JAPAN Law and Practice Contributed by: Atsushi Igarashi, Yoichiro Kuriyama, Misa Takahashi and Kosuke Ojio, TMI Associates
Furthermore, the initial excitement surrounding NFTs has cooled considerably in recent years. A growing number of NFT businesses have been discontinued after failing to generate the revenue initially expected. In fact, a video collection service using NFTs for a professional baseball league and a game using play - er‑image NFTs for a professional soccer league both terminated their services in 2024. Given this shift, it is now time for the sports industry to explore new approaches to using NFTs – not only for trading cards and games, but also in broader appli - cations. Recently, NFTs have been incorporated into marketing initiatives, such as fan tokens, digital mem - bership cards, digital stamps, and proofs of attend - ance at sporting events. 10.2 AI At present, Japan does not have a comprehensive statute specifically regulating AI. However, the gov - ernment has developed a policy framework through guidelines and soft‑law measures. In particular, the AI Business Operator Guidelines (Version 1.0, April 2024), jointly issued by the Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry, provide guidance on the develop - ment, provision, and use of AI systems. Additionally, the General Understanding on AI and Copyright in Japan (March 2024), issued by the Agency for Cultural Affairs, offers guidance on copyright issues relating to generative AI. Within the sports industry, AI is increasingly being used across a wide range of activities. Examples include analysis of players’ performance, develop - ment of data‑driven tactics and strategies, support for player conditioning and injury prevention, assis - tance with referee decision‑making and scoring, fan‑engagement initiatives (such as personalised content and enhanced viewing experiences), predic - tion of crowd congestion around stadiums, dynamic ticket pricing, and the use of generative AI for media content and marketing. A notable example in Japan is the initiative implement - ed by the JOC to protect athletes from online abuse. The JOC uses AI‑based monitoring tools to analyse comments and posts on social media platforms to
identify abusive or defamatory content directed at athletes. Through such monitoring, the JOC aims to respond promptly to harmful content and support affected individuals. The JOC also collaborates with international organisations, including the IOC, to share information and best practices in addressing online abuse in sport. AI offers significant opportunities for sports organi - sations and sponsors, including more efficient operations, improved athletic performance through advanced analytics, enhanced fan engagement, and new commercial opportunities through personalised services and data‑driven marketing. However, the use of AI also presents several risks. Because the decision‑making process of AI systems may not always be transparent and the accuracy of outputs cannot be fully guaranteed, organisations must carefully assess how and to what extent AI‑gen - erated results should be relied upon and avoid over - reliance on such outputs. Additionally, AI‑generated content may infringe third‑party intellectual property rights, including copyrights. Other potential risks include data‑protection concerns, algorithmic bias, and reputational risks associated with the misuse of AI technologies such as deepfakes. 10.3 The Metaverse The metaverse is increasingly seeing practical appli - cation across Japan, with use cases emerging in areas such as live music concerts, e‑commerce, housing exhibitions, new car release events, virtual towns, and even medical procedures. Within the sports industry, several notable examples demonstrate how organisa - tions are adopting metaverse and AR technologies. One example is the Fukuoka SoftBank Hawks, a pro - fessional baseball team that has recreated their home stadium, the PayPay Dome, in the metaverse. This allows users to enjoy a variety of content linked to the team and its venue in a virtual environment. Another example is the “AR Cheering Challenge” by KDDI and Kyoto Sanga F.C. In March 2024, the organisations launched the beta version of this initiative, utilising AR technology during a J1 League match. Fans inside the stadium were able to use their smartphones to view AR presentations, participate in interactive ele -
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