Quarterly Report on Taiwan’s Intellectual Property Rights Protection ---April ~ June 2005
2005/05/02 TaiwanAccording to the 2005 annual business infringement report released by the IFPI, Taiwan’s stringent IP enforcement and revision to the Copyright Act have significantly reduced IP infringement problems. As a result, Taiwan is not among one of the thirty-one countries whose legal music CD market is being overcome by pirated music CDs. Taiwan is also not listed among one of the ten most concerned countries with pirated music CDs. This is a significant improvement from last year when Taiwan was listed among the ten most countries with pirated music CDs.
- Tsai, Lien-sheng, Director General
Intellectual Property Office (TIPO)
Executive Summary
Taiwan’s efforts in improving its IPR legal regime and enforcement have earned admiration domestically and internationally. According to a report by the International Federation of the Phonographic Industry (IFPI), Taiwan is no longer among one of the thirty-one countries whose legal music CD market is being overcome by pirated music CDs. Taiwan is also not listed among one of the ten most concerned countries with pirated music CDs. As indicated by a report from the International Intellectual Property Alliance (IIPA), the estimated trade loss due to copyright piracy in Taiwan was reduced by 31% in 2004 as compared to 2003. Taiwan’s motion picture piracy level was down from 44% in 2003 to 40% in 2004, and records and music piracy level down from 42% in 2003 to 36% in 2004. These show that OD piracy in Taiwan has improved tremendously under the joint efforts of all authorities involved.
In the 2005 Taiwan White Paper released by the American Chamber of Commerce (AmCham) in Taipei, the Copyright Act amendment was recognized as one of Taiwan’s commendable major developments. Other enforcement efforts mentioned in the white paper include strengthening inspections of JODE and IPR Police, maintaining professional training for judges, prosecutors, and enforcement officials, as well as establishment of an IPR court. The passage of the new Copyright Act and the enforcement efforts made by the Taiwan government led directly to Taiwan’s removal from the U.S. government’s “Special Priority Watch List”, which was one of the most concerned agenda that AmCham Thus far this year, two major work programs, “the Implementation Plan for Enhancing Computer Software Protection” and the “Implementation Plan for Strengthening Internet Infringement Preventive Measures”, are producing remarkable results. Taiwan government will continue its efforts to combat counterfeit and infringement activities.
Latest Events
IP academy opens on June 28, 2005
In response to the urgent need for IP professionals in domestic industries, an “IP Academy” operated by TIPO opened on June 28, 2005, with an aim to perfect IP education and build up a sound IPR environment for R&D.
The “IP Academy” is a virtual training center with its head administrative office located at the National Taiwan University Innovation Incubation Center. In this Academy, instructors are cultivated and teaching materials are provided by TIPO. Local universities, training institutes, and organizations around the island are invited to join the Academy through a partnership with TIPO. Courses and workshops will be offered to entrepreneurs, judicial officials, as well as patent or trademark agents beginning in 2005. TIPO plans to cultivate 150 IP instructors in 2005 and expects to train over 1,000 IP professionals for each year between 2006-2008. It is hoped that, through this operation, IP resources in the public and private sectors can be integrated and distributed to engender more IP professionals for the government, business enterprises, and the academia so as to further encourage R&D development, improve the quality of patent and trademark application, and ultimately help with Taiwan’s industrial upgrade.
2005 Taipei International Invention Show and Technomart to be HELD in September
The “2005 Taipei International Invention Show & Technomart” will take place at the Taipei World Trade Center Exhibition Hall in Taipei from September 29 to October 2, 2005. This exhibition will showcase more than 1,000 inventions in seven categories: sports, healthcare, medical equipment and pharmaceuticals; machinery and textiles; electronics and electrical products; housewares; stationery, office equipment, hardware and tools; transportation, building and construction; and kitchen and bath. An estimated 40,000 local and international buyers are expected to attend this event.
In addition to technology and patent exhibitions, event highlights also include an invention contest, international technology trading forum, IP and patent analysis, valuations and brokerages, industrial cooperation program, technology transfer seminar, and informative lectures and seminars. We welcome inventors, research institutes, venture capitalists, manufacturers, and patent firms to participate in this exhibition. For more information, please visit the event website at: http://www.TaipeiTradeShows.com.tw/invent.
