經通國際智慧產權事務所

At the Cabinet Meeting on August 17, 2005, Premier Hsieh commended on the IPR protection achievements that have helped removed Taiwan from the U.S. Special 301 Priority Watch List. He further pointed out the emerging problem of Internet infringements and instructed the Ministry of Justice and the Ministry of the Interior to strengthen IP professional trainings and to redouble enforcement efforts to combat piracy. He also called for the Ministry of Education to enhance public awareness on Internet usage and to engender the concept of respecting other’s intellectual property rights.
- Tsai, Lien-sheng, Director General-
Intellectual Property Office (TIPO)
 

Executive Summary

To demonstrate the Taiwan government’s determination to fight piracy and counterfeiting, as well as to inspire the morale of enforcement officials, an Award Presentation Ceremony was held on August 2, 2005, at the Northern Taiwan Warehouse for Stolen and Confiscated Goods in Taipei County. At the ceremony, Premier Frank Hsieh commended the IPR protection efforts and achievements that IP-related government agencies have made, and emphasized the government’s determination to sustain its IPR implements, although Taiwan’s IPR performance has already been recognized domestically and internationally.

IPR protection is a long-term task that requires the orchestrated efforts of all government agencies involved. The Premier, therefore, instructed the Coordination Task Force for IP Enforcement, chaired by the Ministry of Economic Affairs (MOEA), to periodically monitor and review IPR policy implementation and enforcement. Moreover, he acknowledged the productive effect that the recent increase in rewards of up to NT$10 million has against pirated ODs manufacturers. He requested the MOEA to continue to implement and review the reward program.

In closing, Premier Hsieh expressed his concerns over the rapid changes in Internet piracy. Although the “Implementation Plan for Strengthening Internet Infringement Preventive Measures” has been enacted, to effectively combat Internet infringement and protect the copyrights of music, motion pictures and works on the Internet, Premier Hsieh instructed all prosecutors, police officers, and investigation officials to put Internet piracy prevention on the top of IPR agenda and to strengthen inspections on piracy during the holiday breaks.

Legal Liability of P2P Use

P2P is a file swapping software that gives users a convenient way to share files, but the legal issues that are attached to its usage is controversial.  On September 9, the Taipei District Court convicted Kuro and one of its subscribers for using P2P to share unauthorized copyrighted music. The software itself is not illegal, however, it is how the software is being used raised concerns. P2P providers and users using the software to reproduce and transmit copyright materials are liable for civil and criminal responsibilities. TIPO urges all P2P providers to negotiate with right holders and obtain proper commercial licensing for the use of copyright materials, and warns users against the illegal reproduction and transmission of copyright materials (music, recordings, motion pictures, texts, etc.).

To give the public a better understanding of Internet infringements, three types of pamphlets are published. These pamphlets are titled, “Copyright Issues Involved in Using File-Sharing Software to Download Music,” “Legal Liabilities for Transmitting Copyright Works via BT or Emule P2P Software,” and “Legal Liabilities for Giving Out Software Serial Number for Installation.” IPR concepts stated in these pamphlets are delivered to the public through multimedia and other promotional activities. Under the instruction of the Ministry of Education (MOE), the information on the pamphlets are also made available on school websites to heighten students’ awareness of the consequences that Internet infringements entail.

IP Court Progress
The IP Court Planning Committee was established last September to facilitate the founding of the IP court. Once in working, IP cases can then be processed more professionally and efficiently. The IP court is set up on the same juridical level as the high court. The scope of its jurisdiction include the Patent Act, Trademark Act, Copyright Act, Optical Disk Act, Trade Secrets Act, Integrated Circuit Layout Protection Act, Plant Variety and Seed Act, and the Fair Trade Act. The court will handle all civil, criminal, and administrative procedures for IPR-related cases. Currently, the drafts for the IP Court Organic Act and the IP Cases Trial Act are completed. A consultation committee made up of legal experts and professionals had already met twice this year to review the IP court’s progress.

IPR Legislative Amendments

Trademark Regulations
Beginning from July 1, 2005, applications for trademark registration may claim multiple priority rights. Applicants claiming priority rights should indicate, in front of the name of the goods or services, the date of the priority right and the country where the trademark was first applied. Any single class claiming more than two priority rights should have each priority right date indicated separately with its corresponding goods or services. This new amendment also applies to pending applications with multiple priority right claims.

