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HI5015: Legal Aspects of International Business and Enterprise

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Added on 2024/07/22

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This document explores the legal framework surrounding the operations of DOCOMO InterTouch Australia Pty. Ltd., a subsidiary of NTT DoCoMo Inc. It examines the key Australian legislation governing company formation, privacy, telecommunications, and competition, as well as the impact of international agreements like the Japan Australia Economic Partnership Agreement (JAEPA) and the Trade-related Aspects of Intellectual Property Rights (TRIPS) on the company's operations. The document also discusses the significance of End User License Agreements in protecting intellectual property and facilitating software distribution.

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HI5015: LEGAL ASPECTS OF
INTERNATIONAL BUSINESS AND
ENTERPRISE
1

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Contents
Question 1........................................................................................................................................ 3
Question 2........................................................................................................................................ 4
Question 3........................................................................................................................................ 7
References......................................................................................................................................10
2

Question 1
NTT DoCoMo, INC. is a Japanese company having its headquarters in Tokyo, Japan. The
company was founded in 1991 and the company operates I telecommunication industry. It is a
subsidiary of Nippon Telegraph and Telephone (NTT) Corporation and the company has 27,464
full time-employees, currently employed under its name. the company primarily provides mobile
telecommunication services in Japan and worldwide. The company is operating in Australia as a
proprietary company in name DOCOMO InterTouch Australia Pty. Ltd. This company provides
the customers with digital signage, gateways, CCTV security, digital TV, radiance, IT security
and many more similar services. This company in Australia was incorporated in year 1993 and
has its headquarters in Sydney, Australia. It is the subsidiary company of Docomo Intertouch
Pte. Ltd. which is a subsidiary of NTT Docomo Inc. and the company employs approximately 53
employees in Australia (Bloomberg, 2018).
Topic: Financials of company
Source: NTT Docomo, (2017).
3

Question 2
The company DOCOMO InterTouch Australia Pty. Ltd. is operating in Australia as a
proprietary company and a wholly owned subsidiary of a foreign company. For any company, to
carry on its operations in Australia as a proprietary company, it is required to be incorporated
and registered under Corporations Act, 2001. The company Docomo is incorporated and is
registered under this Act. The company is required to obtain an Australian Company Number
(ACN) and Australian Business Number (ABN) under the provisions of this Act and is required
to affix such numbers on all the documents of company. All the transactions and operations of
DoCoMo are carried in accordance to this Act. Further, this Act provides for maintenance of
documents, appointment of directors, their remuneration, duties, meetings and all other
provisions in relation to company (The ACMA, 2017). The company at the time of its formation,
is required to make memorandum and articles of association which outlines the objectives and
scope of company and its powers. The company must ensure that its transactions and all the
activities are aligned with the provisions of this Act and the memorandum and articles of
Association. The applicability of this Act is not limited to its operations but also extend to the
procedures of dissolution and winding up. In case the company intends to wind up its operations,
it is required to pass a resolution in accordance with the provisions of this Act and the procedure
shall be carried as given under this Act.
Privacy Act 1988 is a primary legislation guiding the principles and rules in relation to the
handling of information of individuals collected by the company. This Act includes thirteen
principles called Australian Privacy Principles (APP) which outlines the obligations, rights and
standards for accessing, holding, use, alteration of personal information collected by any
organization or agency. Such information may relate to individual’s name, address, phone
number, birth date, medical history, bank account details and such other information. Part IIIC of
this Act established The Notifiable Data Breaches (NDB) scheme under which all the
organizations and agencies on which this Act is applicable are required to report any data breach
and such entities shall be advised on how to handle the breach. DoCoMo collects personal
information of customers to provide them with telecommunication services, calculate the bill
usage charges, verification of identity, information relating to products and services, conduct
survey and analysis, avoid unauthorized or fraudulent subscriptions, and to provide customer
service (NTT Docomo Inc., 2018). The company is required to protect such collected
4

