Japan’s 2026 Tax Reform on Taxation of Crypto Asset Transactions and Its Implications for Foreign Investors
Introduction Under the current Japanese tax framework, income derived from crypto asset transactions is generally not treated as capital gains, but, classified either as business income or miscellaneous income. As a consequence, such income is subject to income tax in Japan at progressive rates, with a combined national and local maximum rate of 55.945%.
Publication of “Guidelines for Standard Essential Patents Judicial Mediation (SEPJM)” by the Intellectual Property Divisions of the Tokyo District Court
In January 2026, the Intellectual Property Divisions of the Tokyo District Court (the “TDC IP Division”) published their “Guidelines for Standard Essential Patents Judicial Mediation (SEPJM)” (the “Guidelines”)[1] which follows the earlier publication of the TDC IP Division’s “Guidelines for Patent Infringement Lawsuits Involving Standard Essential Patents” (the “SEP Lawsuit Guidelines”)[2],[3].
Publication of the “Guidelines for Patent Infringement Lawsuits Involving Standard Essential Patents” by the Intellectual Property Divisions of the Tokyo District Court
In January 2026, the Intellectual Property Divisions of the Tokyo District Court (the “TDC IP Division”) published the “Guidelines for Patent Infringement Lawsuits Involving Standard Essential Patents” (the “Guidelines”)[1].
Tokyo Metropolitan Government Published Guidelines related to Data Centers
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 …
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IP High Court Clarifies Limits of “Motivation to Combine” in Patent Opposition Appeal
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 …
European floating offshore wind – moving up to large scale
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.
Publication of the “Report on the Appropriate Framework for the Inward Direct Investment Screening System” – Proposed Amendments to the Foreign Exchange and Foreign Trade Act (Inward Direct Investment Screening System)
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 …
Introduction of Mandatory Nationality Reporting Requirements in Real Estate–related Transactions
Introduction Based on the instructions issued by Prime Minister Takaichi at the Meeting of Relevant Cabinet Ministers on November 4, 2025, regarding “the appropriate use and management of national land, including the framework for rules on land acquisition,”[1] public comment procedures have been initiated to amend relevant cabinet and ministerial ordinances to introduce mandatory nationality …
Navigating Japan’s Semiconductor M&A Landscape: Recent Trends and Practical Insights for Foreign Investors
Introduction Semiconductors are a critical foundation of the modern economy, evolving from conventional electronic components into indispensable technologies supporting AI, robotics, smartphones, cloud computing, and advanced manufacturing. The global semiconductor market reached USD 630.5 billion in 2024 and is projected to exceed USD 1 trillion by 2030.
Ministry of Economy, Trade and Industry Releases Draft “Economic Security Management Guidelines”
Introduction In recent years, the international environment surrounding companies has rapidly shifted from an era in which free cross-border economic activity was taken for granted to one in which companies must design their business operations taking into account geo-economic risks. For Japanese companies that may be affected by such changes in the environment, it has …