FRONTEO List of News Articles

In 2024, the number of M&A transactions reached a record high. At the same time, "unexpected troubles" are certainly on the rise. In this seminar, attorneys Shunsuke Inoue and Risa Haruyama from Hibiya Nakata Law Office will clearly explain from a legal perspective, based on actual cases and court rulings in which they were involved as advisors, "In what situations did problems arise, and why?" and "How could they have been prevented?" 【Content】 • Introduction: Increasing M&A, Increasing Troubles • Troubles Related to Acquisition Amounts: "Deciding Later" Doesn't Get Decided • Troubles Related to Representations and Warranties: "Absolutely Not" is Absolutely Not • Troubles Related to Covenants: "Going Solo" is Difficult • Conclusion: What Legal Professionals Can Do to Prevent Future Troubles • Q&A

As the fluidity of employment increases, there has been a rise in cases where key personnel take trade secrets when they leave and use them at rival companies, resulting in significant damages. We have invited attorney Kyosuke Kaneko, who has experience representing victimized companies in cases where former employees were sentenced to prison for taking trade secrets abroad, to conduct a total of five real seminars and webinars on crisis response since 2023. There has been a high level of interest, with hundreds of participants each time, but many have also expressed a desire for explanations on preventive measures. In response to these requests, we are conducting a series of three consecutive lectures. The first and second sessions focused on crisis response. Those interested can access the archived recordings. The third session will explain preventive measures. We encourage your participation. 【Topic of the 3rd Session】 - What are trade secrets? - What is confidentiality management? - Court cases where confidentiality management was recognized and where it was not - Development of employment regulations and non-disclosure agreements - Effectiveness and content of internal training - Asset management tools, MDM, and digital forensics

In recent years, Third-Party Funding (TPF) has rapidly gained recognition as a practical option for companies considering litigation or international arbitration. TPF allows parties to pursue legal claims without using their own funds, providing a new option to transform legal risks into strategic assets. In this seminar, we will welcome Ms. Arl Rivera-Drella, who has extensive experience as an arbitrator, representative, and attorney, having been involved in over 200 international arbitration cases. The seminar will cover the basics of TPF, trends in major countries, important considerations for Japanese companies, and practical insights based on actual cases. The first half will be conducted in Japanese, while the second half will proceed with slow English and Japanese slides to ensure everyone understands the content.

As employment mobility progresses, there has been an increase in cases where key personnel take trade secrets with them upon resignation and use them at rival companies, resulting in significant damages. Preventing the unauthorized removal of trade secrets is of utmost importance, but it is impossible to prevent all instances of removal by departing employees. It is also necessary to understand what initial actions must be taken when the removal of trade secrets is discovered, as well as what legal measures can be pursued. Since 2023, we have held a total of five real seminars and webinars featuring attorney Kyosuke Kaneko, who has experience representing victimized companies in cases where departing employees were sentenced to prison for the overseas removal of trade secrets. There has been a high level of interest, with participation ranging from 400 to 600 individuals, and many have expressed a desire for more detailed explanations in surveys. In response to these requests, we will conduct a series of three consecutive lectures. If you wish to deepen your understanding of trade secrets, please join us. 【Topic of the 2nd Session】 - What are trade secrets? - Can we request the use or disclosure of trade secrets taken by departing employees?

As frequently reported in Japan, export controls and other economic security regulations between the U.S. and China have been strengthened year by year. Until about ten years ago, there was little need for Japanese companies, except for a few, to pay attention to economic security regulations in their China operations. However, in recent years, U.S. regulations have been frequently tightened, and in response, China's regulations have also been strengthened. Therefore, it has become essential to understand and keep updated on both China's and the U.S.'s economic security regulations when making investment and management decisions in China. This seminar will primarily explain the economic security regulations under Chinese law that Japanese companies should pay attention to when expanding their operations in China, as well as provide an overview of the U.S. export controls that are mainly problematic in China operations. [Program] (Subject to some changes) (1) China's perspective on security (2) Export controls on goods and technology (3) Investment regulations for foreign capital in key industries (4) Regulations on data technology transfer (5) Ensuring technological superiority (6) Countering sanctions against China (7) Anti-espionage law (8) U.S. export controls that are mainly problematic in China operations

