Japan as a paradise for AI development and copyright infringements?

As AI-generated images and anime increasingly appear on social media, illustrator Momoji Mokume warns of an imminent decline in Japan's creative culture. The 21-year-old university student from Tokyo states, "I thought the job of an illustrator would disappear, and even the culture of creativity would be lost." Mokume's concern is not unfounded, as prominent technology managers like Mark Zuckerberg from Meta and Sam Altman from OpenAI flocked to Tokyo to explore the vast potentials of AI in an aging and labor-short economy. In a notable move, OpenAI even opened its first Asian office in Tokyo. Although Japan has not produced its own AI giants, it attracts technology companies due to its comparatively lax copyright laws. These laws allow the use of copyrighted material without permission for training AI models. Yutaka Matsuo, a professor at the University of Tokyo, emphasizes, "There are many reasons why AI companies come to Japan, including the need to quickly develop companies' digital capabilities and the population's openness to AI." At the same time, artists like Mokume express concerns that their works are used without permission by AI companies. The Japanese Agency for Cultural Affairs issued new guidelines in March to determine when AI companies can be held liable for copyright infringement. However, a revision of the law did not occur. The Japanese Society for Rights of Authors, Composers and Publishers criticized that the existing copyright law does not contribute to protecting creatives but rather limits their rights. Prime Minister Fumio Kishida has strived to promote international guidelines for AI regulation at G7 meetings. He calls for transparent rules to create a safe environment for the use of generative AI. Minister Takeaki Matsumoto adds, "Regulations can hinder innovation, but it is necessary to establish clear regulations." Despite the challenges, Japan remains attractive to AI companies due to government support and favorable market conditions. For example, David Ha, co-founder of the AI startup Sakana, based his company in Tokyo to distinguish it from the competition in Silicon Valley. The government offers subsidies and other incentives to attract technology startups to Japan. The question remains, however, how Japan will find the balance between promoting the AI industry and protecting the creative sectors. Mokume remains hopeful that Japan will develop a legal system that protects the interests of authors and allows for stricter interpretation of existing clauses. He emphasizes that Japan should play a leading role in the global discussion on AI without disadvantaging domestic artists.