (referred to as "foreign state's national flag, etc." below) (such identical or similar items are referred to as "emblems similar to a foreign state's national flag, etc." below) as their trademark. No person may transfer, deliver, display for the purpose of transfer or delivery, export, import, or provide through telecommunications lines goods using an emblem similar to a foreign state's national flag, etc. as their trademark. No person may provide services while using an emblem similar to a foreign state's national flag, etc. as a trademark; provided, however, that this does not apply if permission has been obtained from the government agency of the foreign state authorized to grant permission (including an administrative action similar to permission; the same applies below) for the use of the foreign state's national flag, etc.

②Beyond what is prescribed in the preceding paragraph, no person may use a foreign state's coat of arms specified by the Order of the Ministry of Economy, Trade and Industry, as referred to in the preceding paragraph (referred to as "coat of arms of a foreign state" below) in a manner likely to mislead as to the place of origin of goods; no person may transfer, deliver, display for the purpose of transfer or delivery, export, import or provide through telecommunications lines goods using the coat of arms of a foreign state in that manner. No person may provide services while using the coat of arms of a foreign state in the same manner; provided, however, that this does not apply if permission has been obtained from the government agency of the foreign state authorized to grant permission to use the coat of arms of a foreign state.

③No person may use anything that is identical or similar to the seal or sign used by the national or local government of a foreign state for supervision or certification purposes, as specified by the Order of the Ministry of Economy, Trade and Industry (referred to as "official markings of a foreign national government, etc." below) (such identical or similar items are referred to as "official markings similar to that of a foreign national government, etc." below) as a trademark on goods or for services that are identical or similar to those for which the official marking of a foreign national government, etc. is used. No person may transfer, deliver, display for the purpose of transfer or delivery, export, import or provide through telecommunications lines goods using an official marking similar to that of a foreign national government, etc. as their trademark. No person may provide services while using an official marking similar to that of a foreign national government, etc. as a trademark; provided, however, that this does not apply if permission has been obtained from the government agency of the foreign state that is authorized to grant permission for use of the official marking of a foreign national government, etc.

No person may use anything that is identical or similar to a mark representing an international organization (meaning an intergovernmental organization or an equivalent organization specified by the Order of the Ministry of Economy, Trade and Industry; the same applies in this Article below), which is specified by the Order of the Ministry of Economy, Trade and Industry (such identical or similar items are referred to as "mark similar to that of an international organization" below) as a trademark in a manner likely to mislead as to the existence of a relationship with that international organization. No person may transfer, deliver, display for the purpose of transfer or delivery, export, import or provide through telecommunications lines, goods using a mark similar to that of an international organization as their trademark in that manner. No person may provide services while using a mark similar to that of an international organization as their trademark, in the same manner; provided, however, that this does not apply if permission from the relevant international organization has been obtained.

①No person may give, offer to give, or promise to give any money or other benefit to a foreign public official, etc. in order to have them act or refrain from acting in relation to the performance of their official duties, or to have them use their position to influence another foreign public official, etc. to act or refrain from acting in such a manner, so that the person in question can make any wrongful gain in business regarding international commercial transactions.

②The term "foreign public official, etc." as used in the preceding paragraph means any of the following persons:

①The provisions of Articles 3 through 15, Article 21, and Article 22 do not apply to the acts prescribed in the following items, as defined in the classification of unfair competition under those items:

②A person whose business interests have been or are likely to be harmed by any of the acts of infringement prescribed in items (ii) through (iv) of the preceding paragraph may request another person, prescribed in each of the following items and defined in the classification of acts under these items, to affix an indication appropriate to prevent confusion between that person's goods or business and their own:

①An action against a person that commits any act of unfair competition stated in Article 2, paragraph (1), item (iv), (v), (vii) or (viii), in connection with a trade secret of a trade secret holder conducting business within Japan, may be filed with a Japanese court; provided, however, that this does not apply if the trade secret is used exclusively for business outside Japan.

②The provisions of Article 10-2 of the Code of Civil Procedure apply mutatis mutandis to an action over which the Japanese courts have jurisdiction pursuant to the provisions of the preceding paragraph. In this case, the term "the preceding Section" in that Article is to be replaced with "Article 19-2, paragraph (1) of the Unfair Competition Prevention Act".

