[Annex 2]
Guidelines Committee

Final Report from the Guidelines Committee
The Guidelines Committee has held discussions to revise the “Guidelines for the Preventionof Distribution of Internet IPR Infringing Goods” issued on March 14, 2008. This is the reporton the combined results. The keywords in the Keyword Annex significantly increased from43 to 105 as a result of the discussions and the guidelines are most advanced at this point.
However, we suggest that the guidelines be revised as required on an ongoing basis
because things are changing day by day in the Internet community.

1. BackgroundAs stated in the CIPP Report for FY 2009, we decided to establish the Guidelines
Committee in regard to the “Guidelines for the Prevention of Distribution of Internet IPR
Infringing Goods” to organize the matters common both to right holders and auction
operators for the purpose of sharing renewed common understandings based on the realityof the current distribution through auctions.
2. Participants
Association of Copyright for Computer Software
Union des Fabricants
Recording Industry Association of Japan
Japanese Society for Rights of Authors, Composers and Publishers
Honda Motor Co., Ltd.
Yahoo Japan Corporation
DeNA Co., Ltd.
girls auction Co., Ltd.
Rakuten Auction, Inc.
(Honorifics omitted; listed in random order)
3. Date of MeetingFirst committee meeting:

Friday, July 2, 2010

Second committee meeting:

Tuesday, September 14, 2010

Third committee meeting:

Wednesday, October 27, 2010

Fourth committee meeting:

Tuesday, November 2, 2010

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4. Details and Results of Discussions•Review of the body of the guidelines

The eligibility of reporters was revised. (See Attached Document (a).)•Review of the Keyword Annex

As CIPP members (both corporate right holders and operators) proposed new keywords
that need to be added, we held discussions about the wording that should be included in thekeywords based on the trend and specific examples of actually auctioned infringing goods.
In addition, the “Remarks” column was newly created for keywords to add descriptions
about the existing and new keywords. (See Attached Documents (b) and (c).)

Attached Documents(a) Guidelines for the Prevention of Distribution of Internet IPR Infringing Goods (Body) *Disclosed Document(b) Guidelines for the Prevention of Distribution of Internet IPR Infringing Goods (Annex A) *Disclosed Document(c) Guidelines for the Prevention of Distribution of Internet IPR Infringing Goods (Annex C) *Undisclosed Document

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Guidelines Committee

Guidelines for the Prevention of Distribution of Internet
IPR Infringing Goods

Issued on:

March 14, 2008

Revised on: December 13, 20103/10

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 Introduction
These guidelines (“Guidelines”) are a summary of the actions that right holders and Internet
auction operators (“Site Operators”) should take to prevent the distribution of IPR infringing
goods (“Illegal Items”) through Internet auction sites.
The concerned parties shall make their best efforts in their own capacity on the assumptionthat removing auctioned items pursuant to these Guidelines is not enough to achieve theabove purpose and that it is essential to take collaborative and comprehensive measures
such as engaging in activities to raise awareness of consumers, identifying infringers,
claiming damages, and lodging criminal complaints.
Adequate attention shall be paid in order not to deprive consumers of their legitimate
interests in practicing these Guidelines.
* Please note that these Guidelines specify certain voluntary activities centering on theremoval action and that the disclosure of “identification information of the senders,” whichfalls into the category of “secrecy of communications” stipulated in the Constitution and theTelecommunications Business Act is excluded from the scope hereof and is left to theCouncil for the Guidelines on the Providers’ Liability Limitation Act in view of the strict
requirements under the Act on the Limitation of Liability for Damages of Specified
Telecommunications Service Providers and the Right to Demand Disclosure of Identification
Information of the Senders (“Providers’ Liability Limitation Act”).

