PRC investment in Taiwan – things you need to know

Due to the complicated political relationship between the People’s Republic of China (the “PRC”) and the Republic of China (“Taiwan”), Taiwan authorities subject investments from the PRC to requirements and restrictions different than those applicable to investments emanating from other jurisdictions. These requirements and restrictions have broad reach and the penalties for violations can be severe. We have seen a number of foreign investment transactions affected by Taiwan’s PRC investment regulations. Given that these regulations are likely to become more stringent in the near future, we felt it timely to set out for our clients and other readers the basic outline of these regulations and possible impacts on a planned investment transaction.

As mentioned above, the reach of Taiwan’s PRC investment regulations is broad. Regulated investments include those other than the direct purchase of a Taiwan enterprise by a PRC company. The Investment Commission (the “IC”) of Taiwan’s Ministry of Economic Affairs currently includes the following within its definition of “investment”:

  1. contributing capital to, or owning shares issued by, a Taiwan company (excluding investments that are less than ten (10%) of the outstanding shares of a listed company);
  2. establishing a branch, sole proprietorship, or partnership in Taiwan; or
  3. providing loans with maturity periods greater than one year to the enterprises described in items 1 and 2 above.

In August of this year, the IC announced a draft amendment to the Measures Governing Investment Permits to the People of the Mainland Area (the “Draft Amendment”) which, among other things, would expand the IC’s definition of “investment”. According to the changes proposed in the Draft Amendment, mergers and acquisitions with non-listed companies (including the acquisition of specific businesses and/or assets of a Taiwan company) would be considered investments in Taiwan as would any direct control of a Taiwan entity by a PRC entity through contract.

The PRC investment regulations are also broad in their definition of who is considered a PRC investor (and thus subject to regulation). We have seen a number of transactions in which the investor inaccurately determined that it was not a PRC investor, leading to transaction delays, additional costs, and potential criminal liability. A PRC investor is an individual, juristic person, organization, or any other institution from the PRC or its “third-area invested company”. It is the definition of “third-area invested company” that often causes confusion and difficulties. A PRC third-area invested company is any company in a third area (i.e., a jurisdiction other than the PRC or Taiwan) invested by an individual, juristic person, organization, or any other institution of the PRC which directly or indirectly holds more than thirty percent (30%) of the equity capital of such company or which otherwise has control of such company.

The Draft Amendment introduces a new calculation method for determining whether the thirty percent (30%) equity ownership threshold has been exceeded. The existing regulations calculate ownership by multiplying ownership percentages at each level of a shareholding structure. See Figure 1 below. Pursuant to the Draft Amendment, the calculation would be done on a “tier-by-tier” basis. If any enterprise in the shareholding structure were more than thirty percent (30%) owned by a PRC investor, such enterprise would be deemed to itself be a PRC investor and the thirty percent (30%) rule would be subsequently applied to the next tier in the ownership structure. See Figure 2 below.

Despite not meeting the direct equity ownership thresholds described above, a third-area company would be considered a PRC invested third-area company if a PRC investor otherwise maintained control power over such third-area company. The IC considers several factors when determining whether a PRC investor has such control, including whether the PRC entity has control (i) over the majority of voting power of the equity owners or the directors[1] or over the appointment and discharge of a majority of directors[2]; (ii) over the financial, operational, and/or human resource policies by law, regulation, or contract; or (iii) as defined in applicable accounting standards.

Having a PRC investor involved in a transaction can have substantial effects on the transaction and the persons involved.  If a PRC investor is involved, only transactions in certain industries are permissible and may legally proceed. Any investments from a PRC investor into an industry that is not listed in the Positive List of Investments by People of the Mainland Area (the “Positive List”) set by the IC are prohibited. The current Positive List can be found here (Chinese language only).

Even if a proposed PRC investment is within the scope of permissible investments, application must be made to the IC to review and approve the proposed investment. According to the IC’s official website, the average processing time for PRC investment applications is twenty-five (25) to sixty (60) days. However, our team has routinely seen the process last a year or longer. The IC will strictly scrutinize and may place additional restrictions on, or completely prohibit, investments which it believes may (i) have an adverse effect on national security, (ii) be politically, socially, or culturally sensitive, or (iii) involve persons with a PRC military background or related business activities. Additional restrictions may include limiting investments to a maximum equity percentage.

On a practical note, it is important for PRC investors seeking to acquire Taiwan entities either directly or indirectly (e.g., in conjunction with an acquisition of a global or regional business) to take these investment prohibitions and the extended approval process into account at the outset of any transaction. In a bid-auction process, these investment prohibitions and extended timelines can put a PRC investor at a significant disadvantage to any non-PRC competitors. Even in a negotiated transaction, the indirect acquisition of a Taiwan subsidiary or business by a PRC investor could have serious consequences. In addition to affecting the transaction timeline, if the Taiwan business to be acquired operates in an industry not included in the Positive List, the Taiwan business would be required to divest itself of any operations and assets that were involved in the conduct of any and all businesses operating outside of the industries included in the Positive List. In a recent example, a consortium of PRC investors acquired Nexperia, a Dutch company. As a result of the acquisition, Nexperia’s Taiwan subsidiary became a PRC investment. As product design, research and development, and manufacturing of semiconductors, are not within the industries listed in the Positive List, Nexperia Taiwan was required to divest these businesses and was allowed to retain only its electronic component wholesale business in Taiwan.

