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Quarterly Issue Dec 2008 NO.04 |
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| LATEST LEGAL NEWS |
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PCC AMENDED THE LAW OF PROMOTION OF PRIVATE PARTICIPATION IN INFRASTRUCTURE PROJECTS |
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In order to enhance the will of private investment and take part in infrastructure projects positively, the Public Construction Commission framed the draft of Law for Promotion of Private Participation in Infrastructure Projects. It would speed up development of society and economics by loosening regulation and clarifying the administrative process.
The mainly revised aspects of the draft are broadening the scope of infrastructure projects, improving greater degree of flexibility in the ways of participation for public, and expanding the range of the authority in charge to villages and towns level. The introductions are as follows:
(1) Broadening the scope of infrastructure projects: in accordance with article 3.1 of original act, the term "infrastructure project" only referred to 13 items of 20 categories such as facilities of transportation, environmental pollution prevention, sanitation and medical, cultural and education, main facilities for tour-site, or development of new town, etc. The article 3 of draft was revised that all infrastructure projects appraised under policies of national development by central authorities in charge of the relevant industries are within the range of law for Promotion of Private Participation in Infrastructure Projects whether the projects are for public or promoting benefits to public.
(2) Improving greater degree of flexibility in the ways of participation for public: The private institution usually participated in an infrastructure project by BOT (Build-Operate-Transfer) in the past. The article 8 of draft would allow special cases permitted by the Executive Yuan with changing the classification of lands into different categories for specific uses, rewarding or transferring building bulk then encourage public to invest.
(3) Expanding the range of the authority in charge to villages and towns level: According to the original article 5 of act, the "authority in charge" shall mean any of the relevant authorities in charge of the relevant matters relating to public participation in the relevant infrastructure projects such as central authorities in charge of the relevant industries, municipal governments, and the county (city) governments. For the sake of combination of all governmental entities to promote the public to participate the in infrastructure establishment generally, the amended article 5 and 55-1 would be that villages and towns governments may be the authorities in charge after permitted by their county governments.
On other aspect of measures, the revised draft put emphasis on revision of administrative process which was purposed to accelerate proceedings and avoid disputes. In the instance of concluding contract, for purposes of regulating rights and obligations between governmental entities and public reasonably, the draft would design different kinds of samples of contract about investing from public and provide them to authority in charge for reference. Furthermore, the draft referred to Taipei MRT Joint Development Financial Assistance Trust System and drew up "the Draft of Building Operation Modes for Raising Funds to assist private institutes to take part in significant infrastructure projects". With the agreement composed by government, investor and financial institution, the funds could be earmarked for its specified purpose only by trust system, and then it would evade financial risk and contribute to resolve the raising funds of private institutes.
The amendment is based on promoting great incentives, sketching flawless management modes, public spirit and financial feasibility. The revised draft is expected to exclude obstacles for public investment, benefit industries, and upgrade the level of public service. |
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THE GOVERNMENT WILL ESTABLISH THE FOOD DRUG ADMINISTRATION FOR GUARDING THE FOOD SAFETY |
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During June 2008, one shipment of toxic milk goods which has caused more than 400 babies became ill in the Mainland China was imported from Mainland China to Taiwan. After the imported milk powder had been examined and discovered the compound of melamine, the seventeen milk manufacture companies in Taiwan were required by Department of Health to retrieve their products which were made in China and to stop selling immediately. Until these manufacture companies present the report with no melamine component in their product, then those product can returned to the market and being sold. However within 3 hours after the announcement, Department of Health announced again that only two companies are allowed to sell their products for the time being.
Since some of the imported milk power has already been added into the three-in-one coffee brands of less popularity and flavor milk, the government also notified related manufacturers and sellers to retrieve the relevant products. Meanwhile, according to "Food Sanitation Control Law" article 11.1.3, any food or food addictives which contain poisonous materials or have influences on human health are not allowed to manufacture, process, prepare, pack, transport, store, sell, input, output, promote as gift, or for public display. Therefore, such three-in-one coffee products which contain melamine should be retrieved and must be destroyed in accordance with the article 29.1.3 from the same law.
