Japan

Introduction In recent years, the rapid proliferation of generative AI and cloud services has led to a dramatic increase in demand for data processing. Data centers have increasingly taken on the role of critical infrastructure supporting socio-economic activities, with demand for their development particularly rising in urban areas. At the same time, from the perspective of coexistence with local communities, considerations such as environmental impact and alignment with urban development have become increasingly important in data center projects. In response, the Tokyo Metropolitan Government published the “Guidelines for Data Centers Harmonized with Urban Development” (the “Guidelines”) on March 31, 2026. View original article here. [Authors] Yoshihisa Watanabe, Partner Hiroki Kawaguchi Teruaki Arai

Introduction On January 15, 2026, the Intellectual Property High Court (the “IP High Court”) issued an important judgment in an appeal from a Japan Patent Office (the “JPO”) opposition decision concerning Japanese Patent No. 7,353,441. The patent relates to an active energy curable resin composition, a hard coat laminated film and a glass film for exterior use. The JPO had accepted claim amendments proposed by the patentee, but nevertheless revoked claims 1 to 7, 9 and 10 for lack of inventive step, while maintaining claim 8. The IP High Court annulled that revocation, holding that the JPO had erred in finding a sufficient motivation to combine the cited references. The decision is significant because it shows that, where a primary reference depends on a specific technical parameter, a secondary reference that does not disclose that parameter may not support a finding of lack of inventive step. It may also be seen as illustrating the willingness of Japanese courts to set aside administrative revocation decisions where the technical basis for revoking patent claims in opposition proceedings is insufficient, thereby providing meaningful judicial protection for valid patent rights.   View original article here.   [Author] Masashi Chusho, Partner

Introduction The ongoing volatility in the Middle East, exacerbated by the 2026 blockade of the Strait of Hormuz, has transitioned renewable energy from a long-term target into an immediate national security issue. Floating offshore wind can provide the necessary scale in renewable energy by unlocking the power potential of deeper waters. While traditional fixed bottom offshore wind projects are geographically limited to shallow coastal shelves, floating offshore wind projects can be deployed in deeper waters where wind speeds are significantly higher and more consistent, leading to a higher capacity factor and more reliable electricity generation. Furthermore, by moving projects further offshore, developers can mitigate the common "not in my backyard" (NIMBY) challenges associated with visual landscape intrusion and reduce interference with near-shore activities such as fishing and shipping. Japan has a huge potential for floating offshore wind due to its geography: an archipelago with a narrow continental shelf that drops off rapidly into deep water. Approximately 80% of Japan's offshore wind potential is in deeper waters, where only floating offshore wind is viable. Furthermore, Japan possesses the sixth-largest Exclusive Economic Zone (EEZ) in the world - a maritime territory roughly 12 times larger than its landmass – which is particularly significant following the 2025 legislative expansions allowing its development. Europe, however, is currently the leading region for commercial-scale floating offshore wind projects. Several smaller operational commercial projects have paved the way for a pipeline of large scale commercial projects, including the 3,600 MW Ossian and the combined 1,900 MW Cenos and Green Volt projects in the UK, and the 1,500 MW Utsira Nord project in Norway. To reach the industrial scale required for cost-competitiveness, European governments have played a central role, establishing robust policy and regulatory frameworks that provide the long-term certainty necessary to attract significant private investment and debt finance. View original article here. [Authors] Kiyoshi Honda, Partner Tak Matsuda

Introduction On January 7, 2026, the Subcommittee on Foreign Exchange and Other Transactions of the Council on Customs, Tariff, Foreign Exchange and Other Transactions published its “Report on the Appropriate Framework for the Inward Direct Investment Screening System” (the “Report”). When the Foreign Exchange and Foreign Trade Act (the “FEFTA”) was amended in 2019 (effective May 8, 2020), a supplementary provision was included stipulating that, if deemed necessary in light of how the amended provisions had been implemented in the five years since such amended Act came into effect, such provisions would be reviewed, and appropriate measures taken based on the results of such review. Published five years after the 2019 amendments took effect, the Report examines the framework of the inward direct investment screening system and sets out the direction for its review, from the perspective of balancing two important policy objectives: further promoting inward direct investment that contributes to the sound development of Japan’s economy and ensuring economic security in an environment where the scope of national security considerations increasingly encompasses the economic sphere. This newsletter summarizes the key proposed reforms to the inward direct investment screening system set out in the Report, focusing on those matters with the most significant practical implications for foreign investors.   View original article here. [Author] Oki Osawa (Partner) Mayuko Takamura Tatsuyoshi Kitani