Criminalization of IP Infringement in Taiwan

Abstract Taiwan established the legal frameworks of IP protection in the 1930s and 1940s, although the Trade Secrets Act was not introduced until 1996. IP laws played an important role in economic growth and industrialization in the 1980s. Due to external pressures from the US and major trade partners, amendments to Taiwan’s IP laws have focused on strengthening IP protection and increasing criminal penalties, particularly in the Copyright Act, Trademark Act and Trade Secrets Act. The existence of criminal provisions has encouraged IP holders to pursue criminal remedies. In contrast, patent enforcement in Taiwan has been shaped by a strong policy focus on protecting domestic industry. The removal of criminal penalties for patent infringement was designed to prevent local enterprises from excessive litigation by foreign patent holders. This chapter examines the legal system for IP protection and enforcement, and the significance of penal provisions. It also includes an empirical study on civil and criminal IP cases, and concludes by critically examining some problems with the penalty provisions of IP laws. The chapter concludes that IP laws and legal practices in Taiwan attach too much significance to criminal liability and pay too little attention to the implementation of civil sanctions. Taiwan should consider whether the basic concepts and framework of civil remedies, including the methods for calculating damages and granting injunctions, need to be changed and whether IP laws should reduce the criminal provisions.