Patent Regulations
On August 18, the draft Patent Attorney Act was submitted to the Executive Yuan for review. The Act was drafted to enhance management of patent affairs professionals, safeguard the interests of patent right holders, and establish a patent attorney system. The Act, once passed, will regulate how pattern attorney license should be issued, and stipulate the responsibilities, scope of operation, and management of pattern attorneys.

Government Enforcement Measures
Strengthen Inspections of Cybercrime

Following the instruction given by Premier Hsieh at his August 8 Cabinet Meeting, the Ministry of Justice issued a notice on September 9 to prosecutor-generals of all district courts, urging them to step up on inspections and investigations of cybercrime. The action to be taken by prosecutors will be effective in deterring Internet Service Providers from providing channels for infringement activities.

Copyright License Express Information Desk
To facilitate the quick retrieval of copyright licensing information, TIPO, in cooperation with related copyright intermediary groups, established the “Copyright License Express Information Desk.” The Information Desk offers a one-stop service for users who have no access to licensing channels and other related information to inquire with TIPO, who will in turn request the assistance of intermediary groups, and then relay the licensing information back to the users. The aforementioned service is limited to inquiries on actual musical, recording, and audio-visual works licensed by copyright intermediary groups. The Information Desk is available to the public for a three-month trial period.
 

Encouraging Innovation and Invention

The 2005 Taipei International Invention Show and Technomart took place from September 29 to October 2. The exhibition floor held 703 booths, divided mainly into the invention contest and Technomart areas. Aside from enthusiastic local participation, exhibitors from eighteen foreign countries and regions, including Japan, Korea, India, Australia, the United States, Germany, and England, occupied sixty-three booths. The Technomart displayed the fruits of government guidance of technology R&D in recent years, as well as related award-winning products. It also held seminars on monitors and their peripheral industries, technology trade agreement signing ceremonies, and the Intellectual Property Valuation & Financing International Seminar. The exhibition attracted over 40,000 visitors, and grossed NT$300 million in technology trade. The Show was a success in providing local and international inventors a venue to showcase their creations, cultivating trade opportunities, and promoting the commercialization of inventions.

Furthermore, TIPO also sponsored the National Invention and Creation Awards. Of the 249 total eligible patent entries, ninety-seven were submitted for the Invention Award, 137 for the Creation Award, and fifteen for the Contribution Award. The entries were evaluated by a review committee made up of thirty-three representatives from related agencies, scholars, and professionals. A combined total of fifty-nine gold, silver, and bronze awards in the three categories, and NT$13.75 million, were awarded following four stages of evaluation to recognize and encourage the spirit of innovation.
 

Public Awareness Activities

To heighten public awareness on IPR issues, TIPO has printed ten thousand copies of the “All You Need to Know About IPR,” one hundred thousand copies (each) of the “Legal Liabilities for Transmitting Copyrighted Works via BT or Emule P2P Software” and “Legal Liabilities for Giving Out Software Serial Number for Installation” pamphlets, and one hundred thousand copies of the “Internet Copyrights 1, 2, 3” leaflet, as well as six styles of bookmarks (totaling 120 thousand pieces) printed with information on copyright and other useful legal information. The bookmarks are distributed by the Taiwan Intellectual Property Academy (TIPA) to bookstores nationwide, to be given with the purchase of books.

The “IPR Smart Train” continues to make its tour to different government departments and agencies, schools, and organizations around the country. Ninety-three presentations were given between January and September, disseminating information on the Copyright, Trademark, Patent, and Trade Secret Acts, to a total of 4,000 participants. Public approval rating for the first three quarters averaged about 88%.

The “2005 IPR Series Seminars” took off during the third quarter, targeting computer software, Internet, patent, and trademark related businesses. A total of ten sessions were hosted in northern, central, and southern Taiwan. A total of 400 participants took part in the seminars, reaching an average public approval rating of 87%.

