Taiwan industries have been facing an increasing pressure from the competitive global market. To assist the Taiwan industries, the Government has approved the “National Intellectual Property Strategy Guideline” (the “Guideline”) on 17 October 2012. The Guideline stipulates six major strategies and twenty-seven relevant enforcement criteria in relation to intellectual property (“IP”). The six major strategies are as follows:
(a) creation and utilization of high-value patents;
(b) enforcing cultural integrity;
(c) creation of high agricultural value;
(d) support free flow of IP for academics;
(e) support system of IP trade flows and protection; and
(f) develop highly qualified personnel in IP.
Under the “innovation of high-value patents” strategy, the relevant enforcement criterion, being “establishing academia-industry collaborative system for IP management”, is to support the Taiwan’s current and future technology development program on R&D planning, IP management and technology commercialization. In other words, this enforcement criterion can greatly improve the ambiguity and inadequacy of Taiwan’s research infrastructure which have caused inefficient research operation. Furthermore, this enforcement criterion can also improve network collaboration between organizations on IP management, allowing more efficient process for managing IP and thus achieving the purpose of “creation and utilization of high-value patent”.In light of the above, this article studies Japan’s practice on integrating the IP network resources and improving their IP management under the University Network IP Advisors Program (“IP Advisors Program”).
A. Policy background, goals and methodology
National Center for Industrial Property Information and Training (“INPIT”) initiated the IP Advisors Program and commissioned Japan Institute for Promoting Invention and Innovation (“JIII”) to implement and carry out the new policy in year 2011.
Prior to the implementation of the new policy by JIII, INPIT has assisted with establishing proper IP management systems for more than 60 Japanese universities by dispatching IP experts and advisors (“IP Advisors”) to each of the universities during 2002 to March 2011. After the implementation of the initial policy, review has suggested that by expanding the network collaboration, such as establishing intervarsity IP information sharing system within their university networks, the universities can fully aware of and identify technologies that were created by them and are beneficial to the industrial sector. In addition, expanding the network collaboration can also help the universities to quickly develop mechanisms that will enable them properly protect and utilize their acquired IP rights. Accordingly, after 2011, the initial policy has expanded its scope and became the current IP Advisors Program.
Japan is expected to improve its nation’s ability to innovate and create new technologies. To attain this goal, Japan has identified that the basis for industry-academia-government R&D consortiums is through obtaining information on universities’ and other academic organizations’ research technologies and IP so that Japan can appropriately place these universities in the appropriate wide-area network. This will allow the universities within the wide-area network to establish IP management policy to properly protect and utilize their IP rights.
The current IP Advisors Program is conducted through application from the universities in established wide-area network to JIII. Upon review of the application, JIII will then dispatch the IP Advisor to the applicant university of that wide-area network. IP Advisors not only can provide solutions to general IP related problems, they can also provide professional advice and service on how to establish and operate IP management system for all the universities within the wide-area network.
B. IP advisors’ role
In principle, IP Advisors are stationed to the Administrative School or Major Supporting School within the wide-area network. IP Advisors can be dispatched to other member schools (“Member Schools”) or provide telephone inquiry service by answering IP related questions. In other words, IP Advisors are not stationed in any Member Schools to manage their IP management affairs, rather, IP Advisors advise or instruct the IP managers of the Member Schools on how to establish and utilize IP management system based on the Member School’s infrastructure. The contents of IP Advisors roles listed are as follows:
(a) Assist with activities within the wide-area network.
1. assist with establishing information sharing system between universities within the wide-area network;
2. assist with solving region-based or technology-based IP problems;
3. provide inquiry service for planning activities within wide-area network; and
4. provide inquiry service on other wide-area networks activities planning.
(b) Provide services for Member Schools (Type 1) with undeveloped IP management system.
1. investigate or analyze the available IP management system in the Member Schools;
2. assist with drafting a plan to establish IP management system (through an assisting role) and provide instructions or advices accordingly;
3. direct personnel training (i.e. provide education on invention evaluation, assessment on applying for patent and contracts);
4. advocate different regimes of IP; and
5. collect relevant information on new developing technologies.
(c) Provide services for Member Schools (Type 1) with developed IP management system
1. investigate or analyze the available IP management system in the Member Schools;
2. provide advices or instructions on the application of IP management department;
3. provide advices or instructions for solving IP management problems;
4. direct personnel training (i.e. provide education on invention evaluation, assessment on applying for patent and contracts);
5. advocate different regimes of IP; and
6. gather relevant information on new developing technologies.
(d) Provide services for Member Schools (Type 2)
1.Share and exchange information through network conference.
C. Recruitment process and criteria
JIII adopts an open recruitment process without a set number of allocated IP Advisor positions. Working location is based in Member Schools of wide-area network in Japan. In principle, IP Advisors are stationed in Administrative Schools or Major Supporting Schools within the wide-area network and can only provide telephone inquiry service or temporary assignment for assistance to the Member Schools (Type 1). However, it is noted that IP Advisors do not belong to any specific university within the wide-area network, they are employed by JIII under an exclusive contract. Based on 2013 example, IP Advisors’ employment contract started from 1 April 2013 and expires on 31 March 2014. IP Advisors’ salary and travelling expenses are paid by JIII. However, expenses for Members School (Type 1) establishing a working environment and any other disbursements should be paid by the Member School (Type 1).
Furthermore, under the implementation of the current policy with respect to IP Advisors who are unable to comply with the new criteria, previous contract is considered as a non-periodical contract for the IP Advisors to continue to station in the university. However, if IP Advisor is stationed in a specific university, it must be limited to a maximum of 3 years. Due to the IP Advisors’ work, they must comply with the privacy law and keep any obtained information confidential.
D. IP advisors’ qualification
1. Require a high level of professional knowledge on IP management system
IP Advisor candidates must have relevant experience working in the industry with IP management system department, operation planning department, R&D department (collectively refer as “IP Management Related Departments”).
2. Have relevant experience in directing trainings in IP Management Related Departments
IP Advisor candidates must have the ability to train personnel in IP Management.
3. Can provide IP strategies based on the demands.
IP Advisor candidates must have the ability to plan and utilize IP strategies to achieve optimal outcomes in R&D base on the circumstances and needs of different universities.
4. Have referral from the supervisors.
IP Advisor candidates who are currently employed must be able to obtain a referral from their current positions’ supervisor, IP manager or personnel from higher up. IP Advisor candidates who are current unemployed must be able to obtain a referral from their previous employment.
E. IP advisors’ selection process
Based on JIII’s “University Network IP Advisors Adopted Standards” (“Adopted Standards”), IP Advisors are selected first through written application followed by interview. After a comprehensive assessment, all qualified candidates will be compared based on their compatibility of the essential criteria and other non-essential criteria, and finally selecting the most suitable candidate for the wide-area network.
F. Application criteria for IP advisors services
1.Common requirements for Member Schools of wide-area network
(a) must be an university or educational organization pursuant to the School Education Act (No. 26 of 1947) and must be able to conduct research and have set number of entry students and graduates per year;and
(b) university must have developed IP related technology or design.
2. Criteria for wide-area network
(a) Must have minimum of 3 and maximum of 8 Member Schools (Type 1) and 10 or less Member Schools (Type 2) combined, and have Member School (Type 1) entering wide-area network;
(b) Must clearly state the nature of network as region-based or technology-based;
(c) With Administrative School as base, the network must have collaborative system to plan network events;
(d) Administrative School must be able to propose and carry out network events which can benefit Member Schools (Type 1) and the society through annual business plan.
