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+ Quarterly Legal Newswire,Mar 2015 NO.01


LATEST LEGAL NEWS



THE LEGISLATIVE YUAN HAS PASSED THE “ACT GOVERNIN ELECTRONIC PAYMENT INSTITUTIONS”, SETTIN A BRAND- NEW MILESTONE FOR E-COMMERCE BUSINESS AND ITS DEVELOPMENT


The “Act Governing Electronic Payment Institutions”(hereinafter referred to as “the act”), which was highly concerned not only by e-commerce business but financial and banking industries as well has been passed by the Legislative Yuan in January and promulgated by the President on Feb 4th, 2015 subsequently.

The objective of the act consists in promoting well operation and development of electronic payment institutions, providing safe and convenient funds transfer service through self-discipline of electronic payment institutions and by means of appropriate financial supervision. In addition, it’s possible to anticipate that the act may facilitate the growth of small and individual business owing to the reduction of the cost of small amount transaction payments. Furthermore, the enhancement of consumer confidence in e-commerce business is foreseen.

In order to maintain the market order and for the sake of fair competition, paragraph 1 of article 3 of the act specifies the type of business allowable or permitted for the electronic payment institutions. They are (1) collection and payment of money for actual transaction acting as agent for sellers and buyers; (2) receiving stored value payment; (3) money transfer between e-payment accounts, and (4) other business approved by the authority. As for the limitation of the stored value amount, paragraph 1 of article 15 defines:”The total amount or balance, comprehending New Taiwan Dollars(hereinafter referred to as “NTD” and all other foreign currencies received from each user by an electronic payment institution must not exceed the equivalence of NTD$50,000. However, the top limit of the amount may be adjusted by the competent authority after discussing with Central Bank depending on circumstances of the development of the economy.

With regard to the minimum capital of the electronic payment institution, paragraph 1 of article 7 demands that a minimum paid-in capital of NTD$500 millions; yet the minimum paid-in capital for operators who merely engage in collection and payment of money for actual transaction acting as agent for sellers and buyers(subparagraph 1, paragraph 1 of article 3 of the act)is NTD$100 millions. The stored value money received and collection and payment of money for actual transaction acting as agent for sellers and buyers are required to be held in trust or receive full bank performance guarantee(escrow)according to paragraph 1 of article 20 of the act.

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NCKU TAKES UP CONSTRUCTION OF THE FIRST SEISMOLOGY R&D CENTER IN TAIWAN

National Cheng Kung University (NCKU) constructs a center, the National Center for Research on Earthquake Engineering (NCREE), in the southern city of Tainan for the research and development of earthquake resistant technologies .Construction of the center will cost around NT$1.3 billion and is expected to be completed by 2017.

On Jan. 6, the groundbreaking ceremony was held at NCKU’s campus. Vice Premier Simon Chang , who chaired the ceremony, stated that center will mainly carry out research on near-fault earthquakes, which pose a threat to 2.5 million buildings and a large percentage of Taiwan´s 23 million population. Main objective is to develop technologies which would make available adequate protection of people during a major earthquake.

The aim is to develop technologies that will provide better protection of people in the event of a major earthquake, pointing out that more than 8.6 million people in Taiwan live within 10 kilometers of an active seismic fault.

NCKU President indicated that the university will have five full-time professors, including three specializing in civil engineering structures, one in hydraulic structures and one in static structure help the center make contribution to disaster prevention in Taiwan. NCKU will be operating the facility in association with National Applied Research Laboratories (NARL). The equipment at the center will be equipped with equipment like a vibration machine that could simulate the earth movements up to two meters from the hypocenter of a near-fault earthquake.

With the completion of the National Center for Research on Earthquake Engineering (NCREE), researchers will be able to develop better technologies for building structures that can withstand powerful earthquakes.

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EXECUTIVE YUAN ESTABLISHED “INNOVATION AND ENTREPRENEURSHIP POLICY BOARD” TO BUILD LINKS TO SILICON VALLEY

To assist young people in innovation and entrepreneurship, In Feb. 13th, 2013, Innovation and Entrepreneurship Policy Board (herein after “the Board”) held its first meeting and outline five main strategies, including “establishing physical and virtual entrepreneurship networks”, “building a friendly environment for innovation and entrepreneurship”, “developing innovation and entrepreneurship clusters”, “stimulating creative thinking and nurturing young entrepreneurs”, “strengthening links to international resources”, hope to integrate public and private sector resources making efforts for perspective toward “building R.O.C. to be the silicon valley of Asia”.

