Introduction to Critical Infrastructure Protection

The security facet of cyberspace along with a world filled with CPU-controlled household and everyday items can be examined from various angles. The concept of security also varies in accordance with different stages of national conditions and industrial development in different nations. As far as our nation is concerned, the definition of security industry is "an industry offering protection for human bodies, important infrastructure, information, financial system, as well as offering equipment to defend the security of national lands and the service"1 as initially defined by "Security Industry Program Office." Judging from the illustration of the definition, the security industry should be inter-disciplinary and integrative, which covers almost all walks of life and fields, such as high-tech industrial security management, traffic & transportation security management, fire control and prevention against natural calamities, disaster relief, information security management, security management in defense of national borders, and prevention of epidemics.

After the staged mission, "e-Taiwan program", was accomplished in 2007, our government hoped to construct a good surrounding by creating a comfortable life from a user’s point-of-view. This was hoped to be achieved by using "the development of a high-quality internet society" as a main source by using innovative services, internet convergence, perceptive environment, security, trust, and human machine linkage. At the Economic Development Vision for 2015: First-Stage Three-Year Sprint Program (2007~2009) formulated by the Executive Yuan, wireless broadband, CPU computer-controlled items all have become part of our every day lives, and healthcare, along with the green industry are listed as the next emerging industries; whereby the development of relevant critical technologies is hoped to be promoted to create higher industrial values and commercial opportunities. However, from a digitally-controlled-life viewpoint, the issue concerned by all walks of life is no longer confined to the convenience and security of personal life but gradually turns to protection of security of a critical infrastructure (CI) run by using information technology. For instance, finance management, stock market, communication network, harbors and airports, high speed rail, R&D of important technology, science parks, water purification facilities, water supply facilities, power, and energy facilities. 2Because security involves resources related with people's most fundamental living needs and is the most elementary economic activity of the society, it is regarded as an important core objective to promote the modern social security system. Therefore, critical infrastructure protection requires more dependence on information and communication technology to maintain the stability of finance and communication, as well as the security of facilities related with supply and economy of all sorts of livelihoods in order to ensure regular operation.

With the influence of information and communication technology on the application of critical infrastructure on the increase, the society has increasingly deepened its dependence on the security of our cyber world. The concept and connotation of information security also keep extending with it toward the aforementioned critical infrastructure protection planning, making critical information infrastructure protection (CIIP) and critical infrastructure protection (CIP) more inseparable in concept3 , and becomes an important goal of policy implementation to achieve the vision of a digital lifestyle which is secure for every nation. In recent years, considerable resources have been invested to complete an environment whereby a legal system of “smart lifestyle” is developed. However, what has been done for infrastructure protection continues to appear as not being comprehensive enough. This includes vague definitions, scattered regulations and policies, different protection measures taken by different authorities in charge, obvious differences in relevant risk management measures and in the magnitude of management planning of information security and so on. These problems all influence the formation of national policies and are the obstacles to the promotion of relevant industrial development. In view of this, the 2008/2009 International CIIP Handbook will be used as the cornerstone of research in this project. After the discussion on how critical infrastructure protection is done in America, Germany and Japan, the contents of norms of regulations and policies regarding critical infrastructure protection in our nation will be explored to make an in-depth analysis on the advantages and disadvantages of relevant norms. It is hoped to find out what is missing or omitted in the regulations and policies of our nation and to make relevant amendments. Suggestions will also be proposed so that the construction of a safe environment whereby the digital age of our nation can be expanded to assist the “smart lifestyle” to be developed further.


1.See http://tsii.org.tw/modules/tinyd0/index.php?id=14 (last visited May 24, 2009)
2.For "2008 International Conference on Homeland Security and Application of Technology in Taiwan ~ Critical Infrastructure Protection~", please visit http://www.tier.org.tw/cooperation/20081210.asp (last visit date: 05/17/2009).
3.For critical infrastructure protection, every nation has not only proceeded planning for physical facilities but put even more emphasis on protection jobs of critical information & communication infrastructure maintained via the information & communication technology. In the usage of relevant technical terms, the term "critical infrastructure" has also gradually been used to include the term "critical information & communication infrastructure". Elgin M. Brunner, Manuel Suter, Andreas Wenger, Victor Mauer, Myriam Dunn Cavelty, International CIIP Handbook 2008/2009, Center for Security Studies, ETH Zurich, 2008. 09, p. 37.

