Digital Economy, Telecommunication and AI Network Policy in Japan

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1 Digital Economy, Telecommunication and AI Network Policy in Japan The 20th Annual Japan EU Conference 27 November 2017 Fondation Universitaire Mayu Terada, J.D.., LL.D. International Christian University Associate Professor (Administrative Law)

2 Graduated from Hitotsubashi University Faculty of Law (LL.B.) Studied in the U.S. for about 1 year (Bates College) (Maine, U.S.A) Graduated from Keio Law School (J.D.) Passed Japanese Bar Examination in 2007 Graduated from Graduate School of Law, Hitotsubashi University (LL.D.) Studied at Universitaet Kassel, Germany from (Kassel, Deutschland) Associate Professor of law, International Christian University (teaching administrative law and Environmental Law) Administrative Law, Administrative procedure, Administrative organizations Telecommunications Law, EU Telecommunication Law and Japanese Telecommunication Law (IoT, Drone, Data Portability, AI etc.) New Book on Comparative Study of EU, Germany and Japan s Telecom and Broadcast Policy and Regulation (Keiso Shobo Publisher, 2017)

3 Agenda Introducing Japanese Digital Economy related strategies Japanese policies and related situation from 2016 Report on Current Status of Information and Communications Japan s 5G policies Towards AI Network Society Japanese Government Proposed a Guideline for AI R&D Towards Utilization of Big Data Establishment of PPC in 2016 Cooperation and Exchange of Ideas are important

4 ICT is Japan s largest industry by contribution to GDP The Japanese government and Japanese companies realize the importance of developing new innovative ICT solutions. Digital economy has become the key to new growth possibilities in established and mature markets such as Japan and the European Union. It is an umbrella term used to describe markets that focus on digital technologies. These typically involve the trade of information, goods or services through electronic commerce. It operates on a layered basis, with separate segments for data transportation and applications. It is crucial to understand that the backbone of the digital economy is the infrastructure provided by various segments of ICT. Therefore, the ICT industry landscape will be analysed in particular.

5 e-business e-commerce Broadband IoT (Internet of Things) Telecoms

6 The Japanese Digital Economy /ICT Strategic Policy Agenda Japan s digital economy and ICT strategic policy agenda is based on a number of policies presented by various Japanese ministries. The main ones: ICT Growth Strategy II ICT Growth Strategy ICTs for inclusive social and economic development in Japan Japan Revitalisation Strategy Declaration to be the World s Most Advanced IT Nation MIC White Paper on ICT

7 2016 Report on Current Status of Information and Communications (2016 White Paper on Information and Communications in Japan) The White Paper features IoT, Big Data, and AI: New Values Created by Networks and Data and prospects the progress of new ICT, including the IoT, Big Data, and AI, and changes in society that the new ICT will bring.

8 METI and MIC to Establish a Joint Director-General-Level Team To jointly advance a variety of policies in the field of IoT A new joint team was established by the director-general, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry (METI), and the director-general, Global ICT Strategy Bureau, Ministry of Internal Affairs and Communications (MIC). The joint team will discuss a variety of topics in the field of IoT on a continual basis.

9 1. Details of the joint team Aiming to promote the advancement of the Fourth Industrial Revolution, METI and MIC will jointly promote a variety of policies in the field of IoT in collaboration with the Strategic Headquarters for the Promotion of an Advanced Information and Telecommunications Network Society, in accordance with the provisions under the Basic Act on the Advancement of Utilizing Public and Private Sector Data (enforced on December 14, 2016) and other regulations. The joint team including the director-general, Commerce and Information Policy Bureau, METI, and the director-general, Global ICT Strategy Bureau, MIC, will begin work from March 2017 and will discuss the following six topics on a continual basis for an undefined period. METI and MIC will aim to incorporate the results of these discussions into the future policies of Japan.

10 2. Discussion topics Promoting investment in cyber security measures, etc. Fostering human resources in the IoT area Developing institutional environments which promote information distribution Developing environments involving data transactions Promoting collaboration in authentication Demonstration testing of sharing economies and blockchain technologies, etc. Encouraging regional areas to utilize IoT technologies Expanding domestic efforts around the world, e.g., formulating proposals for international standardization Release date March 28, 2017

11 Japan s 5G Policy

12 Guideline (1) Everyone can enjoy the benefits of AI Network Systems; (2) Dignity of humans and autonomy of individuals should be respected; (3) Innovative research, development, and fair competitions should be maintained; (4) Controllability and transparency should be maintained; (5) Participation of stakeholders should be maintained; (6) Harmony of physical space and cyberspace should be aimed for; (7) Regional communities should become more vibrant by breaking through, and cooperating beyond, space barriers; and (8) Resolution of global issues under distributed cooperation should be aimed for.

13 Towards Utilization of Big Data Establishment of PPC in 2016 Mission The duties of the Personal Information Protection Commission (PPC) are the protection of the rights and interests of individuals while taking into consideration proper and effective use of personal information including MY NUMBER. The PPC is one of the highly independent organs in the Japanese legal framework. Based on the Act on the Protection of Personal Information, the Chairman and Commission members exercise their authorities independently.

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16 Japan Passes Bill to Pool Medical Big Data for Medical Research and Development Japan s National Diet passed a bill in May 2017 in order to use patient records effectively to make more progress in medical research. The law is roughly translated as the next-generation medical infrastructure law, and it will allow anonymous medical big data to be pooled to be used for medical research and development of pharmaceuticals.

17 Cooperation and Exchange of Ideas are important

18 Generating ICT Innovation EU and Japan could enhance cooperation on innovation policy development The EU and Japan could enhance their cooperation on innovation policy development with a particular focus on ICT and market uptake of ICT R&D output. Support mechanisms present for this purpose in both Horizon 2020 and Smart Growth Strategy II should be synergised.

19 Exploring possibility of other measures to foster R&D cooperation and strengthen various collaboration between the EU and Japan is also important

20 The EU and Japan should cooperate in the creation of policies aimed towards establishing international/shared standards The EU and Japan should cooperate in the creation of policies aimed towards establishing international/shared standards on smart city project implementations and interconnectivity. Their standards should be flexible enough to enable some degree of adjustment to local needs. Smart city projects located in the same area and serviced by more than one company should possess regulations enabling the engaged parties to cooperate with the goal of interconnectivity and long term viability in mind

21 Discussion on AI R&D Guidlines is important (technology might be used internationally)

22 The digital economy/ict should be included among the priority topics for the EU-Japan regulatory dialogue The digital economy/ict should be included among the priority topics for the EU-Japan regulatory dialogue with a selection of sub topics which are either more urgent or more suitable for cooperation. For example, such a sub-topic to be addressed with priority could be the private copying levy system which needs a fundamental reform which takes into account the evolution of technology and distribution channels for lawful digital contents.

23 Thank you!