Pamir Update

In a move widely expected to speed up approvals of patent applications, Taiwan’s government has announced that evidence of foreign patent applications may be submitted when applying for invention patents in Taiwan.

The announcement was issued by the Intellectual Property Office (“IPO”), a government agency under the Ministry of Economic Affairs responsible for handling patent applications and prosecutions.

According to the IPO, evidence of foreign patent applications, such as documentation showing that a foreign government has already granted approval to an invention patent or that such approval is expected shortly, or results of a patent search report conducted by a foreign patent office, may be included in applications for review. This is expected to speed up applications by reducing the workload of patent application inspectors in Taiwan.

The IPO’s announcement said that the decision was made to make Taiwan’s patent review system more similar to major industrialized countries and regions, including Europe, the United States, Canada, Japan and South Korea, which have adopted information-sharing and cooperation measures known as the “Patent Prosecution Highway” or “PPH” for short.

While Taiwan has not yet signed any bilateral agreements with other jurisdictions to implement a PPH system, it is following the examples of PPH member jurisdictions by admitting foreign patent evidence and thereby reducing the amount of time needed to review patent applications.  The new system also formalizes what has already been an informal practice since 2007

According to the IPO, patent applications have soared by 65.9 percent over the last decade, and the volume of applications is expected to continue rising. Reports have said that more than half of patent applications submitted for approval in Taiwan are identical to applications simultaneously submitted to patent offices in other major countries.

Besides implementing the PPH review system, the IPO is also drafting amendments to Taiwan’s Patent Law that will provide a more comprehensive scope of patent protection, such as by adding language covering contributory patent infringement and implementing reasonable license fees as an alternative for compensation.  The IPO is expected to hold several seminars over the coming year to solicit opinions regarding the proposed amendments before they are presented to the Legislative Yuan for review.

Click here for more information on intellectual property issues in Taiwan or contact us.

The government of Taiwan has announced that it will seek to join the Government Procurement Agreement (“GPA”), a plurilateral agreement organized and administered by the World Trade Organization that ensures fairness of competition between domestic and multinational enterprises bidding on government procurement, tender and construction projects. After the GPA takes effect, which is expected in January or February of 2009, Taiwan will be bound to GPA standards designed to make laws, regulations, procedures and practices associated with government procurement more transparent. This is widely expected to lift protections for domestic products and suppliers, greatly benefiting the ability of multinational enterprises to compete for government procurement and public construction projects.

The international community has urged Taiwan to join GPA ever since Taiwan became a member of the World Trade Organization in 2002. Taiwan’s government had originally promised to sign the GPA in January of 2003.

After Taiwan begins adhering to the GPA, a new domestic procedure will be implemented allowing private bidders to challenge government procurement decisions and obtain redress if such decisions are found to violate the GPA’s rules. The GPA will apply to all government contracts whose value exceeds certain threshold amounts depending on the category each contract falls under, such as about USD 7,000,000.00 for construction projects and USD 570,000.00 for goods and services contracts.

In addition to clearing a level playing field for multinational businesses bidding for procurement and construction projects in Taiwan, joining the GPA will also open up opportunities for Taiwan-based businesses to take part in government procurement and public construction projects in other countries and territories that have already joined the GPA, including 32 European countries, Japan, the United States, Canada, Hong Kong, Singapore, Korea and Israel.

To learn how Pamir Law Group provides practical and effective support for bidding on government procurement and construction projects in Taiwan contact us.

Source:

Ministry of Finance

For this Pamir Update, we have prepared a list of frequently asked questions (FAQ) about the arbitration process in Taiwan.  The FAQ discusses and answers the following questions:

1. How will the venue for arbitration be decided?
2. How many arbitrators are needed for arbitration and how are arbitrators selected?
3. How much are arbitration fees?
4. Can CAA select both Chinese and English languages for the arbitration process?
5. What can be claimed in the arbitration process?
6. Can the principle of equity be applied in the arbitration process?
7. How long will it take before the arbitration award is delivered?
8. Can the non-prevailing party appeal an arbitration award?
9. How will an arbitration award be enforced?
10. Can an arbitration award be revoked by the court?
11. Can the enforcement procedure be stayed during the arbitration revocation process?
12. Is the non-prevailing party automatically liable to pay the prevailing party’s legal fees?

Download as PDF.

This information is for reference only, and nothing herein is to be construed as providing advice to you in your situation, which may be very different from the general example provided here. Please contact us for a more detailed assessment of your particular situation.

Partners Nicholas V. Chen and Michael D. Lee jointly delivered a keynote address titled “New Opportunities in the Era of Direct Cross-Strait Aviation” at the Third China Aeroleasing Summit, an elite gathering for executives and professionals in China’s aviation and aircraft leasing sector.

The presentation outlined numerous economic opportunities expected as a result of the historic November 4, 2008 agreement between Beijing and Taipei restoring direct air and sea transport links.

In addition to briefing participants on the scale of cross-Taiwan Strait aviation after daily direct flights begin in late December, Nick and Mike also introduced opportunities ranging from the proposed new “Taoyuan Airport City” to new commercial zones and easing of restrictions on cross-strait investment.

