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STLI Quarterly Newsletter 2021 No.3
LATEST LEGAL NEWS
FSC "FINANCIAL FIDO ALLIANCE" FORMALLY ESTABLISHED TO ENHANCE FINANCIAL SERVICE FOR CROSS-INDUSTRY DATA EXCHANGE

  On May 4, 2021, the Financial Supervisory Commission (FSC) has announced, in collaboration with the Joint Credit Information Center (JCIC), the Financial Information Service Co., Ltd. (FISC) and financial institutions (including financial holding companies, banks, insurance companies, etc.) to form the “Financial FIDO Alliance”, which has built the legal basis for cross- industry interoperability of electronic identification, authentication, and electronic signatures.

  Financial institutions has long contemplated a standardized identity verification process to combine biometric identification with mobile devices, and to develop a process that could simultaneously perform such functions as automate electronic signatures, to accelerate security and the development of a standardized financial mobile identity verification mechanism. For instance, due to the complex nature in financial institutions, banks have set strict requirement for password length and complexity policies, accordingly, consumers have to cope with ever-increasing number of usernames and passwords that need to be remembered and managed. As a matter of fact, consumers of domestic banks currently could apply for digital saving accounts by using traditional methods, such as providing Citizen Digital Certificate, credit cards, and deposit accounts, albeit the reliance on silo identification systems is causing inconvenience and the risk of personal data leakage and the erosion of privacy.

  To deal with the aforementioned limitation, the FSC has incorporated the measure to develop a standard mechanism for mobile identity verification (FIDO) that echoed with the pioneering plans to transform Taiwan into an Asian financial hub. The financial FIDO proposed to allow users to bond their mobile devices with physical cards and their unique biometric features, so that when for using subsequent financial services, users could use the bonded devices and biometric features for identification without the need to use physical cards or account passwords. As the FIDO server only retains the public keys, there are no user passwords, private keys, or personal biometrics stored, and hence the concerns over personal data leakage could be released.

  FIDO could not only solve the problems arising from the use of account numbers and passwords as a means of identity verification, improving the security of consumer financial transactions; but also eliminate the need to repeatedly verify the identity of the same consumer. Additionally, FIDO is also listed to provide cross-institutional identification and transaction functions, so that financial institutions could provide consumers with the corresponding financial commodity according to their risk appetites. In point of fact, FIDO not only unleash greater control of consumer personal data, but also improve consumer satisfaction.

  FIDO would initially provide mobile identification and electronic signature functions for low-to-medium risk financial services in the first phase, and the FSC would to verify the feasibility of using FIDO as an identity verification method for other low-risk businesses. Although there is no silver bullet providing an absolute secure authentication solution under all conditions, the FSC aimed to simplify the identification process for various financial services and to promote the development of digital financial services in Taiwan, so as to provide a more efficient financial services to consumers.

Reference:
"Financial FIDO Alliance" formally established to accelerate security and convenience of digital financial service, The Financial Supervisory Commission, available at https://www.fsc.gov.tw/en/home.jsp?id=54&parentpath=0,2&mcustomize=multimessage_view.jsp&dataserno=202106220001&dtable=News (last visited Aug. 15, 2021).

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TAIWAN AIMS FOR REACHING NET-ZERO EMISSIONS BY 2050

  On August 30, 2021, Premier Su Tseng-chang hosted the 33rd meeting of the Executive Yuan's National Council for Sustainable Development to discuss Taiwan's core sustainable development targets and its progress in achieving specific indicators. He said that extreme weather is a global, collective challenge, and also has a huge impact on Taiwan[1].

  There are more than 130 nations worldwide have already declared net-zero emission targets. The EU enshrined in law the objective of becoming climate neutral by 2050, and the intermediate target of reducing net greenhouse gas (GHG) emissions by at least 55% by 2030[2]. Japan Prime Minister Yoshihide Suga announced that Japan’s government would adopt net-zero emission targets in his first policy address to the National Diet[3].

  Compare with the above countries or region, Taiwan announced the implementation of the Greenhouse Gas Reduction and Management Act on July 1, 2015, but the Act did not include the net-zero carbon target. Therefore, the premier tasked the Environmental Protection Administration (EPA) with amending the Greenhouse Gas Reduction and Management Act into a "climate change response act" and incorporating the goal of net-zero carbon emissions by 2050[4].

  In addition to that, the Net Zero Action Alliance was established in Taiwan on June 5th, 2021, which includes 27 companies such as China Steel Corporation, Chunghwa Telecom, ASE, and Far Eas Tone. These companies account for around 40% of Taiwan’s GDP and 20% of carbon emissions. Accordingly, the success of the 2050 zero carbon target depends on coordination of these companies[5]. Vice president Lai said he hoped that there will be more companies join the Net Zero Action Alliance, and more private and public organizations cooperate in achieving zero emissions.

