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LAW AND INTELLECTUAL PROPERTY
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INTEGRATED CIRCUIT LAYOUT PROTECTION ACT

Definition

Integrated Circuit: Refers to finished products or components that have transistors, capacitors, resistors or other electronic components integrated on or in the semi-conductor materials with inter-connections, and have electronic circuit function. Circuit Layout: Refers to two- or three-dimensional designs of electronic components or inter-connecting leads on integrated circuits.

Layout Protection and Duration

The layout is protected under this act unless it had been registered and received registration certificate from the competent authority. The protection duration is 10 years since the registration date of the circuit layout or the first day of its use by the business, whichever date comes earlier.

Registration Requirements

To receive protection under this act, the following requirements should be met: The design is an original intellectual effort of the creator, not a plagiarized design. The layout is not an ordinary or common knowledge to the integrated circuit industry or the circuit layout designer at the time of creation. For circuit layout that is composed of ordinary or commonly known components or inter-connections, the act only protects the portion of the layout set that conforms with the above mentioned requirements. If a circuit layout has been used for more than two years, it cannot be applied for registration. Applicable Power of Registration: Without registration of the following rights, owner of the circuit layout does not have right against a third party with goodwill: Assignment License Creating, transferring, alternating or extinguishing of a pledge

Exclusiveness of the Circuit Layout Ownership

No others is allowed the following unauthorized act without the consent of the circuit layout right owner: Reproducing all or a portion of the circuit layout For commercial purpose, importing or distributing circuit layouts or integration circuit that contains the circuit layouts. Exception of the Exclusive Right For research or educational purpose, analyzing or evaluating other’s circuit layout, and making reproduction. Making the circuit layout stated in Article 16 of this Act, or the integrated circuit made with the said circuit layout based on the results the above mentioned analysis or evaluation. Owner of the legally reproduced circuit layout or integrated circuit imports or distributes legally owned circuit layouts or integrated circuits. An identical circuit layout or integrated circuit that is an independent creation of a third party. Compulsory License: In order to promote public interest with non-profit purpose, based on per application case, the authority in charge of circuit layout may grant a compulsory license of the circuit layout right to the applicant. The said circuit layout right is to be used as supply to demands of domestic market.

Extinguishments and Revocation of Circuit Layout Right

Natural Extinguishments Upon the expiration term of the circuit layout right, the right is extinguished since the next day after the expiration date. Upon the death of a circuit layout right owner, if no inheritor is appointed, the circuit layout right is extinguished since the day the right is vested with the government according to the laws In case of company dissolution, the company’s circuit layout right is extinguished since the day the right is vested with the local governing body according to the laws. In case of abandonment by the circuit layout right owner, the circuit layout right is extinguished since the day on the written declaration. Revocation The circuit layout right is revoked if The judgment of a court renders that no circuit layout right shall be accorded. Registration of the circuit layout violates Article 5 ~ 7, 10, 13, 38, or 39 of this Act. The circuit layout right violates Article 16 of this Act.

Remedies for Infringements of Circuit Layout Right

Criminal Penalty Provision This Act does not state any standard of penalty provision for an infringement act. However, based on each case, the infringement act may violate other related regulations such as Copyright Act, Patent Act, Fair Trade Act, etc. Civil Remedies The circuit layout right owner may request damage compensation from the violator, and demand removal of the infringement. The right owner may request prevention of an infringement if the threat of infringement can be proven by facts. An exclusive licensee can also request the above mentioned damage compensation and infringement removal, with prerequisites that the circuit layout right owner has been notified of the threat without intention to make such requests, and no contrary provision in the licensing contract. The circuit layout right owner or the exclusive licensee may request damage compensation after submitting an infringement assessment report, if a third party, while knowing or with prove of knowing the infringement fact of the circuit layout right, still imports or distributes products with integrated circuits which contains illegally reproduced circuit layout for commercial purposes. However, it is not applicable if the violator separates the integration circuit from the product. Range of Compensation When requesting for damage compensation, the infringee may choose one of the following to calculate damages: Infringee’s damage or profit loss Violator’s profit gained from the infringement act Request the court to grant a compensation amount no more than NT$5 million, depending on the severity of the infringement act. The infringee may ask the integrated circuit that infringes the circuit layout right to be destroyed, and ask all content or a portion of the judgment to be published in a newspaper at the cost of the violator. If the integration circuit owner described in Item 4, Article 18 of this Act continues to import or distribute the infringing integration circuit for commercial purpose, after receiving the written notification of the infringement fact accompanied with an assessment report, then the circuit layout right owner may request for damage compensation according to the usual royalty charged for using the infringed right.