HI5015: Analyzing Legal Aspects of DOCOMO's International Enterprise

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This report provides a comprehensive analysis of the legal aspects governing NTT DoCoMo's international business operations, specifically focusing on its Australian subsidiary, DOCOMO InterTouch Australia Pty. Ltd. It examines key Australian legislations such as the Corporations Act 2001, Privacy Act 1988, Telecommunications (Interception and Access) Act 1979, and Competition and Consumer Act 2010, highlighting their implications for the company's operations. The report also delves into international trade agreements like the Japan-Australia Economic Partnership Agreement (JAEPA) and the Trade-related Aspects of Intellectual Property Rights, explaining their impact on DOCOMO's business strategies and intellectual property protection. Furthermore, it discusses the significance of End User License Agreements in safeguarding the company's software and IT solutions. The analysis underscores the importance of legal compliance for DOCOMO in navigating the complexities of international business and maintaining a competitive edge in the Australian market. Desklib provides access to this document along with a wealth of study resources, including past papers and solved assignments, to support students in their academic endeavors.
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HI5015: LEGAL ASPECTS OF
INTERNATIONAL BUSINESS AND

ENTERPRISE

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

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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

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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

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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.

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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 8
th 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.

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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.

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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.

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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.
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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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