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+ Quarterly Legal Newswire,Dec 2014 NO.04


LATEST LEGAL NEWS



IPO WARNS: PRINT OUT AN E-BOOK ENTIRELY IS BEYOND FAIR USE DUE TO THE SUBSTITUTION EFFECT IN THE MARKET


Users who purchase an e-book from the internet bookstore should look on the related copyrights agreement in the contract before printing it out entirely. If either no permission for printing or a literal prohibition for printing is agreed in the contract, print out the content of an e-book will possibly infringe the rights of reproduction unless the approved “fair use” is followed, Intellectual Property Office (IPO) warned.

Authors have the exclusive rights of reproducing their work according to Article 22 of Copyright Act in Taiwan, IPO elucidated. Thus, anyone in purpose of academic use that print entirely or partly the content of an e-book purchased from internet bookstore, under no permission for printing or a literal prohibition for printing agreed in the contract between users and copyright holders (such as author or publisher), can be a violation against author’s copyrights.

From above mentioned, IPO has additionally remarked the exceptions of “fair use” which are strictly enacted in Article 44, Article 45, Article 46 and Article 51 of Copyright Act in Taiwan. According to Article 51 regulated, “Within a reasonable scope, where for nonprofit use by an individual or a family, a work that has been publicly released may be reproduced by a machine that is either located in a library or is not provided for public use,” users who print out the entire content of an e-book has transcended “a reasonable scope” for fair use and will cause the substitution effect in the market and infringe the copyrights.

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The 3rd “Taiwan Personal Information Protection and Administration System” Certification and “Data Privacy Protection Mark” Awards Ceremony was held on December 15th 2014

The 3rd “Taiwan Personal Information Protection and Administration System(TPIPAS)” Certification and “Data Privacy Protection Mark” Awards Ceremony was held by Institute for Information Industry at Howard Civil Service International House on December 15th 2014. Cynthia Kiang, the Director General of the Department of Commerce, Ministry of Economic Affairs(MOEA) was invited to award the certification of honor to 11 major enterprises of e-commerce business, financial industry and legal foundation(including 5 new applicants and the others for renewal)which have passed the authentication respectively. The 5 newly passed enterprises are TAIMALL(shopping center), Costco Wholesale Corporation, GOMAJI(group shopping), FamilyNet Co., Ltd and Joint Credit Information Center.

Since the MOEA had been dedicating to enhance the industries’ ability for privacy protection, an advocacy program of “Personal Information Management System (PIMS)” under e-commerce has been set up and executed ever since year 2010. “TPIPAS” has thus been promoting vigorously and is well-known. The system “TPIPAS” is constructed on the basis of the framework of the law-abiding requirements under “Personal information Protection act(PIPA)” and the necessities of an appropriate management system from enterprises’ demands as well. In other words, TPIPAS is not only a law-abiding guidance, but also a perfect personal information management system. Furthermore, in order to assist enterprises in training & educating personal information management professionals, there are 3 kinds of courses designed by “Maintenance & Operation Agency of TPIPAS” available. They are “TPIPAS Internal Management Training Programs”, “TPIPAS Internal Auditor Training Programs” and “TPIPAS Certified Verification Professionals Programs”. Among the serial professional training programs, “TPIPAS Internal Management Training Programs” is the basic one and suitable for the beginners. It’s the prerequisite for the other two advanced programs and the requirement for submitting application for certification of “TPIPAS” as well.

According to the existing regulations under TPIPAS, enterprises which desire to apply for certification of “TPIPAS” are demanded to introduce and establish “TPIPAS” step-by-step. Enterprises may either designate its employees who have acquired the professional skills and obtained the qualification of “TPIPAS Internal Management Professionals” to exercise and practice TPIPAS within the company or proceed to determine seeking assistance of “Registered Consulting Institutes.” After evaluation, enterprises need to set up an “Operation Crew” under inherent departments for TPIPAS. Right after that is the “Interior Management Process” and “Operation Procedures” Then the “Operation Crew” shall check and examine the plans and procedures through “Reliability Measurement Plans” so as to correct errors once the problems are found and to avoid the same mistakes in the future. Subsequent to the fulfillment of the above steps, a reconfirmation of that every interior aspects meet the demands of TPIPAS shall be done, and thus the enterprises may submit its application for certification.

In retrospect of TPIPAS certification, there were 7 enterprises which passed the certification in the year 2012. They are President Chain Store Corp.(PCSC), aka “7-11 convenience store”, Taiwan FamilyMart Co., Ltd, aka “FamilyMart convenience store”, Rakuten, Inc., PayEasy Ltd., books.com.tw, Sinya Digital Corporation and GoHappy(FEEC). In 2013, the next year, YAHOO, President Information CORP., Taiwan Depository & Clearing Corporation, Re-Yi Distribution Service Co,, Ltd., Test Rite Retail Co., Ltd. and Test Rite Home Service Co., Ltd. passed the certification and were approved to use the logo, “dp. mark”.

