JAPAN Trends and Developments Contributed by: Raku Raku, Gen Takahashi, Yoshihiro Morisato and Taku Matsumoto, Anderson Mōri & Tomotsune
the reform does not appear to have resulted in any major inconvenience or processing delays, although it remains to be seen whether more recent revisions (2025) could have more of an impact. Enactment of the Economic Security Promotion Act The Economic Security Promotion Act (“the ESPA”) was introduced in May 2022 to serve as a new frame - work for economic security going beyond the regula - tion of foreign investment and consisting of the fol - lowing four pillars. Strengthening of the supply chains of important items and raw materials In order to mitigate the increasingly serious potential impact of disruptions in the supply of semiconductors and pharmaceuticals (due to the reliance of industrial infrastructure and medical services on digitalisation), and to counter a relative decline in Japan’s ability to secure critical supplies in times of supply disruptions (caused by the growth of emerging countries and the deepening of global value chains), the following meas - ures will be implemented in accordance with a basic policy to be formulated by the national government: • designation of specified items and materials to be the subject of the measures; • public support for private sector companies that contribute to the stable supply of the specified items and materials in exchange for the submis - sion to the relevant authorities of a plan by each company outlining the manner in which it intends to contribute to the stable supply of the items and materials; and • government measures to secure the stable supply of the items and materials. Securing the safety and reliability of key infrastructure To reduce the risk of cyber-attacks resulting from the large-scale digitalisation of critical facilities in key infrastructure, a prior assessment system will apply in respect of the introduction of critical facilities for such infrastructure, as well as the commissioning of maintenance and management services for critical facilities. The businesses/business operators that are expected to be particularly affected include:
• companies that operate key infrastructure; • companies that supply specified critical facilities, or that supply parts to the key infrastructure classi - fied under; and • companies commissioned to manage and maintain the specified key infrastructure above. Foreign companies may find it difficult to pass the prior assessment for the supply of the specified criti - cal facilities and the management and maintenance of the specified key infrastructure. Implement systems to develop and support key technologies by both public and private sectors For advanced technologies that are critical to the sta - bility of daily life and economic activities, a framework of government support and co-operation between the public and private sectors will be implemented. According to written opinions issued by an expert advisory panel during the preparation of the bill, the key technologies that will be targeted for support include those that fall within the areas of space engi - neering, marine engineering, quantum technology, artificial intelligence and biotechnology. Prevention of leakage of sensitive data relating to inventions by non-disclosure of relevant patent information To reinforce existing measures that seek to prevent the leakage of sensitive information during patent applica - tions, the ESPA introduces: • a system of withholding the publication of such patent applications; and • measures to protect the information relating to such patent applications. Businesses/business operators that will likely be affected by these measures are • companies that engage in the research of nuclear technology or technologies related to the develop - ment of military weapons; and • companies that receive information from, or are licensed by, the companies classified above. In principle, inventions that fall within specified tech - nological areas and that originate in Japan are pro -
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