EBC Newsletter – July 5, 2023

• A third-party audit and certification system for generative artificial intelligence is among policies being considered by the government to ensure AI firms comply with relevant laws and regulations, according to a draft outline of measures seen by The Yomiuri Shimbun. The draft stresses the need to improve transparency in the AI sector amid the rapid spread of generative artificial intelligence models that can create text and images based on data from the internet, among other sources. (The Japan News)
• The industry ministry plans to offer a tax incentive for corporate innovations, such as patents and copyrights, to encourage domestic and foreign companies to establish research and development centers in Japan. The “innovation box,” as the tax break is called, applies a preferential rate lower than the ordinary corporate tax to income from intellectual properties derived through research and development in Japan. (The Asahi Shimbun)
• The European Union is rapidly stepping up its defense, security and economic ties with Japan with an eye on Russia’s aggression in Ukraine and China’s increasingly hegemonic activities. “In view of unprecedented challenges to peace and security, we agree to develop a security partnership,” says a draft EU-Japan joint statement to be released at a summit meeting scheduled for July 13 in Brussels. The draft sets out plans to bolster the EU-Japan security partnership in light of the threats posed by Beijing and Moscow. (The Japan News)

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