※Introduction to Critical Infrastructure Protection,STLI, https://stli.iii.org.tw/en/article-detail.aspx?d=6127&i=169&no=55&tp=2 (Date:2024/07/16)
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Research on the Introduction of Privacy Protection Management Mechanisms and Data Value-Added Services into Communications Enterprises in 2020

Research on the Introduction of Privacy Protection Management Mechanisms and Data Value-Added Services into Communications Enterprises in 2020 2021/12/09 I. Introduction   The global economy is shifting away from traditional economic models towards an emerging digital era as technology advancement and new applications are introduced. The rapidly changing digital age has led to a gradual transformation in the way digital technology is used in the industry, thereby driving the overall growth of the global digital economy. The digital economy is driven by "data," and how data is used, its purpose, risks and regulation are all inextricably intertwined with industrial development and application, as is the case for the communications industry.   As such, while the free circulation of data has become central to international free trade and economic operations, it is not only conducive to the promotion of transnational business and economic and trade interactions, but also fraught with worry and concern over how to ensure the protection and security of personal data and privacy. As a result, the issue of how to adapt the data risk control mechanism and related complementary measures so that they can be applied to the industry and comply with regulatory requirements has become a global reality that must be actively addressed. As far as Taiwan is concerned, when considering how to cope with industry needs, there is a pressing need to strike a balance between personal data and international regulatory requirements, and to expedite the legitimate utilization of personal data protection and data value-added service in the sector in an effort to facilitate the development of the digital economy. II. Recommendations on Data Governance and Innovative   Application Planning. According to the aforementioned international data strategies and strategies for innovative data applications, the development of the data economy as a whole is driven by the formulation of overall superior policies, with a view to fully utilizing the potential value of data and building a vibrant ecosystem suited for innovative data applications. With the outbreak of COVID-19 this year, the application of data will be crucial in the post-pandemic era. It is also observed that data applications are gradually moving towards cross-boundary sharing and reuse, and empowerment of data subjects, and therefore, in light of the above observations and findings, we offer recommendations on data governance and innovative application planning. First, as for the establishment of a ministry and mechanism for data application and communication, since there is no single dedicated authority in Taiwan, and the formation of a ministry for science and technology development is now under intense discussion, data application may become an important function of the ministry, so we have to consider an authority for data application and communication. Further, there is currently no sandbox mechanism for data application in Taiwan. Reference should be made to the British data communication mechanism for providing legal advice and consultation sought on data application regulation.   Second, with regard to the formulation of regulations and amendments to existing laws relating to data applications, the most noteworthy is the EU Data Governance Act 2021. Taiwan does not have a complete and appropriate legal framework for data application, except for the Freedom of Government Information Law, the Personal Data Protection Act (PDPA) and the relevant laws and regulations distributed in various fields, and the nation is currently seeking an adequacy decision from the EU, and therefore our PDPA needs to be amended accordingly, yet no progress has been made at this stage. Consequently, a comprehensive strategy should be developed by taking into account both the formulation of the basic data application regulations and the amendments to the current PDPA, in order to achieve long-term data governance and application and sharing.   Lastly, in terms of the incorporation of the concept of data empowerment and the design of the mechanism, the international trend moves towards data empowerment to give data subjects more control over their data. The Financial Supervisory Commission (FSC) of Taiwan has also incorporated this idea in its open banking, so has the National Development Council’s (NDC) MyData program. As such, it is suggested that the government should provide guidelines or devise the relevant system, or even make reference to the Japanese data bank mechanism regarding the establishment of intermediaries to assist consumers in managing their data, which could be used as a reference for the design of the mechanism in the future. III. Accountability for and Management of Data Use in Enterprises   Among the countries studied regulation of Singapore and Taiwan are similar and have adopted the development of digital economy as their main economic strategy, but Singapore has been more proactive than Taiwan in the design of the legal system to facilitate the use of data. Therefore, with regard to the control of data use in businesses by the competent authorities, this Project, by looking at the amendment to the Singaporean PDPA, aims to reinforce the regulation of the accountability system and the operation of the existing series of guidelines. From the changes in Singapore's PDPA, it can be observed that the competent authorities can refer to the practices of enterprises in the use of data.   First of all, the existing regulations in Taiwan tend to have more about compliance than accountability, with emphasis being placed on data security maintenance and compliance with the PDPA. For instance, Taiwan’s “Regulations Governing Security Measures of the Personal Information File for Non-government Entities Designated by National Communications Commission” focus on following the law on the use of personal data. Nonetheless, the so-called accountability means that the competent authorities must oversee the implementation of data protection measures and policies of enterprises, not just pro forma compliance with the letter of the law.   The second observation is that Singapore is quite proactive in addressing the need for data use in the development of its digital economy by making an exception to innovative uses regarding informed consent. The inclusion of data portability also represents a heightened control of the data subject. These amendments are all related to Singapore's policy of actively developing its smart nation initiative and signify a more proactive approach by the authorities in monitoring the use of data by businesses. Taiwan needs to be more open and precise in regulating the use of data for the development of its digital economy.   Finally, there is increased flexibility in enforcement, as authorities can resolve disputes between subjects over data use more quickly through the introduction of mediation or other alternative dispute resolution (ADR) mechanisms. Meanwhile, the Personal Data Protection Commission (PDPC) has developed industry-specific consultation guidelines, recognizing that there may be specific issues for different industries. The PDPC noted that these guidelines are based on the partnerships, consultations and feedback associated with the relevant industries, and close collaboration with the industry's authorities of target businesses. IV. Conclusion   Despite the lack of a dedicated authority for personal data protection, Taiwan can first build a cross-industry coordination and communication platform, and then collaborate across ministries to primary integrate standards in personal data protection to facilitate the needs of industrial innovation in the digital economy.

