Hon Hai to Release New Products Based on Sharp Patents

Terry Gou, chair of Taiwanese electronics contract manufacturing company Hon Hai, which trades under the name Foxconn in China, announced on June 22 that he plans to cut the overseas operations of Sharp, a company he recently acquired a two thirds share in for US$3.5 billion, and intends to bring new products to the market using the company's patents, according to Reuters.

Taiwanese phone reseller Commtiva will take the Sharp Aquos brand to the Taiwanese market early in July with the launch of the Aquos P1 and the Aquos M1, with its indium gallium zinc oxide (IGZO) screen. Hon Hai chairman Terry Gou will endorse Sharp products personally and will take an active role in the company's management.

Gou stated that he hopes to convert many of Sharp's patents into technology products, adding that the company is more than just a brand.

Modest Impact on the Taiwan ICT Industry Expected from UK Referendum Result but Changes in UK Consumer Buying Power May Cause Future Worries: MIC

The result of the referendum for the UK to leave the European Union had reverberations around the world on June 24, with a particularly dramatic effect on European exchange markets, according to Taiwan's Market Intelligence & Consulting Institute. "In the short run, the world's finance and exchange markets will most likely to be affected by critical current fluctuations," said Victor Tsan, the vice president and general director of the MIC. "Though Taiwan's IT industry may appear to be least affected thanks to ITA-2, also known as ITA expansion, the changes in global consumer buying power, especially in the United Kingdom, may cause future worries," he stated. Europe contributed around 22.2% to the shipment value of the Taiwanese IT hardware industry and 26% to that of the Taiwanese network communications industry in 2015, reaching US$25.0 billion and US$5.07 billion, respectively, according to MIC.

Concerns about Brexit's effect on the world economy were echoed by representatives from the Taiwan Institute of Economic Research (TIER) on June 24, cited by Taipei's China Post.

TIER president Lin Chien-fu was cited by the paper as stating that the event does not bode well and will directly impact the US Fed's interest hike schedule.

Gordon Sun, head of the Macroeconomic Forecasting Center at TIER was also cited by the paper as stating that Brexit reflects a rising protectionist sentiment in Europe, which he stated would negatively affect Taiwan's export-oriented economy for years to come.

Sun added that the consequences of the referendum present a challenge to Taiwan's goal of maintaining 1% GDP growth this year, according to the paper.

Zhejiang Hisun Pharmaceuticals to License Avigan
from FujiFilm

Zhejiang's Hisun Pharmaceuticals signed an agreement on June 21 to license Favipiravir, the active ingredient in the influenza drug Avigan from Fujifilm. There have been hopes that Avigan could be an effective treatment for the Ebola virus. The agreement allows Hisun to produce, develop and sell the anti-influenza medicine in China.

Fujifilm received a one-time license fee and a proportion of revenue tied to sales in exchange. This is the first time the company has agreed to license the rights to the drug which was developed by Fujifilm subsidiary Toyama Chemical. While most existing anti-influenza drugs are Neuraminidase inhibitors, designed to block the release of propagated viral particles to prevent the spread of infection, Avigan is a viral RNA polymerase inhibitor that blocks viral gene replication in cells thus preventing them from propagation, according to Fujifilm.

Hisun plans to use the Avigan patent to develop anti-influenza drugs and to conduct clinical trials.

Toyama was approved to manufacture Avigan as a new influenza treatment in Japan in March, 2014.

China has had reports of humans infected with avian influenza (H5N1, H7N9, etc.) in addition to regular seasonal influenza. The need to develop new drugs for treating influenza has come amidst mounting concerns— in recent years that avian influenza viruses could mutate into a new type of virus, capable of human-to-human transmission, according to Fujifilm.

Patent Dispute Mediation Period Shortened to Two
Months in China

China's State Intellectual Property Office (SIPO) recently issued a notice which states that the patent agency must conclude patent dispute mediation proceedings within two months.

The notice stated that the patent agency should play an active role in bringing about agreement between the two parties involved, in line with the law and with the willingness of both parties. If agreement cannot be reached within the allotted time the agency is required to issue a notice terminating the mediation proceedings and then drop the case. If the two parties choose mediation, the case must be concluded within two months. If the case is complex and requires more time, the deadline for completion can be extended by an extra month.

According to a SIPO official, the change will help with law enforcement.

TIPO to Launch 24/7 Electronic Document Services
from July 1

The Taiwan Intellectual Property Office (TIPO) announced recently that it is launching 24/7 year-round patent and trademark document e-filing services from July 1. The move is aimed at providing more convenient services for patent and trademark applicants. TIPO began providing e-document services for patent and trademarks on January 1, 2014, with 4,227 formal documents sent and received through the system, which has been taken up by 340 patent agents from 194 patent and trademark firms. E-documents already make up over 60% of all correspondence and in May of 2016 the figure stood at 63.74%. Originally documents could be accessed between 8am and 9pm on working days. From July 1 onwards, documents will be accessible 24 hours a day. As to the times sent documents will be officially received, the current regulations will continue in place, due to deadline regulations.

China Grants 2592 Trademarks on Names of Disputed South Sea Islands

The Hainan Department of Industry and Commerce announced in June that it has filed 281 registrations for trademarks with the Ministry of Industry and Commerce using the names of disputed islands and reefs in the South China Sea, with 2648 trademarks across 45 different categories, with 2592 having already been granted. China established the Sansha prefecture under Hainan province in an attempt to assert its claim to the disputed islands, including the Spratlys, the Paracel Islands and the Macclesfield Bank. Although the trademarks are registered for place names in the Sansha prefecture, the applicants are based elsewhere, suggesting its a cynical attempt to build up Beijing's claim to the disputed region.

There are currently 138 businesses registered in Sansha prefecture, with registered capital of over RMB2.7 billion (US$408 million), according to the government mouthpiece Xinhua News Agency.

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