While the Japanese Trademark Act does not provide an explicit statutory definition for "goods" or "services", they are interpreted in practice as items that can independently serve as the object of commercial transactions.

Historically, "commercial transactions" were interpreted narrowly. The prevailing view was that promotional items distributed free of charge or services provided without a fee did not qualify as "goods or services" protected under the Act. However, recent judicial precedents have evolved, adopting a more flexible interpretation that reflects modern business realities.

The Evolution of Interpretation: The "Tokyo Metro" Case A landmark case involving a free newspaper distributed via advertising revenue (the Tokyo Metro case) demonstrated this shift. The court ruled that "commercial transactions are not limited to sales contracts, but include various forms of contracts aimed at profit". The court concluded that even if readers do not pay a fee, a publication qualifies as "goods" under the Trademark Act if it is recognized as circulating independently in the market, based on the entire business model—including contracts with advertisers.

Key Takeaway for Modern Business In contemporary trademark practice, the formal distinction between paid and free distribution is no longer the decisive factor. What matters is the reality of the transaction: is the item or service recognized in the market as an independent brand (source of origin) and a subject of consumer choice?

Consequently, for free apps, digital services, or strategic giveaways that form the core of a business, securing proper protection through trademark rights is critically important.