Artificial Intelligence Governance - Taking Deep Fake as an Example

Artificial Intelligence Governance - Taking Deep Fake as an Example 1.Introduction   With the increasing maturity of the use of neural networks, the application of artificial intelligence technologies is becoming more and more widely used. Among them, through the automated editor and convolutional neural network technology, the threshold of the technology of copying films is not very high. In November 2017, some films that superimpose the faces of social celebrities on pornographic film actors/actresses appeared in the American social networking platform, Reddit. These types of films analyze the faces of specific socialites through deep learning algorithms and superimpose their faces on the films, making them look as if the films were taken by the socialites themselves. This technology was released by developers in 2018 and was made into an app for public use. At present, such technology is generally referred to as "deep fake" internationally, and it is believed that it may contribute to the speedy invention and distribution of false information existing throughout the Internet nowadays, which has attracted the attention of legislators worldwide. As it uses fake images or films automatically generated by Deep-learning technology, it involves both dimensions of fake information prevention and artificial intelligence governance. The purpose of this paper is to observe the relevant policies, legal measures and related guidelines or principles of the international community in response to issues of deep fake and artificial intelligence governance, and to examine whether the current legal system in Taiwan can cope with the impact of deep fake so as to provide feasible recommendations. 2.Ethics Rules for Artificial Intelligence   In the governance of artificial intelligence, the European Union introduced the “Ethics Guidelines for Trustworthy AI” on April 8, 2019 to establish a framework for supervising artificial intelligence in order to make artificial intelligence trustable.   The guidelines first points out that Trustworthy AI requires three key characteristics: (1) it should be lawful: complying with all applicable laws and regulations; (2) it should be ethical: ensuring adherence to ethical principles and values; and (3) it should be robust: both from a technical and social perspective, to avoid AI from inadvertently causing harm.   Fundamental Rights are the basis of trustworthy AI. In order to comply with the above-mentioned basic human rights and to make AI reliable, their expert group believes that AI should abide by four ethical principles, including: (1) respect for human autonomy; (2) prevention of harm; (3) fairness; and (4) explicability. The four ethical principles are also transformed into the seven specific measures: “human agency and oversight”, “technical robustness and safety”, “privacy and data governance”, “transparency”, “diversity, non-discrimination and fairness”, “societal and environmental wellbeing impact evaluation” and “AI accountability”. To facilitate the true implementation of self-assessment for application developers, the Guidelines devise the Trustworthy AI Assessment List in Chapter 4 for the reference of the enterprise. 3.Counter measures Against the International false messages   In response to the prevention of false messages, the two parties in the United States also jointly proposed in 2018 the Malicious Deep Fake Prohibition Act of 2018 to amend the relevant provisions of fraud in the criminal law. This bill amends Chapter 47 of the United States Code by adding Section 1041 with regard to fraud in connection with audiovisual records. It treats the use of deep fake as a criminal offence and defines deep fake as “audiovisual record created or altered in a manner that the record would falsely appear to a reasonable observer to be an authentic record of the actual speech or conduct of an individual”. It shall be unlawful to, using any means or facility of interstate or foreign commerce, to create, with the intent to distribute, a deep fake with the intent that the distribution of the deep fake would facilitate criminal or tortious conduct; or distribute an audiovisual record with actual knowledge that the audiovisual record is a deep fake, and the intent that the distribution of the audiovisual record would facilitate criminal or tortious conduct. Any person who violates the above may be sentenced to imprisonment for more than 2 years but less than 10 years. However, the bill is currently put on hold without being further reviewed.   In addition, in order to properly cope with the danger of deep fake, on June 28, 2019, the two parties in the US Congress jointly proposed the bill - "To require the Secretary of Homeland Security to publish an annual report on the use of deep fake technology, and for other purposes”, which may be cited as the "Deepfakes Report Act of 2019". This bill requires the Department of Homeland Security to conduct research on deep fake and related issues, produce an annual report, and to request it to assess the direction of addition or revision of relevant laws and regulations. Moreover, the US senators from both parties also proposed on June 12, 2019 the bill- “Defending Each and Every Person from False Appearances by Keeping Exploitation Subject to Accountability Act of 2019”, which may be cited as “DEEP FAKES Accountability Act”. This Act is the same as the Act of 2018, both of which treat the use of deep fake as a fraudulent act by adding section 1041 to Chapter 47 of the United States Code. However, this Act does not directly define deep fake, but rather define such a type of technology as “advanced technological false personation record”, and require such records to comply with: (1) DIGITAL WATERMARK: Any advanced technological false personation record which contains a moving visual element shall contain an embedded digital watermark clearly identifying such record as containing altered audio or visual elements. (2) AUDIOVISUAL DISCLOSURE shall comply with the following principles: A. clearly articulated verbal statement that identifies the record as containing altered audio and visual elements, and a concise description of the extent of such alteration; and B. an unobscured written statement in clearly readable text appearing at the bottom of the image throughout the duration of the visual element that identifies the record as containing altered audio and visual elements, and a concise description of the extent of such alteration. (3) VISUAL DISCLOSURE shall comply with the following principles: Any advanced technological false personation records exclusively containing a visual element shall include an unobscured written statement in clearly readable text appearing at the bottom of the image throughout the duration of the visual element that identifies the record as containing altered visual elements, and a concise description of the extent of such alteration. (4) AUDIO DISCLOSURE shall comply with the following principles: Any advanced technological false personation records exclusively containing an audio element shall include, at the beginning of such record, a clearly articulated verbal statement that identifies the record as containing altered audio elements and a concise description of the extent of such alteration, and in the event such record exceeds two minutes in length, not less than 1 additional clearly articulated verbal statement and additional concise description at some interval during each two-minute period thereafter.   