(e) Must be capable to provide indirect assistance to IP Advisors who are limited by time and region such that there is a proper environment to conduct wide-area network events.
3. Entry requirement for Member Schools (Type 1)
(a) Must include in the university’s policy that they will become a Member School (Type 1) in the network and provide assistance to IP Advisors accordingly;
(b) IP management and IP utilization system must be clearly implemented;
(c) must clearly state the scope of responsibility in relation to the collaboration with the Administration School;
(d) Propose and carry out an annual business plan which can improve IP management and utilization system to a certain level on their own; and
(e) Has the facility to allow IP Advisors to provide assistance and service.
4. Entry requirement for Member Schools (Type 2)
(a) Must include in the university’s policy that they will become a Member School (Type 2);
(b) Same as paragraph F(3)(b) in this article; and
(c) Same as paragraph F(3)(c) in this article.
G. Current status quo
The original aim was to establish the initial IP Advisors Program to assist with university’s IP management system by dispatching IP Advisors to 60 and more universities from 2002 to March 2011. The current wide-area university network IP Advisors Program started on April 2011. Since then, JIII has dispatched IP Advisors to 8 wide-area networks. In addition, IP Advisors have also been dispatched to wide-area network with art and design colleges/universities.
During year 2011, IP Advisors has achieved and completed several IP management policies as follows: 7 IP policies, 3 academia-industry collaboration policies, 2 conflicting interest policies and 2 collaborative research policies etc.
This article is based on a legal perspective view point, taking Japan’s IP Advisors Program as a reference to provide the following recommendations on the topic of network for academia-industry collaboration in Taiwan.
A. Separate levels of collaboration base on needs
Using Japan’s policy as an example, universities within the wide-area network require different content of services tailored to each university individually, and the universities can be categorized into two types of member schools based to the content of services. Accordingly, it is recommended that the Government should consider a similar approach to the Japan’s policy when establishing IP management alliance and forming network of IP management system. For instance, design different levels of content and collaboration, and thus expand collaboration targets to gradually include major legal research institute, technology transfer centre for universities, and IP services in northern, center and southern area of Taiwan. This will allow collaboration of these organizations to coordinate IP programs such as IP northern, application and utilization with ease.
B. Emphasis on the idea of establishing and maintaining IP basic facilities
Based on Japan’s past experience, it is recommended that before expanding IP Advisors related policy to solve regional IP problems, universities must first be assisted to improve their own IP management system, which has taken Japan almost 10 years to improve their universities’ IP management system. From the current IP management system policy, it can be observed that the establishment of IP management system has a certain relevant importance. Furthermore, there is an emphasis on IP Advisors’ experience in training IP managers. Accordingly, it is recommended that the Government in future planning of network IP collaborate system should set short term and long term goal flexibly, such that the basic IP facilities within the members of the network can develop continuously. For example, short term goal for a legal research institute can be growing to a certain size for it to adjust or implement IP related policies. As for longer term goal, it can be a requirement to set up a unit or department to operate and manage IP.
C. Expanding the definition of ‘Networks”
Taiwan and Japan are high populated country on an island with limited land. Thus, if Taiwan and Japan insist on maintaining the geographic position for networking concept and adopting such concept on the regional economics for cluster effects, then it is difficult for Taiwan and Japan to compete with American Silicon Valley or other overseas universities.
In light of the above, on establishing network of IP collaborative system, the Government should take reference from Japan’s practice in 2012 and combine same industry such as medicine industry or art industry in the definition of network. This will accelerate the integration of IP experience, information, and operation management capability within the network of same industry.
In conclusion, in order to establish academia-industry IP collaboration system and efficiently improve Taiwan’s IP management system in research organizations, first must focus on various policies tailored for different levels of collaboration so that it can be integrated and expand the integration of IP resources such that there is a good foundation to develop IP basic facilities. Following the establishment of good IP foundation, it can then be further develop to more complex IP programs such as IP landscape, planning and strategizing etc.
The IP Strategy of Collaboration during COVID-19 Pandemic in Taiwan 1. IP strategy during COVID-19 pandemic Since the end of 2019, the coronavirus disease called “COVID-19” has become a global pandemic. World Health Organization (WHO) has announced that COVID-19 a Public Health Emergency of International Concern (PHEIC) on Feb. 12, 2020. WHO also announced that the new corona virus pandemic is requiring substantial efforts to enable regular information sharing and research, the global community should demonstrate solidarity and cooperation. Dr. Mukhisa Kituyi, the Secretary-General of United Nations Conference on Trade and Development (UNCTAD), pointed out that Collaboration is the engine of global science under COVID-19 pandemic. Global community should take the experience of Ebola outbreak in 2014-15, through global collaboration can provide opportunities both to create new knowledge and to increase the impact of research by diffusing existing knowledge, quickly and at all levels. Both “openness on data” and “open science in real time” are the key factors of improving collaboration under the crisis. Chesbrough (2020) noted that the pandemic stimulating innovation in management of intellectual property, such as initiatives like “Open COVID Pledge” encourages companies and universities to release intellectual property for fighting against COVID-19. The IP strategy based on “Open Innovation” concept can go much further, to play an important role in recovering after the crisis. There are two international famous cases in Taiwan, “National face mask production team” and “Face mask map” helped Taiwanese people to overcome the crisis lack of masks during the pandemic. Both cases show the importance of open innovation in facing the crisis, and contain the concept of IP strategy based on collaboration. 2. National face mask production team Because over 80% of face masks rely on imports, Taiwanese government was aware of the lack of masks when the epidemic began. Since the first COVID-19 case in Taiwan was confirmed on Jan. 21, surgical face masks were sold out in a very short time. The government banned the export of masks on Jan. 24 for controlling the shortages, but it was still a big problem that the production lines at that time could not afford the demand of Taiwanese people. Therefore, how to obtain a large number of mask production lines in a short time and ensure the supply of raw materials had become the primary issue. The government invested NT$200 million (US$6.66 million) and recruited over 100 technicians to form the team named “National face mask production team”. The national team is composed of volunteers from industry and research institutions, especially from Taiwan Machine Tool and Accessory Builders' Association (TMBA). From Feb. 5 to Mar. 5, the national team completed an estimated half a year’s workload including 62 mask production lines. And the team immediately started the second phase of work to meet the extremely large domestic demand for masks, finally they completed 92 mask production line 6 weeks and continue to assist the government in anti-counterfeiting masks. The key factor for the team to complete such a large amount of work in a very short time is not only the selfless dedication of team members but they effectively utilize and share their advantages in their own industrial field. These team members are “Hidden Champions” of global supply chain, after understanding the composition and principle of each part of the mask production line, they immediately began to assign the work and contributed their skill, know-how and experience of machine tools and accessories for mask-producing collaboration. 3. Face mask map In additional to the national face mask production team case, the “face mask map” is another successful case of collaboration during the epidemic in Taiwan. In the beginning of the epidemic, Taiwanese people rushed to buy surgical face masks, resulting in insufficient supply of domestic masks. The government implemented face mask purchase controlling such as limiting three per day and later only two per week through the National Health Insurance Administration (NHIA). According to the rationing system, people can buy surgical face masks at NHIA-contracted pharmacies near their home. But in fact, due to the face mask distribution information was not disclosed, people often have to go to many pharmacies to buy masks. Thus, people spontaneously developed “face mask map”, combined with pharmacy locations on Google Maps and the data of inventory quantity in each pharmacies, to help people know where to buy surgical face masks. Taiwan’s Minister without Portfolio Audrey Tang was in collaboration with Taiwanese software engineers to develop a “real-time map” of local face mask supplies through connecting pharmacy locations on Google Maps and the data of mask inventory quantity in NHIA’s database. With the support of the NHIA database opened according to the license terms compatible with Creative Commons (CC) 4.0, the platform contains over 100 programs and applications was successfully created by public-private collaboration. This platform is jointly maintained by the open community, each member of the community can actively report the updated version information of the applications. Even if the platform has retired due to the implementation of “Name-based Mask Distribution System 3.0”, the successful experience of public-private collaboration platform through “open data” and “open source software” becomes an important foundation of future development. 