Background of establishment
To bring innovative technology and services to the world, it is essential for Japanese companies to proactively deal with foreign counterparts in various forms. On the other hand, to stimulate the Japanese market with innovation, it is also necessary to actively invite investments from foreign corporations.
However, the increase in sharing of domestic trade secrets abroad bears risk of unauthorized use, which may decrease the international competitive edge of domestic companies. Concurrently, an increase in sharing of foreign trade secrets within Japan also creates the risk of domestic companies being accused as trade secret infringers - which may lead to receiving compensation claims of sizable damages from foreign companies.
Further, domestic trade secrets have been threatened by targeted cyber attacks and have also been stolen by foreign attackers. Japanese companies are strongly encouraged to review how to protect their trade secrets under effective cross-border legal practice and to implement feasible reforms.
By reducing these global risks, Japan can promote innovation through investment, maintain the competitiveness of domestic companies inside and outside of Japan, as well as maintain the attention the domestic market is receiving from foreign companies.
Finally, the Amended UCPA shows Japan's firm attitude to protect trade secrets by adding tougher punishment toward foreign infringers, criminalizing trade secrets theft in foreign countries, and providing prohibition and injunctions against the sale and import/export of goods that infringe trade secrets. It is important to raise awareness of the Amended UCPA not only to domestic companies but also to foreign companies that are investing in the Japanese market.