According to the bill, those who violate the above requirements shall be subject to legal responsibilities. In criminal liabilities, whoever knowingly violates the above requirements and (1) with the intent to humiliate or otherwise harass the person falsely exhibited, provided the advanced technological false personation record contains sexual content of a visual nature and appears to feature such person engaging in such sexual acts or in a state of nudity; (2) with the intent to cause violence or physical harm, incite armed or diplomatic conflict, or interfere in an official proceeding, including an election, provided the advanced technological false personation record did in fact pose a credible threat of instigating or advancing such; (3) in the course of criminal conduct related to fraud, including securities fraud and wire fraud, false personation, or identity theft; or (4) by a foreign power, or an agent thereof, with the intent of influencing a domestic public policy debate, interfering in a Federal, State, local, or territorial election, or engaging in other acts which such power may not lawfully undertake, may be sentenced to imprisonment for not more than 5 years. In civil liabilities, any person who violates the above requirements may be subject to a civil penalty of up to US$150,000 per record or alteration, as well as the compensation for the damage, if any.   In addition to the United States, the United Kingdom also launched the "Online Harms White Paper" in April 2019, which will establish a new "Online Safety" control structure to respond to false messages and underage pornographic videos, deep fake and online drug trafficking and so on.   The report points out that the new network security control framework will clarify the legal obligations of the Internet company to make the company assume more security responsibilities and avoid the harm caused by the content or actions generated by the service provided, and establish an independent regulatory agency supervising and implementing the relevant legal policies. The regulatory authority should provide relevant guidelines for compliance with the new obligations. If the company is unwilling to comply with the relevant guidelines, it must bear the burden of proof and prove that its alternative measures can achieve more effectively for the purpose of protecting the Internet users. In addition, the framework will also include elements of “Transparency, Trust, and Accountability”. The competent authority will be given the right to request an annual transparency report be submitted by the company, which the report should indicate the relevant harmful contents appeared on its platform, explain how it is handling with the problem, and publish the report on the website. Furthermore, the competent authority will have the right to request additional information from the Internet company, such as how its algorithm works.   In response to false messages, the report points out that current Internet companies have begun to conduct research on the prevention and control methods of fake news dissemination, including: (1) through the terms of service, users are not allowed to distort their identity on social software to spread false messages. (2) developing relevant tools to detect suspicious, false or junk accounts; (3) using automated artificial intelligence to delete or remove fake accounts; and (4) collaborating with independent fact verifying platforms. However, in the future, the government hopes that the guidelines and related policies proposed by the competent authorities must further include the following matters: (1) The company shall clarify its definition of false information in its terms of service, and state its expectations of users, and the possible penalties to users who violate the company policy; (2) The company should adopt the relevant countermeasures to deal with users with distorted identities who disseminate false messages; (3) The visibility of the disputed content currently under the fact-verifying inspection shall be reduced; (4) The fact-verifying service shall be used, especially during the election period, for fulfilling the obligation of fact verification; (5) Promote authoritative news sources; (6) Promote news circulation from different perspectives, rather than only reinforce the messages of people's existing views; (7) Users should be able to recognize that they are interacting with automated accounts and should ensure that the dissemination of automated accounts information is not abused; (8) Promote the transparency of political advertising to comply with the norms of the UK electoral law; (9) Companies should ensure that users may mark the content that they believe to be false news by themselves and let them know that the company is targeting false news for countermeasures to be taken; (10) The procedures for publishing information should be open and transparent so that the public can assess the effectiveness of the company’s response to false information, and further support the relevant research on online false message activities; (11) The relevant procedures and measures should be taken to continuously monitor and evaluate the effectiveness of the processing flow of fake messages.   From the above-mentioned relevant international legal policy observations, it can be found that international measures related to deep fake can be classified into the following items: (1) Establish an independent fact-verifying unit. (2) Improve the transparency of information sources. (3) Improve the oversight responsibility of the online platform for the messages appeared on such a platform. (4) Deep fake is to be treated as an independent criminal act and its criminal, civil and administrative responsibilities are to be clearly regulated. (5) On the technical level, relevant artificial intelligence tools are being developed to respond to this issue. For example, the American startup company, Deeptrace, has begun to conduct research and develop deep fake identification technology to identify the authenticity of the films.