4. Collaborative IP strategy for crisis management In different from the traditional IP strategy that emphasizes on excluding others from implementing the patents, the collaborative IP strategy pays more attention to the potential of community co-creation. In the face of the crisis of the epidemic, people are willing to share their IP, know-how and experience to gain more time to fight the epidemic. The collaborative IP strategy can implement the concept of open innovation through knowledge sharing, and flexibly use various IP resources in the face of crisis. Especially in the face of a crisis like COVID-19 that has never been dealt with, the collaborative IP strategy can effectively collect the knowledge and creativity of the community. Cases of “National face mask production team” and “Face mask map” can be used as models for collaboration in the face of crisis, and even continue to be used for recovery after the epidemic. The open innovation theory supports open, flexible and highly interactional “creative networks”. At the same time, the collaborative IP strategy serves as a means to implement the open innovation theory. Even though many open communities’ IP strategy such as “free and open source software” or “creative commons” do not originate from the open innovation theory, the theory can still provide guidance for collaborative IP strategies in times of crisis. The collaborative IP strategy should not be limited to the sharing of patents, copyrights or trademark rights but include the skill, know-how, experience and idea, which is able to effectively organize community collaboration and innovation in the face of crisis. World Health Organization, Statement on the second meeting of the International Health Regulations (2005) Emergency Committee regarding the outbreak of novel coronavirus (2019-nCoV) (2020), https://www.who.int/news-room/detail/30-01-2020-statement-on-the-second-meeting-of-the-international-health-regulations-(2005)-emergency-committee-regarding-the-outbreak-of-novel-coronavirus-(2019-ncov) (last visited Oct. 19, 2020). Mukhisa Kituyi, COVID-19: Collaboration is the engine of global science – especially for developing countries, World Economic Forum, May 15, 2020, https://www.weforum.org/agenda/2020/05/global-science-collaboration-open-source-covid-19/ (last visited Oct. 20, 2020).  Henry W. Chesbrough, To recover faster from Covid-19, open up: Managerial implications from an open innovation perspective, Industrial Marketing Management, Apr. 16, 2020, available at https://doi.org/10.1016/j.indmarman.2020.04.010 (last visited Oct. 26, 2020). Central News Agency, How a team of technicians is helping Taiwan triple mask production, Taiwan News, Mar. 25, 2020, https://www.taiwannews.com.tw/en/news/3903970 (last visited Oct. 30, 2020). Keoni Everington, Taiwan platform includes over 100 apps showing mask availability in stores, Taiwan News, Feb. 27, 2020, https://www.taiwannews.com.tw/en/news/3882111 (last visited Oct. 30, 2020). Ali Jazairy, Impact of Collaborative Innovation on IP and Future Trends in IP, Les Nouvelles, 47, 224 (2012).The Development of Non-Drama TV Programs in Taiwan and the Protection of Intellectual Property Rights
The Development of Non-Drama TV Programs in Taiwan and the Protection of Intellectual Property Rights With the advancement of an era of digital content, the industrial structure of the audio-visual content industry has gradually changed. The production and sales channels of audio-visual content have appeared to trend toward diversification. Emerging content channels or new media have replaced traditional TV stations. The transmission speed of digitized content is faster than the traditional media, which has become an output opportunity for the content of Taiwan in the international market. In the field of drama programs, there have been cases of successful global output, and international cooperation and export models have been gradually discovered. By contrast, non-drama TV programs of Taiwan still remain in the traditional production mode in lack of creation of new content or funds, as well as talents for production and international marketing, which leads to a vicious circle of industrial stagnation or even regression. 1. Problems with domestic non-drama TV programs Funding is the first issue that needs to be resolved. "Due to the lack of money, the only thing that can be done is producing programs that no one wants to watch." Such a condition exists day after day that causes the entire non-drama programs to be depressed, and few people are willing to invest. By contrast, in China or South Korea, the linkage of its variety shows brings about the development of the content industry, and the benefits are amazing. The willingness to spend money on the investment at its initial stage is an essential element of success. However, if there is no successful case, it may not be easy to solely rely on Taiwanese private funds. As far as the technical level of TV program production is concerned, it is particularly important to modelize TV programs if they are to be exported. The market transaction of international TV program formats has existed for many years, but the object of the transaction is the core content and production process of TV programs, that is, the TV program bible. For non-drama TV programs of our country, if it needs to sum up the core of the program in one sentence, it is not impossible to achieve. However, it still lacks the core content such as the famous tv show "THE Voice" that is sufficient to attract people. In addition, in terms of production, how to edit as well as integrate the stage and supporting design into the shooting so to present attractive programs is the relatively lacking part in TV programs of our country. As for the cultivation of talents, Taiwan has yet rarely relevant talents who are able to research, develop, and independently write the TV program bible, as well as do marketing. By contrast, China has achieved remarkable results in TV programs in recent years. They have some consultant companies that specialize in writing a TV program bible for production companies. Their R&D personnel record details by following and observing the directors, producers, and photographers, of which the records gradually become a TV program bible. Some talents in China have mastered the art of writing TV program formats. They can even directly disassemble well-known foreign formats and rewrite them as Chinese versions for production, which has achieved success. 2. Overview of international TV program formats Taking a broad view of the status of foreign TV program formats, it is found that the output of creative development is not in the countries with big entertainment industries such as the United States, the United Kingdom, and France, but in small European countries such as the Netherlands and Israel, which have a large number of output of TV program formats. The Netherlands and Israel are not countries where the television industry is prosperous. However, their TV program output occupies an important position in the global market. Some programs have even produced more than 1,000 episodes in the world, with the output to countries including the United States, China and others. Similar to Taiwan, Netherlandish and Israeli TV programs are also faced with great limitations in production funds due to the small domestic market. However, many TV programs have been created by relying on the novel program content and taking full account of the needs of the international market. In the international trade market of TV program formats, if you intend to successfully output a program, it not only contains a novel main idea, but also covers production and viewing. The output carrier of TV program formats is the "TV Format Bible". Its content includes various links of program rundown, personnel settings, camera lenses, sound effects and lighting, etc. As long as the program has a fixed existing model, no matter who plays the roles in the program, the quality of the program can be kept stable. This kind of production of non-drama TV programs according to the TV Format Bible is called TV Format. 3. Protection of huge business opportunities of formats: preservation and authorization management of intellectual property rights The core value of formats often lies in the creative part of the content. How to effectively preserve the creativity and at the same time to claim the rights are of the most concern by ideators, and the carrier of modelizing creation is the "TV Format Bible". The writing of the "TV Format Bible" is based on the thinking of TV Format structure. At the creative stage, the core content will be integrated into the production level, including how to set up the lighting and the arrangement of the camera to achieve the entertainment effect of the creative core content and other details. However, the value of the "TV Format Bible" comes from the ideation of creativity, and whether creativity is to be protected by law has been controversial since always. Judging from the results of the current judgments on disputed cases concerning the TV Format, the more specific the TV Program Bible is written, the higher chance it has to be protected. A successful variety show not only can bring about the domestic and foreign income from the show itself, but associated derivatives such as music, tourism, and peripheral products may also be able to obtain huge business opportunities due to the broadcast of the program. Therefore, although the TV Program Format is centered on its content, it actually involves issues of industrial management such as human resources, labor relations, corporate governance, taxation, fundraising, bankruptcy procedures, economic systems, and professional ethics. In addition, in aspects of commerce, marketing and management aspects, matters such as the establishment of the production team, the production process management, the acquisition and use of creation funds, and valuation are all covered in the operation of formats.Yearly Update on the Progress of the TIPS Project – summary of a research report on corporate investors’ view on introducing a corporate IP disclosure framework