For more information about our Aircraft Financing and Leasing services click here or contact us.

 

 

Click here to download the presentation slides.

Related Downloads:

News Coverage:

• Xinhuanet.com: Cross-Strait Aviation Links Expanded
• Xinhuanet.com: Cross-Strait Charters Made Permanent
• Chinatimes.com: ARATS-SEF to Sign MOU at Next Meeting
• Chinatimes.com: Cross-Strait Cargo Flights to Begin
• United Daily News: Cross-Strait Financial MOU Likely at Next Round
• United Daily News: Direct Flights Bring Economic Opportunities
• United Daily News: Charter Flights Made Daily
• Amcham TOPICS Magazine: Taoyuan Airport City
• News.cn: Tour Group Minimum Size Reduced to 5 Persons

Full Text of All Four ARATS-SEF Agreements:

• Aviation Links Agreement
• Food Safety Agreement
• Postal Agreement
• Shipping Agreement

 

Taiwan companies that pay certain types of allowances and expenses on behalf of foreign professional employees will be able to claim such payments as company expenses for tax purposes following enactment of new regulations taking effect on January 1, 2009.  

Issued to help Taiwan companies attract foreign professionals to work in Taiwan, enactment of the “Scope of Application For Tax Preferences Provided to Foreign Professionals” means that when employers pay expenses such as travel and relocation costs, rental fees, utility and telephone bills as part of compensation packages for their foreign professional employees, foreign professionals no longer need to include such payments on their personal income tax returns and pay income taxes on them. 

Under the new regulations, the following types of allowances and expenses paid on behalf of foreign professional employees may be claimed as company expenses by employers:

1. Travel allowances for the foreign professional employee and accompanying family members
2. Travel allowances for vacations after serving for a certain period
3. Relocation fees
4. Utility bills
5. Cleaning fees
6. Telephone bills
7. Rental fees
8. Maintenance fees
9. Education allowances for children of foreign professional employees

To qualify under the new regulations, the foreign professional employee must meet the following requirements:

1. The individual must be a foreign national. Dual nationals simultaneously holding citizenship of a foreign country and Taiwan do not qualify as foreign nationals.
2. The individual must reside in Taiwan for at least 183 days per tax year.
3. The individual must either be employed in specialized or technical professional position as defined in Article 46 of the Employment Services Act, or in a managerial-level position with a foreign enterprise or investment project approved by the government.
4. In most situations, the individual’s monthly salary should be over NT$100,000.

Pamir Law Group is pleased to announce that it now provides clients with assistance in establishing and operating the Curacao Private Foundation, an ideal vehicle for offshore investment and trust applications. Based in the safe and stable Caribbean tax haven of Curacao, part of the Netherlands Antilles and a Dutch crown territory, the Curacao Private Foundation (also known as “Stichting Particulier Fonds” or “SPF,”) is organized like a company, yet operates much like a conventional trust.

The Curacao Private Foundation is a practical and effective method of protecting the privacy and anonymity of individuals and business organizations, and may also function as a trust by apportioning ownership and revenues to beneficiaries. Unlike a conventional trust, however, the investor may change beneficiaries and add or remove assets at any time, and also retains complete control over the Curacao Private Foundation’s operations.

For more information about investment based immigration please visit our Family Wealth Management section or contact us.

Click here to download a brief introduction to Curacao Foundations

Click here to download our SPF FAQ

For this Pamir Update, we have prepared a brief description of the bankruptcy procedings in Taiwan. For more information about bankruptcy and related issues please contact us.

Download as PDF.

As the world’s second-largest energy consumer after the United States, China’s energy sector accounted for half of worldwide growth in energy consumption last year.

According to Pamir Law Group Managing Partner Nicholas V. Chen, China’s energy sector is expected to virtually explode with growth in the next several years.

In a presentation given at a Cape Town, South Africa meeting of TerraLex, a global network of more than 158 top independent law firms and 15,000 attorneys in nearly 100 countries and more than 40 States in the US, Nick explained that while China has four times the US population, energy consumption in China for 2007 was less than three-quarters of US consumption.

He also noted there are numerous opportunities for foreign participation in China’s energy sector, especially regarding the development of clean technologies, renewable energy resources and cleaning up traditional energy producers.

Click here to download presentation as PDF

“Regional Center” investor immigration program, a popular vehicle for immigration to the United States from Asia in recent years, has just been extended for another six months. Under the “Regional Center” program, applicants who invest US$500,000 in development zones specially designated by the US government may obtain permanent residency (“green cards”) for themselves, their spouses and unmarried children under 21.

Originally due to expire on September 30 of this year, the program has now been extended through March 9, 2009. The “Regional Center” program is one of the fastest and simplest ways to immigrate to the US, and interested persons will need to get the application process started soon in order to take advantage of the program before it faces the next prospect of expiring this coming March. For more information about investment based immigration please contact us.

 Click here to download a brief presentation about the EB-5 Investor Immigration Program.

For this Pamir Update, Michael Lee and Howard Chen have prepared a list of frequently asked questions about hiring in Taiwan.

Download as PDF.