Introduction to the compulsory licensing mechanism of US music copyrights

With digital music industry rising and flourishing these years, in 1995 the US Congress amended the compulsory licensing regulations in the US Copyright Act to include digital music service in the scope of compulsory licensing. By doing so,it tries to save the industry from deprivation in copyright negotiations and to prevent detrimental effects on music circulation. By introducing the compulsory licensing regulations for music copyrights in the US Copyright Act, this paper wishes to provide a reference for the Taiwanese government to amend Taiwan’s copyright act to promote the development of the digital music industry. I. Exclusive rights in digital music copyright According to the US Copyright, the copyright owner has the exclusive rights to do and to authorize any of the following1: To reproduce the copyrighted work in copies or phonorecords; To prepare derivative works based upon the copyrighted work; To distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending; In the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works, to perform the copyrighted work publicly; In the case of literary, musical, dramatic, and choreographic works, pantomimes, and pictorial, graphic, or sculptural works, including the individual images of a motion picture or other audiovisual work, to display the copyrighted work publicly; and In case of sound recordings, to perform the copyrighted work publicly by means of digital music transfer. If it is to be enforced by law that musical works can only be provided after the approval and authorization of the copyright owner, this will be unfavorable for the circulation of musical works. In terms of users, this may mean additional difficulties in providing musical works. Therefore, in addition to negotiating with the copyright owner of the licensing affairs, the US Copyright Act prescribes the compulsory licensing system. As long as the form of use does not violate any terms specified in the Copyright Act, service providers may obtain a license by means of compulsory licensing in order to lawfully “distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending.2” 1. Scope of compulsory license According to Section 115 of the US Copyright Act, limitation on compulsory licensing comprises two sections3: (1) The scope of compulsory licensing is limited to the “exclusive rights provided by clauses (1) and (3) of section 106”; i.e. “to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending.” (2) A compulsory license can only be applied for unless the copyrighted works are Non-dramatic musical works; phonorecords of a non-dramatic musical work which have been distributed to the public in the United States under the authority of the copyright owner; and phonorecords made by a person whose primary purpose is to distribute them to the public for private use. (1) The scope of compulsory licensing is limited to the “exclusive rights provided by clauses (1) and (3) of section 106”; i.e. “to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending.” (2) A compulsory license can only be applied for unless the copyrighted works are Non-dramatic musical works; phonorecords of a non-dramatic musical work which have been distributed to the public in the United States under the authority of the copyright owner; and phonorecords made by a person whose primary purpose is to distribute them to the public for private use. (1) The scope of compulsory licensing is limited to the “exclusive rights provided by clauses (1) and (3) of section 106”; i.e. “to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending.” (2) A compulsory license can only be applied for unless the copyrighted works are Non-dramatic musical works; phonorecords of a non-dramatic musical work which have been distributed to the public in the United States under the authority of the copyright owner; and phonorecords made by a person whose primary purpose is to distribute them to the public for private use. Later on, to facilitate the application of the emerging digital sound delivery technology and the development of the digital music industry, in 1995 the US Congress passed the Digital Performance Right in Sound Recording Act of 1995 (DPRA) by which Section 115 of the Copyright Act was amended and the Digital Phonorecord Deliveries (DPD) was added. Based on these, the DPD can enjoy compulsory licensing to deliver digital music service. 2. Entitlement of compulsory license Any person who wishes to obtain a compulsory license shall, before or within thirty days after making the recording, and before distributing any phonorecords of the work, serve notice of intention to do so on the copyright owner. The notice shall comply, in form, content, and manner of service, with the requirements that the Register of Copyrights shall prescribe by regulation. If the registration or other public records of the Copyright Office do not identify the copyright owner and include an address at which the notice can be served, it shall be sufficient to file the notice of intention in the Copyright Office4. After obtaining the compulsory license, service providers shall deliver to the copyright owner or its designated collecting agent the information relating to the royalty of the month and the successes or failures of downloading within twenty days from the end of every month5. If service owners are unable to identify how to deliver the royalty to the copyright owner, the collecting agent shall keep the royalties for the compulsorily licensed nondramatic musical works for three years in an independent trust account. The collecting agent shall assume no responsibility for the safekeeping of such royalties if the copyright owner is unreachable within three years6. 