A House of Representative committee passed bills Wednesday to revise the unfair competition prevention law and strengthen trademark protection in Japan.
The bills are expected to clear the full House of Representatives and the House of Councilors for enactment during the current session of the Diet, which is scheduled to close on June 19 but could be extended.
Under the existing law and related regulations, Japan can punish those who sell goods with labels that mislead consumers with a maximum three-year prison sentence or fine of up to 3 million yen.
But no punishment is set for using well-known brand names in unrelated fields and selling counterfeit brand-name goods without trademarks.
The bills are aimed at making all these acts punishable with a fine of up to 5 million yen or a maximum five-year prison term.
The revised law, expected to take effect within this year, would also expand the punishable range of actions to the unjustifiable acquisition of business secrets and their transfer to rivals.