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COPYRIGHT

Copyright Room

"I used an image I found online and then received an invoice" — cases like this are on the rise. We explain copyright risks lurking in illustrations, photos, and designs, using real examples in plain language.

WHY COPYRIGHT MATTERS

The Era When "I Didn't Know" Is No Excuse

Websites, flyers, social media, packaging — businesses constantly use illustrations and photos. However, using images without realizing they are someone else's copyrighted work increasingly leads to significant claims after the fact.

Unlike patents and trademarks, copyright arises automatically without registration. The moment an illustration is drawn or a photo is taken, copyright comes into existence. This means virtually all creative works carry copyright protection.

These problems actually happen:
- An illustration found via Google Image Search was used in a flyer, and years later an invoice for 300,000-500,000 yen arrived
- An illustration downloaded from a "free" image site turned out to be pirated from a paid stock service
- An employee used a photo found online on the company website, and the photographer demanded damages

RIGHTS MAP

Where Do Rights Exist in Your Marketing Materials?

Even creating a single flyer or website involves a variety of copyright concerns.

ElementRelevant RightsNotes
Hero Image (Photo/Illustration)Copyright, Portrait Rights, Publicity RightsMost common source of disputes
CatchphraseGenerally none (exceptions exist)Very short phrases are unlikely to qualify as copyrighted works
Body CopyCopyrightCopying text from other websites is prohibited
Product PhotosCopyright (belongs to photographer)Copyright belongs to the photographer, not the client
Logo / Brand NameTrademark / Unfair Competition Prevention ActProtected by trademark law, not copyright
Overall Ad LayoutGenerally noneMay be protected as a compilation work in some cases
Key Point: Copyright in photographs belongs to the photographer. "I paid for it so it's mine" is incorrect. A contract explicitly transferring the copyright is required.

STOCK IMAGE RISK

An Invoice Arrived After Using an Online Image

Unauthorized use of stock illustrations and photos is one of the most common copyright disputes today.

Common Pattern

High-Value Claim for "Free" Images

Typical Scenario

  1. A web manager (not a specialist) searches for images for a flyer or website
  2. They find a "good-looking image" via Google Image Search or a free image site and use it
  3. The image was actually pirated from a paid stock service
  4. The rights management company detects the unauthorized use
  5. They intentionally wait several years until accumulated annual licensing fees add up
  6. The claim is typically 300,000 to 500,000 yen

Why Do They Wait?

Rights management companies sometimes do not immediately claim when they discover unauthorized use. The longer the usage period, the larger the claim amount. Leaving images on a website without awareness means risk grows with each passing year.

Prevention: Conduct regular "copyright audits" of images and illustrations on your website. If you find materials of unknown origin, replace them promptly.

Choosing Stock Image Services

Service TypeAdvantagesRisks
Paid Stock (e.g., PIXTA)Clear terms of use, rights warrantyCosts money; warranty has limits
Free Services with Clear Terms (e.g., Irasutoya)Free for commercial use; clear conditionsQuantity limits (Irasutoya: max 20 items per project)
Free Services with Unclear TermsAbundant materialsSome explicitly disclaim all liability for rights infringement. Risk of pirated materials
Design Tools (e.g., Canva)Easy design creationAI training consent clauses; check terms of use carefully
Practical Advice: The safest approach is to subscribe to a paid stock service and verify the terms of use, or to create original materials in-house. "Free" does not mean "risk-free."

INFRINGEMENT CRITERIA

The Line Between "Similar" and "Infringement"

If a referenced illustration ends up "looking similar," does that constitute copyright infringement? Courts apply the following framework:

Framework for Judging Adaptation Right Infringement (Esashi Oiwake Case, Supreme Court, June 28, 2001)

An act of creating another work by relying on an existing work, maintaining the identity of the essential features of its expression, while modifying specific expressions, such that a person encountering it can directly perceive the essential features of the original work's expression.

In other words, two elements are examined:

  1. Dependence — Was the original work seen (used as reference)?
  2. Similarity — Can the "essential features of expression" of the original be perceived?

Critically, "ideas" are not protected. The idea of "a professor wearing a gown" can be used by anyone, but if the specific expression — facial features, body proportions, color palette — is similar, it constitutes infringement.

Cases Where Infringement Was / Was Not Found

Infringement Found
Cat Illustration Case (Osaka District Court, April 18, 2019)

A circular design of a curled-up sleeping cat. The plaintiff's watercolor was used without permission on textiles. Composition, color scheme, and form were found to match. Damages: approx. 1.67 million yen (licensing fee equivalent of 1.22 million yen + moral rights damages of 300,000 yen + attorney fees of 150,000 yen).

Infringement Found
Textbook Cover Illustration Case (LEC Deru-Jun Series Case)

A three-dimensional figurine illustration. The distinctive expressive elements were found to be common: skin-colored monochrome, A-shaped body, spherical hands and feet.

Infringement Denied
Professor Illustration Case (Tokyo District Court, July 4, 2008)

An elderly man in a mortarboard and gown. "Mortarboard + gown + beard + elderly man" was deemed an idea; the trapezoidal facial structure was commonplace expression. The two works differed in flat vs. three-dimensional expression, and infringement was denied.

