Taiwan ranks third in Asia for knowledge economy

VOL. 13 NO. 6 JUN. 16, 2005 http://www.industry.net.tw http://www.patent.org.tw

 ENFORCEMENT 

Taiwan ranks third in Asia for knowledge economy

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ccording to the 2005 Knowledge Economy Index (KEI) released by the World Bank, Taiwan’s knowledge economy development shows great growth, ranking 20^th out of the 128 countries surveyed, and third in Asia, after Japan and Singapore.

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he aggregated KEI is based on the four knowledge economy pillars: economic incentive and institutional regime, education, innovation, and information communications & technology, plus two variables that describe economic and social Performance.

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aiwan scored a KEI of 8.04 out of a possible 10, with a KEI of 8.99 in innovation, which is higher than the other three Asian leaders (South Korea at 8.11, Hong Kong at 8.58, and Singapore at 8.97).

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ccording to the Science Citation Index (SCI), Taiwan ranked 18^th in the world in 2003 by producing 12,392 scientific papers, and 4^th in the world for being granted 5,298 U.S. patents. Taiwan tops international rankings for its technology index, and innovative and patent production capabilities, which clearly delineate the fruits of its knowledge economy development.

Attachment: 2005 KEI Comparisons for Principle Countries

1 2 3 4

Country KEI Information Communica- tions &

Technology Innovation Economic Incentive and

institutional Regime Education Advanced Industrialized Nations

Finland 9.16 9.07 9.65 8.73 9.21

Ireland 8.16 8.36 7.89 8.15 8.24

United Kingdom 8.68 8.77 8.60 8.42 8.95

Denmark 8.98 9.42 9.13 8.57 8.82

United States 8.69 9.09 9.42 7.97 8.28

Japan 8.29 8.35 9.30 7.42 8.09

The Four Asian Dragons

Taiwan 8.04 8.93 8.99 7.29 6.98

South Korea 7.59 9.00 8.11 5.39 7.86

Singapore 8.24 9.01 8.97 9.50 5.50

Hong Kong 7.85 9.06 8.58 8.79 4.95

Note: The KEI is a 10-point system, the higher the score, the more prominent the knowledge economy development.

Source: World Bank Website; compiled by the Department of Overall Planning of the Council for Economic Development and Planning.

Above data originates from: http://www.cedi.cepd.gov.tw/tnen_info.php?iPath=&digests_id=621

 MEASURES

Pornographic optical disks for export not against the law

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o prevent the frequent prosecution and penalization of Taiwan exporters by customs for the export of commissioned optical disks with pornographic content, resulting in such detriments to development as loss of orders and trade opportunities, and the gradual move of industry overseas, legislator John Chih-Yang Wu, along with 33 other legislators, proposed the Addition of Article 9-1 to the Optical Disk Act to protect Taiwan’s native goodness and social order, with consideration to export opportunities for optical disk manufacturers.

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rticle 9-1 of the Optical Disk Act, which passed its third reading at the Legislative Yuan on May 20^th, 2005, stipulates that the application of Sec. 235 of Criminal Law must be eliminated for the manufacturing of optical disks with pre-recorded pornographic content for export, if the exporter is in possession of certification of authorization from the foreign patent owner and declares that no laws in the import country will be violated; provided that the aforementioned pornographic disks are not distributed, broadcast, or sold within Taiwan. Should the responsible person be prosecuted for regulation violations and convicted, the competent agency will repeal his manufacturing permit.

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rticle 9-1 originated with Taiwan being a major exporter of optical disks. With a stake of 80% in worldwide annual production, the industry is a vital part of economic development. Production technology and excellence in product quality, along with well-integrated upstream and downstream industry components makes the industry vital also to trade development. Exporters and their orders took a heavy blow, however, when the Taiwan Highest Court ruled in 2004 that the manufacturing of pornographic disks, even only for export

purposes and not for sale within Taiwan, is still in violation of Sec. 325 of the Criminal Law; and exporters were frequently detained and prosecuted.

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hrough this legislative process, the Ministry of Economic Affairs (MOEA) feels it is focusing on the needs of overall economic development, aligned with industry interests. Major importers of Taiwan’s optical disk include Japan (60%), North America (25%), Hong Kong (5%), and continental Europe (5%). To ensure that the aforementioned export products comply with related foreign regulations, the government is actively verifying related regulations for major optical disk importer countries with the help of relevant foreign installations, to provide reference for industry. With this amendment in place, exporters will now be able to pass through customs undeterred following the examination of copyright authorization certificates and declaration forms.

The IPO proposes complimentary measures to the pornography decriminalization provision of the Optical Disk Act

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o comply with Foreign Trade Law regulations, the MOEA promulgated the guidelines for "Copyright Document Inspection Procedures for Export of Audio-visual Works and OEM Audio CDs" on December 30^th, 2000, for the inspection of audio-visual works and OEM audio CDs for export. The guidelines are intended to help avoid trade disputes resulting from the infringement of foreign copyright laws by Taiwan’s exported products.

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ccording to the guidelines, exporters of audio-visual works and OEM audio CDs are required to attach copyright authorization certificates and supporting documents for presentation to the IPO or border inspection centers.

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ollowing the addition of Article 9-1 to the Optical Disk Act according to industry suggestion and analysis of collected inspection data, the amount of commissioned optical disks for export should increase. To assist with the smooth export process for optical disks, the IPO has revised the guidelines, and provided space on the application for verification of optical disks for exporters to check one of two boxes: “Does not include indecent language, diagrams, sound, or images as stipulated in Sec. 235 of the Criminal Law” or “Includes indecent language, diagrams, sound, or images as stipulated in Sec. 235 of the Criminal Law, but not for distribution, broadcasting, or sale within Taiwan”, which will serve to provide better service to exporters and accelerate the export process.