The Board was officially established by Executive Yuan in the 18th of December, 2014. The purpose of this board aims at integrating, coordinating innovations and entrepreneurship resources and policies across departments, supervising relevant solutions for innovation, entrepreneurship and important projects, and providing a utilized environment for young people initiating new business and industries. Besides, it looks forward to integrate proposals promoted by each department in order to achieve the comprehensive effects. Also, this Board is one of the “three arrows to strengthen internet communication and to utilize governance”. The Board will select project which is suitable to each department in the physical world, building corresponding internet promotion to enhance performance of its projects and plans.

Especially for creating the legislative environment, the Board will adjust related laws, crowd funding, and aiming at corporation law amendment to simulate details for promoting good innovation and entrepreneurship environment recently. Hope to promote the achievement that can be shown in three important scopes that are new industry with innovative power, small and medium enterprises as our domestic economic lifeline and social enterprise which is extremely important to the social development. For the reason the small and medium enterprises are the advantages of R.O.C., those three scopes will have its own duty and go forwarding together.

Furthermore, on the specific division of work, the vice chairman of Executive Yuan, Chang Sheng Chen, is assigned to be the convener of the Board; , Minister without Portfolio Foun, Yen, Du Zi-juang, Xai Yu-ling, Quan Zong-ming, supervise four teams separately, including “social innovation and entrepreneurship by young people”, “international linkage”, “environment for entrepreneurship” and “ecological environment of innovation”. These four teams plan to report the promotion result to the chairman Mao Zi-Quei once a quarter and propose “political spot” for young people to start business.

Currently, each team has started promoting their emphasized items. In domestic market, the first step is applying information and communication technology, and strengthening the platform “Dream Site of Young People’s Entrepreneurship” 2.0 as an upgraded version initiating the service as a One-Stop basement for businesses. In the same time as to the aspect of international linkage, it will add a Dream Site of Young People’s Entrepreneurship” in order to process the matchmaking between innovative business in Silicon Valley and domestic ICT manufacturers, and further set up “R.O.C. Innovation and Entrepreneurship Center in Silicon Valley projects such as “R.O.C. Silicon Valley Technology Fund” to realize and implement “Innovation and Entrepreneurship Policy”.

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EXECUTIVE YUAN APPROVES “2015 NATIONAL DEVELOPMENT PLAN” IN AN EFFORT TO BOOST ECONOMIC PROSPERITY AND REGIONAL ECONOMIC INTEGRATION

In response to the current global economic climate, aiming to further stepping-up the national economic development, the Executive Yuan approved the “2015 National Development Plan” on the 24th of December 2014. The plan, which attends economic, social and environmental concerns, is directed to continually fostering the economic development impetus, strengthening the health and social welfare system and protecting the environment and ecology. The overall economic targets set-out to be achieved in 2014 include: (1) economic growth of 3.1% ~ 3.7%; an increase of GDP (Gross Domestic Product) per capita of 22,649 to 22,807 USD; (2) unemployment rate of 3.8% to 3.9% (increase of employment rate 0.7% to 1.0%); (3) keeping the CPI (Consumer Price Index) rate of inflation under the 2.0% limit. Seeking to attain these targets, the 2015 National Development Plan will be solidifying executive powers to improve the economy, social system, basic infrastructure and government, environmental conditions, coupled with the continual supervision of each state department’s performance.

Aiming to attain economic growth prospects and an increase of employment rate in 2015, the National Development Plan will be integrating concrete/virtual resources to stimulate entrepreneurial endeavors through special projects like HeadStart, Regulatory Adjustment of Virtual World Development Advanced Research Project, Reconnecting Silicon Valley Plan to further encouraging research and development activities, promoting innovation and fulfilling the Industrial Upgrading and Development Action Plan objectives. Additionally, in order to attract investments and the increase in service exports, the National Development Council expressed its strong willingness to accelerate regional economic integration through the implementing of Goods Export Transformation Action Plan as well as further de-regulation efforts. Furthermore, additional capital and human resources will be invested, to increase localized employment opportunities.

