A Case Where Continued Use Was Banned Despite Years of Use
Three years after going independent, freelance web designer A received a notice from a law firm out of nowhere. The message: "The logo and business name you are using closely resemble a trademark registered by our client. Please cease use immediately."
A had created that logo and business name from scratch at the very start of her independent career and had used them consistently ever since. But she had never registered them as trademarks. The other party, meanwhile, had filed a trademark application for a similarly positioned design-oriented brand after A had begun using hers—and had received formal registration.
Japan's trademark law operates on a first-to-file basis. When multiple applications exist for identical or similar marks, the earlier applicant takes priority for registration. The length of actual use, or who "really started using it first," is not the primary factor in determining priority. A had genuinely started using the mark earlier, but she was behind in terms of registration—and that put her in a legally vulnerable position.
Situations like this are far from rare. Business names and service names in particular are frequently adopted without any thought given to trademark registration. The intuition that "using something naturally protects it" does not hold in trademark law.
The concrete harms that result from brand disputes like this include:
- Costs of rebranding (overhauling logos, business cards, websites, social media accounts, and more)
- Notifying existing clients and managing the resulting confusion
- Risk of damages claims from the registered trademark holder
- Disruption and delay to ongoing business operations
Preventing this kind of damage requires understanding how trademark rights work—and taking protective action early.
The Basic Structure of Trademark Rights — Differences from Copyright and Design Rights
Trademark rights protect the identifying marks used to distinguish goods and services. The subject matter of protection is the brand "signifier" composed of characters, figures, symbols, three-dimensional shapes, or combinations thereof.
To understand the scope of trademark protection, it is important to grasp how it differs from copyright and design rights.
Differences from copyright
Copyright protects creative expression (paintings, text, music, software, etc.) and arises automatically upon creation. Trademark rights, by contrast, only arise through registration. Designing an original logo will generate copyright, but trademark rights do not exist without registration.
Copyright protection lasts for 70 years after the author's death, while trademark rights have a 10-year duration from registration but can be maintained indefinitely through renewal. From the perspective of protecting a business brand, the renewable nature of trademark rights often makes them more practically important.
Differences from design rights
Design rights protect the aesthetic appearance of products—their shape, pattern, and color. A logo or typographic design may also be eligible for design registration, but the primary purpose of design rights is to protect the aesthetic appearance of products. It is trademark rights that protect the function of a mark as an identifier.
In other words, a single logo may potentially receive overlapping protection under copyright, design rights, and trademark rights—but trademark registration is essential when the goal is for something to function as a brand in a business context.
The classification system for trademarks
Trademarks are registered per "class" (category) based on the goods or services for which they will be used. Japanese trademark law establishes 45 classes, from Class 1 through Class 45, based on the international classification system. The same word mark, for example, would require separate registrations for "food and beverages (Classes 29–31)" and "computer software (Class 9)."
Freelancers and small businesses who file without selecting the right classes for their business may end up with gaps in protection. Before filing, it is important to identify the classes that correspond to your business activities.
Four Risks of Continuing to Use an Unregistered Mark
Putting off trademark registration creates four specific risks.
Risk 1: Loss of rights due to prior filing
As noted above, Japan's first-to-file system means that if another party files and registers before you, it becomes difficult to assert rights even if you started using the mark first. There are cases where third parties deliberately file similar trademarks targeting businesses whose brand value has begun to grow (the so-called "trademark squatter" problem).
Risk 2: Accidental collision with a similar registered mark
You may be unknowingly using a name or logo that resembles an existing registered trademark. Infringement of a registered trademark is established even without intent, meaning that as your business grows, you risk receiving an injunction or damages claim from a registered trademark holder.
As a minimum risk management measure, searching for similar marks on J-PlatPat (Japan Platform for Patent Information) before and during use is strongly advisable.
Risk 3: The limits of unfair competition law protection
The idea that "if you become well-known enough, the Unfair Competition Prevention Act will protect you without registration" is partially correct but should not be relied upon. Protection under the Unfair Competition Prevention Act (prohibiting acts of causing confusion with well-known indications and misappropriating famous indications) is premised on the product indication having achieved a certain level of recognition (well-known or famous status).
For freelancers and small businesses operating regionally or in niche markets, demonstrating "nationwide recognition" is often realistically difficult. Compared to trademark registration, the conditions for protection under the Unfair Competition Prevention Act are considerably more demanding.
Risk 4: Credibility issues with business partners and financial institutions
Whether a trademark is registered can affect how business credibility is evaluated. In contract negotiations and fundraising contexts, whether brand rights are clearly protected may come into question. In cross-border transactions in particular, requests for trademark registration certificates do occur.
