[Document 2]
Effectiveness Verification Committee

Effectiveness Verification Implementation Method
This effectiveness verification is conducted to find out the effectiveness of infringement
prevention measures taken in the CtoC (consumer-to-consumer) markets on theInternet such as auction and flea markets (from here on referred to as “CtoC markets”)
by numerically measuring how many infringing goods and infringements currently exist
in the CtoC markets.
Description
Date andAny one day during the period from February 27 to March 23,

Frequency of2017 regardless of time and day of the week. This will not

Verification:

preclude those who verify from conducting the verification morethan once during the period.

Services:

Auction-Yahuoku!
-Mobaoku!
Flea markets-Mercari-Rakuma-Shoppies-Frill-Yahuoku! (flea market mode)This will not preclude those who verify from conducting a
voluntary fact-finding survey on any services in the CtoC
markets, shopping malls and the BtoB (business-to-business)marketplaces.

Verification Items:

As to which goods will be verified, this will be up to those whoverify such as organizations and companies. However, they are
to select the goods with which a fixed-point, long-term
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verification is possible. This is because the same goods have tobe verified in all CtoC markets and similar verification isnecessary in the future as well. This will not prevent them fromchoosing goods which are different from those in the previous
fiscal year.
In addition, the popularity of the item in the market shall be taken
into account when choosing the goods for verification.
Attention: Names of companies or brands which are related to
the goods chosen do not have to be made public. However, it isunavoidable to release some information such as “a well-known
U.S. maker of spreadsheet business software” etc. Therefore, it
is better to get consent from relevant companies/brands
beforehand.
Methodology:The effectiveness rate will be calculated by dividing the numberof infringing goods and items involved in infringements by theverification parameter.
Example: If 10 infringing goods are found among 100 items, theinfringement rate will be 10%.
If the number of offered goods exceeds 100, the verification
parameter will be 100. In this case, the top 100 items in a searchlist (such as a list ranked, for example, by remaining time or arandomly created list) will be verified. However, making
conditions equal, those who verify should try to use a list ranked
by timing of the offer made with the oldest one coming as near to
the top as they possibly can and to verify the first 100 items fromthe list. Notwithstanding the foregoing, if the number ofverification items at CtoC markets exceeds 100, verifying morethan 100 items will not be precluded.

Judgment Criteria:

Any items that should be counted as infringing goods /infringements are those which are deemed to be infringing
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Effectiveness Verification Committee

copyrights and/or trademarks based on on-screen texts orimages and allowing CtoC market operators and rightholders to make suspension requests to platform providers.
Information on screen includes not only those listed in searches
but also information on individual good’s screens.
If a selected item infringes both a copyright and a trademark, it
will be counted as an infringement of either of them.
The nature of the infringement will be indicated in the attachedspreadsheet.
Note: Any items which may violate the Unfair Competition
Prevention Act will not be counted because we cannot make adefinitive judgment due to the nature of the Act.
However, the following goods’ data will be counted separatelyfrom the above data. These are the goods that have no direct
grounds for infringement in the provided information (whenchecked against the Guidelines, etc.) that would allow CtoC
operators to remove them as infringing goods but havecharacteristics as in the following: (1) Goods which are
deemed to be have infringed a copyright or trademark as aresult of appraisal of on-screen texts and images by a rightholder and if the right holder makes a request for removal.
And CtoC operators can take action for removal (“InfringingGoods Without Notice”), or (2) goods which are deemed aswithout doubt being infringing goods as a result ofpurchase and appraisal based on various pieces ofinformation by the right holder (“Goods having a highprobability of Infringement”).
If any issues of concern arise in the course of verification, it canbe indicated in the margin by using a special note.
For example, there are some goods for which removal requests
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may not be issued as infringing goods when checked against theGuidelines. Therefore, they may not be the ones with a highprobability of infringement but it is assumed that illegal acts orrights-infringement acts have been committed.
Recording Method:

It is up to those who verify as to the method of recording thefindings. However, it is required to keep a record deemed as areasonable proof showing to third parties that the verification
results are based on actual work done.
Remark: Proofs showing that the verification is implemented
should be kept at hand by the verifier.

Reporting Method:

Fill out the attached spreadsheet and submit it to the chief of theright holders’ side of the committee by March 24, 20174