3. Royalty for compulsory license The criteria for calculating the royalty of compulsory license are established by the Copyright Arbitration Royalty Panel formed by the Librarian of Congress. This panel updates the calculation criteria on a biennial basis. The calculation can be done by minute or by work. Applicants must pay the highest royalty calculated with either of the schemes7. 4. Limitation of compulsory license A compulsory licensee shall only reproduce or distribute specific sound recordings and shall not use the work in the making of phonorecords duplicating a sound recording fixed by another; unless the making of the phonorecords was authorized by the owner of the copyright in the sound recording or such sound recording was fixed lawfully.8 II. Conclusions Though compulsory licensing terms have been specified in the Copyright Law of Taiwan, users only need to apply for a compulsory license for sound recordings published for a full six months and the sound recording is used in the making of other musical works for sale9. In this case, the digital music industry will be unable to obtain a compulsory license to deliver lawful services, and negotiation with the copyright owner has thus become a prerequisite for service providers to deliver lawful services. As a result, service providers often become the weaker side of the negotiation and must pay the copyright owner a very substantial royalty. Consequently, the cost of the services will increase. In the future, if the government can amend the copyright law to include the reproduction and delivery of digital music in the scope of compulsory license of sound recordings with reference to the compulsory license terms for sound recordings in the US Copyright Act, service providers can have other access to obtain a license for sound recordings to deliver lawful digital music service other than negotiations with the copyright owner. It is believed that this will promote the fair royalties of sound recording licensing in Taiwan and the development of digital music application service industry in Taiwan. 17 U.S.C.A. §§ 106 17 U.S.C.A. §§ 115 17 U.S.C.A. §§ 115(a)(1). 17 U.S.C.A. §§ 115(b)(1). 17 U.S.C.A. §§ 115(c)(5). 68 FR 57815 See the following for details of royalty criteria for compulsory license: U.S. Copyright Office, Mechanical License Rates-Copyright Royalty Rates Section 115, the Mechanical License, available at http://www.copyright.gov/carp/m200a.html (last visited 2007/8/17) 17 U.S.C.A. §§ 115(a)(1). Article 69, Copyright Law.

Challenges and Opportunities from Digital Convergence

Preface With the blooming of IT technologies, the term of “digital convergence” represents the whole atmosphere at this moment. “Digital convergence”—means that after telecommunication and broadcasting systems are following the IP based framework, contents and services, those were easy to define, turn to be confused. Relying on the uniform platform, operators are able to provide services to different systems. Services containing VoIP, IPTV or the latest terms of “Multi-screen Ecosystem” and “Connected TV” are all involved in the “digital convergence” notion. Today, no matter the service of “check in” or “watching TV programs on Smartphone,” any figures about multiple services on different devices are presenting the “digital convergence” effect. On the consumer side, “digital convergence” brings a fascinating imagination of life. Time and space are no more limitations to people for getting information. Consumers select services only depending on the quality of each service. However, the fascinating imagination of customers becomes a pressure to the relative industries. In the past, because of distinctive transmission technique, services of television, internet and information were regarded as in different industries. Effective competitors only appeared in the same industry. However, today “digital convergence” effect results in crossing-industries competition and customer immigration. To accommodating and pursue the new trend, only unique ideas and novel services can help incumbents to survive. “Digital convergence” brings not only a challenge but also an opportunity. Today, user-friendly application services are cumulatively created and accommodated in the mature broadband network. For examples, high quality entertainment services occur after communication and multimedia broadcasting techniques are improved, “Near Field Communication” technology rising causes new types of cash flow services. Otherwise, Cloud Computing technique enables people easily to access tele-healthcare services and Telematics services. Certainly, digital convenience accelerating industries transformation and value-added services is now taking place around us. According to ITU reports, every 10% increase of broadband infrastructure extension might cause 0.255 to 1.38% GDP growth rate. High penetration of broadband infrastructure might lead a significant influence on economy growth. Take South Korean experiences as an example, by owing a complete broadband infrastructure, on-line game industry and national digital content industry in this country are individually possessing $8.3 billion and $ 3.4 billion output value. By sensing the potential possibilities, governments in different countries propose their own national industry policies, including American government proposed “National Broadband Plan”, the “Digital Britain White Paper” formulated by United Kingdom, “Hikari no Michi”(光の道, which means fiber superhighway) in Japan and the “Ultra-Broadband Convergence Network Plan (UBcN plan)” in South Korea, moreover, the “Tri-networks Integration Plan” in China. And Taiwan does not absent in this moment. In order to stand firmly in this trend, we also formulate “Digital Convergence Development Program 2010-2015 (DCDP 2010-2012)” in 2010. Below, we are going to make a briefly and neat description of “DCDP 2010-2012”. 