Practical Steps for Trademark Registration — From Application to Maintenance
The trademark registration process proceeds through the following steps.
Step 1: Prior art search (before filing)
Use J-PlatPat, provided by the Japan Patent Office (JPO), to search for existing registered marks that are identical or similar to the mark you intend to file. The search is free, but assessing similarity requires expertise—if you are not confident in your judgment, consulting a patent attorney (benrishi) is advisable.
For word marks, the key factors to examine are phonetic similarity (how the mark sounds when read aloud) and visual similarity (the appearance of the characters). For figurative marks, visual similarity is the primary concern.
Step 2: Preparing and submitting the application
Applications to the JPO are submitted through the electronic filing system. The application must include:
- The mark itself (characters, figures, colors, etc.)
- The designated goods/services by class and their specific content
- Applicant information
The filing fee (stamp duty) is ¥3,400 per class for electronic applications. If the application spans multiple classes, fees are added per class. Engaging a patent attorney involves additional fees, but given the importance of accuracy and the risk of rejection, first-time applicants should seriously consider professional assistance.
Step 3: Examination
After filing, the JPO conducts examination. Standard processing time is approximately 6 to 12 months (depending on workload). The examination assesses similarity to existing registered marks, whether the mark has sufficient distinctiveness (generic names and purely descriptive terms cannot be registered), and other requirements.
If an office action (notice of grounds for refusal) is issued, you may respond within a set period by submitting a written argument or amendment.
Step 4: Registration and maintenance
Once a decision of registration is issued, the registration is completed upon payment of the registration fee. For a single class, the 10-year registration fee is ¥32,900 as a lump sum (or ¥17,200 each for the first and second five-year periods).
The term of protection is 10 years from registration. To renew, file a renewal application and pay the renewal fee before the term expires. The renewal fee is comparable to the initial registration fee, and rights can be maintained indefinitely through successive renewals.
Realistic cost estimates
For an individual or small business filing one class with the help of a patent attorney, the total cost from application through registration typically ranges from approximately ¥100,000 to ¥200,000 (inclusive of attorney fees). Self-filing (pro se filing) involves only stamp duties, but a realistic assessment of rejection risk is necessary.
What Freelancers and Small Businesses Should Do Right Now
With a solid understanding of how trademark rights work, here is a prioritized action plan for pursuing protection with limited resources.
Things you can do right now (free, a few hours)
- Search J-PlatPat for your business name, logo text, and service names to check for similar registered marks
- Identify the class(es) corresponding to your main business activities (use the JPO's goods/services classification lookup tool)
- Compile and preserve materials that can establish your date of first use (past invoices, social media posts, cached web pages, etc.)
Evidence of first use is important in the event of a dispute or when asserting rights under the Unfair Competition Prevention Act.
Things to start within the next three months
- Consider filing a trademark application for the core brand name and logo of your business
- Determine whether filings across multiple classes are necessary and organize your budget and priorities accordingly
- Use an initial consultation with a patent attorney (many firms offer free consultations) to develop your filing strategy
For your first filing, it is practical to focus on the one or two most important classes. You can always file additional classes as your business grows.
Ongoing management practices
- After registration, note the renewal deadline (10 years) on your calendar and do not neglect deadline management
- Periodically check trademark filings by competitors and new entrants (JPO trademark bulletins are freely available on J-PlatPat)
- If you are considering international expansion, research the international registration system based on the Madrid Agreement Concerning the International Registration of Marks (Madrid Protocol)
Working with patent attorneys and specialists
A patent attorney's role in trademark filing goes far beyond drafting paperwork. There are many points requiring specialized judgment: assessing distinguishability from similar marks, selecting the right classes, responding to office actions, and more. Obtaining expert advice at the initial filing stage leads to long-term cost savings.
The Japan Patent Attorneys Association website provides a patent attorney search and guidance on free consultations. Considering the cost-benefit ratio, investing tens of thousands to low six figures of yen annually to protect your brand assets is a realistic option for many freelancers and small businesses.
Trademark rights are not a "register once and forget" matter—they require ongoing management: renewals, monitoring, and additional filings as needed. But the longer you delay that initial registration, the more risk accumulates. The first step is simply to check the current status of your brand on J-PlatPat.
References
- Japan Patent Office, "Overview of the Trademark System," https://www.jpo.go.jp/e/system/trademark/gaiyo/index.html
- Japan Patent Office, "J-PlatPat (Japan Platform for Patent Information)," https://j-platpat.inpit.go.jp/
- Ministry of Economy, Trade and Industry / Japan Patent Office, "IP Strategy Case Studies for SMEs," https://www.jpo.go.jp/support/chusho/index.html