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Taiwan's commitment to protect |
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"Initial enforcement results since the entry into force of the amended Copyright Act have been promising and encouraging…. Executive Summary
In conjunction with our accession to the WTO, Taiwan has conducted a thorough examination of all IPR-related legislation. We have revised and implemented IPR laws and regulations to bring the level of our IPR regime into conformity with the TRIPS Agreement, as well as with other relevant international conventions. It is worth noting that the new Copyright Act, which entered into force on July 11, 2003, has provided necessary measures to deal with piracy and counterfeiting. Not only has it broadened the scope of public crime to apply to sale or display of optical disks at night markets and to increase the level of civil remedies and criminal penalties, but has also afforded protection to electronic right management information. To address the efficiency of the Copyright Act on combating digital piracy, the Ministry of Economic Affairs issued an administrative order on September 5 on the Enforcement/Interpretation Guidelines for the Copyright Act. In dealing with ex officio action, the Ministry of Finance issued the Directives for Customs Authorities in Implementing Measures for Protection of Trademark and Copyright on July 1, 2003, to reinforce the border control measures. More importantly, the Export Monitoring System (EMS), which has been implemented since 1992, will extend its scope to cover inspection of inbound and outbound optical disks starting from October 1, 2003 so that a national level of comprehensive enforcement network can be fully developed to deal with piracy and counterfeiting. Through the implementation of the above measures, we are confident that in time, as the new Copyright Act is put into full swing, we will be able to produce meaningful results that will not only be beneficial to right holders but will also facilitate the development of a healthier IP protection environment in Taiwan.
Effective Border Control Milestones A recently issued IPR Seizures Report by Customs and Border Protection (CBP) & Immigration and Customs Enforcement (ICE) of the U.S. Department of Homeland Security shows that in the first half of FY 2003, the value of goods seized from Taiwan was US$320,000, which accounted for less than 1% of the overall seizures. This marks a substantial drop from the US$1,080,000, which accounted for 4% of the total seizures, of the same period in FY 2002. Taiwan ranked eighth on the list of suppliers with goods seized for IPR violations, faring better than Switzerland, Korea, and Hong Kong. Taiwan ranked sixth during the same period in FY 2002. It is particularly noteworthy that MEDIA products thereof valued only at US$ 17,919, accounting for merely 6% of the total seizures in question, compared to the 88% of FY2002. These figures indicate that a meaningful result has been achieved from Taiwan's IPR enforcement dealing with piracy and counterfeiting.
IPR Legislative Amendments As a WTO member, Taiwan completed its first IPR review exercise at the TRIPS council meeting in late November 2002. The amended Patent Act was promulgated on February 6, 2003, certain provisions entered into force on March 31 and others will be promulgated in July 2004. The Amendment to the Trademark Act was promulgated on May 28, 2003 and will take effect on November 28, 2003. The new Copyright Act, which entered in force on July 11, 2003, marks a key and important step toward further strengthening the protection of intellectual property rights in Taiwan. The new legislation updates Taiwan's legal framework in the copyright area and clarifies the authority of law enforcement agencies in carrying out specific actions designed to curtail piracy and infringement of copyrighted materials, including optical disks. The new Copyright Act made 53 improvements, where 13 are newly adopted. In a bid to consolidate comments and concerns raised on the new Copyright Act from all interested groups and related government agencies, the MOEA has conducted several interagency meetings and a meeting with rights holders. The outcome produced the Enforcement/Interpretation Guidelines to the Copyright Act, which was officially announced on September 5, 2003.
The Enforcement/Interpretation Guidelines
The Enforcement/Interpretation Guidelines to the Copyright Act, which was officially announced in an administrative order on September 5, 2003, helps clarify many issues pertaining to the effective enforcement of the new Copyright Act. It covers clarification between profit-intent and non-profit-intent, the unified interpretation of "five copies" as qualifying for profit-intent, the meaning of infringement standard and distribution, and the ex officio power of the law enforcement authorities to confiscate pirated disks that are publicly displayed or warehoused. This document serves as a supplement to strengthen the adequacy and effectiveness of the new Copyright Act in IPR protection and enforcement.