However, during the night on September 24, after consulted the international food's inspection method and current legislation for setting up the standard value of judgment in Hong Kong, the Department of Health announced the newest standard in which to release the standard from zero to up to 2.5ppm. Such sudden amended release of standard was complained by many companies to the government for changing standards so fast in a short period of time. Even by the time the government has released the standard, many companies' reputation and profit have been damaged due to consumers returning all the merchandise after the press release of unqualified product inspection reported by the mass media. In addition, the expert and scholars also mentioned, melamine is a harmful chemical material and should not be added into our foods; and they have also raised the question that whether the purpose of releasing such standard is for the consumer's stake or for the manufactures. Up till now, not only consumers suffered, but also those companies who couldn't get their damages compensated.
In view of this matter, which not only had severely damaged our food industry, but also seriously influenced the health of our nations by the poisonous milk that imported from Mainland China, in order to prevent occurrences of similar problems once again and to strengthen the food and drug safety, the Department of Health has already proposed their advise to follow the example of the Food and Drug Administration in US to set up the "Food and Drug administration" in Taiwan. The president of Executive Yan is in strong agreement with such proposition and has also requested the Department of Health conduct quickly. The Executive Yan officer has also pointed out, before setting up the Food and Drug administration, the relevant problems can be firstly conducted through the "dealing with the matter of mainland China food contamination inter-ministerial task force" at the same time, all departments shall aggressively assist to set up the mechanism for solving crisis and assessing risk. The Department of Health expressed, they will be stricter to inspect those Mainland China products in the future; and the government will also assist those companies to be compensated for their damages. In addition, the experts also point out, as our food and health safety assessment still need to be strengthened, hence, we need to call upon the experts in toxicology and food safety fields to inspect the toxicity level of food which sold in the market for referable background value establishment in order to soundly guard our food safety. |
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TO AMEND THE GOVERNMENT PROCUREMENT ACT FOR PROMOTE THE EFFICIENCY OF PROCUREMENT PROCESS |
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In order to establish a government procurement system that has fair and open procurement procedures, promotes the efficiency and effectiveness of government procurement operation, and to solve the controversies between entities and corporations, the Public Construction Commission amended the government Procurement Act. The amended act put emphasis on removed the restriction on the amount of tendersqualified suppliers, adjusted the judgment on performance of contract, reinforced the transparency and publicity of arbitration process, and altered the regulation of withdrawal to governmental personnel.
About the way of procurement process, the amended Article 48 of draft which has removed the original rule about that there shall be three or more tendersqualified suppliers submitting their tenders during the first time of public bidding. For the reason that tenders should be announced in public for inviting unspecified corporations, and the procurement information has been publicized by governmental procurement bulletin and internet so that the amount of suppliers is not the factor of tender. The amended act could keep away from the situation of insufficient amount of tendersqualified suppliers and promote the procurement efficiency. The amended article 85-1 formal decreed that CRBGP shall put forward mediation suggestion or plan once the entity and corporations could not reach the agreement with performance of the contract in the future. Besides, the corporations refer to arbitration because of procrastination about incompleteness of mediation, the entity may not object to such application. The arbitration process and arbitral tribunal should be publicized except the deliberations of an arbitral.
Furthermore, article 15 of amended draft broadened out the limitation of withdrawal to all governmental personnel for supplementing the shortage of original act. Former governmental personnel shall be prohibited from contacting the entity that they previously worked for either for their own sake or on a supplier's behalf for three years following their resignation for matters related to their former duties. The governmental personnel shall withdraw themselves from procurement and all related matters thereof if they or their spouses, relatives by blood or by marriage within three degrees, or other relatives who live with and share the property with them have interests involved therein. The reason is that the governmental personnel who could be influential or probably make the acquaintance of employees in original entity. Consequently, all governmental personnel are within range of limitation for avoiding unfair competition. Besides, once the person in charge also tallied exactly with article 2 of the Act on Recusal of Public Servants Due to Conflicts of Interest, then the counterpart who is related with the governing person shall apply article 9 of the mentioned act, that is, the counterpart could not have transactions such as trading, renting or undertaking between the entity or under supervision of the public officers.
