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+ Quarterly Legal Newswire,Sep 2013 NO.03


LATEST LEGAL NEWS



BUSINESS ENTERPRISES CONTRIBUTE 75% OF NATIONAL EXPENDITURE ON R&D IN TAIWAN


The National Science Council (NSF) of Taiwan released National Science and Technology Survey on Sep. 23, 2013, which showed that Taiwan’s total expenditure on research and development (R&D) during fiscal year 2012 amounted to NTD 431.3 billion and comprised 3.07% of the gross domestic product (GDP). Compared to 2011, R&D expenditures increased by 4.4%, accounted for 3.02% of the GDP.

According to the Organization for Economic Cooperation and Development (OECD) report, in 2011, the share of R&D expenditure of the GDP was above 3.0% in 6 countries: Israel (4.0%), Finland (3.8%), Korea (3.6%), Sweden and Japan (3.3%)and Denmark (3.1%). In most of the countries the expenditure was between 2.0% and 2.9%. In international comparison, Taiwan stands out from the other OECD countries.

When broken down by sector, expenditure on R&D in the business enterprises accounted for 75.2% of total national expenditure on R&D. The government sector’s expenditure comprised 24.8%, decreased by 1.4% in 2012. This is the first time that government sector expenditure is lower than 25% in recent years. The R&D spending by the government amounted to NTD 106.8 billion, decreased by 1.6% in 2012.

Financial issues are the main reason that caused the decrease of government R&D expenditure. The R&D budget in 2011 and 2012 were NTD 93.57 billion and NTD 91.98 billion, respectively, and it could reach NTD 97.25 billion in 2014. “It is not easy to remain similar amounts of R&D budget in a gloomy economy,” Hong Hocheng, the Deputy Minister of NSF said.

On the contrary, the business sector’s investment on R&D has grown substantially. From 2008 to 2012, the expenditure on R&D in business enterprises rose from NTD 252.1 billion to NTD 324.5 billion, at an average annual growth rate of 7.25%.

The survey also indicated that, the R&D expenditures were mostly used by business enterprises, accounted for NTD 319.9 billion. Electronic parts and components manufacturing accounted the largest amount of R&D expenditures, totaling NTD 154.5 billion.

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THE RESEARCH AND SERVICES HEADQUARTERS (RSH) OF NATIONAL CHENG KUNG UNIVERSITY (NCKU) SET UP THE UNIQUE INDUSTRY-UNIVERSITY COOPERATION MODEL AND HELD THE NEW INDUSTRY-UNIVERSITY COOPERATION FORUM

The Research and Services Headquarters (RSH) of National Cheng Kung University (NCKU), proposed by the President of NCKU, is the first research headquarters affiliates to university in Taiwan. The organizational structure of RSH is different from other universities and colleges. There are more than fifty research centers, and these centers are mainly divided into 3 categories: centers with public services, centers with humanity and social science activities, and centers with science and technology activities. The RSH has become known as an “Excellent Organization for Industry-Academia Collaboration” by the Chinese Institute of Engineers in Taiwan since 2004.

RSH has been dedicated to facilitate multi-disciplinary and inter-departmental collaboration, and setting up the unique Industry-university cooperation model. The RSH provides services about technology transfer, incubation, legal consulting, and finding venture capital. Professors can also find suitable research partners through the RSH.

NCKU held an Industry-university cooperation Forum on April 8, 2013. Both Industry and academic experts were invited to discuss and share their experience about successful technology transfer cases. Dr. Max Yen, Dean and Steel Dynamics Distinguished Professor of Engineering shared his experience in the field of technology transfer and engaged in discussing the problems and rewards in university-industry cooperation.

In addition, the Forum which attracted more than 300 company representatives, was a platform that gave NCKU technology alliances opportunities to present results of their research.

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TAIWAN GOVERNMENT SPOTLIGHTED ON THE INDUSTRIAL DEVELOPMENTS OF “SMART LIVING”

Taiwan government has invested in smart living industrial developments for a period of time. On August 1st, 2013, the Ministry of Economic Affairs (MOEA) reported to Premier Yi-huah Jiang of the Executive Yuan, about the progress review concerning “the Promotion Strategies of Smart Living Industry.” According to Taiwan’s news media, the government adopts three dimensions strategies: Environment, Market and Application. For the environment, it focuses on industrial trials. For the market, it will devote to build up Taiwan’s brand name service platform. As for the application, it will make Taiwan as a paradigm to facilitate industry to develop user-experiences-based application services.

In the past, Taiwan was a leader in the global ICT hardware manufacture industrial fields. However, with more and more market leaders have slowly transformed from the hardware branding to platform service provider, the gross profit of ICT industry is shrinking. For higher added-value, the MOEA plans to use ICT as a tool to integrate into everyday life, i.e. smart family, smart transportation. Take a benchmark case for instance. Companies and institutes such as Shuttle, Kang Hsuan Educational Publishing Group, Mandarin Daily News, National Taiwan Normal University (NTNU) and INSYDE software worked together, and integrated e-book content and Pad hardware as a total solution of "city-wide smart classroom system." The solution was then applied to 17 local middle and elementary schools in Taipei city. Now they are planning to export the total solution to oversea market.