Number of Pirated CDs Dropped
Inspection results provided by the Joint Optical Disk Enforcement Taskforce (JODE) show that between July and September 2003 the number of illegal ODs and the total value seized have remained unchanged for the last three consecutive months, indicating that the control at the reproduction/distribution level is being administered effectively and adequately. Crackdown results provided by the Integrated Enforcement Task Force (IETF) of the National Police Administration of the Ministry of Interior also show that the number of confiscated Audio and video CDs dropped from 52,802 in August to 31,033 in September, a sharp decline from the January-to-July monthly average of 87,156.
On September 16, a report provided by the Criminal Investigation Bureau's (CIB) of the National Police Administration in Taipei detailed a crackdown of 300-400 million pirated optical disks (including pornography, music, and movie) at a recycling plant. According to the CIB, these ODs were sold to the recycling plant by vendors and pirated OD manufacturers who were in fear of violating the public crime clause and could not sell these ODs because distribution channels have been blocked.
Measures Taken by the Ministry of Justice
(MOJ)
to Streamline Judicial Ruling Procedures
The Ministry of Justice has taken measures to limit infringement prosecution time frame to 8 months. In 2002, the across-the-board average case processing time was 74.85 days, and for IPR infringement cases, 115.07 days. As of the end of September this year, the average processing time of IPR infringement cases was 78.97 days, a more than 30% improvement over 2002.
The Ministry of Justice has developed a system for monitoring the judicial progress of infringement cases judged to be "severe" on a case-by-case basis and the system was finalized at the end of June. According to the Judicial Proceedings Status of the Eleven OD Manufacturing Plants, a report that came as a result of this system, all plants found guilty of illegal production are fined with a minimum of NT$300,000
More Severe Penalties in IPR Cases
According to a report by the Ministry of Justice, as of September this year, 2,719 suspects were convicted of IPR infringement, marking an increase of 32.07% over the 2,049 convictions during the same period in 2002. Of the 2,719 convictions, 440 defendants (16.18% of total convictions) were sentenced to prison terms of longer than six months. This number represents an increase of 106 defendants with heavy penalty over those subject to this category of sentences during the same period in 2002. As of September 2003, the affirmed guilty rate is 85.79%, higher than the 83.08% rate achieved for the same period in 2002.
Status of Adjudication of Public Prosecutors' Offices of District Courts
Source：Prosecutors' Office of the Taiwan High Court
Strengthened Border Control Measures
In an administrative order effective as of October 1, 2003, outbound inspection of computer programs in OD form has been incorporated under the Export Monitor System (EMS), which was initially implemented in 1992 to deal only with outbound software programs. The improved integrated mechanism will provide Customs inspectors and TIPO's IT experts with one-stop service to jointly inspect pirated ODs, while not impeding trade facilitation programs already in place. The Directives for Customs Authorities in Implementing Measures for Protection of Trademark and Copyright, which entered into force on July 1, 2003, provides customs inspectors with, inter alia, ex officio power to seize trademark or copyright infringing goods. Implementation of the above two complementary measures conspicuously demonstrates the government uncompromising efforts to put an effective border control system in place. For the purpose of developing in-depth knowledge of IPR issues for customs personnel, the Directorate General of Customs and its attached offices has held a series of comprehensive job-training sessions on the above-mentioned
measures.
OVER 1,100 OPTICAL DISK PLANT INSPECTIONS IN 21 MONTHS
In order to deter illegal reproduction of optical disks more effectively, the Joint Optical Disk Enforcement Taskforce (JODE) has broadened inspections to include all optical disk manufacturers and encompassed suspicious locations within their operation scope. Nighttime inspections have been increased, and specific individuals have been inspected intensively and repeatedly, at least once per week.
Between January and September 2003, JODE conducted 807 nationwide random inspections of optical disk manufacturers, compared with 297 such inspections for the whole of 2002. Of these, 279 took place during nighttime hours. In total, 22 optical disk plants were inspected, resulting in the shutting down of 16 manufacturing and 6 packaging plants, and the confiscation/seizure of 18 sets of manufacturing equipment. Crackdown results provided by the Integrated Enforcement Task Force (IETF) of the National Police Administration of the Ministry of Interior show that the number of confiscated audio and video CDs dropped from 52,802 in August to 31,033 in September, a sharp decline from the January-to-July monthly average of 87,156.