The provisions of Chapter I, Chapter II, and this Chapter also apply if a person commits an act of unfair competition stated in Article 2, paragraph (1), item (iv), (v), (vii), or (viii) outside Japan, in connection with a trade secret managed within Japan by a trade secret holder; provided, however, that this does not apply if the trade secret is used exclusively for business outside Japan.

①Beyond what is prescribed in this Act, the matters concerning measures to collect arrears, which are necessary for the procedural alignment between those measures and the direct freezing of assets are to be specified by Cabinet Order.

②Beyond what is prescribed in this Act, matters necessary for procedures concerning a third party's participation and a judicial decision under Article 32, procedures for the direct freezing of assets and the value freezing of assets under Chapter VIII, and procedures for international mutual legal assistance under Chapter IX (excluding matters prescribed in the preceding paragraph) are to be specified by the Rules of the Supreme Court.

If Cabinet Orders or Orders of the Ministry of Economy, Trade and Industry are enacted, amended, or repealed pursuant to the provisions of this Act, the required transitional measures (including transitional measures concerning penal provisions) may be specified by that Cabinet Order or Ministerial Order, to the extent considered reasonably necessary for the enactment, amendment or repeal.

①If any of the following items applies, the person that has committed the violation is subject to imprisonment for not more than 10 years, a fine of not more than 20 million yen, or both:

②A person that falls under any of the following items is subject to imprisonment for not more than 10 years, a fine of not more than 20 million yen, or both:

③If any of the following items applies, the person that has committed the violation is subject to imprisonment for not more than five years, a fine of not more than 5 million yen, or both:

④If any of the following items apply, the person that has committed the violation is subject to imprisonment for not more than 10 years, a fine of not more than 30 million yen, or both:

⑤A person that falls under any of the following items is subject to imprisonment for not more than 10 years, a fine of not more than 30 million yen, or both:

⑥An attempt of offences prescribed in paragraph (1), paragraph (2) (excluding item (i)), paragraph (4) (excluding item (iv)) and the preceding paragraph (excluding item (i)) is subject to punishment.

⑦The offence prescribed in paragraph (3), item (vi) may not be prosecuted without a criminal complaint.

⑧The offences prescribed in each item of paragraph (1) (excluding item (v)), the items of paragraph (2) (excluding item (v)), paragraph (4), item (i) or (ii), paragraph (5), item (i) or (ii), or paragraph (6) (excluding the part regarding paragraph (1), item (v) or paragraph (2), item (v)) also apply to a person that commits the offences outside Japan in connection with the trade secrets of a trade secret holder conducting business within Japan.

⑨The offence prescribed in paragraph (3), item (vi) also applies to a person that commits the crime referred to in that item outside Japan.

⑩The offence prescribed in paragraph (4), item (iv) is governed by Article 3 of the Penal Code (Act No. 45 of 1907).

⑪The offence prescribed in paragraph (4), item (iv) also applies to any non-Japanese national who is a representative, agent, employee, or other worker of a corporation having its principal office in Japan and who has committed the offence prescribed in the same item outside Japan with regard to the business of the corporation.

⑫The provisions of paragraphs (1) through (6) do not preclude the application of penal provisions under the Penal Code or any other legislation.

⑬The following assets may be confiscated:

⑭The provisions of Articles 14 and 15 of the Act on Punishment of Organized Crime and Control of Crime Proceeds (Act No. 136 of 1999; referred to as "Organized Crime Punishment Act" below) apply mutatis mutandis to the confiscation under the preceding paragraph. In this case, the phrase "each item of paragraph (1) or each item of paragraph (4) of the preceding Article" in Article 14 of the Organized Crime Punishment Act is to be replaced with "each item of Article 21, paragraph (13) of the Unfair Competition Prevention Act".

⑮When the assets stated in each item of paragraph (13) cannot be confiscated, or when it is deemed inappropriate to confiscate them due to their nature, their condition of use, the existence or non-existence of rights held by any person other than the offender, or other circumstances, the equivalent value of the assets may be collected from the offender.