Premier Jiang instructed the MOEA to follow “Three Industries, Four Reforms Action Plan,” ratified on October 11th, 2012, to accelerate the development of smart living industry. Premier Jiang further urged the relevant government agencies responsible for public cloud should also get involved in the process for making Taiwan ICT products and services better for international competitiveness.

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TAIWAN EXECUTIVE YUAN KICKS OFF FIRST PHASE OF FREE ECONOMIC DEMONSTRATION ZONE PLAN

To make the economic environment in Taiwan more liberalized, the Executive Yuan has approved the Free Economic Demonstration Zone Plan (hereafter: the Plan) on April 26, 2013. On August 8, 2013, relevant discussions on “Furtherance Plan for Free Economic Demonstration Zone Phase One” are further unfolded in the Executive Yuan conference. In addition, the Premier also indicates, that the furtherance of the Free Economic Demonstration Zone (hereafter: FEDZ) is divided into two phases. The first phase starts from the moment that the Plan is approved till the related special legislation is passed and promulgated. In this phase, the relevant tasks can be achieved through the ways of promulgation of administrative orders. On the other hand, the tasks concerning taxation benefits and other parts that involves legislation will not able to be initiated till the second phase of the Plan. For those tasks, the Council for Economic Planning and Development is asked to complete the drafting of this special legislation and related procedures for registering it into the Executive Yuan, together with the Ministry of Economic Affairs and other concerned agencies, in the hope that the related legislation works of the Executive Yuan can be completed before the end of this year.

In respect of “Furtherance Plan for Free Economic Demonstration Zone Phase One”, Premier Jiang further points out, that FEDZ is a model incorporates the concept of “being inside the country border but outside the tariff zone” and the idea of “combining the stores upfront and the factories behind, outsourcing manufactures”. In this way, the hinterland of a port can be expended and magnified effects to be achieved through using the resources provided by the factory in behind. Under this pattern, the expansion effects that cities and counties such as New Taipei City and Changhua Country fight for, can be further extended by this concept of “factories in the back”. As for Port of Anping, over which Tainan City government has proactively fought for, can be listed as a demonstration zone once the Executive Yuan approved it as free trade port zone. In the future, other places that are with forward-looking industry and suitable can still be enlisted.

Premier Jiang further expresses that, there are four demonstration industries in the first phase, including intelligent computing, international medicine services, value-added agriculture and cooperation among industries. Yet, he also points out that the demonstration of liberalized economy is a concept of “4+N”. It means that the demonstration will not be limited to the scope of these four industries. Other industries that match up with the idea of liberalization, internationalization and foresight can all be incorporated into FEDZ through continuing examination. Moreover, Premier Jiang later mentions on August 14th, that FEDZ is a crucial task for the government at this moment. He thus requests the Ministry of Economic Affairs, Ministry of Transportation and Communications, Ministry of Health and Welfare, and the Council of Agriculture, to enhance the training and service quality of staffers of the single service window of furtherance of FEDZ.

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RECENT DEVELOPMENTS



1. A Discussion on Recent Trends regarding Calculating Reasonable Royalty Damages in American Patent Litigation Based on LaserDynamics v. Quanta

Abstract:

This article summarizes the opinion of the U.S. Court of Appeals for the Federal Circuit in LaserDynamics, Inc. v. Quanta Computer, Inc. et al., and based on the summary to discuss the recent developments in the rules of calculating reasonable royalty damages in American patent litigations. There are three issues being discussed: when the entire market value rule should be employed, whether a litigation license should be accepted as evidence, and how to determine the admissibility of expert testimony about patent infringement damage calculation. Based on the discussion, this article tries to make some suggestions for the domestic companies to defend their cases in the U.S. court.

Keywords: patent litigation; damage; reasonable royalty; entire market value rule; LaserDynamics,Inc. v. Quanta Computer, Inc. et al.

<Source: Sen-Yin Li, A Discussion on Recent Trends regarding Calculating Reasonable Royalty Damages in American Patent Litigation Based on LaserDynamics v. Quanta, Science and Technology Law Review Vol. 25 No. 6, June 2013, p.p. 31-46>



2. Innovation System of Switzerland

Abstract:

Innovation system plays a significant role in the state economy. As a developed country, the innovation system of Switzerland is well established and supports the national economic growth proactively. Switzerland has achieved a top international position in a number of the indicators widely used to measure the performance of innovation systems. The paper will focus on the Swiss government institutions which promote innovation, and trying to analyze the structure and function of them.

Keywords:national innovation system, industrial innovation, Switzerland, CTI Startup, knowledge and technology transfer

<Source: Chien-Wei Hsiang, Innovation System of Switzerland, Science and Technology Law Review Vol. 25 No. 9, September 2013, p.p. 25-43>

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