NATIONAL POLICE ADMINISTRATION UNDERTAKES EFFECTIVE ENFORCEMENT MEASURES AGAINST PRODUCERS AND DISTRIBUTORS OF PIRATED OPTICAL DISKS
As instructed by Premier Yu, the National Police Administration (NPA) undertook effective measures to clamp down on attempts to produce and sell pirated optical disks at night markets, through the Internet and newspaper advertisements since May 6, 2003, the NPA mobilized its police forces to undertake twice-weekly raids on suspicious optical disk plants, warehouses, marketplaces, night markets and other business locations, pursuant to the "Plan for Strengthening Intellectual Property Right Protection". These raids have aimed at those producing or distributing pirated optical disks.
LATEST ENFORCEMENT STATISTICS
As of September 30 this year, the National Police Administration has reported 3,581 instances of IPR infringement raids and inspections, and arrested a total of 4,411 suspects. The total value of the pirated and counterfeit goods seized as a result of these raids was estimated at more than NT$7.8 billion (US$229 million).
For the January-September period, the figures for infringement cases and suspects, compared to those for the same period in 2002, decreased by 10.45% and 9.41%, respectively. This also demonstrates the decline in IPR infringement rate.
Statistics for IPR Infringement Cases
Source: National Police Administration (NPA), Ministry of Interior Integrated Enforcement Taskforce (IETF): As of September 30 this year, a total of 1,597 cases of infringements were reported, involving a total value of infringing goods of NT$4.34 billion (US$127 million), with 712 suspects arrested. During this period, more than 3,042 inspections had been conducted and some 27,378 IETF officers were mobilized. Between July and September, IETF conducted 1,038 inspections, and confiscated 30,807 music CDs and 84,837 video CDs, resulting in 318 cases of prosecution, with 106 suspects arrested. Joint Optical Disk Enforcement Taskforce (JODE):
Up to September of 2003, a total of 807 inspections were conducted, which is a 500% increase from the 144 inspections conducted during the same period in 2002. Of these, nine cases were found in violation of the Optical Disk Management Statute. Seven plants were ordered to close and cease operation. Sixteen suspects were prosecuted and ten manufacturing machines were seized. Results from this year inspections prove that JODE's enforcement efforts are producing a deterring effect on infringements.
Source: The Joint Optical Disk Enforcement Taskforce (JODE), Ministry of Economic Affairs Directorate General of Customs, Ministry of Finance: Since the enactment of the Enforcement Guideline on Optical Disks Exportation and Directives for Customs Authorities in Implementing Measures for Protection of Trademark and Copyright issued on March 6 and June 10 respectively, island wide customs offices have confiscated a total of 416,551 pirated optical disks. Conclusion Taiwan government recognizes that adequate and effective protection of intellectual property rights requires a comprehensive approach covering both legislative and enforcement fronts. Advancements in digital technology in recent years have gradually replaced optical disks manufacturing in fixed assembly lines with production in private residences and sales via the Internet. This form of piracy has not only become a problem at home but also one that is globalized. The new Copyright Act, which entered into force on July 11,2003, has provided necessary measures to deal with piracy and counterfeiting. The MOEA promulgated an administrative order on the Enforcement/Interpretation Guidelines on September 5 to fully address the concerns of rights holder associations. The guideline was forwarded to local rights holder associations and relevant enforcement agencies for their reference. In terms of enforcement in the digital context, intensive inspections on optical disk plants have seen a decline in plants engaging in production of illegal optical disks. Survey results released by the Motion Picture Association (MPA) and the International Federation of the Phonographic Industry (IFPI) show that the number of vendors of selling pirated music and video CDs in July and August at night markets has dropped significantly, from 300 to 50. Taiwan's enforcement efforts in curbing IPR infringements demand the continuous and ongoing cooperation of several competent authorities, including the National Police Administration of MOI, the Investigation Bureau and Prosecutors' Office of the Taiwan High Court of MOJ, the Directorate General of Customs of MOF, the Anti-Counterfeiting Committee and the Joint Optical Disk Enforcement Taskforce (JODE) of MOEA. All enforcement agencies will continue to work closely together toward developing a healthier IPR protection environment in Taiwan. |
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