①If the representative of a corporation, or the agent, employee, or other worker of a corporation or of any person has committed a violation stated in any of the provisions of the following items with regard to the business of the corporation or the person, the corporation is to be subject to the fine prescribed in the relevant items, and the person is to be subject to the fine prescribed in the relevant Article in addition to the offender being subject to punishment:

②In a case referred to in the preceding paragraph, a criminal complaint filed against the offender for an offence prescribed in paragraph (3), item (vi) of the same Article, as prescribed in paragraph (7) of the preceding Article, is also to have effect with respect to the corporation or person mentioned in the preceding paragraph. Similarly, a criminal complaint filed against that corporation or person is to have effect with respect to the offender.

③The period of prescription for the punishment by fine to which the corporation or person in question is subject pursuant to the provisions of paragraph (1) for a violation under paragraph (1), (3), (4), or (6) of the preceding Article (limited to the part regarding paragraph (1) or (4) of the same Article) is to be the same as that for the offence referred to in those provisions.

①When the court is handling a case involving a crime prescribed in Article 21, paragraph (1), (2), (4) (excluding item (iv)), (5), or (6) or a crime prescribed in paragraph (1) of the preceding Article (excluding item (iii)), and the victim, the victim's legal representative, or the attorney entrusted by either of these persons files a petition to prevent the disclosure in open court of a matter that would identify all or part of the information constituting trade secrets related to the case, and the court finds it appropriate, after hearing the opinions of the accused or defense counsel, the court may rule that the matter will not be disclosed in open court and set the scope for this protection.

②The petition referred to in the preceding paragraph must be submitted to the public prosecutor in advance. In this case, the public prosecutor is to notify the court of this, along with the prosecutor's opinion.

③If the court is handling a case prescribed in paragraph (1), and the public prosecutor, the accused, or defense counsel files a petition to prevent the disclosure in open court of a matter that would identify all or part of the information constituting trade secrets held by the accused or others, and, after hearing the opposing party's views, the court finds that the matter is indispensable as proof of the offence or for the defense of the accused, but that disclosing it in open court would significantly hinder the accused's or others' business activities based on trade secrets, and finds it appropriate, the court may rule that the matter will not be disclosed in open court and set the scope of this protection.

④When the court has made a ruling as prescribed in paragraph (1) or the preceding paragraph (referred to as "protective ruling" below), and finds it necessary, after hearing the opinions of the public prosecutor and the accused or defense counsel, the court may, in a ruling, decide on a substitute name or other expression to be used in lieu of the name or other expression that identifies the matter allowing trade secrets to be identified ("matter allowing trade secrets to be identified" means any matter that identifies all or part of the information constituting trade secrets, which the court has decided not to disclose in open court pursuant to a protective ruling; the same applies below).

⑤If the court has issued a protective ruling but later determines that it is inappropriate for the matter allowing trade secrets to be identified to remain undisclosed in open court, or if the case no longer falls under the provisions of paragraph (1) due to the withdrawal or alteration of applicable penal statutes pursuant to Article 312 of the Code of Criminal Procedure (Act No. 131 of 1948), the court must, in a ruling, rescind all or part of the protective ruling and the all or part of the ruling prescribed in the preceding paragraph regarding that protective ruling (referred to as "ruling on a naming, etc." below).

①If a protective ruling has been issued, the charging sheet must be read out, pursuant to Article 291, paragraph (1) of the Code of Criminal Procedure, in a manner that does not disclose any matter allowing trade secrets to be identified. In this case, the public prosecutor must show the charging sheet to the accused.

②With regard to the application of the provisions of the second sentence of the preceding paragraph in cases where measures have been taken pursuant to the provisions of Article 271-2, paragraph (4), Code of Criminal Procedure (excluding cases where a decision by Article 271-5, paragraph (1) of the same Code has been rendered with regard to all of the matters specified as individuals (meaning matters specified as individuals as prescribed in Article 201-2, paragraph (1) of the same Code; the same applies in this paragraph below)), the term "charging sheet" in the second sentence of the same paragraph is to be replaced with "charging sheet extract, etc. (meaning a charging sheet extract, etc. as prescribed in Article 271-2, paragraph (2) of the same Code) and documents as prescribed in Article 271-5, paragraph (4) of the same Code" in cases where a decision by Article 271-5, paragraph (1) of the same Code has been rendered with regard to some of the matters specified as individuals relating to the measures, and with "charging sheet extract, etc. (meaning a charging sheet extract, etc. as prescribed in Article 271-2, paragraph (2) of the same Code)" in other cases.