The leniency system (reduction of penalties) established by the Japan Fair Trade Commission has gradually accumulated usage records since the introduction of the investigation cooperation reduction system in the 2019 amendment, and the utilization rate of the leniency system in cases subject to administrative sanctions for cartels and other violations is also at a high level. Therefore, attorney Naoki Uemura, who has experience as a former Fair Trade Commission examiner, will explain the current usage status of the leniency system and the practical points that are important when utilizing the leniency system. Additionally, regarding the digital forensic investigation required from the initial stage of utilizing the leniency system, effective and efficient investigation methods will be explained in collaboration with a representative from FRONTEO.

**Title:** "Preventive Measures and Response to Trade Secret Misappropriation by Departing Employees" Part 1: Response to Emergencies - Initial Response and Criminal Measures **Overview:** As employment mobility increases, cases are rising where key employees take trade secrets with them upon leaving and use them at rival companies, resulting in significant damages. Preventing the misappropriation of trade secrets is of utmost importance, but it is impossible to prevent all instances of misappropriation by departing employees. It is also necessary to understand what initial actions must be taken when the misappropriation of trade secrets is discovered, as well as what legal measures can be pursued. Since 2023, we have held a total of five real seminars and webinars featuring attorney Kyosuke Kaneko, who has experience representing victimized companies in cases where departing employees were sentenced to prison for the overseas misappropriation of trade secrets. Due to high interest, attendance at the webinars has ranged from 400 to 600 participants, and many have expressed a desire for more detailed explanations in surveys. In response to these requests, we will conduct a series of three consecutive lectures. If you wish to deepen your understanding of trade secrets, please join us.

The Chinese economy is slowing down far more than official statistics suggest. The persistently high unemployment rate is exacerbating public safety issues. In 2025, the Xi Jinping administration is set to announce various economic policies aimed at stimulating the economy, which are expected to be implemented. However, there are numerous challenges, including the excesses of the real estate downturn. In the near term, there is no prospect for economic recovery. Amidst this, a Trump administration 2.0 is expected to be established, with policies towards China being strengthened. The intensification of US-China tensions is inevitable, and Japan needs to develop its own strategy to avoid being caught up in it. This lecture will explore the nature of Japan's unique strategy.

**Title:** Know-How for Harassment and Internal Reporting Investigations: Case Study on Sexual Harassment - Explaining the Investigation Process and Hearing Techniques through Specific Examples **Overview:** The Whistleblower Protection Act and the Power Harassment Prevention Act require the establishment of a system for investigating and responding to whistleblower and harassment reports. However, there are very few opportunities to receive practical training on how to conduct internal reporting investigations, including the flow of the investigation, the order and types of questions to ask during hearings, what other materials should be collected besides hearings, and how to determine the existence of facts as a result of the investigation. In this seminar, a lecturer who is a lawyer with extensive experience in handling harassment and internal reporting investigation cases will share practical know-how on conducting harassment and internal investigations, including the flow of the investigation, the order of hearings, questioning methods, and fact-finding techniques, all based on specific examples that can be immediately applied.

**Title:** Know-how for Harassment and Internal Reporting Investigations: Case Study on Power Harassment - Explaining the Investigation Process and Hearing Techniques through Specific Examples **Overview:** The Whistleblower Protection Act and the Power Harassment Prevention Act require the establishment of a system for investigating and responding to public whistleblowing and harassment reports. However, there are very few opportunities to receive practical training on how to conduct internal reporting investigations, including the flow of the investigation, the order and types of questions to ask during hearings, what other materials should be collected aside from hearings, and how to determine the existence of facts as part of the investigation results. In this seminar, a lecturer who is a lawyer with extensive experience in handling harassment and internal reporting investigation cases will share immediately applicable know-how on the flow of harassment and internal investigations, the order of hearings, questioning methods, and methods for fact-finding, based on specific examples.