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KINMEN APPLYING TO BE ONE OF CASES IN THE FREE ECONOMIC PILOT ZONE

To promote more liberal and internationalized development of Taiwan economy, government of Republic of China (R.O.C) approved the “Free Economic Pilot Zone (FEPZ) Plan,” which the Bill is currently censored in Legislation Yuan and the measures would be implemented in two phases. The first phase of FEPZs would be initiated within six free trade ports, Taoyuan airport free trade zone, and Pingtung Agricultural Biotechnology Park; other industries that match up with the idea of liberalization, internationalization and foresight can all be incorporated into FEPZ through continuing examination under Execution Yuan. After this special legislation is passed, the set-ups of demonstration zones can be applied by authorities either of central or of local government and the related promotion works of the second phase will be unfolded immediately.

Heading to the target of becoming Kin-Xiao (Kinmen and Xiaomen) Free Trade Zone, Kinmen government planned to apply to be one of the FEPZs and thus cooperated with Taiwan Institute of Economic Research (TIER) on December 11, for a commissioned research (which was later released on the conference of accelerating Kin-Xia FTZ on December 19) on evaluating if Kinmen is qualified for an application of FEPZs. Kinmen’s critical location and the featured industries have composed a perfect environment complying with the ideas such as value-added agriculture, international healthcare and innovative education for FEPZ. For instance, the white liquor industry in Kinmen represents the international management and promotion of agricultural products, and is the best example for value-added agriculture. “Long-term Healthcare Village in Kinmen,” which is currently developing in Kinmen, would also be a drive for international healthcare industry. Based on the Taiwan-featured culture, “International Education City” could be developed with a liberal and innovative atmosphere, which would attract famous schools in world to set up their branch school in Kinmen. Above all, Kinmen County vice Mayor, Wu Yo-Chin, indicated that Kinmen would be the first choice for FEPZ and would hold the key to open a new gate for the Cross-Strait. The vice Mayor emphasized that Kinmen government has well budgeting and financial management, which needn’t the extra aids from central government, yet Kinmen was excluded in the first phase of FEPZs. Although Kinmen would apply to be a FEPZ in the second phase after the special legislation passed, Kinmen still strived for taking part in the first phase of FEPZs due to the uncertain schedule for implementation of regulations on FEPZs.

National Development Council (NDC), however, gave an opinion on issue of Kinmen applying to be in the first phase of FEPZs, which declared again the original plan for the first phase only included six free trade ports, Taoyuan airport free trade zone, and Pingtung Agricultural Biotechnology Park. NDC also suggested Kinmen could still follow after the first phase and apply to be a FEPZ in the second phase.

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THE EXECUTIVE YUAN APPROVED "INDUSTRIAL UPGRADING ACTION PLAN" TO STRENGTHEN THE OPTIMIZATION AND TRANSFORMATION OF INDUSTRIAL STRUCTURE

In response to challenges brought by globalization and regional integration, how to restructure the industries has become a megatrend in the world. In mid-October 2014, the Executive Yuan approved the "Industrial Upgrading Action Plan." The Plan is to reform the traditional, consolidate the main and nurture the new and emerging industries as its three priorities. Moreover, the Plan operates another four major strategies such as "raising the caliber and value of products," "setting up complete domestic supply chains by replacing foreign suppliers with firms," "building up systemic problem-solving capabilities," and "accelerating the promotion of new and emerging industries" to encourage enterprises to enhance the connotation of a high qualified industry such as smart, green and cultural and creative capacities.

Firstly, on the part of reforming the traditional industries, the major transformational strategy is considered to " raise the caliber and value of products ", and it is planned to practice with starting from applied field of high-end product manufacturing in order to comprehend R&D with high added values of key know-how for whole value chains. The specific steps include: (1) Develop R&D with high added values; (2) Promote R&D alliances; (3) Assist development and integration the test certificate; (4) Help establish a global logistics operations center.

Secondly, to consolidate the main industries, there are two major transformational strategies including "setting up complete domestic supply chains by replacing foreign suppliers with firms" and "building up systemic problem-solving capabilities". The first aims at building an industrial chain to avoid being controlled by huge markets from the other countries that results in being dependently supplied, and anticipate to master the key materials (such as OLED panel packaging materials). As for the other one, it is to prepare the energy and timing to output overseas for systematic solution of factory and project integration engineering. Meanwhile, it is combined with intellectual automation to strengthen the integration of hardware and software in order to improve the ability of processing systematic solution. Besides, it needs to guide those stand-alone machines in transforming into complete production lines and stepping into production line planning and extension of equipment applying services in order to increase the scale of value chain.