①If a protective ruling has been issued and examinations or statements by persons concerned in the case include the matter allowing trade secrets to be identified, unless limiting the examinations or statements could materially interfere with proving the offence or could be substantially detrimental to the defense of the accused, the presiding judge may limit the questions or statements. The same applies to questions for the accused by persons concerned in the case.

②The provisions of Article 295, paragraphs (5) and (6) of the Code of Criminal Procedure apply mutatis mutandis if the public prosecutor or attorney acting as defense counsel has disobeyed an order under the provisions of the preceding paragraph.

①When the court has issued a protective ruling, if the court examines a witness, expert, interpreter, or translator, or if the accused makes a voluntary statement; and if, upon hearing the opinions of the public prosecutor and the accused or defense counsel, the court finds that there is a risk that matters allowing trade secrets to be identified will be included in the examinations or statements of the witness, expert, interpreter, or translator, in questions for the accused, or in statements of the accused, and that disclosing such matters in open court would significantly hinder the business activities of the victim, the accused, or others based on trade secrets, and if the court finds it unavoidable to do so in order to prevent this, the court may conduct the examination or questioning of the accused, as prescribed in Article 311, paragraphs (2) and (3) of the Code of Criminal Procedure, on a day other than a trial date.

②The provisions of Article 157, paragraphs (1) and (2), Article 158, paragraphs (2) and (3), Article 159, paragraph (1), Article 273, paragraph (2), Article 274, and Article 303 of the Code of Criminal Procedure apply mutatis mutandis to the proceedings for asking for a statement of the accused under the provisions of the preceding paragraph. In this case, the phrase "the accused or defense counsel" in Article 157, paragraph (1), Article 158, paragraph (3), and Article 159, paragraph (1) of the Code of Criminal Procedure is to be replaced with "defense counsel, the co-defendants, or their defense counsel"; the phrase "the accused and defense counsel" in Article 158, paragraph (2) of the same Code is to be replaced with "defense counsel, the co-defendants, and their defense counsel"; the phrase "the trial date" in Article 273, paragraph (2) of the same Code is to be replaced with "the date of the proceedings for asking statements of the accused under the provisions of Article 26, paragraph (1) of the Unfair Competition Prevention Act"; the phrase "the trial date" in Article 274 of the same Code is to be replaced with "the date, time, and location of the proceedings for asking statements of the accused under the provisions of Article 26, paragraph (1) of the Unfair Competition Prevention Act"; the phrase "documents or electronic or magnetic records which contain or record the results of the examination of witnesses or other persons, inspections, seizure (including orders to provide electronic or magnetic records (limited to those ordering provision by the method set forth in Article 102-2, paragraph (1), item (i), (a))), search, and orders to provide electronic or magnetic records (limited to those ordering provision by the method set forth in (b) of that item) (including having electronic or magnetic records provided by such an order), and objects seized and electronic or magnetic records provided by an order to provide electronic or magnetic records (limited to those ordering provision by the method set forth in (b) of that item)" in Article 303 of the same Code is to be replaced with "documents which contain the results of the proceedings for asking statements of the accused under the provisions of Article 26, paragraph (1) of the Unfair Competition Prevention Act"; and the phrase "documentary or material evidence" in the same Article is to be replaced with "documentary evidence".

If the court finds it necessary to issue a ruling on a naming, etc., or to decide that the examination or the proceedings for asking statements from the accused will be conducted on a day other than the trial date, pursuant to the provisions of paragraph (1) of the preceding Article, the court may order the public prosecutor and the accused or defense counsel to present a document outlining the matters involved in the examination, the statements to be made by the persons concerned in the case, or the questions for the accused.

If a protective ruling has been issued, the reading out of documentary evidence under the provisions of Article 305, paragraph (1) or (2) of the Code of Criminal Procedure, or the reading out of the contents of an electronic or magnetic record under the provisions of Article 307-2, paragraph (1) or (2) of the same Code, must be done in a manner that does not reveal the matter allowing trade secrets to be identified.

