Taiwan updates

Employment & Benefits

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
Outside statements used as exhibits for identifying ordinary skill
  • Taiwan
  • August 20 2018

In patent disputes, claim construction and a person having ordinary skill in the art determination often become the focus of the parties' arguments. Based on the principle of good faith and the doctrine of estoppel, it is common for one party to quote statements made by the other party outside the litigation proceedings as a basis for interpreting the claims or identifying ordinary skill. The Supreme Administrative Court recently assessed whether such statements may be used as evidence.

Determining adverse descriptions in technical evaluation reports
  • Taiwan
  • June 25 2018

Under the Patent Act, utility model patents are examined using a formality examination system; the Taiwan Intellectual Property Office is not required to perform a substantive examination of patentability. However, as patent rights are granted without substantive examination, to prevent patentees from IP rights abuse, the Patent Act stipulates that when exercising a utility model patent, the patentee must not issue a warning without presenting a technical evaluation report.

Slogans containing well-known marks not inherently distinctive
  • Taiwan
  • June 18 2018

Consumers will not usually perceive a slogan as an identifier of goods or services until they encounter consistent advertising or other practices by the brand user. Generally, therefore, slogans are not inherently distinctive in existing trademark examining practice in Taiwan. In a recent administrative case, an applicant claimed that because its house mark was extremely well-known worldwide, the Taiwan Intellectual Property Office should treat the trademark to be filed as a regular slogan.

Adding new invalidation reason in patent invalidation administrative proceedings based on same evidence
  • Taiwan
  • May 21 2018

To avoid repeated administrative litigation procedures, Article 33(1) of the Intellectual Property Case Adjudication Act stipulates that the IP Court must consider any new evidence submitted on the same invalidation reasons before the end of the oral debate proceedings. Since the act came into effect in 2008, this article has remained unquestioned. However, the IP Court loosely construed it in a recent judgment.

Proving infringement using patented manufacturing process
  • Taiwan
  • May 07 2018

A recent IP Court judgment has clarified the grounds for proving infringement using a patented manufacturing process. While the Patent Act provides for the shifting of the burden of proof, prospective owners of manufacturing process patents must consider whether an article made using a patented manufacturing process is unknown in or outside Taiwan before filing an application (or otherwise protect the invention using a product patent).


Contributed by Shay & Partners
NCC invites public comments on 5G spectrum planning
  • Taiwan
  • June 20 2018

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.

5G spectrum auction planned for July 2018
  • Taiwan
  • May 09 2018

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.

Next big thing – 5G and narrowband Internet of Things
  • Taiwan
  • February 14 2018

Chunghwa Telecom recently announced that it will make a 5G pre-commercial system available in Taipei in 2020. The National Communications Commission has welcomed the move. It has also stated that its legislative proposal on the Telecommunications Act will take a proactive approach in responding to the significant need for flexible frequency sharing and network use.

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.