1.INTRODUCTION For assisting national relative industries to smoothly transform and enhancing Taiwan’s international competitiveness, Executive Yuan admitted the “Digital Convergence Development Program 2010-2015 (DCDP 2012-2015)” in 2010. In this program, there were six main goals containing: (1) complement the broadband superhighway infrastructure; (2) initiate the convergence of telecommunication services; (3) accelerate the process of Television digitization; (4) develop emerging internet video services; (5) improve communication industries; and (6) establish an integrity regulation framework, as well as twenty-one improving tactics and seventy-eight measures for crossing- administrations cooperation and negotiation to be declared. Otherwise, Executive Yuan also established DCTF to be responsible for coordinating every effort from every administration and facilitate digital convergence tasks. Latter, we will make further descriptions for the six main goals, we just mentioned above: A.Complement the broadband superhighway infrastructure According to the Global Information Technology Report 2010-2011, proposed by World Economic Forum (WEF), Taiwan on the Network Readiness Index (NRI) item was been ranked at 6th place and at 5th place on another item of highest FTTH/FTTB penetration. However, though our coverage of broadband network was high, the total bandwidth was still insufficient to contain all the new creating services. To resolving the shortage of bandwidth, including Ministry of the Interior (MOI), Ministry of Economic Affairs (MOEA), Ministry of Transportation and Communications (MOTC) and National Communications Commission (NCC) were convened to extend the national fiber coverage and facilitate the installation upgrade. Regarding wireless broadband construction, administrations including MOEA, MOTC and NCC were under obligation to energetically detect the latest developments of wireless telecommunication technologies as well as proposed guidelines from other countries, concerning about the allocation of spectrum, telephone numbers and IP address resources. Through crossing-administrations cooperation and coordination, in December 2011, the total of national subscribers applying fiber network service had achieved 3.31 million houses, besides, there were 24.58% houses in Taiwan possessed 100Mbps broadband network services. Totally, there were 7.88 million wireless broadband accounts being applied. B.Initiate the convergence of telecommunication services Smartphone booming brought an emerging mobile entertainment life style, furthermore, it also accelerated the rising of mobile value-added application services. To this trend, administrations containing MOEA, Financial Supervisory Commission (FSC) and NCC all devoted to establishing a constructive environment, with providing assists and building up a complete regulation framework. For examples, up to the end of 2011, national telecommunication operators had signed a memorandum with EasyCard Corporation to develop a mobile cash flow platform, which allows cash flowing through the Internet, for giving people a more convenient experience. C.Accelerate the process of Television digitization Within various emerging application services, “Television digitization” might be the most important one in people’s life. “Television digitization” service brought not only a higher quality experience of watching programs, but also created extra demands of relative application services. Furthermore, increasing demands also bought an improvement to the industry and simultaneously accelerating the development of digital content industry. Nationwide terrestrial TV signal switching program, a fully signal switching from analog to digital, has accomplished in July 2012. In order to achieve 90% coverage rate of digital signal transmission, accommodations containing Council of Indigenous People (CIP) and NCC were not only devoted to establishing a Digitization Improvement Station, but also attempt to integrate all signals from original terrestrial TV stations into one satellite to transmit. To accomplish this signal switching program, government had cultivated for many years and try to increase people’s acceptance level of high definition (HD) TV service. Before receiving this success, NCC had spent a long time devoting itself to integrating containing every effort from many administrations and associations, such as the local governments, national industry associations and operators of household application, moreover, as well as Public Enterprises, including Taiwan Power Company, Chunghwa Post Corporation and Taiwan Water Corporation to popularizing this program. Nevertheless, about the digitization program of cable TV, up to 2010, though there were already 60% of houses in Taiwan possessing cable TV service, only 5.55% of cable TV houses switched into digital. As a result, we found that no incentive measures might be the crucial reason. To reverse the impasse, our strategy was to amend the current laws, through adjusting the regulation framework we could facilitate the market into effective competition. In addition, to accelerate the cable TV digitization process, government also regarded the Olympic relaying in England as a turning point to create the demands of HD TV service. After getting the franchise, people are able to watch Olympic Games through any platforms, including terrestrial TV, cable TV and even IPTV. As the demands arising, it would also encourage operators to produce more HD programs afterward. D.Develop emerging internet video services Digital convergence effect also caused the emerging internet video services booming. In order to encourage the crossing-platforms video services and achieve 50% user rate in 2015, there were three guidelines been proposed. The first one was emerging video service regulation reforming, the second one was facilitating integration between emerging accessing approaches and distribution channels, and the third one, developing a rational regulation on contents management. In