Taiwan updates

Employment & Benefits

Contributed by Lee and Li Attorneys at Law
How to make a post-termination restrictive covenant for non-competition legally binding
  • Taiwan
  • December 20 2017

A post-termination restrictive covenant for non-competition restricts an employee from joining the employer's competitor or conducting business in competition with the employer following termination of employment. The employee is usually required to provide such a covenant on being hired, making it difficult for the employee to decline. As the legality of such a covenant was controversial, when the Labour Standards Act was revised in 2016, a new article was added to regulate it.

Performance management and termination
  • Taiwan
  • October 04 2017

An employer may terminate an employment contract with notice or payment in lieu of notice and provide the appropriate severance payment if an employee is confirmed to be incompetent to perform the work assigned to him or her. However, employers may not terminate an employment contract if the employee is on maternity leave or suffering from an occupational injury or disease while working for the employer.

Summary of amendments to Labour Standards Act
  • Taiwan
  • April 05 2017

The Legislative Yuan recently passed a number of amendments to 10 provisions under the Labour Standards Act. The amendments took effect on January 1 2017 (except the required rest time between shifts, which is expected to take effect after one year) and will have a significant effect on costs and human resources. Key points of the amendments include the implementation of a five-day working week, a sharp increase in wages for working on a rest day and a reduction in national holidays.

Intellectual Property

Contributed by Lee and Li Attorneys at Law
Do substantial differences exist in determination of equivalent infringement?
  • Taiwan
  • December 18 2017

Generally, technical features disclosed in a patent claim relating to mechanical or electrical engineering are more suitable for breakdown into basic comparison units that realise a certain function or deliver a certain result independently. Therefore, the triple-identity test is often used in these technical fields in determining equivalent infringement under the doctrine of equivalents. However, the Supreme Court recently held that it is insufficient to conclude patent infringement with a general triple-identity test.

Criteria for examining motivation to replicate invention of patent application
  • Taiwan
  • December 11 2017

When faced with the challenge of determining whether an invention patent specification has an inventive step when compared with the prior art, the courts must decide whether a person having ordinary skill in the art would be sufficiently motivated to combine the prior art references and replicate the invention. The criteria to make this determination was set out by the Patent Examination Guidelines 2013, and a recent IP Court decision serves as a useful model for this issue going forward.

Boundaries of fair use in news-related TV programmes
  • Taiwan
  • November 27 2017

In order to provide full reports on news events, it is often inevitable that the works of others will be used. Should relevant laws be unable to empower journalists to claim fair use under certain circumstances, news reports may fail to be conducive to the formation of public opinion or fail to agree with the main purpose of copyright protection. Exemption regulations concerning fair use in news reports can be found in the Copyright Act.

IP Court sets guideline determining jurisdiction over online trademark infringement
  • Taiwan
  • November 06 2017

The IP Court recently set a guideline in a criminal trademark infringement case determining jurisdiction over trademark infringement cases where the actual operator of an online store selling counterfeit goods is not physically located in Taiwan. The IP Court held that a district court in a certain city should have jurisdiction over trademark infringement cases when consumers who may have access to the online store are located in that city.

New inventive step examination guidelines
  • Taiwan
  • October 16 2017

The examination of inventive step is of paramount importance in examining patent applications. However, Taiwan Intellectual Property Office (TIPO) examiners tend to combine prior art references arbitrarily, which often results in findings based on hindsight. In order to prevent this practice and further enhance patent examination quality, TIPO has amended the inventive step examination guidelines.


Contributed by Shay & Partners
NCC warns of WiFi security breach
  • Taiwan
  • November 01 2017

The National Communications Commission (NCC) recently issued a warning regarding the key reinstallation attack and urged network operators and equipment providers to fix this unprecedented flaw in WiFi protection that has left almost all home routers at risk of being hacked. The NCC advised subscribers to avoid sending confidential or sensitive personal data via WiFi connections and to use 4G mobile internet access instead.

Third round of Taiwan's 4G spectrum auction announced
  • Taiwan
  • August 23 2017

The National Communications Commission recently announced its timetable for the third round of Taiwan's 4G spectrum auction, during which potential bidders can submit applications and qualification for review. The bid winners will take mobile broadband universal services to rural areas with a guaranteed access speed of 100 megabytes per second.

NCC announces big leap in 4G mobile broadband service
  • Taiwan
  • May 31 2017

The National Communications Commission (NCC) recently issued a public alert to encourage mobile users of 2G and 3G services to transfer to a 4G mobile broadband service. The NCC has been coordinating the process with existing 4G mobile broadband service operators, which have been simultaneously operating 2G and 3G services to achieve a seamless transfer from 2G and 3G to 4G by June 30 2017.

NCC considers spectrum and numbers for Internet of Things
  • Taiwan
  • March 29 2017

The National Communications Commission (NCC) recently announced that to develop the Internet of Things (IoT), telecommunications grade IoT numbers (with the 040 prefix) have become available and the 920 megahertz (MHz) to 925MHz band is planned as a non-telecommunications grade IoT band. According to the newly amended frequency assignment table, the NCC will gradually prescribe the additional technical specifications for low-power wide area network IoT equipment.

NCC promotes regulatory reform of telecoms liberalisation
  • Taiwan
  • February 08 2017

The National Communications Commission (NCC) has taken a proactive approach in responding to queries regarding the proposed regulatory reform on existing functional regulations and recently officially released its legislative proposal on the existing Telecommunications Act and a conceptual new law on digital communications. The NCC has invited public comments before the draft laws are further presented to the Executive Yuan for review.