Intellectual Property Rights Protection in Taiwan

March 14, 2003

• Overview
  As industries of Taiwan evolve from labour intensive to technology focusing, the government of Taiwan has considered the importance of intellectual property protection as the key component to the sustainability of the nation's development and global competitiveness. Since its accession to the World Trade Organization in January 2002, the government of Taiwan has always committed to comply with those international obligations set forth under the TRIPS Agreement. 
  
  To demonstrate Taiwan's determination in IPR protection, the Executive Yuan proclaimed the year 2002 as the "IP Action Year" and assigned responsibility of the overall IPR enforcement plan to relevant ministries. The three major focuses of the comprehensive plan are: heightened education programs, adequate and effective legislation, and substantial enforcement actions. 
  
  Upon the completion of the 2002 Action Plan, a follow-on three-year Comprehensive IPR Protection Action Plan 2003-2005 has been initiated on January 1, 2003. The new plan is designed to continue and build upon the robust enforcement campaign undertaken in 2002. 
   

• Heightened Education Programs
  
  To engender the understanding of and respect for IPR from a young age, the Ministry of Education has requested that all levels of schools must incorporate concepts of IPR protection in their curriculum, including in textbooks and study materials. Students and instructors have always been reminded to watch for the use of unauthorized copyright related materials so as to allow them becoming accustomed to seeking the authorized use of materials and software, and thus developing the habit of "user pays." Anti-piracy policies and penalties have been imposed by campuses under their regulations to assure that unauthorized campus use of materials and software will be successfully eliminated. The progress on IPR protection of each school will be inspected on regular and random basis by campus supervisors and will be evaluated as a primary part of campus performance. 
  
  To boost the public awareness of the nation, the government has enduringly employed scores of public and campus seminars, two-dimensional and television advertisements and public displays, large outdoor promotions and concerts, and series of television and radio shows since 2002. Additional policies and programs will be deployed during 2003. 
   

• Adequate and Effective Legislation
  
  IPR protection is a critical element for sustaining both domestic and foreign industries. IT serves as a cornerstone of state policy that aims to elevate Taiwan to be tomorrow's leader of global knowledge based economies. As Taiwan merges into the global IT commerce highway, the government aims to establish world-class IPR standards by stipulating laws and regulations that are equivalent or even better than those set forth under the TRIPS Agreement. 
  
  In view of various concerns and comments contributed by our international trade partners, the Taiwan government has taken prompt and aggressive approaches on enhancing the adequacy and efficiency of its laws and regulations. Recently, the Amendments to the Copyright Law and the Optical Disk Management Statute have been sent to the Executive Yuan for approval. The Amendment to the Patent Law was already enacted in January 2003; while an Amendment to the Trademark Law will be passed to Legislative Yuan for final review in May 2003.
   

• Substantial Enforcement Actions
  
  Ministry of Interior
   
  Enforcement Progress
  To enhance investigation process of IPR infringements, the MOI has established the Implementation Plan Reinforcing IPR Protection as a guideline for district police stations nationwide. In addition to unannounced raids, police authorities are urged to track down the source of pirated or counterfeit materials; specialty taskforces were established to carry out intensive searches and investigations for cracking down illegal production and distribution of piracy and counterfeiting via the Internet, courier services, flyers and night markets. 
  
  Integrated Enforcement Task Force
  The national Police Administration of MOI has established the Integrated Enforcement Task Force to further combat illegal optical disks. The taskforce is composed of 220 IPR police officers and works in cooperation with the Optical Disk Enforcement Taskforce to implement raids and to seize the manufacturing devices, raw materials and products of those underground plants.
  
  Ministry of Economic Affairs
   
  Anti-Counterfeiting Committee
  The function of ACC serves as a coordinator among the prosecutors, police agencies and investigators on fighting against piracy and counterfeiting.
  
  Joint Optical Disk Enforcement Taskforce
  To effectively implement regulations stipulated under the Optical Disk Management Statute, the Intellectual Property Office, TIPO, of the MOEA, the Industrial Development Bureau, the Board of Foreign Trade, the Bureau of Standards, Metrology and Inspection and the ACC together formed the Joint Optical Disk Enforcement Taskforce. The JODE conducts both regular and random inspections on optical disk manufacturers, manages relevant affairs on manufacturing permits, examines the source identification codes and the content of optical disks, and inspects prerecorded optical disks at the time of import or export.
  
  Ministry of Finance
   
  Border Control
  In addition to the existing border control mechanisms, such as the Trademark Monitoring Systems for Exports, Export Monitoring System, and Chip Marking System, the customs has started now to, ex officio, confiscating any infringements or those in likelihood thereto upon discovery. Meanwhile, it is enhancing its guidelines on IPR protection measures for border control. The customs agency looks forward to further cooperation and information exchange with other international customs to effectively combat against piracy and counterfeiting.
  
  Judicial Yuan
   
  Trial Decisions 
  In order to ensure efficient and adequate judicial decisions on IPR infringements are delivered, the Judicial Yuan has set up professional courts and divisions at the district courts island wide to handle exclusively on IPR infringements. In November 2002, the Judicial Yuan also has requested all judges to render decisions on IPR infringements in a prompt and adequate manner. 
  
  Substantial Enforcement Actions
   
  During the IPR Action Year of 2002, 5,118 IPR infringement cases, where 6,269 suspects were arrested and sent to courts for trial, were handled by police authorities across the island. The estimated infringements value was totaled NT$10.01 billion, representing a 22.04% increase when compared with the NT$8.2 billion from the year before. These significant figures are only the beginning as the government hammers out a society where balance, fairness and equity coexist. 
  
  During 2002, the Joint Optical Disk Enforcement Taskforce (JODE) conducted 297 nationwide inspections on optical disk manufacturers. Of those inspections, 157 were random inspections and 33, were carried out at night. Sixteen, successful raids were conducted; eight manufacturing machines were shut down and seized along with 1,130,000 pirate discs. Over NT$11 million dollars of administrative fine were issued. As a result, 15 illegal optical disk manufacturers were closed down.
  
  With the three new "seized goods" warehouses located in the northern, central and southern ports of Taiwan, manufacturing machines seized from raids can now be immediately removed and stored at these warehouses in order to eliminate any possible attempt of utilizing them.
   
  Summary
   
  As Taiwan breaks through the wave of a new industrial and IT generation, it is a very important task for the government to assure that the people are aware of and promote a fundamental respect of intellectual property rights, especially all relevant, adequate and effective legislation. The government has determined and will strike for that matter for the sustainability of the economy growth and industrial development as well as the best interest and welfare of the people. It will continue to combat against any intellectual property infringement in order to maintain the competitiveness and inventiveness of the nation.