Japan Plans Law to Keep Sensitive Patents Secret, Nikkei Reports

(Bloomberg) -- Japan will introduce legislation that keeps sensitive patents secret while compensating applicants who have forgone licensing fees, as the country ramps up efforts to protect key industries, Nikkei reported Sunday, without saying where it got the information.

Under the bill, the government will review patent filings for technology that have potential military use, such as developing nuclear weapons and quantum technology. Patents that may pose a national security risk won’t be disclosed. Applicants will not be able to file the patents in other countries, according to the newspaper.

The government will announce the framework as early as next January and plans to make it effective in fiscal 2023.

Japan is rushing to boost supply-chain resilience and diversify risks as industries from automobiles to electronics feel the effects of a global parts shortage. Prime Minister Fumio Kishida has said national economic security is a key pillar in Japan’s growth strategy.

Japan will screen equipment purchases by key infrastructure operators of telecommunication networks and power grids, as well as financial companies, Nikkei said. 

The government will compensate up to about 20 years worth of licensing income, based on comparable patents, according to the report. It will set up a team with members from the Defense Ministry, National Security Secretariat and other agencies to review the patent applications. 

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