Because of the Government Procurement Act is closely linked to every scope of governmental business, the Public Construction Commission has submitted the draft to the Legislative Yuan in September 2008 for temporizing. It could not only strengthen legal system in positive way but also improve the quality of procurement and the mediation of disputes in relation to the performance of the contract. |
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TO AMEND THE STATURE FOR UPGRADING INDUSTRIES WHICH THE GOVERNMENT IS PLANNING TO OFFER 5 YEARS DUTY-FREE REWARD FOR THE TRADITIONAL INDUSTRY |
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For promoting the private investment and accelerating the recovery of domestic economy, the Ministry of Economic Affairs, on October 30th, 2008, proposed an amendment of the "Stature for Upgrading Industries Article 9.2" which has planned to enlarge the applying range of preferential tariff for the manufacture and relevant technical service industry. This amendment has also offered the preferential tariff of 5 years duty-free reward for the newly-increased investment projects during the period between July 1st, 2008 and December 31st, 2009.
The Ministry of Economic Affairs officer mentioned that the currently proposed draft amendment was mainly consulted the successfully implementation experience from the 5-year duty-free reward for manufacture and relevant technical service industry, between 2002 and 2003. After the official implementation, it will promote the newly-increase investment estimated to be about 500 billion NT dollars; and it also helps to achieve the goal of driving the growth of domestic economy. Meanwhile, the manufacture can drive for more surrounding industrial affects. After an estimation, the net tax benefits from the implementation of the 5-year duty-free preferential program for manufacture industry is about 6 billion NT dollars, and it also positively benefits the government taxation.
However, in accordance with the no.09404552720 interpretative report which published by Taxation Agency on September 15th, 2005, the events and targets for preferential duty application have been stipulated by law; but it should not be interpreted with the extended purpose which was not stipulated by law for preventing to against the tax justice and the principle of taxation under the law. In addition, according to the Article 8, Article 9, and Article 9.2, to apply those events of deduction of stockholder investment or the preferential tariff of 5-year duty-free reward, it should only be within the limit of the stakeholder of inscribed stock or the undivided profit-capital increment, but to increase the capital increment by issuing global depository receipts for which is still not allowed under this law; therefore, in accordance with the previous context, it should still not be covered by the provision of above-mentioned stature.
Finally, the president of the Executive Yan also expressed during this meeting, the small-scale, medium-scale enterprises, and traditional industry are the main force of the domestic economic development in Taiwan which also play an important role, such as in offering and obtaining employment and promoting economic development& etc. Therefore, through amending the stature for upgrading industries this time, it looks forward to extend the productive energy of overall manufacture industries, to drive other industry development, to create the employment opportunity, and to promote the domestic economy development. |
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NCC PLANS TO REVISE NCC ORGINIZATION ACT |
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Since National Communications Commission Organization Act (herein after referred as "NCC Organization Act") has been implemented for 2 years, parts of it's provisions are still far away from the goal of structuring an independent organization, the NCC commissioners passed the amendments on Oct 22, 2008 with the hope to rid itself of the intervention of other authorities.
The changes of the draft are as following:
(1) Adopt a requesting process that NCC may submit a petition for an interpretation of law to Judicial Yuan, and reform the administrative remedial procedure for those who refuse to accept actions from NCC.
As an independent entity, NCC may exempt supervising from another authority, such as Executive Yuan, on a specific case and could make decisions depending on its professional judgment without political interference, according to J.Y Interpretation No.613. It means, any authority should not involve or revoke decisions made by NCC. In addition, NCC may also independent directly request the Interpretation to Judicial Yuan if necessary.
(2) Reform case review procedure that only significant and fundamental administrative act will enter into NCC Committee board. Due to the provisions of current NCC Organization Act, all affairs including routine works must be discussed in Committee whatever relevant or not. In the amendment NCC Committee discusses on only significant matters, routine issues will not appear on agenda for Committee.
(3) Fine for violating Broadcasting or Telecommunication related regulations will be deemed revenue of source of Communications Supervisory Funds, in order to fulfill support financial requirement of NCC.
(4) Restriction on qualification to be NCC commissioner will be released.
