2018 is the first year of FinTech, after “Financial Technology Innovation and Experiment Act” (hereinafter “FTIEA”) proclaimed by “Financial Supervisory Commission R.O.C.(Taiwan)”( hereinafter “FSC”) is proclaimed by Legislative Yuan on January 31th, 2018, and will be enacted within three months. Three related decrees authorized by FTIEA are published in early March, and includes “Regulations of Financial Technology Innovation and Experiment,” “Regulations of Review Committee of Financial Technology Innovation and Experiment,” and “Regulations of Civil Dispute Resolution Levy of Financial Technology Innovation and Experiment.”
Taiwan is the fifth country promoting financial sandbox regime in the world. To establish an experimental environment for FinTech start-ups, to utilize technologies to innovative financial products and service, and to facilitate financial inclusion, FSC proposed FTIEA, enacted in April 30th, 2018, will accept application in May. Six chapters of FTIEA present several essential concept:

1.General（FTIEA article 1-3）
This chapter is about the purpose and definition of “FinTech innovative experiment,” which is “with innovative technology or business model to practice financial business based on permission, license or charter of FSC.” (FTIEA article 3) The authority is FSC. Besides, according to FTIEA article 2, FSC should set up a specific office (given name as “FinTech Development and Innovation Center” in 2018) responsible for FinTech promotion and execution of experiment and so on. Applicants could contact the office for assistance via email or phones.

2.Application and examination(FTIEA article 4-11)
FTIEA article 4-11 provides details as to application form, examination meetings, examination items, examination period, innovative experimental period, and so many procedures. Based on FTIEA article 9, experimental period is limited to one year but could extend once after first application totally up to three years, which is the longest in the world so far.

3.Supervision and management（FTIEA article 12-19）
FSC should supervise the applicants during the experiment period. For example, FSC could abolish the permission of experiment if the applicants involves situations listed within FTIEA article 15, such as that the experiment is seriously against financial market or participants, or goes beyond authorization of FSC.    

4.Protection to participants（FTIEA article 20-24）
The rights whom participating the innovative financial experiments shall not be limited or excluded in advance, such as personal data protection, applicants´ due diligence and good faith, opt-out measures, and so on.  

5.Exemption（FTIEA article 25-26）
FSC could discuss with another related departments and exempt applicant from administrative obligation except for money laundry and terrorism support. Besides, applicant could exempt from specific regulations listed within FTIEA article 26.

6.Effective（FTIEA article 27）
The implement date of FTIEA is published by Executive Yuan.

The chairman of the Financial Supervisory Commission, Taiwan (FSC), Gu Lix iong with Mr. Marek Chrzanowski, Chairman of the Polish Financial Supervision Authority (KNF) signed a financial technology (Fintech) co-operation agreement on 6th March, 2018. As everyone knows, “Financial Technology” is a systematic plan for financial tools, financial systems, financial policies, and financial services that promote the development of science and technology and the development of high-tech industries.

The financial technology co-operation agreement will promote the cooperation between the two sides in the supervision of financial technology, and will create more opportunities for financial technology companies in Taiwan and Poland to promote the international financial innovation of the two markets.
The financial technology co-operation agreement include the following project which lays out a framework for referral mechanism, information sharing and potential joint innovation projects and so on. The framework enables play two roles, one of which is to regulators to refer startups to their counterparts, provide support to allow the regulatory regime in each jurisdiction to be better understood, the other one is to share related information on their respective markets and innovations in financial services.

The KNF was established in 2006. KNF is a public administration body responsible for state supervision of the Polish financial market.

The KNF has been coordinating the work of the Special Task Force for Financial Innovation in Poland which covers a wide range of public institutions and market institutions, since the beginning of 2017. The above public institutions include regulatory and supervisory authorities, and the market institutions include supervised and non-supervised.

In addition to the above items, the KNF has launched the “Innovation Hub Programme” under which it conducts a dialogue with financial technology companies and provides them with assistance. By using this “Innovation Hub Programme” to support the development of modern technologies in the financial market while also maintain security and adequate client protection.

The “Financial Technology Development and Innovative Experimentation Act”, commonly known as the “Regulatory sandbox” was also passed at the end of the year (2017). The sandbox is a place where children can enjoy the sand and use their imagination. The regulatory sandbox is an experimental place under the controlled risk environment. In this area, the company can test innovative products, services, or business models. If the “Financial Technology Development and Innovative Experimentation Act” is implemented, it is expected that a friendly regulatory environment suitable for financial innovation can be created, which will help the development of Taiwan´s financial technology.

In summary, FSC pointed out that the financial technology co-operation agreement will enable Taiwan and Poland to further improve their cooperation in financial technology supervision and create more opportunities for the financial technology companies.

On 2018 January 18, the Office of Science and Technology reported on the 2018-2021 action plan of AI industry development to Premier Lai Ching-te. This action plan´s objective is to strengthen the advantage of our country and to accelerate the industry innovation with AI technology. To achieve the objective, the key issue is coupling AI technology with the need of industry.

The action plan has five major work plan, including “cultivating and recruiting AI talent”, “promoting AI leadership”,” building international AI innovation hub”, “AI field verification and deregulation ” and “integration AI technology into industries”. The action plan will peruse reform, deregulation and promote investment to implement AI technology application. The action plan will consult experts and industries to focus on the specific research target, and developed forward-looking national research center. As for AI talent cultivating and recruiting, the plan will train 1,000 high-caliber AI researchers and professionals from 2018 to 2021 and 5,000 IT engineers for AI applications every year.