Chien-Shan Chiu Background In the era where inventions drive the economy, the ability to create, capture and protect these inventive ideas has become vital for a corporation to stay competitive and sustain profit growth. Various government policies have been implemented in order to stimulate inventions and to strengthen the ability to protect these inventions through effective use of intellectual property (“IP”) rights. For the past few years, the TIPS (Taiwan Intellectual Property Management System) project has been promoted extensively aiming to increase public awareness towards IP rights and to assist local companies to establish a systematic and comprehensive IP management system. Over the years, the TIPS project has received wide recognition and positive feedbacks, and many TIPS-implemented companies are ready for the next challenges. After an extensive research, the project proposes to follow the international trend of encouraging companies to make better and more disclosure of intangible assets that are not often shown in the traditional financial statements1 . Local companies with effective IP management system and strategy are encouraged to compile an “Intellectual Property Management Report” summarizing its business, R&D and IP management strategies as well as their accumulated IP assets. In order to compile an Intellectual Property Management Report, a company is advised to re-identify its intellectual property, re-think about its strength and weakness in every aspect and where necessary, the company may also need to re-conduct a market, technology trend or competitor’s analysis, through which it is believed that a better and more effective IP strategy will be re-formulated. Formulating a well-planned corporate strategy that takes into account various IP issues is one of the main reasons for introducing the corporate IP disclosure framework. Promoting the disclosure of IP-related information so that the management efforts, visions and true capabilities of a corporation can be fully disclosed and recognized is the second major reasons for introducing the corporate IP disclosure framework. This essay begins with a brief update on the yearly progress of the TIPS project, follows by a summary of the research report on corporate investors’ view on initiating a framework for enhancing disclosure of corporate IP-related information. The research report contains the result of a survey conducted between April and June this year (year 2009), consisting questions to uncover local investors’ view and attitudes towards corporate IP, and to identify kinds of IP-related information required when making an investment decision as well as to find out to what extend local investors would support the government’s initiative on promoting a corporate IP disclosure framework. Update on the Yearly Progress of the TIPS Project In order to facilitate the promotion of TIPS, several supplementary services have been introduced (fees and expenses are fully or partially subsidized by the government this year) : (1) Free On-Line Self-Assessment Tool; (2) On-Site Diagnostic and Consulting Service (selected companies were fully subsidized); (3) “Demonstrative” Model Companies (selected companies were partially subsidized); (4) IP Management Courses (partially subsidized); (5) On-Site Auditing (for the Conformance of TIPS requirements) and issuing of the TIPS Compliance Certification (fully subsidized) . To the end of 2009, 401enterprises have completed the on-line self-assessment questions; 93 companies have received on-site diagnostic and consultation services; 847 persons have taken the IP management courses; 64 enterprises have successfully obtained the certificates for the compliance of TIPS and more than 299 enterprises have either completed or in the middle of implementing TIPS. Summary of the Research Report on Corporate Investor s’ View on Introducing a Corporate IP Disclosure Framework Even though it is clear that the idea of encouraging corporations to disclose non-financial information has started few decades ago in Europe and are currently being vigorously promoted by many major countries, we believe that in order to facilitate smooth promotion of the new IP disclosure framework, it is important to find out the local investors’ views and attitudes towards IP and to know how investors see the role of IP can play in a local corporation. Hence a survey was conducted at the initial stage of preparing the new corporate IP disclosure framework in Taiwan. The survey was sent via both mails and emails to 357 corporations, including venture capital firms; trust, investment consulting or management firms; security corporations, financial institutions and banks. More than one set of survey questionnaires could be distributed in one corporation to be filled by investors/analysts that are specialized in investing different industrial sectors. As a result, a total of 495 set of questionnaires were distributed.. Basic Data The survey was conducted between April to June 2009. At the end of June, a total of 150 investors/analysts responded which equals to a 33% response rate. Most of the survey respondents specialized in investing in various industrial sectors which include: semi-conductor; telecommunication; electronic components; 3C products; IT; optical; biotechnology; pharmaceuticals; new energy resources; media; creative and culture and traditional manufacturing industries. Around 50% of the survey respondents have more than 5 years’ experience in investment; among them, 23% of the survey respondents have more than 10 years’ investment experience. Investors recognize the importance of IP A remarkable 94% of the survey respondents recognized that the ability to create, protect, manage and exploit IP has become an essential element for a company to stay competitive and sustain growth in today’s market environment. 88% of the survey respondents believe that companies with more or better IP assets are more likely to generate profits and 91% believe that such companies are more likely to survive in this ever-increasing competitive environment. Yet, 94% of the survey respondents agreed that not only a company should actively create IP assets, but the ability to exploit and thus extract value from the accumulated IP assets is what makes a company stand out among the others. Taking a step further, the survey result reveals that the respondent investors believe a company with effective and well-planned IP strategy is likely to: – Enhance its market competitiveness (84%); – Raise its overall corporate value (71%); – Maintain its market position (55%); – Increase its profitability (32%); – Affect its share price (30%); – Assist investors in evaluating such company’s managerial ability and performance (29%) as well as evaluating its future growth potential (28%). IP-related information influences investors’ investment decisions Given that most investors see the ability to create, manage and exploit IP assets as well as having a well-planned IP strategy are crucial for the survival of a company, 82% of the survey respondents indicate that IP-related information has been considered when making an investment decision. Furthermore, 85% of the survey respondents think that they will place greater emphasis on IP in assessing companies in the future. Indicators that used to assess/evaluate a company Most often used IP-related indicators identified by the survey respondents when making investment decisions are: – Core technology and its market competitiveness (77%) – Research ability (experience and achievement) (73%) – IP protection and management measures (41%) – IP strategy (align with overall corporate strategy and market/technology characteristics) (40%) – Ability to fully utilize self-owned IP assets (38%) – R&D expenditure and investment (35%) – No. of IP assets (35%) – Time taken for competing products to enter into the market (33%) – Cost of maintaining IP assets (19%) Ratio of intangible assets as to the overall corporate value (19%) : 20% of the survey respondents indicated that they have turned down investment in the past for inadequate IP awareness of the target companies. List of local companies with good and effective IP strategy The survey respondents were asked to name local Taiwanese companies which in their mind have most effective and sound IP strategy. Taiwan Semiconductor Manufacturing Company (TSMC), Foxconn, United Microelectrc (UMC), HTC, Acer are the top 5 most named companies given by the survey respondents. Having good quality of patents (such as essential or new technology patents); detailed and complete patent map; sound IP strategy; brand and professional IP/legal department are cited as the reasons