Thirdly, to nurture the new and emerging industries, "accelerating the promotion of new and emerging industries" is considered to be a transformation strategy, which is hoped to accelerate developing new industries. The specific methods include: (1) Encourage production, teaching and research collaboration, to enhance the efficiency of the national innovation system; (2) Build new industry eco systems; (3) Integrate counseling resources among Ministries, deregulate, and work together to promote industrial development. In particular, "to accelerate the promotion of new and emerging industries," it focuses on developing new interdisciplinary application markets. It targets on the emerging opportunities of global future trends, such as smart campus, smart transportation, smart medication, smart city, the communication of B4G/5G, strategic services, additive manufacturing, and other key emerging industries.

In the future prospect, the Executive Yuan will combine energies from sources like public associations, research institutes and universities to start a "group of industrial upgrading and transformational service." It is likely to assist industrial in upgrading and restructuring from different areas and regions. It estimates that by 2020 the manufacturing output will grow from 13.93 trillion (2013) to 19.46 trillion. As for the services in charge by the Ministry of Economic Affairs (MOEA), the performance of the GDP will grow from 2.24% (2011) to 5.14%. At the same time, it will also increase the relevant employment rate.

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RECENT DEVELOPMENTS



THE LEGAL PROBLEM OF SMART DEVICES: THE MOVEMENT OF INFORMATION PRIVACY JURISPRUDENCE IN THE UNITED STATES

Abstract:

"Internet of Things"(IoT) is an expansive term, encompassing a wide range of systems and technologies with one key feature: direct communication between different devices and objects, typically in near-real-time. In the United States, in light of the rapid technological development, the FTC, as an independent administrative body, has extended its jurisdiction of the section 5 of the FTC Act into this emerging arena. However,these series of legal practices have resulted in profound impacts among domestic and foreign companies.The article starts from the review of the latest technology policy movement concerning smart devices in local Taiwan.Under the jurisprudence of the FTC Act section 5,it discusses about the cases of the agency's enforcement actions.It,further,analyzes three key issues - the justification of the FTC practices,the essence of a "comprehensive security program"as required by the order,and the feasible legal consequence of breaching FTC consent orders.As an important trading partner with the United States,the author suggests that the private sector in Taiwan should be aware of the trend of the FTC enforcement actions, and implement the "comprehensive security program" in each stage of the product development in compliance with this new common law information privacy jurisprudence.

Keywords: Internet of Things (IoT); Smart Device; Privacy; Information Security

<Source: Po-Kun Tsai, The Legal Problem of Smart Devices: The Movement of Information Privacy Jurisprudence in the United States, Science and Technology Law Review Vol. 26 No. 10, October 2014, p.p. 56-72>

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LEGAL OPINION LED TO SCIENCE AND TECHNOLOGY LAW: BY THE MECHANISM OF POLICY ASSESSMENT OF INDUSTRY AND SOCIAL NEEDS

Abstract:

With the coming of the Innovation-based economy era, technology research has become the tool of advancing competitive competence for enterprises and academic institutions. Each country not only has begun to develop and strengthen their competitiveness of industrial technology but also has started to establish related mechanism for important technology areas selected or legal analysis. By doing so, they hope to promote collaboration of university-industry research, completely bring out the economic benefits of the R & D. and select the right technology topics to depict the vision for national research.

To improve the depth of research cooperation and collect strategic advice, we have to use legislation system, but also social communication mechanism to explore the values and practical recommendations that need to be concerned in policy-making.This article begins with establishing a mechanism for collecting diverse views on the subject,and shaping more efficient dialogue space.Finally,through the process of practicing,this study effectively collects important suggestions of practical experts.

Keywords: Technology Research and Development, Industry-Academic Cooperation, Feedback Mechanism, Focus Group

<Source: Yi-Ting Wang, Legal Opinion led to Science and Technology Law: By the Mechanism of Policy Assessment of Industry and Social Needs, Science and Technology Law Review Vol. 26 No. 10, October 2014, p.p. 39-55>

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REGULATION OF SMART EMERGENCY AND DISASTER RESPONSE IN EU AND UK

Abstract:

Government plays a key role to access and to alert public when emergency disaster happened. The world of disaster communications has been transformed into new technologies,such IOT.However,government needs to regulate collecting and using environment data which is related to personal data.It is also important that sends emergency information to last mile.This research is comprise of EU and UK regulation to emergency and disaster response, and highlights the trend of international smart disaster response.

Keywords: Smart disaster response, Sensor, Last mile, Open data

<Source: Ai-Yun Wang, Regulation of Smart Emergency and Disaster Response in EU and UK, Science and Technology Law Review Vol. 26 No. 12, December 2014, p.p. 35-50>

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