Japan VTuber Law

Will the new law in Japan,” Invoice System” reveal the identities of VTubers?

Impacts of the New Invoice System in Japan on VTubers and Privacy Concerns

Introduction

Effective October 1, 2023, Japan has introduced a new invoice system, which has been met with widespread concern among various creators such as VTubers, YouTubers, artists, writers, actors, etc., who operate under pseudonyms or stage names. This system ostensibly poses the risk of revealing the true identities of such creators, particularly those engaging in direct transactions with fans.

VTubers and Privacy

VTubers, most of whom operate as individual entrepreneurs, risk having their true names revealed when conducting direct transactions with fans. However, many VTubers sell merchandise through platforms like “BOOTH”, which employs a system called “intermediary delivery exception”, allowing invoices to be issued under the name of the operating company, Pixiv Inc., thus maintaining the anonymity of the VTuber. That said, different platforms may have different protocols, necessitating careful verification. Furthermore, YouTube being a foreign company, implies that advertising fees and super chats are mostly unrelated to identity exposure.

Invoice Information and Identity Verification

The information written on the invoice is not sufficient for personal identification, a fact acknowledged by the National Tax Agency of Japan. Registering in the invoice system does not necessarily mean all information will be disclosed; disclosing pseudonyms or addresses of individual entrepreneurs is optional. However, real names are listed when the registration number is searched on the qualified invoice issuer publication site. Therefore, while the addresses do not get disclosed, if the registration number is known, the real name can inevitably be revealed.

Legal Framework and Privacy

The disclosure of real names in the invoice system is mandated by law. Once registered as a qualified invoice issuer, avoiding real name disclosure is impossible. However, whether individual entrepreneurs disclose their pseudonyms or addresses is optional. Therefore, simply registering in the invoice system does not immediately link pseudonyms to real names. Utilizing the intermediary delivery exception system can also reduce the likelihood of the real names being known to the other party.

Preventive Measures

For those who wish not to disclose their real names in the invoice system, the following preventive measures are available:

1. Not becoming a qualified invoice issuer.
2. Utilizing intermediary delivery exceptions.

Drawbacks of Non-registration

Choosing not to register as a qualified invoice issuer might result in termination of contracts or potential discounts on contract amounts.

The newly introduced invoice system in Japan brings forth legitimate concerns about privacy, particularly for VTubers and other creators using pseudonyms. While the law mandates the disclosure of real names, creators have some leeway in managing the release of their pseudonyms and addresses and can employ specific measures to maintain their anonymity. However, creators should be mindful of the various platforms’ protocols and consider the consequences of non-registration carefully. Balancing legal compliance with privacy preservation remains a delicate act in the evolving digital landscape of content creation.

Laws in Japan for VTubers

There is no specific law in Japan that specifically addresses VTubers or their activities. However, there are a number of laws that may be relevant to VTubers, including:

• Civil Code: The Japanese Civil Code protects personality rights, including the right to privacy and the right to one’s own image. This means that VTubers have the right to control how their persona and likeness are used, and to protect themselves from unauthorized use or exploitation.
• Copyright Law: Copyright law protects creative works, including the characters and animations used by VTubers. VTubers must obtain permission from the copyright holder before using any copyrighted material in their activities.
• Tort Law: Tort law protects people from harm caused by others. This means that VTubers may be held liable for any harm they cause to others through their activities, such as defamation or infringement of privacy.

In addition to these general laws, there are a number of specific laws that may be relevant to VTubers, depending on their activities. For example, VTubers who engage in commercial activities, such as selling merchandise or sponsorships, may need to comply with consumer protection laws and other business regulations.

One recent legal development that is relevant to VTubers in Japan is the introduction of a new electronic invoicing system in October 2023. This system will require businesses to issue electronic invoices for all transactions. This could have a significant impact on VTubers who work anonymously, as they may be required to reveal their real identities in order to comply with the new law.

Overall, the legal landscape for VTubers in Japan is still developing. However, it is important for VTubers to be aware of the laws that may be relevant to their activities and to take steps to comply with those laws.

Here are some additional tips for VTubers in Japan to stay on the right side of the law:

• Be careful about what personal information you share with your fans.
• Obtain permission from the copyright holder before using any copyrighted material in your activities.
• Be mindful of the laws that govern any commercial activities you engage in.
• If you are unsure about whether or not a particular activity is legal, consult with an attorney.