that impress these investors. Inadequacy of public available IP-related information While most investors acknowledge the importance of IP and take into account various IP-related indicators when making investment decisions, 76% of the survey respondents expressed that currently, the amount of IP-related information disclosed by companies are not sufficient for them to make an informed investment decision. When a question asking the survey respondents to identify the channels by which they obtained their desired IP-related information, the results were quite spread out. 45% of the survey respondents relied on asking the top managers directly; 43% relied on annual report; media and news (35%); website (34%); industrial journals (25%); competitors (15%) and other private channels (15%). It appears that various sources were used but no particular source provides sufficient information. Indeed, a remarkable 91% of the survey respondents believe that if there are more channels provided for corporations to disclose their internal IP information, more accurate assessment of the corporate value can be made. Support government’s initiative of promoting IP reporting framework Further, 73% of the survey respondents expressed their willingness to support the government’ s initiative of encouraging local companies to disclose their IP-related information. In relation to the initiation and promotion of the corporate IP disclosure framework, 64% of the survey respondents responded that it would be better to adopt a voluntarily disclosure policy and decide whether to switch to mandatory disclosure later; 22% think that only a voluntarily disclosure policy should be adopted followed by 14% of the survey respondents who believe that the government should adopt a mandatory disclosure policy from the start. When the survey respondents were asked to provide suggestions to facilitate the promotion of the corporate IP disclosure framework, the following suggestions were picked by the survey respondents: – Provide valuation tools to assist investors in assessing and analyzing IP related information (40%); – a central platform to collect and display all the complied IP management reports (21%); – lists of compulsory items to be disclosed in the report (21%); and – regulate the frequency of updating the contents of the report (15%). Conclusion Based on the results of the survey, we can conclude that the local investors’ view and attitude towards IP are similar to those in overseas. Majority of the investors (> 90%) see IP as valuable tools that could assist companies to create profits and sustain growth in today’s competitive market. While most of the investors (82%) have taken into account relevant IP information when making investment decisions, 76% of the survey respondents expressed that the amount of corporate IP-related information disclosed by companies are insufficient for them to make informed investment decisions. This is an important message that local companies should pay particular attention. It is hoped that through the introduction of the corporate IP disclosure framework, more adequate corporate IP information will be disclosed to assist investors in making better and accurate investment decisions. Consequently, a company’s true capabilities, managerial efforts and the intangible assets created upon can thus be fully appreciated and reflected on its market value. 1 Various national and institutional initiatives addressing the disclosure of corporate intellectual assets are currently being promoted vigorously at the international level such as Japan’s “IA based Management Report, (METI)”; Denmark’s “Intellectual Capital Statement (MSTI)”; European Union’s “Guidelines on Intangibles, MERITUM project”; U.S.’s “EBR 2.0 (Enhance Business Reporting Consortium)”; and The World Intellectual Capital/Assets Initiative (WICI) is currently working on developing a voluntary global framework for measuring and reporting corporate performance.Intellectual Property Management Standards of Taiwan: Development and the Status Quo
Oct/30/2006 I. Intellectual Property Management among Taiwanese Firms: Status Quo and Problems 1. Current status of management of intellectual properties among Taiwan-based enterprises Way from Taiwan's participation into World Trade Organization (WTO) effective January 1st, 2002, huge impacts have been brought upon our domestic enterprises, since, apart from competition coming from giant international manufacturers, they have to meet challenges coming from elsewhere in the world. Besides, the arrival of a time when knowledge became an integral part of the economy in which we find ourselves, profits realizable to an enterprise depends largely on the control of market and on R&D of key technology, such that intellectual property alone is a sure key to the earning of profits and growth of modern enterprises to which admirable economical worth may be created commensurably. Intellectual properties owned by the enterprise should make it such that corporate know-how is thereby transformed into marketable commodities to stand in a viable position among competitors. An overall observation of the management system in our domestic enterprises or organizations indicated that management of intellectual properties is scattered among Education or Training units, R&D units, Legal Service Units, rather than detitle with collectively or through flow control. Management of intellectual property as such by and large would fail to produce immediate or admirable benefits to the enterprise, serving at most to avoid occasioning of losses, in fact and indeed it is but through strategic exploitation of an intellectual property management system would it be possible to pursue a share of the market or to realize licensed proceeds. 2. Problems facing domestic enterprises with respect to management of intellectual properties Renowned firms based in Taiwan and active in the prosecution of management of intellectual properties do so primarily because their executive realized how grave a loss could be incurred to corporate assets and corporate operation due to infringement charges, Taking the infringement charge by an alien firm against a certain domestic firm early January, 2006, for example, to reach a compromise a payment amounting to approx, US$85,000,000 was necessary, and that claiming a share of 10% of the Company's annual revenue, that lesson has taught the Company to pour mass resources in the establishment and execution of intellectual management system. In the Knowledge-based Economy of today, no top management of any enterprise or organization would deny the importance of the management of intellectual properties, understanding alone, however, would not suffice to push the Company getting to work forthwith, because the buildup of an intellectual property management system will of necessity incur a lot of costs, seeing the want of possibility to obtain any investment return all at once, most enterprises or organizations would have their intellectual property management systems designed essential to prevent infringement upon other part's intellectual properties. Notwithstanding that our local manufacturers have gradually come to their senses as regards the importance of intellectual properties, larger scale ones, confronted with cutthroat pricing competition in the global market, is largely harassed with litigation on infringement of intellectual properties; whereas the medium and small businesses, owing to inadequate manpower and funding resources, were largely unable to go for in-depth development of intellectual properties, still, a key to consistent development of our local industries lies in a sound planning of the intellectual property management system, amid the current of the Knowledge-based Economy featuring the 2lst century, the creation and protection of intellectual property rights is a critical index to the upholding of our national competition. So top issues on the agenda for competent authorities in charge of industrial sectors include; assisting local businesses or organizations to implement systematic management of intellectual properties, to retain, accumulate intellectual properties produced by its employees and convert same into intellectual assets, to thereby upgrade their competitive margin, this chain of efforts must be formed in a grand cycle encompassing all the staff, to stand firm and last. II. Formation and orientation of Taiwan's standards on management of intellectual properties 1. The origin of Taiwan's regulation of the standards on management of intellectual properties Impacts brought to local industries in the wake of Taiwan's participation in WTO have taught both the Administration and the Industry to realize, in the long run, that protection of intellectual strength and exploitation of intangible assets can redound much to build up competitive margin, Now that our nationwide economic and trade activities have entered global, international scale, the number one issue is to emphasize protection of intellectual properties if only it accounts to move further into transnational frontier and let our national competition be felt there, what's more, protection of intellectual properties is an obligation laden upon all the member states of WTO, and that consistent with our national interests Yet protection of intellectual properties is a comprehensive, integrally interrelated task demanding nationwide consensus, calling for unreserved cooperation across governmental, civil, administrative and legislative channels, if only any effect to be expected accounts, yes indeed it is but through an environment propitious to the safeguarding of intellectual properties can R&D tank go deeply rooted in this country, therein lies rightly a sure key to permanent survival of our nation at large. The buildup of a convenient, effective and low-cost intellectual property management system in lieu of discrete controls seen traditionally in our local enterprises or organizations, will help the enterprises to effectively control and safeguard their intellectual properties, and that sub serving to protect their proper interests, reduce risks of theft, and restraint from encroaching upon the intellectual properties of third parties, besides, roytitleies through licensing arrangement will redound to corporate revenue, that paralleled with boosted marketing competition, intellectual properties protected and exploited as such will mark a resounding foundation for lasting development in our times where know-how alone is the king. The foreground being recited above, in 2003 and 2004 the Intellectual Property Office, a department of the Ministry of Economic Affairs (IPO for short), appointed Science and Technology Law Center, a unit under Institute for Information Industry (STLC for short), to establish an intellectual property management system suitable for local enterprises (Then known as “Intellectual Property Management System Standard”, in the hope that by the implementation of standardized intellectual property management procedure and promotion of same, local enterprises may remain less likely to getting involved in infringement charges, among other benefits foreseeable with exploitation of properly owned intellectual property rights. 