Proposed Legislation to Introduce Intellectual Property Courts in Taiwan

The Legislative Yuan past the first reading on the draft Reviewing Act of Intellectual Property Cases (the “Act”) on December 11, 2006. The Intellectual Property Courts (“IP Courts”) will, with respect to intellectual property related matters, have exclusive jurisdiction in the first and second instances of civil court cases, second instance of criminal court cases and first instance of administrative court cases. In addition to ordinary judges, examiners with technical expertise (“Technical Examiners”) will be introduced to the IP courts to assist the judges. The Technical Examiners will have the power to examine and explain to the parties with respect to legal or factual matters, to examine witness (including expert witnesses), and offer their own opinion to the judges. Additionally, the draft Act provides more efficient way for the parties to take evidence and affords better protection in respect of trade secrets. If a party does not comply with the order of the court for the production of evidence, a criminal fine may be imposed. Furthermore, the IP Court may upon the request of the party holding evidence issue a protective order for the purpose of protecting trade secrets. Any person who violates such protective order may face criminal sanctions.