In response to mainland China´s 31 incentive measures for attracting Taiwanese business and talent, the Executive Yuan today unveiled a comprehensive plan consisting of four major policy directions: attract and retain talent in Taiwan by building a quality education and work environment, maintain Taiwan´s advantages in global supply chains, deepen capital markets and strengthen the cultural audiovisual industry.
In order to coordinate with Executive Yuan, Ministry of Technology have specific measure including:

1. Increase rewards for academic researchers by establishing 65 centers of excellence under the Ministry of Education´s higher education development plan, steering Ph.D. degree holders into jobs in priority industries, raising research stipends for principal investigators.
2. To accelerate the integration between academic and industry, the ministry will keep fostering the development of critical technology, deepen the partnership between academic and industry, including:
   (1) Choosing AI as the main development field of next generation
   (2) Promoting the establishment of “Centre of AI innovation” and “The base of Smart robotic”
   (3) Expanding the cooperation between industry and academic
3. Creating a new ecosystem by building the Science Park as the base of startup of next generation.

RECENT DEVELOPMENTS

Abstract

The Japan´s Industrial Competitiveness Enhancement Act was enacted to enhance industrial competitiveness and set to become effective on 20 January 2014. As an important strategy of the third arrow of Abenomics, the Act includes the "System to Remove Gray Zone Areas" and the "System of Special Arrangements for Corporate Field Tests" with the aim of advancing regulatory reforms. The First System is expected to enable corporations to engage in business with confidence and avoid risks that may arise in relation to regulatory authorities or related parties after the commencement of the business. The Second System is so called "Regulatory Sandbox" and thus enable corporations proposing special regulatory arrangements to the competent ministry and relevant ministries work together to establish such arrangements. This article will analysis Japan´s Industrial Competitiveness Enhancement Act and related measures of advancing regulatory reforms in Japan. On the basis of the study above, the author will also provide some of personal points of view toward the future development of legal adjustment and regulatory sandbox in Taiwan.

Keywords: Trade Secret、the Act on Prevention of Divulgence and Protection of Industrial Technology、Cross-Border Merger & Acquisition、High-technology Export、National Security Review

<Source: Cheng, Jhia-Wen and Sheu, Yu-Ning, An analysis on High-Technology Export Control and Trade Secrets Law, Science and Technology Law Review Vol. 29 No. 12, Dec. 2017 p.p. 30-53>

Abstract

Public procurement is an important pillar of government services. Because of the huge number of government purchases, government procurement management play an important role in promoting public sector efficiency and building citizenship. Well-designed government procurement systems also help to achieve policy such as environmental protection, innovation, start-ups and the development of small and medium-sized enterprises. Nowadays, countries in the world, especially OECD countries, have been widely practiced with innovative procurement to stimulate innovation and start-ups, and call Innovation procurement can deliver solutions to challenges of public interest and ICTs can play a major role in this. However, in the OECD countries, in addition to the advanced countries that have been developed, many developing countries have also used public procurement to stimulate national R & D and innovation with remarkable results. Israel is one of the world´s leading technology innovation centers, one of the most innovative economies in the world, continues to leverage its own strengths, support of technology entrepreneurship and unique environment, an international reputation in the high-tech industry, the spirit of technological innovation and novelty. Therefore, this article introduce Israel, which has outstanding performance of the economic and industrial development in the Middle East, to implement the specific provisions of government procurement, Challenge Tenders highlighting the specific rules and policies of the Israeli public procurement system, for Taiwan to promote innovative procurement system.

Keywords: Legal Adjustment, Regulatory Sandbox, Japan, Industrial Competitiveness Enhancement Act,System to Remove Gray Zone Areas, System of Special Arrangements for Corporate Field Tests .

<Source: Source: Kuo, Jung-chin, Legal Adjustment and Regulatory Sandbox: An Analytical Study on Japan´s Industrial Competitiveness Enhancement Act, Science and Technology Law Review Vol. 29 No. 10, Oct. 2017 p.p. 50-72>

Abstract

According to the Article 2.1.(1) of the Copyright Law of Japan that the creative performance must be with manifestation of personal character. Otherwise the Artificial Intelligence (AI) work that created without human behavior is not protected under Copyright Law. By the law, it is difficult to say the AI itself as having "legal personality". And the legal effects of the AI Contract between the "Artificial Intelligence User" and "Opposite Party of the contract". Japanese discuss AI in 4 parts that are 1. AI learning materials (学習用データ), 2. AI program (AIのプログラム), 3. AI training / learning completion model (学習済みモデル), 4. new AI product (AI生成物). The Japan´s policy could be the flexible restriction of copyright law provisions. To promote the legal use of copyrighted works and promote the circulation of copyrighted works, arbitration systems (Article 67) could be used without knowing the copyright owner. People could also use the Extended Collective License (ECL). In the rapidly growing of technology, people would face the AI, Japan has announced the AI guidelines, the next-step will become clearer in the next few years that could be the reference directions of promotion and innovation in Taiwan.

Keywords: Artificial Intelligence (AI), AI Learning Materials, AI Programs, Artificial Intelligence Training / Learning Completion Models, AI Products, Fair Use, Legal Personality, Depth Learning, Copyright Law, Copyright Law Flexibility, Copyright Unclear ruling system, machine learning, Extended Collective License (ECL)

<Source: Timo Shau, The Impact of Japanese Artificial Intelligence (AI) Development on Copyright Abstract, Science and Technology Law Review Vol. 30 No. 1, Jan. 2018 p.p. 46-72>