PROPOSED PATENT COURTS PROMISE QUICKER HEARING OF CASES

07/01/2004

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In response to the rapid rise of high-tech indus-tries in Taiwan and the associated proliferation of intellectual property disputes, the Judicial Yuan has devised three alternative plans for set-ting up specialist IPR or patent courts, to pro-mote the swift resolution of IPR disputes.

This aspect of judicial reform has long been hoped for by the business community. In macro terms, Taiwan's future competitiveness depends on its technological advancement, and IPR pro-tection is crucial to this. Now that Taiwan's IPR-related laws have been amended in line with international standards, enforcement is the key issue. At present, the civil proceeding is widely considered as too overly time-consuming and ineffective to combat infringements, and the level of compensation granted can hardly serve as meaningful deterrence. This impacts on businesses' confidence in investing in high-tech industries in Taiwan.

Taiwan's most extreme example of drawn-out patent litigation is a dispute over an invention patent for easy-tear adhesive tape. The case began in 1971 and dragged on for over 30 years until it was finally resolved by the Supreme Administrative Court in 2003.

The three reform plans proposed by the Judicial Yuan are as follows:

To directly establish a specialized IPR court of first instance within the Taiwan High Court. But some fear that this would reduce litigants' opportunities for appeal, in that only one ap-peal to the Supreme Court would be available, and that it would also fail to resolve the current problem of two-track handling of IPR cases, whereby civil and criminal IPR actions are heard by the ordinary courts, while challenges to the validity of patents and trademarks are heard by the administrative courts.

To establish a patent court within the Taiwan High Court. Jurisdiction over challenges to the validity of patents would be moved from the administrative courts to the sec-ond-instance patent court, so that they could be resolved directly in the same court as in-fringement actions.

To establish specialist IPR courts in the Taipei, Taichung and Kaohsiung District Courts, and a second-instance IPR court in the Taiwan High Court. But the two-track system would continue, with the administrative courts re-taining jurisdiction over patent validity dis-putes.

If the Judicial Yuan can pursue its reform plans rapidly, this should be helpful in improving the effectiveness of IPR protection in Taiwan.