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information in accordance with Privacy Act and it must ensure that such information must be
used and processed as authorized.
Telecommunications (Interception and Access) Act 1979 is a legislation whose primary
objective is to govern the access of information collected to protect privacy of users of
telecommunication services in Australia. This Act requires Docomo and other
telecommunication service providers to retain the information for two years and limit the range
of agencies that are able to access the data of telecommunication agencies and stored
communication. This Act also provides for record-keeping and requires the company to report
the access and use of data of telecommunication (Greenleaf, 2014).
Competition and Consumer Act 2010 is applicable on all the organizations operating in
Australia. This Act aims to promote fair trading and ensures that the organizations carrying on
business in Australia do not become part of any unfair competition. The organizations must carry
a fair competition in market and must not take any unfair advantage of market conditions
depriving other competitive firms of equal opportunities and fair dealings. The Docomo
company must ensure that it does not promote any unfair competition in market and does not
mislead its customers or consumers of its products and services. The company under the
provisions of this Act shall be responsible for product safety and labelling, avoiding any unfair
market practices, monitoring the price, following industry codes and regulations (Dutfield,
2017). The company must promote fair competition and must ensure that the forms filled by
customers for availing the services of company does not have any unfair terms. The company
must honour guarantees given to customers, must ensure that the products and services provided
are safe for consumers and it must comply with the rules of sales practices. The provisions of this
Act shall be implemented and enforced by Australian Competition and Consumer Commission
(ACCC).
The company is also required to comply the provisions of Telecommunication Act, 1997. It is a
key legislation that regulates the telecommunication carriers in Australia. This Act contains
various provisions which deals with personal information held by carriers, carriage services
providers and others. Under this Act, technical and other matters are managed and regulated by
Australian Communications and Media Authority (ACMA). It is responsible for regulating
broadcasting, telecommunications and radiocommunications in Australia. They also provide
5

information on consumer standards, issues, compliance, mobile phone matters and emergency
services (The ACMA, 2017). A licence of carrying a telecommunication business in Australia is
provided under this Act. Telecommunications Code of Practice 1997 is also applicable on
telecommunication companies under which the companies are required to take reasonable steps
enter into an agreement with public utilities about the installation and comply with standards of
industry and listed international agreements. Docomo must ensure that all the applicable
legislations are complied by the company and must regularly be updated about any changes or
amendments if carried in those legislations. If the company misses any legislation, then it may
have to face legal consequences which may impact its customer base and its revenue.
6

Question 3
The economy of Australia majorly depends upon the rules and regulations made by the World
Trade Organisation which is binding or applicable to all the countries. The basic aim of the
World Trade Organisation is to promote trade between the countries. It promotes an increase in
the international trade between the countries by facilitating delivering of goods and services
across the world (Anderson, 2018). Such trade of goods and services are done under the
supervision of the World Trade Organisation. The trade between the countries is done on the
basis of treaties and agreements between the member countries. Such treaties and agreements are
binding on all such companies which their respective countries are part of the organization.
DOCOMO InterTouch Pte Ltd is an Australian based company which is a fully owned
subsidiary of NTT DOCOMO Inc of Japan which deals in providing broadband and other
technological solutions to its respective clients and consumers. In order to promote trade across
the world, the company is expected to comply with agreements and the treaties that have
happened between the member countries of the World Trade Organisation.
Japan Australia Economic Partnership Agreement (JAEPA) is the agreement signed between
Australia and Japan on 8th July 2014 which came into force on 15 January 2015. It is one of the
most important documents signed between the countries which have boosted the investments and
economies of both the countries. Such agreement has led to a major boost in various industries of
both the counties as the tariffs and the rate of taxes has been gradually declined by both the
countries for an effective promotion of trade between the countries, as a result, the productivity
and the volume of sales of the company increased. Both the countries have now decided on a
duty-free trade between the countries which has resulted in a gradual increase in the imports and
exports of both the countries (Australian Government, 2018). Such agreements between the
countries have resulted in an increase in investments for the foreign investors in the DOCOMO
InterTouch Australia Pty Limited, which has resulted in the development of telecommunication
and internet-based services across the country (Bloomberg, 2018). The company has been now
granted a fair access to the telecommunication and internet-based business in both the countries
which has increased a fair competition in both the markets of the country. The company has also
been benefitted from commitments on competitive safeguards and non- discriminatory treatment;
such benefits are availed on the basis of such agreements between the countries.
7

