It is not simply the fact that Japan has taken control to a great extent of the means of theatrical motion picture production in the United States, though that does not hurt. From the trademark perspective, the cost of filing trademark applications in Japan is costly. Japan until recently had a classification system somewhat different from the International classification system adopted by most of the industrialized countries of the world. Just recently, Japan has adapted an international classification system which corresponds closely to the international system. Japan has not only a different language but different characters.
Registration is critical in Japan to acquiring protection.
Also particularly important in Japan, as well as other countries, is to make sure that it is clearly resolved as to who has the right to file trademark applications, who and who owns the registrations, particularly in the event of a termination of the licensing agreement. Several key factors should be considered in selecting the territories for international expansion. First is the nature of the mark and the nature of recognition or likely recognition of the mark in the merchandised territory. There is likely to be very little carry over in a property from an adjacent country where the mark is not promoted in that particular country. Thus, if a popular television show is not distributed in France, but is distributed in England, there is less opportunity for French merchandising to be significant.