The IPO establishes the Express Service Center

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o promote a superior service environment and simplify the bureaucratic process, the IPO established the Express Services Center on April 25^th, 2005. Professional staff will process any cases where the examination and inspection of patent dossiers are required. Cases shall be handled on a next-day pick-up bases in the initial period, with the goal to process same-day pick-ups. Services include:

1. Patent representative registration.

2. Applications for priority documents.

3. Applications for the reissue of lost patent certificates (not for those concurrently applying for changes to their certificates).

4. Applications for photocopies of archive materials.

5. Applications for the inspection of patent documents

The IPO begins trial to send annual patent fee notices via email

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he IPO plans to begin trials to email annual patent fee due date and late fee reminders starting July 1^st, 2005. Patent

owners and representatives wishing to be notified by email should provide the IPO with their email address, contact person, contact number and fax. IPO email:

[email protected]; or fax to Ms. Jen, at (02)27352800.

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hose not wishing to be notified by email will continue to be notified by regular mail.

The IPO simplifies trademark abandonment process for trademark owners

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^{n June 10th}, 2005, the IPO stated that trademark abandonment will no longer require the return of the trademark registration certificate, and any returned certificates will be invalidated and filed with related records. After the abandonment of trademark has been granted, the invalidation of the certificate shall be reported in the Trademark Gazette as having expired on the approval date, to prevent illegal usage of the certificate.

 LAWS & REGULATIONS 

Patent Procedure Examination Standards to take effect May 20

^th

, 2005

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he IPO promulgated the part one procedural examinations of the Patent Examination Standards on May 17^th, 2005, and the Standards will take effect beginning May 20^th, 2005. For more information, please see Vol. 13, No. 5 of the Taiwan IPR News.

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or Examination Standards details (in Chinese), go to:

http://www.tipo.gov.tw/service/news/ShowNewsContent.asp?w antDate=false&otype=1&postnum=7042&from=board

Second hearing edition of Draft Patent Agent Law released

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n cooperation with the promotion of knowledge economy and industry development, and to establish a superior

environment for IPR protection, promote professional service, establish a certification system, strengthen patent agent management, and protect the rights of patent applicants, it is vital that patent agents be assimilated into the system for professional personnel, and included its established specialist management mechanisms; the Patent Agent Law is therefore necessary to the drafting of regulations for the practice, responsibilities, and management of patent agents.

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n compliance with the August 2001 Economic Development Advisory Board (EDAC) meeting consensus on such subjects as the strengthening of IPR protection, accelerating the establishment of a new innovative environment, and the prompt approval of the Draft Patent Agent Law, as well as in response to Chapter 1, Article 11-4 of the Patent Act, which stipulates: “Qualification and administration of certified patent attorneys shall be prescribed in a separate act. Before enactment of that separate act, the rules for acquisition, canceling and revocation of qualification certificate and the administration of certified patent attorneys should be prescribed by the competent authority”, the IPO has compiled the Draft Patent Agent Law with reference to management regulations for other professional and technical personnel.

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egalization of the draft will provide for the establishment of national examination systems for professional and technical personnel, while being mindful the rights of those who acquired patent representative certifications according to regulations governing patent representatives prior to the implementation of the Patent Agent Law. The IPO, after holding its first Draft Patent Agent Law hearing on April 1^st, 2005, will hold its second public hearing on June 1^st.

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he second public hearing edition of the Draft Patent Agent includes 5 chapters and 43 articles, whose key points are:

1. The active and passive criteria for patent agent qualifications, as well as procedures for applying for the patent agent certificate. (Articles 2-4)

2. Pre-practice training, registration, manner of practice, scope of practice, and practice regulations. (Articles 5, 6, and 8-14)

3. Patent agents not registered as members of the patent agent association are not allowed to practice. (Article 15) 4. Organization of patent agent association, and instruction

and supervision of the association by the competent authority or public associations. (Articles 16-24)

5. To maintain proper patent agent conduct and to ensure the rights of legal patent agents, the following must be clearly stipulated: penalties applicable to patent agents, and their causes and procedures, the organization of the penalties committee, as well as penalty applicable to those practicing without patent agent qualifications. (Articles 25-27, 31, and 32)

6. Stipulate that those already certified as patent representatives, and who possess definite qualifications, be exempt from the professional and technical personnel examination for patent agents. (Article 35)

7. Stipulate that patent representatives may continue to handle patent matters, in order to establish a formal examination system for professional and technical personnel, and protect the practice rights of patent representatives who have obtained certificates prior to enforcement of this Law.

(Article 39)

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or the June 1^st, 2005 draft (in Chinese), go to:

http://www.tipo.gov.tw/service/news/ShowNewsContent.asp?

wantDate=false&otype=1&postnum=7152&from=board

TAIWAN IPR NEWS

PUBLISHER／JEN-SHYONG HO PUBLISHING AGENCY／

EDITOR-IN-CHIEF／YEA-KANG WANG INTELLECTUAL PROPERTY PROTECTION COMMITTEE, DEPUTY EDITOR-IN-CHIEF／JOSEPH C. CHEN CHINESE NATIONAL FEDERATION OF INDUSTRIES EDITORS／FRANCK LIN•ANFERY HSU ADDRESS／12TH FL., 390, FU HSING S. RD., SEC. 1, TRANSLATOR／ELLEN R. WIEMAN TAIPEI, TAIWAN, R.O.C.

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