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.
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.
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.
The Taipei District Court recently upheld the established case law on companies' use of competitors' trademarks in keyword advertising. In general, the courts deem the use of a trademark non-actionable if it does not appear in the actual ad (ie, someone using the search terms would not assume that the ad belongs to the trademark owner). However, even if a competitor's trademark is not used in a company's ad, its use in keyword advertising might be considered a violation of the Fair Trade Act.
The Taiwan Food and Drug Administration recently published a draft version of the new regulations on patent linkage for public comment. An analysis of the regulations, which set out how patent linkage will be implemented in Taiwan, reveals several aspects that will have a significant impact on patent linkage operations in the region.
In a recent administrative litigation case regarding a trademark opposition, the Supreme Administrative Court expressed an important view on the adoption of the anti-squatting clause. Compared with previous decisions, the court took a stricter approach to the interpretation of earlier trademark use. Claimants asserting unregistered rights under this clause must demonstrate that the unregistered earlier mark was used in the ordinary course of trade and in accordance with common transaction practices.
Departing from the opinion of the Intellectual Property Office, the Supreme Court recently held that the end date of foreign clinical trial periods in patent term extension applications should be the report date, not the study completion date. The court reasoned that the results of a clinical trial cannot be obtained immediately after the study is completed. Meaningful results can be obtained only after professional analysis and data processing.
Under Article 97 of the Trademark Act, maliciously selling and importing counterfeits is subject to criminal liability. However, defendants are liable only if they act with malicious intent to sell and import counterfeits – where no malicious intent is proved or where it is shown that the defendant simply acted recklessly, they will not be held liable. A recent IP Court decision has clarified the evidentiary requirements for determining criminal liability where the counterfeiting involves non-traditional trademarks.
Chinese telecoms manufacturer Huawei is under additional scrutiny following concerns that its close ties with the Chinese government present national security threats to Taiwan, the United States, Europe and allied countries. Further to the ban on Huawei's investment in Taiwan and the procurement of Huawei products for use in telecoms infrastructure, the Taiwan government is considering similar restrictions on 5G.
By the end of December 2018, the National Communications Commission (NCC) will expand the 5G regulatory sandbox in order to inspire experimental 5G applications and prepare Taiwan for the upcoming release of 5G spectrum for commercial use in 2020. The NCC confirmed that the 3.4GHz to 3.6GHz and 28GHz bands are available for release via spectrum auctions, while further public comments are required regarding the 1,700MHz to 1,900MHz, 2,010MHz to 2,025MHz and 2,355MHz to 2,390MHz bands.
The National Communications Commission (NCC) recently responded to comments from mobile network operators and equipment suppliers in a public consultation on 5G spectrum planning and auction preparation. The NCC confirmed that, in addition to the 3.4GHz to 3.6GHz bands, the 28GHz, 1,700MHz to 1,900MHz and 700MHz to 800MHz bands are expected to be released for 5G use and will likely be made available through spectrum auctions.
The National Communications Commission (NCC) has initiated a public consultation on 5G spectrum planning and auction preparation. Industry stakeholders and interested parties are invited to give comments in written form by 29 June 2018. NCC Chair Nicole Chan stated that the commission will be submitting its final analysis of the public consultation to the Executive Yuan in July 2018. The premier will then issue a further decision on 5G spectrum.
The National Communications Commission (NCC) released its 2017 Taiwan Communications Market Report in April 2018. The report disclosed the progress being made in preparation for the 5G spectrum auction, during which the NCC will identify that the 28 gigahertz (GHz) band, as well as the 3.4GHz and 3.6GHz bands, should be available for auction in 2020, aiming for large-scale 5G application.