Continued Efforts In Strengthening Professional Training For Judges, Prosecutors and Police
Ongoing trainings for IP professionals are provided by the MOEA to enhance their professional skills and knowledge. Fifty judges and appraisal agency personnel participated in the “Workshop for Identifying Patent Infringements,” which took place from August 31 to September 5. The workshop included topics on understanding regulations, patent infringement case studies and practices, and composite discussions. To strengthen professional training for police officers in the investigation and prosecution of Internet crimes, TIPO hosted a five-day seminar for 110 police officers on “Inspection and Prevention of Counterfeiting on the Internet” from September 5-9.  Furthermore, the first session of the four-day “Inspection and Prevention of Counterfeiting Seminar” for police took place from September 12-15, and forty-seven police officers participated.

Campus Awareness
Promoting the Use of Legal Software

The MOE has officially requested all colleges and universities to strengthen Internet protection and respect for IPR on campus, as well as inspection of computer software installation. Any unauthorized software found should be removed immediately, or replaced with authorized copies.

According to the MOE’s survey on campus use of legal software conducted on July 5—forty out of fifty-four public schools replied, with a reply rate of 74%, and seventy-two out of 105 private schools replied, with a reply rate of 69%—a total of NT$1.46 billion was spent on software purchase in 2004, and NT$460 million was spent in the first half of this year. To prevent the usage of pirated software, the MOE will continue to monitor the purchase of authorized software and conduct periodic inspections of school websites and computer classrooms.

Strengthening Campus Internet Management

To encourage the implementation of Internet management for colleges and universities, campus Internet management mechanism has been included as one of the criteria in the 2005-2008 school evaluation for vocational schools and junior colleges. Related regulations for assessment and rewards are also set to encourage schools to manage their campus Internet use. The MOE has requested colleges and universities that use TANet’s services (Taiwan Academic Network) to monitor and investigate irregular data flow on a regular basis, and to provide necessary guidance for their top ten most heavy-traffic end users. Also, infringement allegations by the Business Software Alliance (BSA) should be investigated upon. The status and activities of the IP address in question should be checked and appropriate guidance is to be provided. Between July and September of this year, the MOE processed 2,255 reports of alleged illegal websites on TANet.

A survey was conducted in April and July to follow up on the MOE’s instruction to schools to establish regulations for Internet usage or to incorporate such regulations into existing school regulations. Of the 161 colleges and universities surveyed, 155 replied, and 99.35% of those replied have established or incorporated such regulations.
 

Establishing a Campus Secondhand Textbook Exchange Mechanism to Decrease Instances of Illegal Photocopying
This year, TIPO, with the cooperation of the National Taiwan Normal University (NTNU) and the National Tsing Hua University (NTHU) campus bookstores, as well as the National University of Kaohsiung (NUK), promoted a secondhand textbook exchange mechanism. Aside from the promotion and collection of secondhand textbooks, September 21-23, September 27-29, and September 28-30 were designated as secondhand textbook exchange days at NUK, NTNU, and NTHU respectively; secondhand textbook websites were also set up to enhance the effects of the promotional activity.
The MOE again issued notice to colleges and universities in September as a reminder and to request their continued cooperation: “to strengthen campus awareness of respect for IPR, we ask that professors, in a guidance capacity, to remind students not to participate in copyright infringement through the illegal photocopying of books and teaching materials.”

Campus IPR Awareness Promotion

Between July and September, TIPO hosted eight IPR awareness seminars for colleges and universities, with 1,210 participants attended. The “Campus IP Engendering Program,” comprised thirteen on-campus Legal Service Groups made up of law students, has already held seven IPR awareness events at various elementary and middle schools since September.

TIPO promotional materials aimed at strengthening IPR awareness for elementary and middle school students include comic readers provided to schools for instructional use, as well as interactive PC games that include thirty-six related topics for teachers to use in the classroom.

