Japanese Prime Minister, Fumio Kishida, instructed his cabinet to speed up the preparation of legislation promoting economic security at the first meeting of the “Council for the Promotion of Economic Security” in November 2021. The legislation is scheduled to be submitted to the 2022 Ordinary Diet session. The legislation aims to prevent sensitive technologies for military use from being transferred abroad and to swiftly secure important resources such as semiconductors. The legislation features the following four pillars:

1. Keeping patents of sensitive technologies secret/Limiting disclosure of patents related to sensitive technologies

2. Strengthening of supply chains

3. Supporting the research and development of cutting-edge technologies

4. Ensuring the security of key infrastructure

The objective of the non-disclosure of secret patent is to prevent the leakage of privately-developed technologies which could potentially be used for military weapons development abroad. Like in most global patent systems, patent applications in Japan are disclosed within a certain period after filing. The legislation will enable the government to limit the publication of patents regarding technologies which are important to national security. The Japanese government is considering a framework in which companies that own such technologies will receive compensation for the patent income that may be earned from the publication. In a bid to guard national security, the government is also considering a process of selecting the subject technologies and sensitive inventions and the future scheme for filing of foreign applications.

Furthermore, the Economic Security Legislation will consider a system which offers subsidies to companies, to enhance the domestic manufacturing of important resources, such as semiconductors, as well as an examination system to determine whether foreign-made products that may pose a security risk are not included in key infrastructure facilities.

From SHIGA

March 2022