Under Organization Act of the Central Government Article 6, government officer in any other government entity for three years prior to their designation is prohibited to be NCC Commissioner. This article limits professional and fully experienced people to be a candidate of NCC Commissioners. Therefore, the draft releases the limitation of the NCC commissioners' eligibility in order to expand the sources of candidates.
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THE FIRST READING OF THE DRAFT OF ELECTRONIC CARD REGULATION WAS PASSED |
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On 6th Nov.2008, the Finance Committee of Legislative Yuan passed the draft ,"the issuance and regulation of electronic card" (also known as cash storage card). Once if the regulation is approved , electronic card will be applied among different operating systems or in different business settings. In the future people might use one single card to pay for most goods or services they needs, such as transportation, supermarket shopping, parking fees or even their Starbucks drinking, and no longer have to worry about cash or their credit card type. It is a milestone for development of electronic money in Taiwan.
According to "Regulations Governing Approval of the Issuance of Stored Value Cards by Banks" prescribed pursuant to Article 42-1, Paragraph 1 of the Banking Law, issuing institutions are limited to banks. This new regulation will not only encourage the use of electronic card, but also break down the barrier of qualification for issuing institutions. It means the potential profit of electronic card business has been only held by banks . Because according to the bill, any company with at least 300 million NT dollars capital value and a fine business plan could be a candidate for issuing institution and join the market of electronic money.
Moreover, to ensure that cardholders' right not be affected by the card issuing company's financial condition, the bill ask a card issuing company must perform the following requirements. At first, that all the money is prepaid and must be further deposited into a trust account, and a certain portion of the prepaid money must be deposited to the Central Bank of the Republic of China (Taiwan) as secure funds. Secondly, card issuing companies must make an agreement with a bank to ensure that if the companies have problems operating their electronic card business, the right of those cardholders will be secured and guaranteed by the banks.
Since an electronic card is not a credit card, people can only use it for payment while the remaining value on their electronic cards is sufficient. The legislators have expected the approval of this regulation will popularize the use of electronic card, and help people make better financial management. |
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| RECENT DEVELOPMENTS |
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A DISCUSSION ON JAPANESE REGULATIONS ON GMO-RELATED EXPERIMENTS AND THEIR ENFORCEMENT |
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"The Act on the Conservation and Sustainable Use of Biological Diversity through Regulations on the Use of Living Modified Organisms" (Cartagena Law) has been adopted in Japan in 2003, and it makes Japanese GMO regulations lawful and enforceable. In the regulatory framwork established around the Cartagena Law, GMO-related experiments are regarded as "Type 2 Use", which means that certain containment measures need to be taken while GMOs are used. When a GMO-related experiment can be categorized in the provisions of "Containment Measures to Be Taken in Type 2 Use of Living Modified Organisms for Research and Development", the experiment should be undertaken with implementation of the containment measures mentioned in the provisions. When an experiment can not be categorized, the containment measures which suppose to be implemented during the process of the experiment need to be confirmed by the authority (Ministry of Education, Culture, Sports, Science and Technology) before the experiment is commenced. After the discussion on the details of Japanese regulations on GMO-related experiments, three cases will be described in order to demonstrate how the Japanese Ministry of Education, Culture, Sports, Science and Technology enforces the Cartagena Law and its relevant regulations. And in the end of this article, the suggestions about how to improve the regulations on GMO-related experiments in our country based on the Japanese experiences will be proposed.
Keyword: Japanese regulations on GMO-related experiments, Japanese GMO regulations, Type 2 Use, Cartagena Law.
<Source: Lee sen-yin, A Discussion on Japanese Regulations on GMO-related experiments and their Enforcement, Science & Technology Law Review Vol. 20 No. 10, October 2008, p.p. 26~42.> |
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A STUDY ON THE UTILIZATION OF NATIONAL R&D RESULTS |
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After the Fundamental Science and Technology Act is announced and implemented, the intellectual property rights and results derived from government-funding R&D project may be conferred, in whole or in part, to the research organization or business for ownership or licensing for use, and are not subject to the National Property Act. The ownership and utilization of the intellectual property rights and results shall be determined based on the principles of fairness and effectiveness by assessing the proportion and contribution of capital and labor, the nature of the research and development result, potential uses, societal benefits, national security, and impacts on the market. In this context, the utilization of the national R&D results becomes a rare but important portion. This study will discuss related legal issues, analyze the types of management and utilization of national R&D results, and then give some appropriate conclusion and suggestions.