2. Orientation of Taiwan's intellectual rights standards On December 9, 2004, the Ministry of Economic Affairs held a Conference on “Deliberation on the instituting and promotion of standards for the management of intellectual properties of Taiwan”, whereat a resolution was reached to work for Taiwan Intellectual Property Management System basing on the Intellectual Property Management System Standard proposed by STLC under trust for Intellectual Property Office, eventually it is hoped that through national standard certifying processing said Intellectual Property Management System Standard be instituted as our National Standard, to build up a nationally acknowledged credibility. Enterprises would then be encouraged to introduce for themselves a certifying mark once entitled through certification, and efforts will follow to see that the Intellectual Property Protection System be instilled in day-to-day realities, the whole system would by then be promoted internationally so that the image of our nation as an active protector of intellectual properties will one day be known to the world at large. However, as it will take years to have a national standard institutionalized, moreover, the enterprises at large are not sufficiently informed with the notion of the management of intellectual properties, the first step might well be to build up an Intellectual Property Management System Rating Scheme, to be followed with specification of supplemental procedures, and the same on completion, be recommended to the industry circle, and progression to applying for national standard would begin only if extensive consensus is obtained in the first place, paralleled with correlation with international realities, After the task was transferred to the Industrial Development Bureau of the Ministry of Economic Affairs (IDB for short), in 2005, it was reoriented to the positioning of industrial specification, that anyway helps local enterprises or organizations to build up a wholesome intellectual property management system. To adapt to industrial convention respecting specifications, the Intellectual Property Management System deliberate herein is named “Taiwan Intellectual Property Management System” (TIPS for short). The TIPS which is in the charge of the IDB is indicated for autonomous introduction by individual enterprises or organizations, in the hope that a systematic model for the management of intellectual properties would help correlate existent hardware facilities with ad hoc Intellectual Property Management so that a convenient, effective and low-cost management system be easier founded for the enterprise or organization concerned, in place of traditional trivial, random management practices 3. Process of formation of Taiwan intellectual property management standards While the establishment of Intellectual Property Management Standard was still in progress for the STLC, there was already lots of matured management standard system among international communities for consultation, including, for example, the ISO Quality Management System. So eventually in 2003, 2004, the Intellectual Bureau encrusted the STLC to analyze the ISO9001:2000 Quality Management System in terms of its spirits and structures, and to look into the possibilities for combination with Intellectual Property Management as well, so that, in the affirmative case, what needs be done is to work out an Intellectual Property Management Standard to which all kinds of business and industry may fit, and that will help to achieve procedural flow, efficiency and standardization all at the same time. The ISO9001:2000 Quality Management System is a standard established by ISO (International Organization for Standardization), and which is currently a Quality Management System running around the world. In the year 2000 ISO combined through amendments of ISO9001, ISO9002 and ISO9003 published titleogether in 1994, to form ISO 9001:2000. ISO 9001:2000 since replaces all the previous standards and stands as the only and sole standard for certification, featuring emphasis on the consolidated functioning of Quality Management Systems and the target for comprehensive Quality Management. The ISO 9001:2000 based the entire system structure on PDCA Management Cycle (Plan-Do-Check-Action), way up from the Management Level, setting corporate quality policies and targets as dictated by customer needs, whereby planning of corporate resources is decisive in production and service outputs, what with measuring and monitor mechanism to persistently improve functioning of the entire quality system. With respect to various operational procedures in an enterprise or organization, a four-step PDCA comprising: (1) Plan, whereby quality policy is formulated; (2) Do; (3) Check, as to the outcome of what has been done; and (4) Action, corrective and preventive by nature; will intervene to help resolve problems as they arise and hence, achieve the targets. Abiding by aforementioned PDCA model, the STLC will firstly incorporate the Intellectual Property Management Standard into ISO 9001:2000 Quality Control System, thence consult the ISO system structure to split into 0 to 8 units: General Description, Scope of Application, Reference Standards, Definitions, Intellectual Property Management System, Management Commitment, Resource Management, Procurement, of Intellectual Proprieties, efforts as such should help the enterprises to promptly set up hard environments necessary to the management of corporate intellectual properties, and make the STLC easier in lending a hand to facilitate substantive functioning of corporate intellectual property management systems. Intellectual Property Management Standards incorporated to ISO system will prove more structurally effective, and help the enterprise to rapidly lay a foundation for the management of their intellectual properties, so that hopefully they may more effectively manage, make use of their intellectual properties, whereby to fortify their competitive margin, so that in the long run the overall international competitive margin of our industries is upgraded. A common goal for the design and setup of intellectual property, management standards lies in searching for the maximum possible assent from the industrial society so that an auditing or certification platform be created to benefit the intellectual property management system that is working for any enterprise or organization in this country, in order for such systems one by one will necessarily conform to prescribed standards, minimum requirements from given organizations or stipulated in statutes inclusive, not to mention the ultimate goal of better protection and exploitation of intellectual properties, in a lawful and satisfying manner. However, as yet no consensus has been reached as regards the establishment of a national standard respecting management of intellectual properties, yet there is still a need for management of intellectual property rights among local enterprises or organizations, to offer the utmost assistance possible to them all, the Ministry of Economic Affairs has taken the initiative to revise what was once Intellectual Property Management Standard into Intellectual Property Management Specifications, and such is positioned as an industrial specification. By instructive posture, subjects considered suitable to accept said Intellectual Property Management Specifications include all kinds of organizations irrespective of their category, scale, products or services offered. Even units or ad hoc groups in a given organization may qualify for inclusion, including, for example, a company in its entirety, or a specific division of that company, a laboratory or production program. 