IPR Legislative Amendments
To solve the problem of suspending export pre-recorded ODs with pornographic contents that may subject manufacturers to criminal penalty and result in great commercial loss, the amendment to Article 9.1 of the Optical Disc Act passed its third reading at the Legislative Yuan on May 20 and was promulgated on June 15, 2005.
According to the new Article, a business entity which manufactures pre-recorded optical disks under foreign lawful authorization may be exempted from the liability of Article 235 of the Criminal Codes when the following requirements are fulfilled: (1) the entity has received authorization documentation from foreign right holders and the ODs are for exports only and will not be distributed, transmitted or sold in Taiwan; (2) the exporter has submitted a pledge stating the exportation is in no violation of the laws and regulations of the importing country. Confirmed violations to this Article by the court will result in the cancellation of the manufacturing permit.
In compliance with this amendment, the Regulations Governing Application for License and Declaration for the Manufacturing of Optical Disks was revised accordingly and took effect on June 17, 2005.
AMENDMENT TO trademark regulations
From July 1, 2005, multiple priority rights may be claimed in trademark applications. The claimer should indicate the priority date and the country where the application for the names of the products or services was filed.
To simplify operational procedures, TIPO also revised the invalidation procedure for trademark. Trademark right holder is no longer required to return the trademark certificate when the trademark is abolished. For those who had returned the certificate, an “Invalid” seal will be stamped and the certificate will be kept on file by TIPO.
AMENDMENT TO patent regulations
To ensure smooth implementation of patent examination procedures and to be in compliance with the Patent Act, Part One of the Patent Examination Guideline was completed and took effect on May 20, 2005, regulating the procedures for patent examination, re-examination, and revocation. For more information, please visit TIPO’s website at http://www.tipo.gov.tw. Currently, only the Chinese version is available.
In addition, TIPO established an express service center on April 25, 2005, to offer individual services on registration of patent agent, application for review of patent examination file, application for priority right certification, copy of patent documents and reissue of patent certificates. Currently, application for the above services takes two working days. It is expected to reach the goal of same day service in the forthcoming months.
IP Border Control Measures
In response to the revision of Article 90.1 of the Copyright Act to provide Customs ex officio actions and the enactment of Article 39.1 of the Customs Anti-Smuggling Act to tighten border control inspection, the Directions for Customs Authorities in Implementing Measures for Protecting the Rights and Interests of Patent, Trademark, and Copyright was renamed and further revised on June 1, 2005. Major revisions of this Directions were to insert implementation measures for patent rights protection and supplement operational procedures for customs ex officio to report goods that are suspected of infringing copyrights or trademark rights upon import and export.
Public Awareness
Copyright Act Awareness
In response to the non-guilty verdict of the EzPeer’s infringement case, TIPO made a public announcement on July 1, 2005, stating that under the principle of judiciary independence, the administrative departments respect the rulings of the court. Nonetheless, the non-guilty verdict was only directed at the defendant for providing a file-swapping platform. The court has stated clearly in the verdict that users using P2P to transmit and reproduce copyrighted materials may still be liable for copyright infringement. TIPO urged the public to be aware not to misinterpret the ruling as being legal to use P2P to transmit and reproduce copyrighted materials (including music, sound recordings, movies, writings). The public should use and obtain copyrighted materials legally to avoid any legal actions against them. Deterring campus infringements and on-line piracy are the government’s top priorities and these will not be hindered by the verdict, said TIPO. For both Chinese and English version of this announcement, please visit TIPO’s website at http://www.tipo.gov.tw.
Public Awareness Activities
TIPO will sponsor a series of workshops in northern, central, and southern Taiwan starting from June 2005 to promote Creative Commons Taiwan (CCT), an on-line copyright licensing system that assists users in obtaining license from copyright holders. One workshop was held in June and 100 people attended.
Between April and June, thirty-seven seminars around the island were given by the “SMART Train” program sponsored by TIPO, and approximately 2,000 people attended with a satisfactory rate reaching 89%.
MAINTAINING PROFESSIONAL TRAININGS FOR JUDGES, PROSECUTORS, AND POLICE OFFICERS
TIPO continues to provide training programs for IP-related professionals to deepen their knowledge on IPR regulations and redouble their enforcement efforts. Forty prosecutor trainees were sent to TIPO for an 84-hour training program on IP laws and practices from May to June 2005.
