Technology disputes—Japan—Q&A guide

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Technology disputes—Japan—Q&A guide
  • 1. What are the most common issues that arise in connection to technology contracts? What actions should be considered when these issues arise? (For example, what steps should parties take to protect their rights while negotiating with the other side? Can they agree to suspend time running? How can they preserve any claims that may have arisen?)
  • 2. How can a contract be terminated in your jurisdiction? What considerations should be taken into account when deciding whether and how to terminate a technology contract?
  • 3. Is it possible to have conversations aimed at settling a dispute which cannot subsequently be used as evidence in legal proceedings if the dispute is not resolved? If so, what formalities are required (if any)? If not, how should confidentiality be preserved through mutual agreement?
  • 4. If a settlement is reached, what formalities are required in your jurisdiction for the settlement to be enforceable?
  • 5. What causes of action commonly arise in connection to a contract for hardware or software design, implementation and licensing? What elements must be established to succeed in these claims? (Can any non-contractual claims be brought, such as liability for pre-contractual statements?)
  • 6. Has your jurisdiction enacted any legislation providing additional protection for business purchasers of hardware, software or associated licences? (For example, are any rights, duties or other terms implied by statute, including a duty of good faith?) What practicalities should be considered when bringing statutory claims?
  • 7. What defences are available against the most common claims raised in technology disputes? What elements must be established for these defences to succeed?
  • 8. What limitation periods apply for bringing claims in your jurisdiction? (Please indicate whether different periods apply for different types of claim.)
  • 9. What pre-action steps are required or advised before bringing legal action? (For example, is pre-action mediation mandatory in your jurisdiction?)
  • More...

Technology disputes—Japan—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to technology disputes in Japan published as part of the Lexology Getting the Deal Through series by Law Business Research (published: August 2021).

Authors: Mori Hamada & Matsumoto—Hiroyuki Tanaka; Masafumi Masuda; Ryoko Matsumoto

1. What are the most common issues that arise in connection to technology contracts? What actions should be considered when these issues arise? (For example, what steps should parties take to protect their rights while negotiating with the other side? Can they agree to suspend time running? How can they preserve any claims that may have arisen?)

There are two categories of typical disputes regarding technology contracts.

One is a type of dispute regarding system integration contracts (system development disputes). In a typical dispute, the user asserts that the integration of a system has not been completed, or that there are defects in a system that has already been integrated, and refuses to pay the related fees, or demands to a refund of fees already paid. On the other hand, the vendor asserts that the integration of the system has been completed, and that the user is required to pay additional fees if it continues to insist on further improvements to the system, claiming that any such improvements are not covered by the original contract. In some cases, the vendor commences with further system integration work not

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