The enforcement of the Act on Electronic Signatures and Certification Business (e-Signature Act) in April 2001, created a legal framework that allowed electronic signatures to be used in the same context as handwritten signatures and seals. The Japanese government has introduced a system to accredit Specified Certification Businesses conforming to certain criteria.
In 2003, JIPDEC became a Designated Investigative Organization for the e-Signature Act. JIPDEC investigates whether the equipment of the Specified Certification Business and their implementation methods conform to the standards specified in the e-Signature Act. JIPDEC provides information provision, advice, and other support services in response to inquiries and consultation from entities conducting the Specified Certification Business, and the users of those services.

In recent years, electronic signatures (hereinafter called "e-signatures") are being used more and more in various aspects of life cycle of a company, such as in the certification for articles of incorporation, bidding, contracts and agreements, patent applications and tax payments.

Many electronic certificates are issued for various purposes apart from accredited certification business.

What are electronic signatures?

By using procedures and transactions via the Internet, the acceleration of work and paperless work can be expected. On the other hand, the use of e-signatures could lead to spoofing, falsification of data, and other problems. E-signatures are measures for addressing such threats.

Electronic documents with e-signatures can now be regarded equivalent to sealed or signed documents by the Act on Electronic Signatures and Certification Business (generally known as the e-Signature Act).

Following is a list of example services achieved by electronic contracts. Recently, cloud-based services are also increasing

As a result of the progress of the information society, digital signatures are increasingly being used. The use of IT in the government and government agencies, in particular, has been spreading rapidly. Widespread use of digital signatures is not limited to the relationship between the government and government agencies in the public sector. Companies entering into electronic contracts have been increasing. Since digital signatures not only reduce the time to deliver contract documents and reduce space for storing them, but also enable managing the progress of contract procedures and project information on contracts collectively, they are also being used more and more in B-to-B transactions or B-to-C transactions.

Examples of Digital Signature Usage

1. Electronic Contracts

With conventional written contracts, the legitimacy and authority of contracts were secured by signatures and stamps affixed by both parties on created contract documents. With electronic contracts, such procedures for written contracts are performed electronically. Adding digital signatures on electronic documents (written contracts) can achieve a secure electronic contract. The establishment of "the Act on Electronic Signatures and Certification Business" and "the Law concerning the Refinement of Relevant Laws to Use Information Telecommunication Technology in Connection with Delivery of Documents" has authorized using IT for written contracts and other documents. Due partly to significant benefits for companies, using digital signatures to conclude electronic contracts is increasing every year.

• Not necessary to pay stamp duties
• More efficient operation (reduced time to deliver contract documents, reduced space for storing contracts, etc.)
• The progress of contract procedures and project information on contracts are collectively managed.
• Past contracts can be easily searched for and viewed.
• Effective business continuity measures through data backup

The Electronic Books Maintenance Act requires one of the following measures to be taken to save the originals of electronic contract documents. In addition to electronic contracts, the same measures are also required for, purchase orders, invoices, receipts, quotations, bills, and other information on electronic transactions

2. Electronic Submission

Previously, commercial and corporate registration required a procedure of going to the service counter of the relevant government agency, filling out forms with required items, and affixing a seal. This also applied to obtaining copies of resident registers, and the applicant (or his/her proxy) was required to visit the government agency and follow pre-defined procedures.
Electronic submission allows such administrative procedures-including filing or submitting applications, notifications, and reports-to be done electronically via the Internet, thereby reducing the amount of paper work and making it more convenient for companies and ordinary citizens.

Electronic bidding refers to going through procedures for bids hosted by the government and government agencies-i.e., from providing bidding information and distributing briefing documents to actual bidding, contracts, and authentication - electronically.
Due to the using IT for bidding systems promoted mainly by the national government and local governments, which have eliminated paper-based bidding in principle, electronic bidding systems that are highly utilized are spreading. In order to support seamless implementation of such systems to public ordering organizations, a versatile e-Bidding Core System, which multiple public ordering organizations can adopt, has been developed and used by the national government and local government offices.
In addition, with the Electronic Procurement System-which was launched in March 2014-a series of procurement procedures pertaining to "providing logistics support, supplies and services" and "some public works projects" hosted by the government, not only for tendering and opening a bid, but also other procedures including contact, delivery inspection, and billing are performed electronically. Contracts and other documents are maintained on the Electronic Procurement System. Organizations adopting this system are gradually increasing.

• e-Bidding Core System別ウインドウで開く
• Electronic Procurement System別ウインドウで開く
• "providing logistics support, supplies and services" and "some public works projects" 別ウインドウで開く

Adding digital signature to e-mails can prevent authenticate a sender, and provides message integrity and non-repudiation. For example, financial institutions use this system extensively when sending e-mails to customers to prevent phishing. Although major e-mail software is equipped with a feature to send and receive S/MIME e-mail, using the feature requires an digital certificate enabling S/MIME digital signature.
In addition, with S/MIME, e-mails can be encrypted by using the digital certificate held by the other party.

Digital archiving of documents related to national tax or healthcare that are legally mandated to be stored may require adding digital signatures and time stamps, depending on the laws, guidelines, and other regulations. By using long term signature, the validity of the digital signature can be secured for a long period of more than 10 years.
As for national tax related documents, the Electronic Books Maintenance Act permits the scanning of paper-based transaction documents (with conditions) and these scanned documents can be archived as electronic files, with advance approval by the tax office (Note 3). For more information on the archiving of online electronic transactions, refer to Section 1. Electronic Contracts.
In addition, from the perspective of the legal obligation to archive documents, digital signatures and time stamps are added to electronic records concerning research and development before they are stored in some cases for the purpose of establishing the right of prior use in the area of intellectual property or in compliance with the Product Liability Act.

(Note 3) It is expected that digital signatures will no longer be necessary following the planned revision of the tax laws this year.

• time stamps別ウインドウで開く
• long term signature別ウインドウで開く

JIPDEC provides information provision, advice, and other support services in response to inquiries andconsultation from entities conducting the Specified Certification Business, and the users of those services.