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1. Removal of Illegal Items and Judgment Criteria of Illegal Items
In principle, Site Operators shall take the removal action for the auctioned items inInternet auctions (“Auctioned Items”) when:
A. The Site Operator can objectively and independently judge from the perspective ofan ordinary third party that the Auctioned Item is an illegal article;
B. The Site Operator can judge based on the legitimate right holder’s report or prima
facie evidence that the Auctioned Item is an illegal article; orC. The Site Operator and the right holder shares a common perception.
Specific criteria for individual cases shall be as follows.
A. Specific criteria for the case where Site Operators can objectively andindependently judge from the perspective of an ordinary third party that theAuctioned Item is an illegal article.
The description of the item has any of the following. (For more information, see
Annex A) Note
(1) The seller’s statement admitting that it is an IPR infringing item.
(2) Statement leading to an inference that it is an IPR infringing item.
a. Statement leading to a strong inference that it is an IPR infringing item
(general).
b. Statement leading to a strong inference that it is an IPR infringing item
(quality).
c. Combination of the statement and others informing that it is an IPR
infringing item, or statement deemed to be lack of conclusive evidence that it
is an authentic item.
* The Site Operator shall judge based on the statement and other descriptions
whether or not the Auctioned Item is illegal.
B. In the case where the Site Operator can judge based on the legitimate rightholder’s report or prima facie evidence that the Auctioned Item is an illegal article,
the following shall apply in regard to the eligibility and procedures of the report orprima facie evidence from the legitimate right holder to the Site Operator.
1. Eligible Reporters(1) Right holder(2) Japanese unit as a subsidiary wholly owned by the right holder foreign
corporation(3) Agent of (1) or (2) (limited to those who are qualified as a lawyer in Japan)(4) Person duly authorized by the right holder under an agreement or otherwise in
implementing measures against IPR infringement.
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2. Reporting Method
A report shall be made:(1) In the manner set forth in the “Guidelines on the Providers’ Liability Limitation
Act” established by the Council for the Guidelines on the Providers’ Liability
Limitation Act; or(2) In the manner according to the agreement with each auction operator.
3. Prima Facie Evidence
In order to make a report, the reporter needs to declare in writing “it has notproduced the item,” “it has not granted a license for manufacturing or the like of theitem,” or “it is obvious on the basis of authenticity.”
4. Exclusions
The following is excluded from these Guidelines by their nature foreign hereto.
• Allegation of infringement of copyrights about those whose creativity is inquestion.
• Those involving the similarity assessment under the Unfair Competition
Prevention Act.
• Patent infringing goods
C. Since the Site Operators and right holders shares a common perception inregard to handling of the following items and aspects in removal of illegallyauctioned items, they are specified in these Guidelines. (For more information, seethe annex) Note(a)Corporate goods (novelty)(b)

Ink-jet printers(c)

Scenarios, collections of settings(d)

DVD labels, packages(e)Games, business software, educational materials(f)Data of parts, manual DVD(g)

Free gifts(h)Navigation to another site(i)

Evaluation section* Note: The detailed criteria are not disclosed to the public because confidential
information is included in them.

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2. Both the Site Operators and right holders shall be committed toactivities to prevent the distribution of fraudulent articles.
1. Even if there is a conflict of opinions between both parties in regard to removal ofillegally auctioned items, they shall respect each other’s positions and engage innegotiations by maintaining dignity in words and actions as business persons.

2. Each party shall have a single point of contact for removal of illegally auctioned items
by appointing as the negotiator a person who has adequate legal expertise andcommon sense.

3. Both parties shall actively exchange opinions and information through the Council forIntellectual Property Protection on Internet (“CIPP”) and others.

2-1. Site Operators shall actively engage in the following activities.
1.

As a measure against illegally auctioned items, Site Operators shall establish avoluntary patrol system according to the expansion of their individual business size,
such as the number of auctioned items (transaction volume).

2.

If right holders patrol Internet auction sites to find any infringement of their own rights,
Site Operators shall cooperate with them.

2-2. Right holders shall engage in activities to protect their own rights
and enforce such rights on the following assumption.
1.

Right holders shall be aware that it is necessary for them to engage in the activities
to protect and enforce their own rights at a reasonable cost and under a reasonablesystem in order to ensure the protection of rights and socially required stability of themarket.

2.

In order to make a request to a Site Operator, rational explanations shall be given in
regard to the relationship between the right in question and the right holder, and theground of the allegation.

3.

In order to make an allegation pursuant to Paragraph 2, right holders shall collectand keep materials that serve as the ground of the allegation.

4.

In order to make an allegation pursuant to Paragraph 2, right holders shall not makeany request without specific ground.

5.

If any cooperation is requested by Site Operators for a reasonable purpose, such asdata to be used for voluntary patrols, right holders shall cooperate in providing
information to the extent possible for them to disclose.

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3. Change of Guidelines and Others
1.

As required, the CIPP shall consider reviewing these Guidelines once a year or so.

2.

Notwithstanding the regular review pursuant to the preceding paragraph, theseGuidelines may be changed from time to time as required with the approval of theCIPP.

3. Although these Guidelines are established based on agreement among the CIPPmembers, non-members shall be encouraged to take actions in line herewith.

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Criteria(1) Remover

Category
GeneralCorresponding Wording
Not authentic.
Imitation.
Non-certified product.
Equivalent of the authentic product
Counterfeit.
Replica.
Product perfectly replicating XX.
Not original.
Precise duplicate.
Fake.

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Target Item Auctioned

Remarks

Annex ANo.
6364656667
68697071
7273
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7980
8182
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Criteria

Category

Corresponding Wording

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Target Item Auctioned

Remarks