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
TIPO amends examination standards for patent term extension
  • Taiwan
  • April 16 2018

The Taiwan Intellectual Property Office (TIPO) recently announced amendments to Chapter 11, Part II of the Patent Examination Guidelines. Changes to the definition of 'first market approval' relax the criteria on determination of first market approval but also impose a limitation on the scope of extension to the specific ingredients stated in the market approval according to Article 56 of the Patent Act.

Robotic technologies and their patent portfolios
  • Taiwan
  • March 05 2018

In the new generation of robots, all kinds of process rely on the use of human intelligence. Therefore, a patent portfolio for inventions relating to robots with artificial intelligence should focus on the technical features of man-made inventions and creations and consider their various possible applications in order to obtain a reasonable scope of patent protection. Patent portfolio wars will significantly affect innovation, research and development of new robotic technologies.

Unauthorised barcode on genuine trademarked products is forgery under Criminal Code
  • Taiwan
  • February 19 2018

Unauthorised trademarks and barcodes are often used on counterfeit products. However, it remains an issue as to whether the unauthorised use of a barcode violates any laws or regulations. Recently, the Supreme Court and IP Court, among others, have been reviewing the relevant issues and believe that unauthorised use of barcodes should constitute forgery under the Criminal Code.

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.


Contributed by Shay & Partners
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.

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.