4. Anticipated Benefits That the IDB is sparing no effort in the preparation of Intellectual Property Management Specifications is underlined with multiple objects, to offer a unified structure for the management of measurable intellectual properties, to help enterprises simplify their procedures of management of intellectual properties, to enlighten the object enterprises or organizations with the understanding and what to expect from an Intellectual Property Management System. If only management of intellectual properties is incorporated into routine operation of an enterprise whatsoever, and that concept spread afar internationally, that would certainly help to build our national image as a country that is brave enough to initiate protection of intellectual properties. In the mean while, with ever increasing demand for the setup of intellectual property management systems, a reality as such in the foreground, a good chance is struck to enlarge the service market or intellectual property management services emanation from Taiwan, and that sub serving to the development of know-how service industry, a surplus for the service industry by any rate. An enterprise or organization by the establishment of intellectual property management system may expect the following benefits; Increased competitive strength and creation of additional value. Once an Intellectual Property Management System is there, the facilitation to maximize intellectual properties will redound to corporate competition, while help creation more of additional value. Taking our sports implements industry or the vehicle lights manufacturers in Taichung area for example, intellectual properties are present in the products and in the production process as well, to make available diversified options for the purchasing parties, thereby greatly enhancing additional value to the products, interpreted to mean more profits realizable over pure OEMs. Avoidance of vicious cycle, increased will to placement of purchasing order. If only optimum use is made of intellectual properties such that they are represented in the products, in the process or even in the technology itself, Taiwanese manufacturers who are basically OEMs may avoid the painful dilemma of vicious competition, and may even make it may avoid the painful dilemma of vicious competition, and cay even make it for overseas buyers to be core willing to place orders, Taking again as an example a TIPS induced manufacturer, 2005, the Universal Scientific Industrial Co., Ltd., after the USI has built internal intellectual property management system pursuant to TIPS specifications, alien clients on the point of placing orders may very soon be adequately informed with the model the USI takes respecting their management of intellectual properties, satisfied that the products being purchased are largely safe from infringement of other's proprietary rights, the alien buyer may be willing to place more and greater orders. Reduced management costs, creation of greater profits. Most Taiwan-based medium and small businesses are far from being able to input mass manpower or material resources simply to build up systematically structured intellectual property management system. The meaning of introducing TIPS specifications lies simply in the close embodiment of existent hard equipments with management of intellectual properties for any intending enterprise whatsoever, so that a full set of convenient, effective and low-cost management may come into being in lieu of random and discrete management practice which has been the case for years or even for generations. Obvious benefits with such an arrangement include protection of proper interests, preclusion of encroachment upon the proprietary rights of third parties, and perhaps the possibility of granting licensing arrangements to earn roytitleies for the company. III. Implementation of Taiwan Intellectual Property Management Standards: History and Current Situation From 2006, the way to promoting the Intellectual Property Management System is prosecuted in the form of specifications submitted to industries in the hope that industries would establish their own intellectual property management systems using such specifications, through systematic flows, efforts as such should help to boost corporate competition, and the keynote has therefore shifted from once where it was, that was, verifying if a given industry had introduced and honestly follow specified Intellectual Property Management System against given standards. What follows below is a phase-wise account of the history of implementation of Taiwan's Intellectual Property Management Standards: 1. Trial Phase Emphasis placed on Intellectual Properties following Taiwan participation in WTO has driven the IPO to appoint the STLC to formulate a full set of standards for the management of intellectual properties based on a structure and morale embodying ISO 9001:2000 Quality Control Systems, and the same intended for trial introduction into local industries in addition to personnel training and promotion purposes. In this phase important businesses on the agenda include: To launch the institution, the intellectual property management standard will be firstly introduced into three manufacturers beginning in 2004, whereby manufacturer's comments collected in the counseling process will turn to account for reference for amendment considerations respecting said Intellectual Property Management Standard, with outcome of the introduction serving as a model for other manufacturers. As regards promotion, suitable promotion scheme will be put into effect to introduce Intellectual property Management Standard to enterprises or organizations to which predecessor experiences will be supplied as well, whose newly gained experiences would be shared among other enterprises for reference in Outcome Sharing Party activities. As regards counseling input, there have been 3 manufacturers in 2004, Asia Optical Co., Inc., Cheng Uei (Foxlink) Precision Industry Co., Ltd. and HiTRUST Inc., receiving trial introduction of Intellectual Property Management Standard whereby each has had their own Intellectual Property Management System established. As regards personnel training, seeds have been chosen who, after having received training on relevant curriculums, betook themselves to assisting enterprises or organizations introducing Intellectual Property Management Standards, this in turn benefits the seeds with on-job experiences such that they turned out better prepared to demonstrate counseling, assessment capabilities in the face of future promotion tasks, As regards R&D tasks, consistent brainstorming for the working of supplemental or operating procedures necessary for the promotion of Intellectual Property Management Standards, prepping up comprehensive implementation programs based on experiences accumulated over practical and personal involvements. 2. Demonstrative Introduction Phase Since promotion task is passed to the IDB in 2005, efforts to institute Intellectual Property Management Standard switched to introducing Intellectual Property Management Specifications where the top concern is to be helpful for the industries concerned. On the basis of as is Intellectual Property Management Specifications and prep up verification mechanism; Seen in the result of institutional promotion, out of stipulations and regulations conditioning the promotion of intellectual property management system that is persistently deliberated by the STLC on behalf of the IDB, a total of 11 documents nave been released pertinent to supplemental procedures and relevant date, plus up to 10 errands comprising reviewing of statutory provisions and effecting of major amendments. As regards promotion efforts; done are printing of notes on application of counseling services, brief introduction of Intellectual Property Management System, Specification of Intellectual property Management System, Paragon of Management Handbook and Guide to Assessors. Promotion efforts were consummated in 3 promotion seminars which took place in the north, central and southern part of Taiwan respectively, also done is an outcome share party where the protagonist is paragon manufacturer introducing the system in question; cooperation has been an event with Economic Daily News which has given an in-depth coverage on paragon counsel case. Forum on the media Economic Daily News whereat reputed scholars on intellectual property issues and experts in practice, such as Professor Ming-Yan Shieh of National Taiwan University, Professor Chung-Jen Cheng of Shih Hsin University, have been attending. As regards counseling for introduction, a total of 8 middle or smaller businesses have been successfully counseled into introduction for exemplification purposes in 2005, they are: Yulon-Nissan, Asia Optical Co., Inc., Advanced Connectek Inc. (ACON), Meifu Technologies, Universal Scientific Industrial Co., Ltd. (USI), Cycling & Hetitleh Tech Industry R&D Center (CHC), Apex Nanotechnology Corporation, and AURORA Office Automation Corp. 4 counsel execution meetings have been held, plus one Pre-assessment Seminar, on-the-spot written evaluation has been conducted with respect to 8 exemplary induced manufacturers. As regards personnel training, a total of 98 person-rounds have benefited under training programs encompassing: induction seeds, internal auditors, exemplary counselors, reserved seeds. 