Hong Shu-min Promoted to Director General of Taiwan Intellectual Property Office

Hong Shu-min was appointed as director general of the Taiwan Intellectual Property Office on August 18, after over a month since the previous director general, Wang Mei-hua, was promoted to vice-minister of economic affairs on July 1, after having served in the post for over 8 years. This is the first time the post has gone empty for such a long period of time, as previously new directors have been appointed immediately upon a director leaving office. The new page introducing the director general on the TIPO website stresses her experience in cross-strait and international negotiations, suggesting that this will be the focus of her directorship.

Hong stated she had been extremely affected by a controversy over a Taiwanese patent lawyer who asserted his patent on "online games in real life" against Niantic, the company behind Pokemon Go, at her inauguration ceremony, according to Taiwan's Central News Agency. She said she hopes to promote Taiwan's creativity around the world and do away with the myth that patents are useless, according to the news agency.

Hong graduated from the Department of Law of National Chung Hsing University before going on to get her master degree from the Franklin Pierce Center for Intellectual Property at the New Hampshire School of Law. She previously served in a range of posts in the Bureau of Standards, Metrology and Inspection, before being appointed as a senior examiner for the trademark section of the Intellectual Property Office. Before being appointed director general, she served as Wang’s deputy and Wang was present for her inauguration. In her previous roles she has played a key role in international negotiations with the UK, Singapore and the US.

Hong stated three draft bills which would align Taiwan’s trademark, patent and copyright systems with the provisions of the Transpacific Partnership Agreement (TPP) have already been sent to the Legislative Yuan for review.

TPP to Lift Restrictions on PRC Investment in Wake of Blow to 3000 Taiwan SMEs?

Taiwan may be required to lift restrictions on PRC investment in order to fulfill its obligations with regard to the Transpacific Partnership (TPP) agreement, according to a recent article by Paul J. Cassingham, the chairman of Taipei American Chamber of Commerce’s Government Relations Committee.

As Cassingham points out, the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area, restricts Chinese investment in Taiwan to a positive list, including enterprises incorporated elsewhere with more than a 30% stake owned by PRC shareholders. He adds, that although China is not a signatory of the TPP, the current legislation might clash with the TPP regulations which provide an exception only for companies that are “owned or controlled” by persons from a non-TPP country, so more clarification may need to be sought on the definitions of these terms if cross-strait restrictions are to be maintained.

Cassingham’s piece emerged in the same week as a piece from Taiwan's Business Weekly reporting that over 3,700 Taiwanese companies may have sustained losses of over NT$200 billion (US$6.3 billion) due to an overly optimistic outlook on the renminbi, more than initially suspected.

Over two years ago, there was market expectation of a steady rise in the renminbi. This led to a wave of Taiwanese citizens opening renminbi denominated savings accounts, and banks rushed to sell renminbi derivative target redemption forward (TRF) products to small and medium-sized businesses.

These products are extremely vulnerable to losses if the exchange rate does not grow as anticipated, which means the downward trend in the renminbi opened up somewhat of a bottomless pit.

The paper cited the example of an international shoe brand that decided to cut its losses in Taiwan, after sustaining TRF losses of NT$2 billion (US$63 million).

Taiwan's Financial Supervisory Commission stated in 2014 that 3,797 Taiwanese businesses had purchased TRFs, and Fitch gave a conservative estimate of losses at NT$200 billion, equivalent to two thirds of all banking profits last year.

Taiwanese Company First in Asia to Win Lawsuit over Google Keyword

A Taiwanese company named “Xingfu Kongjian” (Happy Space) with the English name Gorgeous Space, is the first company to successfully sue Google over a keyword infringing their trademark, according to Taiwan’s Apple Daily. The company successfully registered its Chinese name as a trademark in 2007. However, the company discovered to their consternation that they weren’t appearing on Google when this trademark was entered into Google Search, with brands including IKEA, B&Q and house-hunting site 591 given top billing thanks to keyword advertising. The company accused Google of infringing their trademark with their keyword advertising. So in October and November of 2011, they sent letters of attestation to Google, but received no response. They then decided to sue Google in the courts, asking for NT$2.5 million (US$78,800) in compensation.

The four-year legal battle eventually ended with the Supreme Court determining that Google had received NT$20,000 (US$631) in keyword advertising fees, and according to fair trade law, Google was thereby required to compensate Gorgeous Space with just over three times that sum, NT$67,000 (US$2,113), marking the first time that an Asian company has won a lawsuit over Google keywords. Only Prada and LV in Europe have won lawsuits against Google concerning keywords.

The chair of the company Lin Chen-ye was cited by the paper as stating that Taiwan brands shouldn't let others infringe their hard-won brands, and despite the smaller than expected compensation, he said it was a meaningful victory. They also called for other companies to stand up and not let themselves be bullied by giants like Google.

China Issues 13th Five-Year Plan on Scientific and Technological Innovation

China’s top administrative authority, the State Council, recently launched its 13th Five-Year National Innovative Development Plan, according to China IP News. The plan focuses on developing China’s ability to innovate, and protect this innovation with intellectual property rights. Among other goals, the plan outlines a plan to increase patent holdings from 6.3 per 10,000 people to 12 per 10,000 people and to boost PCT filings to 61,000.

Lu Wei, director general of the Technological Economic Research Department of the Development Research Center of the State Council, who participated in the formulation of the plan, was cited by the media outlet as stating, "It reflects the combination of S&T (science and technology) and economy and innovation, and pays extra attention to [the] coordination in the whole process of innovation links."

Lu added that complementary measures, including those relating to the economy, taxation, finance, trade, IP and standard setting had also been incorporated into the plan.

The plan stresses the importance of increased coordination between administrative enforcement and judicial protection and making it easier to enforce rights, according to the media outlet.

China-Israel Experimental Patent Prosecution Highway Extended Indefinitely

A two-year experimental China-Israel patent prosecution highway (PPH) initiated on August 1, 2014 and scheduled to end on July 31, 2016, will be extended indefinitely, according to a statement issued by the intellectual property offices of both countries. Application procedures will remain the same.

The news comes amid reports of increasing acquisitions by Chinese firms in Israel, with Tel Aviv-based newspaper Haaretz reporting that China’s Fujian Yango Group offered to pay the Delek Group US$515 million this week for control of the Phoenix insurance company, Israel’s third largest insurer. The paper also reported that Beijing Xinwei Technology Group agreed to pay US$285 million for Spacecom, which operates the Amos communication satellites.

Taipei’s National Palace Museum Mobilizes the Public in the Fight Against Piracy

The National Palace Museum in Taipei is mobilizing members of the public to help it catch counterfeiters selling fake museum souvenirs, according to Taiwan's Liberty Times. The museum intends to reward people for their efforts with the gift of an official souvenir, piece of stationary or postcard worth NT$100 (US$3.15), after confirmation of infringement from a lawyers. Members of the public are encouraged to upload pictures of alleged infringing products to be eligible for the rewards, whether it be goods offered for sale, or infringing use or copies of museum artifacts without the proper permissions.

The museum initially set up a counterfeit investigation team, but subsequently decided to launch a reporting webpage to speed up the process. Li Ching-hui, vice president of the museum was cited by the paper as stating that the museum has been largely unsuccessful in its lawsuits in China, which, she stated, is partly to do with a difference in the laws surrounding the copying of painting and calligraphy.

The museum plans to open its images to domestic educational publishers in September of this year, however, foreign use and reprinting is not allowed and legal action will be taken, according to Li.

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