The Next Stage of IPR Protection

The most significant positive change in Taiwan's investment climate in recent years has undoubtedly been the marked improvement in respect for intellectual property rights and the adoption of effective enforcement mechanisms to protect those rights. Not long ago Taiwan still ranked among the world's worst IPR offenders, but vigorous action by the relevant government agencies - notably the Taiwan Intellectual Property Office (TIPO) under the Ministry of Economic Affairs and a specialized anti-counterfeiting police unit - has contributed to rectifying that situation. Concrete recognition of Taiwan's strides came last year when the U.S. government removed it from the "Special 301 Priority Watch List" of countries with the most abysmal IPR records.

At the same time as that progress was occurring, however, there has been mounting concern about two aspects in which the battle for IPR protection seemed to be falling short. The first is the rapid increase in Internet-based piracy; so far this year, 80% of the cases uncovered by the IPR police have involved online infringement, up from just 2% a few years ago. The other is the frequently drawn-out judicial process for hearing IPR cases, as well as the reluctance of many judges to treat IPR offenses as serious crimes deserving of heavy sentences.