The following acts may be taken in pretrial conference procedures and interim conference procedures:

①If the public prosecutor or defense counsel finds that, in providing an opportunity to inspect documentary or material evidence pursuant to the provisions of Article 299, paragraph (1) of the Code of Criminal Procedure in a case prescribed in Article 23, paragraph (1), there is a risk that disclosing a matter that would identify all or part of the information constituting trade secrets, as prescribed in Article 23, paragraph (1) or (3), would significantly hinder the business activities of the victim, the accused, or others based on those trade secrets, the public prosecutor or defense counsel may notify the opposing party of this risk and request that the opportunity be provided in such a way that the concerned parties (including the accused) do not learn of the matters, unless those matters are necessary for proving or investigating the offence, or for the defense of the accused; provided, however, that a request to provide the opportunity in such a way that the accused does not learn of the matters is limited solely to matters not written in the charging sheet.

②The provisions of the preceding paragraph apply mutatis mutandis if the public prosecutor or defense counsel discloses evidence under the provisions of Part II, Chapter III, Section 2, Subsection 1, Division 2 of the Code of Criminal Procedure (including as applied mutatis mutandis pursuant to the provisions of Article 316-28, paragraph (2) of the same Code).

Beyond what is prescribed in this Act, matters necessary for the enforcement of the provisions referred to in Article 23 through the preceding Article are specified by Rules of the Supreme Court.

①If a claim, etc. (meaning assets other than real property and movables; the same applies in Article 34) that falls under the assets stated in each item of Article 21, paragraph (13) belongs to a person other than the accused (referred to as "third party" in this Article below), and the third party is not permitted to participate in the proceedings of the case under public prosecution, a judicial decision for confiscation may not be made.

②The provisions of the preceding paragraph also apply if the assets encumbered by superficies, a mortgage, or any other rights of a third party are to be confiscated pursuant to the provisions of Article 21, paragraph (13) and the third party is not allowed to participate in the proceedings of the case under public prosecution.

③The provisions of Article 18, paragraphs (3) through (5) of the Organized Crime Punishment Act apply mutatis mutandis to cases where the assets encumbered by superficies, a mortgage, or any other rights of a third party are to be confiscated and the relevant rights should continue to exist pursuant to the provisions of Article 15, paragraph (2) of the Organized Crime Punishment Act as applied mutatis mutandis pursuant to Article 21, paragraph (14).

④Except as otherwise provided by this Act, the provisions of the Act on Emergency Measures on Criminal Procedure to Confiscate Items Owned by Third Parties (Act No. 138 of 1963) are to apply mutatis mutandis to the procedures for the confiscation of assets prescribed in paragraphs (1) and (2).

The provisions of Articles 18-3 and 19 of the Organized Crime Punishment Act apply mutatis mutandis to confiscation under Article 21, paragraph (13), and the provisions of Article 20 of the Organized Crime Punishment Act apply mutatis mutandis to cases where the registration of a transfer of rights is commissioned to the relevant organization based on a judicial decision to confiscate the assets for which registration is required in the case of a transfer of rights. In such cases, the phrase "registration, etc. pertaining to" in the same Article is to be replaced with "registration or recording pertaining to", and the phrase "Section 1 of the following Chapter" is to be replaced with "Chapter VIII of the Unfair Competition Prevention Act".

①If a person violates, without justifiable grounds, an order under the proviso of Article 18-3 of the Organized Crime Punishment Act as applied mutatis mutandis in the preceding Article, the person that has committed the violation is subject to imprisonment for not more than three years, a fine of not more than 2.5 million yen, or both.

②If the representative of a corporation, or the agent, employee, or other worker of a corporation or of any person has committed the violation referred to in the preceding paragraph with regard to the business of the corporation or the person, the corporation or the person is to be subject to the fine prescribed in that paragraph in addition to the offender being subject to punishment.

The provisions of Article 4, paragraph (6) of the Criminal Compensation Act (Act No. 1 of 1950) apply mutatis mutandis to the contents of compensation under the same Act with regard to the enforcement of confiscation of claims, etc.

