Japan's Trade Ministry is set to relax the restrictions governing film production funds. Under the current law, only four such funds have been set up since 1992.

Local industry analysts have been warning that unless Japan creates a system that makes it easier, and more attractive, to invest in feature film production, the country could fall behind other Asian territories like South Korea, which are beginning to adopt more creative financing methods.

The Strategic Council on Intellectual Property, an advisory body to the Ministry of Economy, Trade and Industry, has released a report calling for more active government support of contents businesses, including the film industry.

Measures the council members are calling for include:

* Liberalisation of rules governing government film funds, such as lowering the minimum capital requirement from the current level of $84,750 (Y10m) and reducing barriers to setting up funds.
* Revision of the tax system for intellectual assets.
* Establish a framework for the securitization of copyrights.
* Creation of a public insurance system for copyrights.
* Support the education of film producers at the university level.
* Provide scholarships for Japanese filmmakers to study abroad.
* Invite foreign talent and producers to Japan.
* Support the work of local film commissions in attracting productions.
* Strengthen the National Film Center, which is currently attached to the Museum of National Art.

Headed by Akira Goto, the director of the University of Tokyo's Advanced Economic Research Center, the council was formed in March to examine Japan's intellectual property industry, including the film business.

The twenty-two member council consists mainly of legal and academic experts. They will issue a final report, together with a detailed action plan, on July 8.

In February an advisory body for the Ministry of Cultural Affairs issued a report with similar recommendations. The Ministry of Economy, Trade and Industry is expected to revise regulations, in accordance with the council's report, the next fiscal year, starting in April 2004.