Strengthening International Cooperation
IPR infringement on the Internet has become a thorny issue in IPR infringement, and is a topic of great concern for both the U.S. and Taiwan. To strengthen the investigation and prosecution of Internet IPR infringements, TIPO, jointly with the American Institute in Taiwan (AIT), hosted the seminar on combating Internet piracy at the Ministry of Justice (MOJ) Training Institute for Judges and Prosecutors on September 28-29. Invited speakers included government officials and representatives from rights holder organizations of the Computer Crime and Intellectual Property Section (CCIPS) of the U.S. Department of Justice, the U.S. New York States Bronx County District Attorney, the International Federation of the Phonographic Industry (IFPI), the BSA of the U.S., and the Motion Pictures Association of America (MPAA), as well as Captain Liao of the IPR Police. Hundreds participated, including representatives from the Judicial Yuan, the MOJ, the Investigation Bureau, the Criminal Investigation Bureau (CIB), the IPR Police, the Bureau of Foreign trade (BOFT), TIPO, the IFPI, the BSA, the MPAA, and the Taiwan Book Publishers’ Association (TBPA).

Progress of and Latest Statistics for Investigation and Prosecution

National Police Agency (NPA)

A total of 3,489 IPR infringement cases were found by the NPA from January through September, and 3,893 suspects were transferred for prosecution. This is a 15.35% and 25.91% respective increase when compared to the same period in 2004. The number of trademark infringement cases and defendants increased by 27.95% and 25.43% respectively compared to the same period in the previous year; copyright infringement cases increased by 25.43% and 5.68% respectively compared to the same period in the previous year. Pirated ODs seized decreased by 22.05% compared to the same period in the previous year.

The NPA also uncovered 288 incidents of Internet IPR infringements between July and September, marking a total of 589 cases found between January and September. Two cases of newspaper inserts with advertisement for counterfeit and pirated products were found between July and September, making a total of seven cases found between January and September. The NPA also found eighty-nine incidents of infringements at night markets and other popularly known locations between July and September, making a total of 241 cases uncovered between January and September.

Statistics for IPR Infringement Cases
Unit：case/person

Year	Total		Trademark		Copyright
	No. of Cases	No. of Suspects	No. of Cases	No. of Suspects	No. of Cases	No. of Suspects	No. of CDs Confiscated
2004 (Jan. –Sept.)	3,022	3,092	1,313	1,561	1,709	1,531	1,657,149
2005 (Jan. – Sept.)	3,486	3,893	1,680	1,958	1,806	1,935	1,291,697
Percentage Change: 2005 (Jan. - Sept.) /2004 (Jan. - Sept.)	15.35%	25.91%	27.95%	25.43%	5.68%	26.39%	-22.05%

Source: National Police Agency (NPA), Ministry of the Interior


IPR Police

To strengthen inspection of counterfeiting and piracy, the IPR Police has been sweeping different night markets daily throughout the year. As of September, the IPR Police has deployed 15,682 officers on 3,916 raids. 1,014 cases of infringement were found and 1,135 suspects were transferred for prosecution. This is a 32.12%, 6.4%, and 44.4% increase in the number of raids, cases found, and persons transferred for prosecution from the same period the previous year. The number of confiscated pirated CDs decreased by 36.98%, with only 371,950 disks seized, which proves the effective nature of the IPR Police in clamping down on IPR infringement activities.

Joint Optical Disk Enforcement Taskforce (JODE)

Between January and September, JODE has conducted 811 inspections (507 daytime, 375 night-time) of OD manufacturing factories, an increase of seventeen inspections compared to 805 (497 daytime, 308 night-time) in the same period the previous year. No illegal activities were found, indicating that the vigorous efforts of JODE are having a deterrent effect in the manufacturing of illegal ODs.
 JODE has established, and is currently testing, an electronic database of OD factories and equipment management data. This system will store and manage OD-factory inspection data, and utilize that data in the analysis of piracy information and follow-ups to prevent the manufacturing of pirated ODs and to enhance management and inspection efficiency.

Number of Inspections		2004		2005
		Jan.- Sept.		Jan.-Sept.
		805		822
		Day	Night	Day	Night
		497	308	507	375
Number of Cases Found Violating the Optical Disk Act		6		0
Number of Plants	Manufacturing Plants	8		7
Closed	Packaging Plants	0		0
Number of Cases Prosecuted		5		0
Number of Suspects Prosecuted		12		0
Number of Administrative Dispositions		2		0
Number of Machines Seized		5		0
Number of Illegal ODs (Pieces)		115,280		0

Source: The Joint Optical Disk Enforcement Taskforce (JODE), Ministry of Economic Affairs


