A high court in Japan has rejected a claim by an adult entertainment business operator that the sex-related industry should also be eligible for the state subsidies for firms impacted by the coronavirus pandemic.

The Tokyo High Court on Thursday upheld the lower court ruling that it is not unconstitutional to exclude sex-related businesses from the relief funding.

The operator in western Japan sought the subsidies and compensation in the lawsuit. It argued that the exclusion is occupational discrimination and violates the constitutional guarantee of equality under the law.

Presiding Judge Matsumoto Toshiyuki of the high court said it is reasonable for the government to decide that it would be difficult to gain public understanding if the industry became eligible for its subsidies.

Matsumoto said that even though people's values of sex and gender have become diversified, it is still considered inappropriate to publicly acknowledge sex-related businesses.

The district court ruling said earlier that the characteristics of the industry run counter to the moral consciousness of most people, and it is therefore reasonable to treat it differently from others.