JAPAN Law and Practice Contributed by: Atsushi Igarashi, Yoichiro Kuriyama, Misa Takahashi and Kosuke Ojio, TMI Associates
Guidelines and manuals have been developed by the Japan Esports Union, helping clarify several legal issues related to esports competitions, particularly those involving prize money and/or participation fees. These efforts have contributed to a more structured and transparent environment for organising events. Esports are characterised by their ability to facilitate remote participation, allowing competitions to be held while maintaining physical distance – making them uniquely suited to an online format. Furthermore, esports have been embraced by traditional sports players, as they can easily play esports titles and organise their own competitions. 9.2 Key Trends and Notable Deals in Esports Esports have become increasingly popular among younger generations, leading to a significant rise in the number of young players. As a result, it has become necessary to consider the effects of esports on chil - dren’s health – such as gaming disorders and gaming addiction – and to explore ways to improve the envi - ronment for young esports participants. In March 2020, a local authority enacted Japan’s first ordinance aimed at reducing internet and video game addiction among young people. The ordinance rec - ommends that guardians ensure children under the age of 18 limit computer game use to a maximum of 60 minutes per day and, in principle, turn their smart - phones off by 9 pm. In response to this measure, certain residents filed lawsuits claiming that the ordinance violated human rights, including the freedom to play games and the constitutional right to enjoy esports. However, the Dis - trict Court dismissed these claims, finding that the ordinance did not impose any specific or enforceable restrictions on their rights. The court concluded that enjoying esports could be regarded as a hobby or personal preference, and therefore not something that warranted constitutional protection in this context. In June 2024, the Japan e-Sports Union (JeSU) was approved as a provisional member of the Japanese Olympic Committee (JOC) until March 2027. Esports have also been confirmed as an official event for the 20th Asian Games, scheduled to be held in Aichi–
Nagoya in 2026, following their inclusion in the previ - ous edition. JeSU will serve as the governing body for esports during these events.
10. NFTs, AI and the Metaverse 10.1 Non-Fungible Tokens (NFTs)
NFT markets have emerged and developed around the world since 2021, with NFT‑related businesses also beginning to appear across various industries in Japan that spring. Several NFT marketplaces have launched in Japan, initially driving a surge in NFT issuance – particularly in the arts, gaming, and talent‑related sectors. In the sports industry, multiple professional baseball, soccer, and basketball leagues and teams, as well as a women’s professional wres - tling organisation, have introduced licensed games, trading card services, and other initiatives using NFTs. Some sports teams have also begun issuing “fan tokens”, using blockchain technology as a new means of fundraising. As a result, NFTs are increasingly seen as a potential new revenue source for both teams and leagues. From a regulatory standpoint, Japan currently has no comprehensive law that directly governs NFTs. How - ever, depending on the characteristics of the NFT and the structure of the relevant transactions, a range of existing laws and regulations may apply. These include the Payment Services Act (covering crypto‑assets), the Financial Instruments and Exchange Act (where NFTs resemble securities), the Act Against Unjustifi - able Premiums and Misleading Representations, and the Copyright Act. Consequently, legal analysis may be necessary depending on how the NFT is designed, offered, and sold. In addition, because NFTs can be traded on the market for an indefinite period by an unspecified number of people, rights clearance becomes an important issue. All parties involved – players, teams, issuers, and purchasers – must appro - priately agree on matters such as portrait rights, uni - form rights, distribution of revenue from primary and secondary sales, and the ways in which purchasers are permitted to use the NFTs.
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