The Directorate General of Customs (DGC)

Through the enforcement of the “Optical Disk Act,” “Operational Directions for the Taskforce Against Pirated OD Exports,” and the “Operational Directions for Customs Authorities in Implementing Measures for Protecting the Rights and Interests of Patent, Trademark, and Copyright,” Customs uncovered 126 cases of alleged trademark infringement between January and September of this year, seizing a total of 2,353,684 counterfeiting items that are mostly cigarettes, leather goods, clothing, and pharmaceuticals. Sixty-one cases of alleged copyright infringement were discovered in the same period, with 33,904 illegal items seized, including 31,091 pirated ODs and 2,813 pieces of motherboards for game consoles.

According to Customs reports, 2,880 pirated lighters and radios sporting Hello Kitty trademarks were discovered by the Taipei Customs Office on July 7; on July 21, the Kaohsiung Customs Office announced the discovery of 230 items of counterfeit Louis Vuitton leather goods and Montblanc pens in three pieces of passenger luggage; and on August 27, the Taipei Customs Office discovered 9,964 pirated Sony PS2 game CDs.

To improve the ability of Customs officials to identify and seize counterfeit tobacco products, the DGC invited representatives of the British American Tobacco’s (BAT) Asia-Pacific Branch to give eight seminars on how to identify counterfeit tobacco to a total of 323 participants at local customs offices in August and September. The DGC also hosted the IPR Protection Forum at the Taipei Customs Office on August 4, where Nintendo America discussed techniques on how to use their anti-counterfeiting devices.
 

Judicial Rulings (Judicial Yuan)

The Prosecutors’ Office of the Taiwan High Court, under the supervision of the MOJ, called the 31^st meeting of the Coordination Plan for IP Infringements Inspection on August 3 of this year. According to statistics for January 1 through August 31, investigations for 3,508 cases of IPR infringement were concluded by prosecutors’ offices island-wide. Among them, 554 suspects in 454 cases were prosecuted; 1198 suspects in 1115 cases were petitioned for summary judgment; and 366 suspects in 334 cases were postponed for prosecution.
According to MOJ reports, a total of 1,915 suspects were prosecuted for IPR infringement as of the end of September. This is a 12.68% decrease from the 2,193 persons prosecuted in the same period the previous year. The fact that 245 among them were sentenced to six-month to three-year imprisonment is an indication that judges are inclined to regard IPR infringements as a serious matter.

Status of Adjudication of Public Prosecutors’ Offices of District Courts
（January to September 2005）                              unit: person

 

Year	Total	Imprisonment							Deten- tion	Fines	Not Guilty	Other
		Subtotal	Less than 6 months	6 to 12 months	1 to 2 years	2 to 3 years	3 to 5 years	More Than 5 years
2004 (Jan.–Sept.)	2,193	1,064	777	65	202	15	4	1	576	67	224	262
	100%	48.51%	35.43%	2.96%	9.21%	0.68%	0.18%	0.05%	26.27%	3.06%	10.21%	11.95%
2005 (Jan.–Sept.)	1,915	951	706	98	129	18	0	0	557	52	172	183
	100%	49.66%	36.86%	5.12%	6.74%	0.94%	-	-	29.09%	2.72%	8.98%	9.56%
Absolute Change	- 278	-113	-71	33	-73	3	-4	-1	-19	-15	-52	-79
Percentage Change: 2005 (Jan. – Sept.) /2004 (Jan. – Sept.)	-12.68%	-10.62%	-9.14%	50.77%	-36.14%	20.00%	-100%	-100%	-3.30%	-22.39%	-23.21%	-30.15%

Source：The Prosecutors’ Office for the Taiwan High Court


Conclusion

2005 is a productive year for Taiwan in IPR protection, yielding fruitful results in both strengthening computer software protection and preventing Internet IPR infringements. To follow through with the government’s resolution for IPR protection, both the “IPR Action Plan 2003-2005” and the “Implementation Plan for Enhancing Computer Software Protection” will be re-evaluated and continued to provide impetus to the enforcement of government policies. We expect the updated enforcement plans to provide inventors and right holders with a more comprehensive framework that ensures a more protective environment, thereby elevating Taiwan’s R&D standard.