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The Trade-related ASPECTS OF Intellectual Property Rights is a legal agreement which is
signed by the members of the World Trade Organisation in order to protect the Intellectual
Property Rights of all the countries. The agreement was made in November 2001 in Doha, Qatar;
the objective of this agreement was to implement the agreement on the trade-related aspects of
the intellectual property rights in such a manner which supports to the members of World Trade
Organisation. The agreement has been implemented in order to promote access to the latest
technology and software for the telecommunication and the software solution companies. The
implementation of such agreement helped DOCOMO InterTouch Pty Limited to obtain a license
from the government of Australia so that they have access to the latest technology and software
solutions in providing services to its client or to the potential consumers. The company has to
follow the rules mentioned in the agreement and also has the right to patent its new and
innovative products. Such agreement has protected and enforced the objectives of technological
innovation and helped various industries to attain their goals and objectives in an efficient
manner (Greenleaf, 2014).
End User Licence Agreement is an agreement between the software developers and the end user
of the software. The agreement states the intellectual property rights of the software remains in
the hands of the developer. Such license helps the customer to access the software in an effective
manner through an exchange of some amount. Such agreement enables the users to comply with
all the terms and conditions of the agreement (OnePlace Solutions, 2018). Such agreements are
frequently used by the software industries or the IT companies where the intellectual property of
the software's and IT programmes are protected by the law. This agreement also includes various
clauses on the matter related to privacy, security, license warranty, intellectual property, free
trails, indemnity etc. The DOCOMO InterTouch Pty Limited is benefitted from such agreements
as its software's and various IT solutions are being protected by the policies and clauses of the
end user license agreement. Such an agreement proves an asset to the company as they are able
to protect their intellectual property which is the main source of the earnings of the company.
The agreement also provides some relief in the minds of the customers as the consumers get the
right to get the software corrected at the free of cost, which creates a liability in the eyes of the
company; hence it is beneficial for both the developers and the end users.
8

The above agreements and treaties helped DOCOMO InterTouch Pty Limited in providing
technology solutions to various parts of Australia efficiently and effectively, which has resulted
in a substantial increase in the profits of the company. The agreements and treaties between the
countries helped the company in achieving trade relations with the people of Australia.
9
Japan Australia Economic Partnership
Agreement (JAEPA)
The agreement is made between Japan and Australia in order to
promote duty free trade between the countries
The Trade-related ASPECTS OF
Intellectual Property Rights (TRIPS)
Such agreement is made with an aim to protect the intellectual
property rights of various companies accross the world.

References
 Anderson, K., (2018) World Trade Organisation. Britannica.
 Australian Government, (2018). Japan-Australia Economic Partnership Agreement
[Online] Available from
https://dfat.gov.au/trade/agreements/in-force/jaepa/Pages/japan-australia-economic-
partnership-agreement.aspx [Accessed on 16 Aug 2018]
 Bloomberg, (2018). Company Overview of DOCOMO InterTouch Australia Pty. Ltd.
[Online]. Available from
https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapid=105909472 [Accessed on 16 Aug 2018].
 Dutfield, G. (2017). Intellectual property rights and the life science industries: a
twentieth century history. Routledge.
 Gillies, L. E. (2016). Electronic commerce and international private law: A study of
electronic consumer contracts. Routledge.
 Greenleaf, G. (2014). Sheherezade and the 101 data privacy laws: Origins,
significance and global trajectories. JL Inf. & Sci., 23, 4.
 NTT Docomo Inc., (2018). Handling of Personal Information in Telecommunications
Business. [Online]. Available at:
https://www.nttdocomo.co.jp/english/utility/privacy/communication/index.html
[Accessed on 17 Aug 2018].
 NTT Docomo, (2017). Annual Report, 2017. [Online]. Available at:
https://www.nttdocomo.co.jp/english/corporate/ir/binary/pdf/library/annual/fy2016/
docomo_ar2017_e.pdf [Accessed on 17 Aug 2018].
 OnePlace Solutions, (2018). End User Licence Agreement [Online]. Available from
https://www.oneplacesolutions.com/eula.html [Accessed on 16 Aug 2018].
 The ACMA (2017). Legislation & regulation. [Online]. Available at:
https://www.acma.gov.au/theACMA/legislation-regulation-network-facilities-i-acma
[Accessed on 17 Aug 2018].
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