Litigation 2025

JAPAN Trends and Developments Contributed by: Kensaku Yamamoto, Laarni Vinas, Junko Asai and Kosuke Masuda, SHUSAKU

Additionally, the response rate for mediation requests, which was 30.9%, was lower com- pared to the response rate to the ADR held by local Bar Associations of 63.6% in the 2022 fiscal year, with a significant number of cases failing to proceed due to non-participation by one party. • Legal considerations: In terms of signature methods, since the concept of “counterparts” is not widely used in Japan, and the elec- tronic signature system is still developing, some parties seemed to want the physical printed originals of the agreements sealed by each party. However, electronic signatures that meet the requirements of the Electronic Signature Act could be used and are as legally binding as traditional wet signatures in For ODR to gain traction in Japan, a collabo- rative approach between the government and legal professionals is crucial. Expanding the types of cases that can be handled through ODR and improving participation rates in mediation will be key. Reviewing the pilot project, the sec- retary general at the ADR Centre of the JFBA expects that ODR could become an integral part of Japan’s legal infrastructure, particularly for resolving low-amount civil disputes and those involving individuals in rural areas. Conclusion ODR holds significant potential for improving access to justice in Japan. While the pilot project revealed important challenges, such as the need for better public awareness and technological enhancements, it also showcased the advan- tages of digital dispute resolution, especially in terms of flexibility and convenience. Going forward, the success of ODR will depend on addressing administrative and legal obstacles, this procedure. Future direction

as well as continuing to refine the technology that supports it. Manga-Mura Operator v Big Publishing Corporations Background of the case Manga-Mura, a notorious piracy website active from 2016 to 2018, illegally published around 73,000 volumes of digitised manga. Its operation caused an estimated loss of JPY320 billion for Japan’s publishing industry. The site garnered significant attention due to its immense popular- ity, with nearly 100 million monthly visits, until it was closed with browsing prevention by NTT, a major IPS company, with the de facto green light from the government in April 2018. Piracy has long been a challenge for Japan’s manga and anime industry, which now holds cultural and economic significance. The manga industry generates one third of Japan’s publish- ing revenue but the rise of digital content con- sumption in the 2010s made piracy more acces- sible and widespread. Manga-Mura exploited this trend by offering free access to manga without compensation to its creators, severely undermining the legitimate market. The legal proceedings In July 2019, the former operator of Manga- Mura, Romi Hoshino, was arrested in the Phil- ippines and subsequently extradited to Japan. He was charged with copyright infringement and sentenced to three years in prison, along with a fine of JPY10 million and an additional JPY62.57 million in restitution. Civil proceedings had been ongoing during the time of his imprisonment. In April 2024, Hoshino was found liable for JPY1.7 billion in damages to major publishers KADOKAWA, Shueisha, and Shogakukan by the Tokyo District Court. These companies had

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