**Title:** Know-How for Harassment and Internal Reporting Investigations: 1_Basic Knowledge Edition - Explaining the Flow of Investigations and Hearing Techniques through Specific Cases **Overview:** The Whistleblower Protection Act and the Power Harassment Prevention Act require the establishment of systems for investigating and responding to public and harassment reports. However, there are very few opportunities to receive practical training on how to conduct internal reporting investigations, including the flow of the investigation, the order and types of questions to ask during hearings, what other materials should be collected aside from hearings, and how to determine the existence of facts as a result of the investigation. In this seminar, a lecturer who is a lawyer with extensive experience in handling harassment and internal reporting investigation cases will share practical know-how on the flow of harassment and internal investigations, the order of hearings, questioning methods, and fact-finding techniques based on specific cases that can be immediately applied.

Recently, various companies across different industries have been victims of cyberattacks, including ransomware, resulting in long recovery times and significant financial losses. Additionally, the leakage of information held and managed by companies can damage their reputation and lead to a substantial decline in business performance, depending on how the situation is handled. Even though companies are victims of cyberattacks and information leaks, if they fail to respond appropriately during normal times or crises, there is a risk that the company and its executives may face lawsuits for damages or criminal liability. Given the significant risks posed by cyberattacks and information leaks, it is essential for multiple stakeholders, including company executives, general affairs, human resources, legal, and IT security departments, to implement response measures across the organization during both normal and crisis situations. Attorney Masayuki Otake, who has extensive experience investigating numerous cases as a prosecutor in charge of cybercrime and intellectual offenses, will explain the important legal and practical points to consider in such situations.

"The next big thing after AI is anti-aging" - In recent years, as generative AI has seen explosive growth, "anti-aging" is emerging as the next global trend. In the healthcare sector, a multifaceted approach that includes drug administration, food, traditional medicine, and exercise will become increasingly important. In this seminar, the developer of the paper exploration AI "KIBIT Amanogawa," which can discover the unknown from the known, will introduce new possibilities for anti-aging revealed through AI analysis. In particular, we will focus on "Klotho," a substance closely related to aging prevention, and "s-Klotho," which leaks into the bloodstream and circulates throughout the body. We will explain how foods like "mugwort" and exercise can activate this substance and contribute to the prevention and treatment of age-related heart disease, diabetes, Alzheimer's disease, and more, through case studies of analysis using papers and AI.

The Important Economic Security Information Protection Utilization Law, established in May 2024, is a new framework aimed at utilizing economic security policies by providing confidential information held by the government to the private sector while ensuring its protection. However, many companies express doubts such as, "Is this relevant to us in the first place?" "How can we utilize the information provided by the government?" and "Is there enough benefit to justify the costs?" Although operational standards and government ordinances are becoming clearer, it remains difficult for companies to see a concrete path on how to engage with this law. In this lecture, a speaker who has recently worked at the Ministry of Economy, Trade and Industry as a policy official for security clearance and is now supporting companies in their economic security responses as a lawyer will present. Taking into account both public and private perspectives, the lecture will clarify the potential for companies to utilize the security clearance system and will provide a detailed explanation of practical issues and challenges. It is hoped that this lecture will help view the security clearance system not merely as a government information management measure, but as a risk management measure to enhance corporate capabilities, and will assist in the necessary preparations and considerations for that purpose.

Our country's economy is finally showing signs of recovery from prolonged deflation. However, the declining birthrate, aging population, and population decrease continue unabated, and the relative position of our economic and scientific and technological power, which are the foundation of national strength, is on a downward trend. Additionally, as the security environment surrounding our country becomes increasingly severe, and with the uncertainty stemming from changes in the U.S. administration and political instability in South Korea, the necessity to maintain and acquire our country's autonomy, superiority, and indispensability is undeniably rising. Looking ahead at the international situation, we will discuss what economic security policies we will implement in the future.

FRONTEO Inc. conducted a survey on corporate crisis response titled "Your Company's Compliance System and Utilization of Law Firms" and published the results on its website. Under the supervision of attorney Katsu from Nagashima Ohno & Tsunematsu Law Firm, this valuable report meticulously gathers the genuine voices of over 130 legal staff, primarily from the legal departments of major companies. It covers essential themes that back-office staff cannot afford to overlook, including the presence and content of scandals within the past five years and the setting of compliance measures.