Keyword: Technology Development Program, national R&D results, ownership, utilization, Fundamental Science and Technology Act.
<Source: Chen Yu-ting0 Lai Chun-chieh, A study on the utilization of national R&D results, Science & Technology Law Review Vol. 20 No. 10, October 2008, 43~59> |
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ANALYSIS OF OPEN SOURCE BIOTECHNOLOGY |
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Recently, the patent protection system has caused the anti-common tragedy which was produced by the poor utilized front technologies and fundamental research tools in agriculture and pharmaceutical research fields worldwide; also this kind of phenomenon will produce serious influences which block the long-term development of agriculture and pharmaceutical industry. Therefore, to stimulate the progress in biotechnological research and solve the problems of agriculture and pharmaceutical industry development, several countries have encouraged their researchers to apply the conception of open source biotechnology for solving the pharmaceutical discovery bottleneck problems, and expect to set up more extensive global cooperation models. In addition, as this conception is becoming more and more important, hence many international open source biotechnology platforms have been founded and developed their own ways for technology utilization and decentralization nowadays. The conception of open source biotechnology was derived from the ideal of free software, and the final purpose is to reach a goal which can get more opportunities for broaden utilizing of those patented technologies, basic research tools, or products in biotechnology field. Although, the activities of open source biotechnology and free software were derived from same idea, but there still are a lot of differences between the biotechnological invention and free software. Therefore in this article, we plan to introduce the conception of open source biotechnology by firstly figuring out the problems by comparing those two subjects, then trying to provide several suggestions about applying the conception of open source biotechnology.
Keywords: Open source biotechnology0Anti-common tragedy0Open source biotechnology licensing provisions0technology decentralization0Research cooperation
<Source: Sun Shin-Chang, Analysis of Open Source Biotechnology, Science & Technology Law Review Vol. 20 No. 11, November 2008, p.p. 29~45.> |
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ANALYZING THE CONTENT OF THE "ENTERPRISE IPR MANAGEMENT REGULATION" RELEASED BY THE JIANGSU PROVINCE OF CHINA AND ITS IMPACT ON THE TAIWANESE INVESTORS IN CHINA
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Ever since Professors Prahalad and Hamel published the article, "The Core Competence of the Corporation" on the Harvard Business Review in 1990, enterprises themselves as well as governments in the world all strive to identify their core competence which is recognized as an enterprise's main source of competitiveness and thus the main driving force of sustaining the economic growth of a country.
This essay proposes that apart from establishing an internal systematic management system within an enterprise, from the experiences of the U.S. and Japan, building a sound IP protection environment through effective national IP policies and related measures are crucial for assisting enterprises to create, manage and exploit their IP thereby "find" their core competence in today's knowledge-based economy.
In April this year, the Jiangsu province of China has released "Enterprise IPR Management Regulation", which is an important move for implementing Jiangsu's IPR strategy. This essay thus focuses on the content of this Regulation and aims to achieve the following objectives:
1. understand China's national IPR strategy and its impact on enterprises.
2. analyze the content of Jiangsu's "Enterprise IPR Management Regulation" and its impact on the Taiwanese investors in Jiangsu.
3. compare the differences of the requirements between Jiangsu's "Enterprise IPR Management Regulation" and Taiwan's "Taiwan Intellectual Property Management System" ("TIPS").
4. Provide future policies and related measures for the official authorities in Taiwan.
Key words: Jiangsu province, Enterprise IPR Management Regulation, local standard, TIPS, intellectual property management, core competence
<Source: Chen Hung-chih0 Chiu Chien-Shan, Analyzing the Content of the "Enterprise IPR Management Regulation" released by the Jiangsu province of China and its impact on the Taiwanese investors in China, Science & Technology Law Review Vol. 20 No. 11, November 2008, p.p. 46~60. > |
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