3. The Weighted Promotion Phase Following conclusion of infrastructural consolidation in 2005, diagnostic service was given to have a close check on existent intellectual property management system that was working in enterprises and organizations, this effort in concert with experiences accumulated through exemplary inducement, in 2006, in order to find out actual needs against differentials in place for promotion and rectification of the specifications in use of the management of intellectual properties: Institutionally, way from 2006 the unified designation “Taiwan Intellectual Property Management System” (TIPS) will apply as a common technical specification in sectors including: industry, government, schools, R&D interests, Follow-up promotion tasks will continue in the form of a team comprising interested scholars, experts invited by the grace of the Industry Bureau, in charge of strategic planning, execution, supervision, and literature screening. As regards promotion and propagation, in 2006 it is largely through self-assessment and evaluation, to which participation is on a voluntary basis with notices served on induced enterprises of organizations, To spread afar the inducement movement so that more and more people are adequately enlightened with what is all about TIPS, a total of 3 instruction seminars have been sponsored in the north, central and south to go pursuant to the inducement experience concluded in 2005, plus several occasions of manufacturers’ conceptual exchange meetings. As regards counseled inducements, a total of 30 manufacturers have benefits under the TIPS diagnostic service as offered, they are: Tatung Co., Taiwan Design Center (TDC), King Car Industrial Co., Ltd., Systex Corporation, National Nano Device Laboratories (NDL), National Center for High-Performance Computing (NCHC), Chi Mei Frozen Food Co., Ltd., Eastech Electronics (Taiwan) Inc., Lee Chi Enterprise Co., Ltd., WisTek, PRIT Biotech Co., Ltd, Intech Taiwan Corporation, Yeastern Biotech Co., Ltd., Yangsen Biotechnology Co., Ltd., Apex Biotechnology Corp. (ApexBio), Taiwan Electric Voice Co., Ltd. (TEV), Gewise Industrial Inc., SportsArt Industrial Co., Chien Yuan Food Chemicals Co., Ltd., Unicare Biotechnology Corp., Tek Maker Corporation, Chi Lin Technology Co., Ltd., Ihetitleh Co., Ltd., A3000 System Co., Ltd., Standard Chem. & Pharm. Co., Ltd., Jwo Ruey Technical Co., Ltd., Omni Hetitleh Group, Alinc Taiwan Co., Ltd., Marie International Co., Ltd., S.Z.S. Co., Ltd., each of them outstanding and highly revered in their respective field of avocation. From them 5 manufacturers have been chosen to account for exemplary TIPS inducement cases, these are: TDC, King Car Industrial Co., Ltd, Systex Corporation, Yeastern Biotech Co., Ltd., SportsArt Industrial Co., to demonstrate how the recommended Intellectual Property Management Specification works in reality, As regards personnel training services: one round of Tips inducement trainee course and one round of TIPS self-assessment trainee course have been sponsored to benefit a total of 91 person-rounds 16 professionals have been entered on registration as counselors, one round of assessment commissioner pre-task seminar has been sponsored. IV. Outlook of Future Planning Based on the consensus reached in “Conference to Work for the Instituting and Promotion of Taiwan Intellectual Property Management Standard” sponsored by the Ministry of Economic Affairs, universal promotion of the intellectual property management system will be implemented continually in phases so that same may be introduced to industries different in scale or fields of interest with more flexibilities, comprising both enterprises and organizations: Institutionally, specifications will adapt to the scale and classification of the industry concerned, with possibilities to allow for the planning of simplified versions and industry-specific versions, besides, the introducing of TIPS specifications will inevitably incur the necessity of integrality with existent ISO systems, owing to limited timing allowed for counseling intervention, the Industry Bureau will firstly strive for the buildup of TIPS with as many as possible manufacturers. Embodiment of ISO with TIPS is a precondition to introducing the latter, since ISO is an internationally recognized standard, in so far as TIPS fails to be combined with ISO, to target industries the inducement task is always a mission impossible, As regards promotion and propagation, the government is planning to qualify industries to which the suggested intellectual property management system has been introduced successfully as eligible for extra score when they go applying for benefit under Creative R&D Counsel Plan, or for favorable terms in closing same plan, this as an incentive to induce more manufacturers, Being considered is the editing of Inducement Manual which would include introduction of exemplary cases, exemplary inducement procedures, to help build up interchange of inducement experiences among manufacturers, More concrete encouragement means will be offered to pilot manufacturers who are willing to set themselves as paragon in the inducement movement, and manuals disclosing governmental resources relevant to the issue of intellectual properties will be compiled for manufacturers' reference; sponsoring promotion seminars addressed to specific group of manufacturers, whereat pilot manufacturers will give an account of their own initiation experiences. As regards inducement counseling, a review of the background of manufacturers to which TIPS has been introduced will yield the notion that most of our traditional industries or medium and small technique R&D oriented concerns fell short of the manpower and experience necessary for management of intellectual properties, so they very much need and wish that the government assist them to build their own Intellectual Property Management System. To alleviate cost burden on the intending enterprises or organizations, being envisioned is enlargement of scope of reach of services in coordination with e-mail dominant autonomous verification system, phase-wise inducement mode may be introduced eventually to help reinforce the autonomous verification software capabilities, and to assist induced plants in operation. Currently the target is set at reaching titleogether 300 manufacturers who are able to run autonomous verifications under TIPS by the year 2008, meanwhile 50 rounds of TIPS external assessments are completed for the manufacturers and titleogether 120 clients having received TIPS diagnostic services. As to personnel training, being continually sponsored are training courses, under planning are certifying training agency buildup programs so that the training service may spread wide afar, by the year 2008 a total of 280 TIPS professionals will have been turned out due to training efforts; it is believed that more individuals would be attracted by appealing on the importance of intellectual properties with respect to corporations and individuals alike, so as to prolong and spread benefits by reason of resource input. As regards R&D progressions, as incessant improvements, researching efforts are indispensable to the buildup of impeccable intellectual property management system; current status of intellectual property management among local industries will be surveyed persistently in parallel with studying of present status of intellectual property managements around the world. It is hoped that through personnel training, what with publication, exchange and transmission of experiences accumulated with intellectual property management system or institutions, incessant improvement of intellectual property management system, setup of evaluation scheme respecting and so as to make more wholesome intellectual property management systems, the day will come sooner for “Wholesale and universal institutionalization of generalized intellectual property management systems across the manufacturers, legal persons, consortium in particular, researching institute throughout Taiwan” to come true. V. Conclusions: A Reliable statistic source in 2006 claimed that the percentage of commercialization by local manufacturers to whom patent rights have been granted against application is merely 0.3%, which figure is 10 times behind the corresponding average in international communities, the latter being 3% It is advisable for our manufacturers to realize that innovation and intellectual property management are independent of capital resources, management subsequent to the acquisition of patent privileges must never go slow or put aside. The prime object of implementation of TIPS by the government is to push for universal buildup of intellectual property management system so that local manufacturers whose interests are associated therewith may best exploit as well as protect their properly owned intellectual privileges thanks to subsequent relevant planning, that they be alerted to application of patented rights once granted to them. For any enterprise or organization to establish their own intellectual property management system after TIPS, they will have to understand in the first place their own strengths and weaknesses and orientation for future operations, they will then fix defined policy and corporate objective, and that supported by the top management level, the next step, is to decide as to whether an ad hoc unit be installed by taking into consideration corporate scale and resources, or if it is more desirable to commission intellectual property management to outside concerns. Creation of intellectual property depends upon the character of corporate products, the setup of an intellectual property management system is meant to manage the creation, up keeping and application of intellectual properties, the training mechanism functions to promote conceptions about intellectual property by instilling same among corporate employees, concrete safety guarding measures are required to physically protect intellectual properties. Safeguarding operations to provide protection of intellectual properties must be checked periodically, the PDCA model will intervene to appropriately amend both policy directive and systems of intellectual properties so that the system may best achieve its intended purposes by incorporating the auditing, accounting and financial management of intellectual properties at the same time. Fair and just verification scheme will be built to verify what happens to an industry to which the system has been introduced for some time, so that the industry may remain alert as to where it stands in the system; the need for counseling services arising as a result of corporate aspiration to pass evaluation will help create a market of counseling service addressed to service industries intending to offer systematic management services to needy clients, Then corporations or organizations will sooner pay more attention to the management of intellectual properties, while knowledge service industry will develop and prosper in like measure, the causes interacting with each other to bid birth to more innovation and growth, and Taiwan is brought closer and closer to fulfilling its affectionately nicknamed designation: Intelligence Island.