Campus Awareness
Second-hand textbook exchange channel established to curb illegal photocopying
To deter illegal photocopying of textbooks on campus, TIPO and the Ministry of Education (MOE) continue to promote second-hand textbook exchange campaign in 2005. Three universities located in the northern, central, and southern Taiwan—National Taiwan Normal University, National Tsing Hua University, and National University of Kaohsiung—participated in this year’s project. All three universities have begun to launch the awareness campaigns since June and completed the website for used textbook exchange information.
The MOE has also instructed all public and private universities to use bookstores on campus to serve as a channel for second-hand textbook exchange and use that as one of the criteria for renewing the contract with the bookstores.
Campus awareness activities
The MOE continues to promote IP awareness at the Principle and Dean’s meetings for vocational colleges and universities.
TIPO also devotes its efforts in engendering IP awareness among students. Between April and June, TIPO sponsored 11 seminars in which 1,200 students participated. To strengthen IP protection concept on campus, TIPO cooperated with thirteen legal service groups at universities and cultivated seventy IP instructors. After the new semester begins in September, TIPO will send these IP instructors to junior high and elementary schools around the island for IP education.
Strengthening internet management on campus
universities and colleges, 99% of the 129 universities and colleges that responded reported to have included Internet violations in school regulations; 79% have provided BBS service on campus Internet networks; 88% have periodically sponsored IPR protection courses and IP awareness programs on campus; and 100% have established IP management mechanism for campus Internet usage and designated staffs to be in charge of Internet inspections.
To prevent illegal downloads and the use of pirated software on campus, the MOE has requested all levels of schools to monitor campus Internet usage and computer centers on a regular basis. As of June 2005, the MOE has received 2,730 reports of suspected infringements.
Deepening Partnership with Right Holder Groups
Recognizing that close partnership with right holder associations is essential in building effective and adequate IP protection, TIPO has established mutually benefiting interactions with relevant right holder groups. Information on the latest enforcement result is shared on a regular basis. Anti-piracy actions or projects are often conducted simultaneously as well.
In support of the “Anti Hard Disc Loading Piracy Campaign” launched by the Taiwan Business Software Alliance (BSA), Minister HO Mei-Yueh of the Ministry of Economic Affairs circulated a letter to 4,500 computer shops around the island in May 2005, reminding them not to engage in illegal reproduction and installation of copyrighted software for customers or providing free pirated software with the purchase of hardware. Minister HO recognized the contribution of IT industry to Taiwan’s economic development and called for the IT industry’s support in “no piracy” actions to help upgrade Taiwan’s international image.
Latest Enforcement Progress and Statistics
National Police Agency (NPA)
As of June 2005, NPA reported 2,259 instances of IP infringements, an increase of 16.99% as compared to the same period in 2004. Among these reported cases, 307 were reported as Internet piracy and 5 cases were found as sales of pirated ODs via flyers. Trademark infringement cases and suspects increased by 32.87% and 33%, compared to those for the same period in 2004. Infringement cases and suspects involving copyright increased by 4.21% and 30.05%, compared to those for the first half of 2004. The number of CDs confiscated increased by 47.42% between January and June of 2005 as compared with that in the same period of 2004.
To strengthen inspections on infringements, NPA conducted a three-day raid around Taiwan in May 2005. 405 infringement cases were reported and 454 suspects were seized.
Statistics for IP 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. - Jun.) |
1,931 |
1,931 |
861 |
1,006 |
1,070 |
925 |
675,438 |
|
2005 (Jan. - Jun.) |
2,259 |
2,541 |
1,144 |
1,388 |
1,115 |
1,203 |
995,757 |
|
Percentage Change: 2005 (Jan. - Jun.) /2004 (Jan. - Jun.) |
16.99% |
31.59% |
32.87% |
33.00% |
4.21% |
30.05% |
47.42% |
Source: National Police Agency (NPA), Ministry of the Interior
PR Police (IPRP)
As of June 2005, a total of 703 cases of infringements were reported and 798 suspects were arrested, marking an increase of 4.93% and 52.29%, respectively, as compared with the same period in 2004. 2,806 inspections had been conducted and some 11,862 IPRP officers were mobilized. A total of 309,191 music/video CDs were confiscated, marking a 14.67% drop as compared with the number seized during the same period in 2004. These are concrete evidence that the IPRP’s action has produced a deterrent effect on pirated optical disks production and sale.