①In cases under public prosecution concerning the offences prescribed in Article 21, paragraphs (1), (2), (4) (excluding item (iv)), (5) and (6), if a court finds probable cause to believe that the relevant assets fall under those that may be confiscated pursuant to paragraph (13) of the same Article, and that confiscation is necessary, the court may issue an order for the direct freezing of assets to prohibit the disposition of the assets, either at the request of a public prosecutor or by its own authority.

②If a court has issued or intends to issue an order for the direct freezing of assets with respect to assets encumbered by superficies, a mortgage, or any other rights, and if the court finds probable cause to believe that these rights will be extinguished through confiscation and that confiscation is necessary, or if the court finds probable cause to believe that the rights have been falsified, the court may issue an incidental freezing order separately to prohibit the disposition of the rights, either at the request of a public prosecutor or by its own authority.

③If a judge finds that there are the grounds and necessity prescribed in the preceding two paragraphs, even before the institution of prosecution, the judge may conduct the disposition prescribed in the preceding two paragraphs at the request of a public prosecutor or a judicial police officer (with regard to judicial police officers that are police officers, limited to a person designated by the National Public Safety Commission or the Prefectural Public Safety Commission as those with the rank of police inspector or with a higher rank).

④Beyond the provisions of the preceding three paragraphs, the disposition under these provisions is governed by the provisions regarding the prohibition of disposition under the order for the direct freezing of assets or the incidental freezing order, as prescribed in Chapter IV, Sections 1 and 3 of the Organized Crime Punishment Act.

①In cases under public prosecution concerning the offences prescribed in Article 21, paragraphs (1), (2), (4) (excluding item (iv)), (5) and (6), if a court finds probable cause to believe that equivalent value should be collected pursuant to paragraph (15) of the same Article, and that enforcing a judicial decision on the collection of equivalent value will be impossible or extremely difficult, the court may prohibit the accused from disposing of the assets. This may be done by issuing an order to collect the equivalent value, either at the request of a public prosecutor or by the court's own authority.

②If a judge finds that there are the grounds and necessity prescribed in the preceding paragraph, even before the institution of prosecution, the judge may conduct the disposition prescribed in the same paragraph, at the request of a public prosecutor.

③Beyond the provisions of the preceding two paragraphs, the disposition under these provisions is governed by the provisions regarding the prohibition of disposition under the order for the collection of equivalent value, as prescribed in Chapter IV, Sections 2 and 3 of the Organized Crime Punishment Act.

①If a foreign state requests assistance in the enforcement of a final and binding decision on confiscation or the collection of equivalent value, or in the freezing of assets related to confiscation or the collection of equivalent value in connection with a criminal case in that foreign state (limited to cases where the act constituting the alleged offence would also constitute an offence under Article 21, paragraph (1), (2), (4) (excluding item (iv)), (5), or (6), had it been committed in Japan), assistance may be provided unless the relevant case falls under any of the following items:

②In providing assistance for the enforcement of a final and binding decision on confiscation regarding assets encumbered by superficies, a mortgage, or any other rights, those rights must be affirmed as continuing to exist if Japanese laws and regulations require this when the assets are confiscated.

①In cases where assistance is requested for the enforcement of a final and binding decision to confiscate assets held by a person subject to the judicial decision, which are of equivalent value to the assets stated in each item of Article 21, paragraph (13), in lieu of the assets stated in that item, that final and binding decision is deemed to be a final and binding decision to collect the value of the assets from the person, in providing assistance pursuant to this Act.

②The provisions of the preceding paragraph apply mutatis mutandis to a request for assistance in the freezing of assets related to confiscation, where the value of the assets is equivalent to that of the assets stated in each item of Article 21, paragraph (13), in lieu of the assets stated in that item.

If a foreign state that has made a request for assistance in the enforcement of a final and binding decision on confiscation or the collection of equivalent value prescribed in Article 37, paragraph (1), subsequently makes a request for the transfer of assets or their equivalent sum of money in relation to the provision of such assistance, all or part of the assets or money in question may be transferred.

Beyond what is prescribed in the preceding three Articles, assistance under Article 37 and transfer under the preceding Article is governed by the provisions for assistance and transfer under Chapter VI of the Organized Crime Punishment Act.