MEASURES

New Border Controls Effective July 1, 2003

On June 10, 2003, the Directorate General of Customs of the Ministry of Finance, issued the "Rules for Customs Execution of Trademark Right & Copyright Protection Measures." The Rules are in line with the continue protection of intellectual property rights policy and the newly amended Trademark Law and Copyright Law. These Rules will serve as a guideline to customs officials in implementing trademark and copyright measures, and will help enhance anti-piracy efforts.

The Rules take effect on July 1, 2003, with the exception of the provision for "posting of bond or an equivalent guarantee with Customs in applying for seizure, pursuant to Article 65, Paragraph 2 of the Trademark Law", which will take effect on November 28, 2003, in line with the effective date for the Trademark Law amendments. The original "Matters Related to Customs Processing of Complaints on Imported/Exported Goods with Counterfeit Trademarks" shall cease to apply as of July 1, 2003.

All trademark and copyright owners (including licensees) or their agents, who believe certain imported/exported goods are in infringement of their trademark or copyright, may prepare the necessary documents and information pursuant to the Rules and file a complaint with the Directorate General of Customs or the local customs authorities. Upon receiving the complaint, customs authorities would assist in locating the goods in question based on substantive information provided by the complainant. If infringing goods are indeed found, the complainant should apply for seizure of such goods with the Customs by posting a bond, pursuant to Article 65, Paragraph 2 of the Trademark Law, Article 90-1 of the Copyright Law, or the "Rules for Customs Seizure of Goods Infringing Copyright or Plate Right". Alternatively, the complainant may also apply to the Court for preservation measures, and Customs authorities would collaborate in seizure of the goods.

The Directorate General of Customs has recently held explanatory seminars for local customs authorities. Local customs authorities would also increase education efforts to warn importers/exporters and customs declaring businesses against importation/exportation of trademark or copyright infringing goods.

For a copy of the said Rules (in Chinese), please see:
http://www.dgoc.gov.tw/ipeg/ipegframe.htm

New "Regulation on False Labeling of Place of Origin of Imported Goods" Effective June 26, 2003

The Board of Foreign Trade of the Ministry of Economic Affairs issued the "Regulation on False Labeling of Place of Origin of Imported Goods" on June 26, 2003, which also went into effect on the same day. The new Regulation applies when a false place of origin is labeled on the body, packaging, manual, catalogue, or images and is likely to mislead the public as to the place of origin of the imported good. If and when other relevant laws governing labeling of imported good exist, such other laws shall prevail. For a copy of the said Regulation (in Chinese), please see: http://www.trade.gov.tw/public/920626/WB-0920150825-0-A.pdf

ENFORCEMENT

Taiwan Ranks High on U.S. Patent Applications

The Department of Industrial Technology (DOIT) of the Ministry of Economic Affairs (MOEA) recently indicated that in the year 2002, Taiwanese applicants had obtained a total of 6,730 patents in the U.S., ranking 4^th in the world for U.S. patent applications. This means that for every 1 million people in Taiwan, 300 U.S. patents are obtained, ranking Taiwan 2^nd in the world in terms of number of applicants per 1million people. However, most of the patents accumulated by Taiwanese applicants in recent years are more of "foot-in-the-door", safeguarding in nature, rather than those having high market value. The Executive Yuan has included this concern as a part of the "High Value Industry Plan" in the "Challenge 2008: National Development Key Project".

Director of DOIT, Mr. HUANG Chung-Chiu, further pointed out that only an average of 0.21 U.S. patents obtained by Taiwanese applicants use academic references (containing scientific citations), which is far below the 4.46 for U.S. applicants, 3.2 for English applicants, 0.99 for Japanese applicants, and 0.76 for South Korean applicants. This suggests that Taiwanese applications tend to be of manufacturing processing nature, rather than novel inventions. This tendency can be detrimental to Taiwan's attempt to develop an "innovation-based" economy.

According to Director Huang, the Executive Yuan is planning to transform Taiwan's economy from that of a "speedy follower" to one that is "innovation-based". In order to do so, however, massive reviews of resource allocation and personnel development and utilization policies for existing higher education institutions, industrial technology research centers, and industrial R&D would need to be conducted. DOIT will be submitting its recommendations to the Executive Yuan shortly.

For a more detailed report (in Chinese), please see:
http://doit.moea.gov.tw/news/
http://news.chinatimes.com.tw/Chinatimes/newslist/

"National Inventors Award" Enhances IT Innovation and Competitiveness

The organizer of the annual "National Inventors Award" has begun accepting applications for the Award. Taiwan nationals (individuals or corporations) who have been granted an invention patent in Taiwan or in a member state of the OECD within the last decade and who have contributed to Taiwan's technological or industrial development are eligible to apply for the Award. 