Infringement Denied
Tsuri Sta Case (IP High Court, August 8, 2012)

GREE's "Tsuri Sta" vs. DeNA's "Tsuri Game Town 2." Elements such as "depicting only underwater scenes," "displaying concentric circles," and "representing fish as shadows" were deemed ideas or commonplace expression, and copyright infringement was denied.

Practical Points When Referencing Illustrations:
  • Always reference multiple designs — Elements common to several works are more likely to be deemed "commonplace expression"
  • Facial features and expressions are easily identified as distinctive — Always change these
  • Changing only the art style, touch, or color tone leaves risk — Composition and form are what matter most
  • Make major changes to composition — Changing pose, angle, and arrangement is the most effective approach

COPYRIGHT & CONTRACT

Copyright & Contracts — "I Paid for It" Doesn't Make It Yours

Did you commission illustrations or photos from a designer or photographer? You might assume "I paid for it, so I can use it freely."

That's not how it works. Under copyright law, copyright initially belongs to the creator. Payment alone does not automatically transfer copyright.

Three Key Points for Your Contracts

1. Explicitly State Copyright Assignment

When receiving an assignment, you must explicitly state "including the rights under Articles 27 and 28 of the Copyright Act." Without this language, the right of adaptation (modification) and rights related to derivative works are not transferred.

2. Include a Moral Rights Non-Exercise Clause

Moral rights (right of attribution, right of integrity, etc.) cannot be transferred. Therefore, it is common practice to include a clause stating that the author "will not exercise moral rights."

3. Warranty Against Third-Party Rights Infringement

In case the delivered illustrations or photos infringe on a third party's copyright, include a clause warranting that the deliverables do not infringe third-party rights, and clearly define responsibility if infringement occurs.

Exception for Works Made for Hire: Works created by employees in the course of their duties generally belong to the employer (Copyright Act, Article 15). However, this exception does not apply to works commissioned from external freelancers.

QUOTATION

"Quoting Is OK"? — Rules Under Copyright Act Article 32

You may hear "it's a quotation, so it's fine," but quotation must meet certain conditions to be legally valid.

Factors for Judging Quotation (Appraisal Document Photo Case, IP High Court, October 13, 2010)
  1. Purpose of use — Is there a legitimate purpose such as criticism, news reporting, or research?
  2. Manner and method — Is the use limited to what is necessary? Is the source properly cited?
  3. Nature of the work — What type of work is being used and to what extent?
  4. Impact on the copyright holder — Does the use unfairly harm the copyright holder's economic interests?

Previously, two strict requirements — "clear distinction" and "subordinate relationship" — were demanded, but recent case law tends toward a comprehensive balancing of the above factors.

However, relying on quotation in business contexts is risky. Cases where use of someone else's work on product packaging or advertisements is justified as "quotation" are extremely rare. Quotation is typically recognized only for purposes such as criticism, reporting, and research.

FAQ

Frequently Asked Questions About Copyright

Can I use images posted on social media?
As a general rule, no. Images posted on social media are copyrighted. "Published" does not mean "free to use." You need permission from the person who posted the image.
Can I use photos found via image search in a flyer?
This very likely constitutes copyright infringement. Nearly all images appearing in Google Image Search results are copyrighted. Many are pirated from paid stock services, and claims for substantial licensing fees are frequent.
Free images can be used freely, right?
The meaning of "free" varies by service. Some, like Irasutoya, have clear usage conditions, while others explicitly state they "bear no responsibility for rights infringement." Always check the terms of use. Also note that paid images are sometimes pirated and uploaded to free sites.
Can I freely use a logo a designer created for me?
It depends on the contract. By default, copyright belongs to the designer who created it. To use it freely, you need a contract assigning the copyright. The assignment clause should include "rights under Articles 27 and 28 of the Copyright Act."
I want to create a design similar to a competitor's product packaging...
Beyond copyright issues, there are also concerns under the Unfair Competition Prevention Act regarding product form imitation (dead copying). When referencing competitor packaging, significant changes to composition, color scheme, and form are necessary. See also our Brand Protection page for more.
How much are damages for copyright infringement?
Amounts vary greatly by case. For unauthorized use of illustrations, the trend is licensing fee equivalents (a percentage of the defendant's sales) plus attorney fees. For example, the Cat Illustration Case resulted in approximately 1.67 million yen in damages. For unauthorized use of stock images, claims of 300,000-500,000 yen based on accumulated annual fees are common.
Do AI-generated illustrations have copyright?
Two separate issues need to be considered regarding AI-generated images:

(1) Does copyright arise in AI outputs?
Without human "creative contribution," copyright is generally considered not to arise. Simply entering a prompt is unlikely to generate copyright in the output. However, if creativity is recognized in the prompt design or in the selection/editing of AI outputs, there may be room for copyright, and this boundary remains under active discussion.

(2) Can AI outputs infringe others' copyrights?
If an AI-generated image resembles an existing work, it may constitute copyright infringement if both dependence and similarity are established. Risks exist when outputs are similar to works contained in the AI's training data.

This area is currently under active debate, including at the Agency for Cultural Affairs' study groups. Businesses using AI-generated images should exercise caution in light of these risks.

Having Copyright Issues?

"I received a demand letter" or "I want to check if the images I'm using are safe" — we handle these consultations too.

Book a Consultation → TEL 0952-97-8177

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