synchromesh with terrestrial TV signal switching program, emerging internet video services were also assigned to provide HD Olympic Games programs. In that period, the subscribers of Chunghwa Telecom’s MOD (Multimedia on Demand) service were able to watch the Olympic Games relaying on 14 free HD channels and 1 free 3D channel, which is provided by ELETA TV. Moreover, they could also receive the programs on demand through internet or Smartphone. Afterward, from the collected data, we found that even though the rate of new subscribers only had a few rise, an obviously rose presented on the turning on rate. Depended on those data, we believe that people had already been more familiar with IPTV and HD programs. Besides, this relaying program totally attracted 95 individual advertising and the total revenue from advertising was NT$ 80 million dollars. E.Improve communication industries Producing prolific contents is the key element for attracting customers and stabilizing the development of digital convergence industry. To facilitate the contents producing, DCDP proposed three elements to be improved: fund, talent and marketing. And the tasks of these three elements were including investment facilitation, marketing skill reinforce, personal training as well as culture protection, consumer’s right protection, technique standardization and transnational cooperation. To assist in industries transformation, MOEA focused on promoting the APP design and upgrades. Recently, measures provided by MOEA, such as transformation counseling, R&D subsidies, drive-by VC investment, personal training and even the R&D loan had already taken effect. In addition, to create a virtuous investment circles in contents industry, government also considered to release more subsidies to encouraged those superior producers and movie makers. F.Establishing an integrity regulation framework Digital convergence effect accelerated the competition in the market, including communication or relative contents industries were enter a transformation era. In this period, it was essential to have a practical and integrity regulation framework. Recently, NCC hastened to undertake the amendments of three Acts, containing Radio and Television Act, Cable Radio and Television Act and Satellite Broadcasting Act. Actually, the expectation of this undertaking was to adopt the adjustment of digital convergence in 2014. In addition, Fair Trade Commission (FTC) and Intellectual Property Office (IPO) would also continue to observe the digital convergence influences in 4C (telecommunication, cable television, computer network and e-commerce) and contents (copyright) industries. 2.Second Edition of DCDP and Primly Policies Indicators Advance Since DCDP was launched, it has caused a tremendous response. Nevertheless, rapidly advanced ICT technologies inspire people’s expectations. Recently, it has already overtaken the anticipations of used DCDP. Therefore, to formulate a prescient version, Executive Yuan adopted the second edition of DCDP 2010-2015 in May 2012. In the second edition, an item of “producing prolific TV programs” is added to be the seventh main subjects, in addition, there are five extra items added in the improving tactics part; moreover, the number of measures increased to 107 items. Digital convergence indicators are also reformulated. First, 100Mbps wired broadcasting service should achieve 100% in 2013, and the second, accomplishing 100% digitization of cable TV in 2014. To achieve these indicators, relative administrations decide to accelerate the network infrastructure complementing process and cable TV digitization process. Simultaneously, they also consider extending their regulatory scale from emerging internet video services to the connected TV industries, and enhancing superior programs producing by policy making. In point of accelerating network infrastructure complementing process, a complete broadband network is a foundation of digital convergence industry. However, a “complete” network indicates not only the non-discriminatory access to the hardware, but also mention about having reasonable prices to access broadband services. By considering of Telecommunication operators and cable TV operators are both provides of broadband services, the digitization issue of cable TV industry is also concerned in the DCDP. As a primary enemy to Telecommunication operators in the convergence market, cable TV operators’ competitiveness does not come from the their large share on the cable TV market, but from their possession of wide spread cable network. Otherwise, various new creating contents and application are also encouraged in the DCDP. With “Smart TV,” “HDTV” and “Connected TV” booming, “TV” has transformed from a passive receiving media to an information transport. Although, those emerging broadcasting techniques might threaten the traditional television industry, they bring positive influences to the media industry. By considering a well-run development must building on a integrity and friendly regulation framework. DCTF, an office established by Exclusive Yuan, will also take its responsible to assist NCC on the digital convergence regulatory issues. 3.Conclusion Digital convergence effect to us is a turbulence but also a moment. Today, this effect, which originally comes from the techniques convergence, has detonated in different nations and various places; crossing-industries competition turns to be more and more common around the world. To accommodate our nation to this trend, the primary strategy proposed by government is to integrate administrations’ effort. Through policies making, including DCDP upgrading and validly relative regulation frameworks amending, every relative industry is able to restore enough energy and seize the moment, further, naturally turns to be a domain of market competition.

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