The "National Inventors Award", organized by TIPO, was initiated twelve years ago to encourage inventive efforts and recognize individuals or corporations with outstanding inventions. It is hoped that with the award and public recognition, Taiwanese inventors and companies will be encouraged to develop innovative inventions, value intellectual property rights, and apply for patents for such inventions. It is only through patenting that key technologies can be protected and used to the benefit of industrial development and the enhancement of national competitiveness. 

According to TIPO, Taiwan has, in three consecutive years, ranked 4th in the number of patent applications filed before the United States Patent and Trademark Office (USPTO), preceded by the U.S., Japan, and Germany. Analysis shows that the types of patents granted by TIPO in recent years tend to be of inventions that involve complex technology. This suggests that Taiwanese nationals are enhancing R&D in quality and in quantity. 

TIPO Successful in Intellectual Property Right Education

In line with the Protection of Intellectual Property Right Action Plan, the Intellectual Property Office (TIPO) held various IPR education activities during the first half of 2003. These included:

1. Produced an educational promotional program on the ICRT radio station.

2. Held an IPR "New Slogan" competition.

3. Requested the Ministry of Education to apprise to all higher education institutions to ensure teachers and students to not photocopy textbooks and teaching materials illegally.

4. Broadcasted promotional films on the electronic display board at the CKS International Airport.

5. Wrote IPR columns in newspapers and published advertisements for the newly amended (May 28, 2003) Trademark Law, so as to educate the public about respect for trademarks.

6. Printed promotional brochures on the "Guidelines on Temporary Reproductions" and "Maximum of NT$10 Million Award for Tip-off Information Against Pirated Optical Disk Manufacturers", and distributed them among relevant government agencies.

7. Produced the "Need for Protection" online game on the www.game-tipo.com.tw website to educate the public about IPR through interesting games.

8. Hosted seven IPR workshops.

9. Held "IPR Drama Script Competition" through mass media.

10. Invited famous singer Eva Hsiao to star in a 30-second TV promotional short film (in Mandarin, Hokkien and Hakka dialects) for broadcasting in cinemas and mass media.

MOEA Rewards for Information Against Pirated Optical Disk Manufacturers

In order to wipe out piracy, the MOEA has issued the "Guidelines on MOEA Incentive for Information Against Pirated Optical Disk Manufacturers", which is to be in effect from March 1, 2003 to December 31, 2005. A maximum reward of NT$10 million is payable to those who provide accurate information on pirated optical manufacturers that results in their prosecution. This measure demonstrates the Government's determination to protect IPR.

To facilitate enforcement of these Guidelines, the MOEA has established a 0800-016-597 hotline to encourage the public to provide information against piracy. Thus far, public reaction has been extremely positive. Tip-off information has been on the increase and has proven to be very useful in deterring pirated optical disk manufacturers. On June 26, 2003, the MOEA issued rewards for two successfully prosecuted piracy cases in Linkou Township and Sansia Village of Taipei County, which were the result of public tip-off information.

Outstanding Results from the Police "Wipe Out Night Market Piracy" Project

The National Police Administration (NPA) on June 13, 2003, indicated that police authorities had conducted a 5-month special project that lasted from December 9, 2002 to April 30, 2003, which involved raids against pirated optical disks in night markets. The NPA has noted that night markets have been a breeding ground for illegal optical disks, and certain illegal operators had even hired juveniles to sell pirated disks or set up un-manned coin-operated stalls. Under the project, the police not only arrested suspects on the scene, but also confiscated all tools, including pirated disks, stalls and vending machines to deter sale of pirated disks in night markets.

Under the project, police authorities found a total of 2,139 piracy cases (including 1,181 cases involving un-manned stalls), arrested 1,142 suspects, and confiscated 1,229,618 pirated disks. The total value of infringement was approximately NT$368,885,100. According to the NPA, it has prepared a list of all existing night markets and operators with criminal records, and has directed all local precincts to conduct raids twice a week on suspicious optical disk factories, warehouses, shopping centers, night and day markets. The NPA warns operators that if they were discovered, not only would all optical disks, stall facilities and proceeds from the infringement be confiscated, but criminal liabilities would also apply.

The NPA reminds the public that they may call the 0800-016597 hotline to provide information on piracy in night markets, day markets, shopping centers, or even individuals who sell pirated disks. They may also call the IETF at 02-27834682 24 hours a day, dial "110" to report to the local precinct, or email the NPA service center at service@npa.gov.tw. Once information is received, police authorities would conduct a raid as soon as possible. Pursuant to the "Guidelines on MOEA Incentive for Information Against Pirated Optical Disk Manufacturers", where injection molding machines and other equipment are found as a result of information given by the public, the informant would receive a reward between NT$1 million to NT$10 million.