[1]〈蘇貞昌:積極修法納2050淨零碳排、研議碳定價〉,中央社,2021/09/15,https://www.cna.com.tw/news/firstnews/202108300341.aspx(最後瀏覽日︰2021/09/15)。
[2]The EU Adopts Ambitious Climate Law – A Prelude to a Wave of Green Regulations, SIDLEY, https://www.sidley.com/en/insights/newsupdates/2021/07/the-eu-adopts-ambitious-climate-law-a-prelude-to-a-wave-of-green-regulations (last visited Sep. 15, 2021).
[3]How Japan could reach carbon neutrality by 2050, McKinsey & Company, https://www.mckinsey.com/business-functions/sustainability/our-insights/how-japan-could-reach-carbon-neutrality-by-2050 (last visited Sep. 15, 2021).
[4]Taiwan working toward net-zero emissions by 2050, Executive Yuan, https://english.ey.gov.tw/Page/61BF20C3E89B856/97c6b323-ca68-4d58-ae65-e2ea3838dfd2 (last visited Sep. 15, 2021).
[5]〈大公司承諾台灣零碳排放目標〉,中央廣播電台,2021/09/02,https://en.rti.org.tw/news/view/id/2006041(最後瀏覽日︰2021/09/15)。

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THE EXECUTIVE YUAN APPROVES THE DRAFT AMENDMENT OF THE COPYRIGHT ACT

  On April 8, 2021, Taiwan’s Executive Yuan announced the draft amendments of the Copyright Act, which was drafted by Intellectual Property Office, Ministry of Economic Affairs with reference to international treaties and the copyright laws of advanced countries. In response to the trend of digital transformation and the rapid development of the Internet, the Copyright Act has not been able to reflect the actual needs of the people in their daily lives, causing inconvenience in the copyright holders and the people's use. Therefore, in order to improve the copyright environment and deal with important issues in the development of my country's industry and practice, this draft amendment is proposed.

  The main parts of this draft amendment are as follows:

1. Article 3

  In response to the ever-changing of technology, it is difficult for consumers to distinguish the types of rights from technology. Therefore, the definitions of "public broadcast" and "public transmission" are amended, and the broadcast system or network is no longer used to distinguish them. After the amendment, "public broadcast" means the simultaneous transmission of the content of the work to the public; and "public transmission" means the transmission of the content of the work to the public through communication so that the public can receive the content of the work at a selected time and place. On the other hand, this article adds the "re-public communication." For example, the act of playing online videos that have been published on YouTube in a store is a "re-public transmission" to protect the rights and interests of copyright holders.

2. Article 46, Article 46-1, Article 47, Article 48, Article 48-2, Article 55

  From the perspective of safeguarding the legal use of works by the public, the draft has amended the regulations on the fair use of copyright property rights. First, the regulations on the fair use of distance teaching in schools have been updated. On the one hand, it is in response to the need to expand the teaching effect, and on the other hand, it is considered that distance teaching and on-site teaching are similar, high in public welfare, and have a small impact on the interests of copyright holders. Second, in response to the increasing demand for digital reading, it is stipulated that libraries and other collection institutions can allow readers to view collections online within the library under appropriate restrictions. Third, central or local government agencies, or non-profit collection institutions can reproduce or publicly transmit works within the reasonable scope for the purpose of providing the public with guidelines on collections of works in order to expand cultural heritage and circulation. Fourth, according to the current Copyright Act, an activity of non-profit nature that are regularly handled without authorization may result in criminal liability. After this amendment, they can be handled legally only by paying appropriate compensation, and there is no need to obtain authorization from the copyright holder.

3. Article 69-1

  In view of the fact that the economic rights holder is unknown, the user can apply to the copyright authority for compulsory authorization. The purpose of this regulation is to prevent this type of work from being unavailable and hindering cultural inheritance and circulation.

4. Article 87

  Information such as advertisements for the sale of pirated products on the Internet will be defined as infringements to prevent the circulation of pirated products on the current main sales channels. In this case, the actor shall bear criminal and civil liabilities.

5. Article 88

 When a victim of economic rights infringement initiates a civil lawsuit, the victim may choose to claim in the reasonable royalties for the use of the work to calculate the amount of damages.

6. Article 91

  This amendment deletes the 6-month statutory minimum penalty in the current Copyright Act to avoid the problem of imbalance due to excessive criminal liability in relatively minor cases.

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