To maintain IPRP’s professionalism, a permanent station for IPRP is under plan by TIPO. Blueprint of the station has been completed. Groundbreaking is to be conducted in the third quarter of this year and the construction is to be completed by the second quarter of 2006.
Joint Optical Disk Enforcement Taskforce (JODE)
As of June 2005, a total of 576 inspections were conducted by JODE, marking an increase of 5.88% as compare to the same period in 2004. Of these, 333 took place in the day and 243 at night. Three suspects were prosecuted. It is worth noting that no serious infringements violating the Optical Disk Act were found and no illegal ODs were seized during the first half of 2005. This result suggests that JODE’s enforcement efforts are effective in curtailing OD piracy.
JODE Enforcement Performance
|
Number of Inspections |
2004 |
2005 |
|||
|
Jan.- Jun. |
Jan.- Jun. |
||||
|
544 |
576 |
||||
|
Day |
Night |
Day |
Night |
||
|
345 |
199 |
333 |
243 |
||
|
Number of Cases Found Violating the Optical Disk Act |
5 |
0 |
|||
|
Number of Plants |
Manufacturing Plants |
1 |
2 |
||
|
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 |
|||
The Directorate General of Customs (DGC)
Between April and June, Customs seized 12 cases of pirated ODs upon importation and 3 cases of ODs without SID code upon exportation. In addition, Customs also found 110 cases of trademark false declaration upon exportation and one case of trademark infringement.
According to Customs’ report, 5 cases of transit cargos suspected of IPR infringement were found between January to April 2005. Among these cases, two were seized. 430,000 packs of counterfeit cigarettes in 860 boxes were also confiscated by Customs in accordance with the Customs Anti-Smuggling Act.
Judicial Rulings (Judicial Yuan)
The Prosecutors’ Office of the Taiwan High Court held the 30th IPR Special Taskforce Meeting on May 10, 2005. According to the report, 2,280 cases of IP infringements were processed from January to May this year. Among them, 308 suspects in 248 cases were prosecuted. 727 suspects in 682 cases were petitioned for summary judgment. 1,073 suspects in 177 cases were postponed for prosecution. This proved the resolve of the Ministry of Justice (MOJ) in IPR protection.
According to a report by the MOJ, 1,262 suspects were convicted of IP infringement as of June this year, marking a decrease of 17.62% over the 1,532 convictions for the same period in 2004. It is worth noting that nearly 50% of the convictions were given imprisonment. This indicates that judges are more inclined to impose heavier sentences for IP infringements.
（January to June 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. – Jun.) |
1,532 |
749 |
530 |
50 |
152 |
12 |
4 |
1 |
395 |
46 |
159 |
183 |
|
100% |
48.89% |
34.60% |
3.26% |
9.92% |
0.78% |
0.26% |
0.07% |
25.78% |
3.00% |
10.38% |
11.95% |
|
|
2005 (Jan. - Jun.) |
1,262 |
619 |
473 |
45 |
90 |
11 |
0 |
0 |
355 |
39 |
120 |
129 |
|
100% |
49.05% |
37.48% |
3.57% |
7.13% |
0.87% |
- |
- |
28.13% |
3.09% |
9.51% |
10.22% |
|
|
Absolute Change |
-270 |
-130 |
-57 |
-5 |
-62 |
-1 |
-4 |
-1 |
-40 |
-7 |
-39 |
-54 |
|
Percentage Change: 2005 (Jan. – Jun.) /2004 (Jan. – Jun.) |
-17.62 % |
-17.36 % |
-10.75% |
-10.00 % |
-40.79% |
-8.33% |
-100% |
-100% |
-10.13% |
-15.22% |
-24.53% |
-29.51% |
Conclusion
Although Taiwan’s IPR protection has earned positive recognition from the international community and removed Taiwan from the list of high-piracy rate countries, the government is not satisfied with such result. We will continue to fight illegal activities through close cooperation with all authorities concerned. To effectively combat online piracy, we will make every effort to strengthen Internet IP protection awareness by implementing the “IPR Protection Action Plan,” the “Implementation Plan for Enhancing Computer Software Protection,” as well as the “Implementation Plan for Strengthening Preventive Measures Against Internet Infringements,” so as to bring the business software piracy rate down below 40% by the end of this year.