Within the plan, the innovation element is especially emphasized in pushing for an innovation-oriented economic growth model. The Republic of China’s government is determined to upgrade its science and technology policy-making mechanism in order to lay the building blocks of key technological development, the set-up of an enterprise-friendly environment, advancement of science and research developmental values, as well as furthering the development of smart automotive industries, as well as planning of intellectual property policies seeking to increment the effectiveness of technological innovation. The 2015 National Development Plan plans to promote the following policies: 1. Renewable of technology-related policy-making mechanism; 2. Deepening research and development of critical technologies; 3. increase of value from technology research through national science and technology programs; 4. Integration of virtual and real resources to stimulate innovative entrepreneurship; 5. Integration of research and development resources as well as industrial and academic collaborative projects, aiming to commercialize research results; 6. Promotion of electronic receipts, further creating smart life environment; 7. Continual development of smart automotive industries, expanding application areas for smart robotics as well as its output industrial value; 8. continual promotion of Crucial Six-Points Intellectual Property Strategy Program Action Plan; 9. Accelerating Mobile Broadband Service and Industry Development Plan, in an ongoing effort to promote national technological innovation.

According to the 2015 National Development Plan, the Republic of China’s government firmly stands by its intrinsic values, such as social justice, sustainable development, as well as the pursuit of economic prosperity, hence providing the essential basis for the future flourishing of the Republic of China. Put simply the spirit of the plan can be best described in a straightforward fashion as “helping the younger generation to find new horizons, caring for the welfare of the older generation, enhancing business opportunities for industries and giving the disadvantaged community (those suffering from disability) to live dignified in a society where opportunities exist non-discriminately regardless of their special conditions”. It must be noted that given the swift changes of the global commercial developments, in response to the aging society and drop in birth-rate phenomena, critical environmental concerns, the economic structure of the Republic of China is set to be renewed and transformed, according to the development plan, through creation of innovative business models, securing proper functioning of the social welfare system, assurance of higher standard of living, in addition to the creation of a low-carbon green-energy-based ambient, where national economic growth is attained sustainably.

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RECENT DEVELOPMENTS



CURVE OF LEGISLATION OF TRADE SECRETS PROTECTION IN EU AND THE US AND THE ENLIGHTENMENT ON THE LEGISLATION IN R.O.C.

Abstract:

The completeness of the private properties protection is highly related to the economic activities. Intellectual Property, as its nature of intangible property rights, especially needs the protection of newly legislation amongst the various private properties. The sound protection for intellectual property is concerned on the promotion of the ability of creativity of a country. As such, the US and EU recently have continued to strengthen the legislation with regard to the trade secret protection, so as to effectively deterrence the increase of misappropriation of trade secrets.

This article focuses on the updated legislation in the US and EU and the analysis on international curve of trade secrets legislation, and highlight the issues worthwhile attention. Our Trade Secrets Act has amended in 2013, and It is necessary to observe the developments of the updated legislation in the US and EU and attend to the enlightenment on the legislation in Taiwan, which will benefit the adjustment on the management and strategy for trade secrets in industry.

Keywords: trade secrets, unfair competition law, intellectual property, Fair Trade Act

<Source: Shih- Chieh Chen, Curve of Legislation of Trade Secrets Protection in EU and the US and the Enlightenment on the Legislation in R.O.C., SCIENCE & TECHNOLOGY LAW REVIEW, 27(2), 57-72 (2015)>

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LEGAL STUDY ON ONLINE TESTIMONIAL AND ENDORSEMENT ADVERTISING

Abstract:

The recent development of internet and digital technology has changed the using of testimonial and endorsement advertising. U.S. Federal Trade Commission revised the Endorsement and Testimonial Guides in 2009 to cover consumer-generated media such as blogs and other internet media forms. the Guides also require endorsers to disclose any material connections they have with producers of any products if they endorse via the internet. In Taiwan, the Legislative Yuan amended Article 21 of the Fair Trade Law in 2010 and 2011 to regulate the liability of endorser for untrue advertisement. In this article, the author will first analysis the recent legal development of online testimonial and endorsement advertising legislation. On the basis of materials above, the author will further point out issues of the Fair Trade Law and provide some of personal points of view toward the future legal development in Taiwan.

Keywords: internet, testimonial and endorsement advertising, endorser, Federal Trade Commission, material connection

<Source: Jung-Chin Kuo, Legal Study on Online Testimonial and Endorsement Advertising, SCIENCE & TECHNOLOGY LAW REVIEW, 27(2),33-56 (2015)>

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