IETF Cracked Down 12 Major Cases in June

In June 2003, the IETF cracked down a total of 11 cases involving violations of the Copyright Law and Trademark Law in Taipei City, Taipei County, Taoyuan County, Taichung City, Taichung County, Changhua County and Tainan County, with infringement value exceeding NT$10 million. These cases included a pirated optical disk recording factory and an online sales of pirated disks. All cases are currently under investigation by the Prosecutors Office of their local district courts. The above cases resulted in the arrest of 19 suspects, and confiscation of 64,746 pirated CDs, 2,646 VCDs, 2,106 game disks and cassettes, 4,496 computer program disks, 23 karaoke machines, 1,333 watches, 611 pieces of jewelry, 128 CD stampers and 138 disk recorders. The total market value of these arrests exceeds of NT$490 million.

During this period, the IETF, the police, investigation and prosecution authorities also cracked down on a pirated optical disk factory in Taichung County, resulting in the arrest of 5 suspects, and the seizure of one printing press, compressor, stamper drier, air exposure machine, and 210 stampers. The investigation on the case is currently spreading to other areas by relevant authorities.

LAWS & REGULATIONS

New Copyright Law Effective July 9, 2003

The new "Amendments to the Copyright Law" was promulgated by the President on July 9, 2003. These new Amendments are expected to have a major impact on copyright use and protection in a digital environment. They are also expected to deter IPR infringement, balance the rights of copyright owners and users, and balance the benefits of public and private interests.

Details of the key points in these Amendments can be found in the preceding issue (Volume 11, Issue 6) of IPR News. The Chinese and English versions can be found at:
http://www.cnfi.org.tw/cnfi/ipr.htm
For English version of the Amendments, please see: http://www.tipo.gov.tw/news/
For Chinese version of the Amendments, please see: http://www.tipo.gov.tw/news/

Executive Yuan Passes Draft Amendments to Plant Seedlings Law

On July 2, 2003, the Executive Yuan passed the draft amendments to the Plant Seedlings Law, which expands the scope of protection for plant varieties and establishes a breeding right protection system. This system will prevent protected breeds from being exported for planting and their harvest or processed products being re-imported and sold in Taiwan. It will also help new variety obtain breeding rights overseas, and enhance Taiwan's IPR protection for plant variety. These Amendments are in line with international standards. Pursuant to relevant plant variety agreements and international legislation, the title of the Law is formally revised as the Plant Variety & Seed Law.
Key points to the draft amendments are as follows:

1. Expand the scope of protection for plant varieties;

2. Regulate the legal relationship between variety breeder and employer;

3. Abolish the name registration system, objection system, and re-examination system;

4. Stipulate that the central competent authority shall publicize an applied case within 1 month, and shall grant interim protection for such publicized application between the time of its publication and its grant of approval;

5. Stipulate that variety rights may reasonably be expanded to include harvest and processed products, and the protection rights of such variety shall be extended to include its sub-varieties;

6. In order to balance the rights of variety right owners and public interests in using a new variety, and to take into account food safety, new restrictions are inserted to include farmers retaining the seed for self-use, exclusion of liability for research, and exhaustion of rights;

7. Eliminate regulations on criminal sanctions; however, fines are increased for administrative liabilities for violation of this Law.
   For details of this report (in Chinese) please see: 
   http://publish.gio.gov.tw/newsc/newsc/920702/
   For the draft amendment (in Chinese) please see:
   http://www.coa.gov.tw/news/920702a.doc

Patent Re-Examination Fees

TIPO announced on June 26, 2003, that patent applicants applying for re-examination are no longer required to pay the "request for supplementation/revision of drawings (or diagrams)" fee of NT$1000, provided that both the application and the request are filed at the same time.

TIPO Publishes Draft Amendments to Trademark Law Enforcement Rules

In line with the new Trademark Law that will take effect on November 28, 2003, and relaxation of provisions under various relevant laws, TIPO has drafted amendments to the Trademark Law Enforcement Rules. Key points of the amendments are as follows:

1. Stipulate that application forms may only be signed or sealed by a legally authorized trademark agent, and the power of attorney for such agent may be submitted in photocopy;

2. Stipulate that the application and priority dates to supply supplement application documents be identified. These include 1) applications that do not conform with legal procedures and failure to supplement necessary material, 2) the application date being the date when all supplements are duly filed, 3) the priority date being the claim for priority rights overseas trademark application date, and 4) application and priority dates for trademarks of a single color, 3-dimensional form or sound may not be earlier than the effective date of the amended Trademark Law.

3. Documents in a foreign language shall attach a Chinese translated copy in full or in extract.

4. Stipulate required documents for trademark application, change of registration, division, grant of pledge, change and cancellation of registration, and registration of association trademarks.

5. Stipulate that TIPO should handle trademark rights that have been approved for division but are still in their opposition or verification process.

6. Stipulate that provisions that apply to trademarks under these Rules shall apply also to certification marks, association marks and association trademarks.
   For a copy of the draft amendments (in Chinese), please see:
   http://www.tipo.gov.tw/news/
   For a copy of the new Trademark Law and explanations to the amendments (in English), please see:
   http://www.tipo.gov.tw/news/