In addition to divesting portions of the acquired Taiwan business, any investor violating the PRC investment laws and regulations may be ordered to cease or withdraw the investment altogether. Those found to have made an unauthorized PRC investment will also be fined an amount between NT$120,000 (~US$4,125) and NT$25 million (~US$858,560). Managers and directors of the Taiwan entity may also face financial and criminal liability if they approved the investment and knowingly misrepresented the investing entity as a non-PRC investor. Violators may be sentenced to imprisonment for up to three (3) years.

We expect regulation of PRC investment in Taiwan to become more stringent and enforcement more vigorous. Recently, we have been brought on to analyze PRC investment issues for a number of different teams involved in global acquisitions and securities offerings. We have assessed the consequences of such investments and where possible, provided creative structuring solutions to minimize the negative impact of Taiwan’s PRC investment regulations on the relevant transaction. Typically, many more structuring options are available at the planning stages of a transaction compared to the execution stage. If your transaction involves PRC investment into Taiwan, whether directly or indirectly, we highly encourage you to seek expert guidance on these issues as early in the transaction process as possible in order to prevent unintended, negative consequences to your business.

For more information on investment issues in Taiwan, please contact Greg Buxton at

[1] For the purposes of determining control, the third-area company’s board and its directors would be deemed to include not only the nominal board and directors but also any organization (e.g., committee or other group) with the power to control the company’s operations and the members of such committee or group.

[2] Ibid.

How Taiwan’s TAICCA is supporting creative industries

Taiwan Creative Content Agency (TAICCA) is a new government institute under the Ministry of Culture aimed at catalyzing the development of Taiwan’s cultural and creative industries. Taking the Korea Creative Content Agency (KOCCA) as a model for development, TAICCA is expected to focus more on cultivating projects with greater market potential rather than those with purely artistic value. Currently, TAICCA follows two directions in accelerating the Taiwanese cultural and creative industry:

Backing movie production with foreign investment or government subsidies

Taiwanese movie companies who have signed production contracts with a major international production company, such as HBO, Netflix, Warner, NBCUniversal or Disney; or, for those who have been granted an official subsidy from the Taiwanese government, may now apply for a loan from banks backed by TAICCA.

This policy aims to reduce the financial pressure Taiwanese production companies face when a movie is still under production. Local production companies generally may not receive all the investment funds or subsidies up front leading to cash flow issues. Based on the policy, TAICCA will pledge up to 90% of bank loans secured by the local production company, keeping production running. Since the local production companies may now secure a loan from banks before the foreign production company fulfills its investment fund obligations, this policy may also indirectly give the foreign investors more flexibility to set a timeline for approving budgets awarded to local production companies.

Co-investing in creative content ventures with private investors

Another major policy for TAICCA to encourage the development of Taiwan’s cultural and creative industries is through co-investing with private investors. Venture capitalists, financial institutions, investment corporations and other investors who have previously invested in creative industries (content distributors, platforms and production companies, for example), may apply for co-investment with TAICCA in establishing creative content ventures by leveraging the National Development Fund.

Studio 76, a new venture dedicated to over-the-top (OTT) TV series production established in 2019 sets an example for this policy. It’s reported that paid-in capital totals TWD130 million, Taiwanese streaming music service KKBOX invested TWD55 million, Japan’s Asahi Broadcasting Group invested TWD30 million and the National Development Fund invested TWD45 million.

Unlike the Ministry of Culture that supports the industry through direct subsidies, TAICCA’s main objective is to accelerate Taiwan’s cultural and creative industries through connecting creative content producers with private investors on one hand, and lowering the barrier for loans from private banks on the other.

However, there are also some special subsidies offered by TAICCA for businesses that integrate emerging technology and creative content, such as VR and motion pictures. TAICCA is currently focusing its attention on movie production compared to other kinds of creative content, in large part because movie production may integrate and accelerate other forms of intellectual property. For those who are interested in the film making business in Taiwan, TAICCA’s next steps are sure to be worth following.

For more information on Taiwan’s creative content industry or intellectual property matters, please contact Gary Kuo at

WP welcomes new associates

Winkler Partners recently welcomed new members to our legal team.

Helen Chen‘s practice focuses on helping clients protect their intellectual property rights, assisting them with dispute resolution as well as advising on contentious and non-contentious employment issues, reviewing commercial contracts and advising on general civil law matters. Previously Helen worked for a Taiwanese law firm specializing in maritime law.

Niki Chen joins Winkler Partners as an Ontario-licensed paralegal, supporting our transactional, intellectual property, employment and dispute resolution teams. She previously worked for several law firms in Canada specializing in personal injury law and in Taiwan on US immigration matters.

Five important issues to consider when investing in or partnering with Taiwanese companies

Whether forming a joint venture company with a Taiwan partner or making an investment in an existing Taiwan company, we strongly recommend clients give careful consideration to the terms and conditions in the operative agreement, be it a joint venture agreement or a shareholders’ agreement. We are routinely asked to review, negotiate, and draft such agreements. In working with these agreements, we invariably identify issues that foreign counter-parties have neglected, the omission of which could have a significant adverse effect on the success of their Taiwan venture. Set out below are important, but often neglected, issues which foreign counter-parties should consider when making an investment or forming a joint venture in Taiwan.

1. Corporate governance procedural defaults

The recent amendment of Taiwan’s Company Act (the “Act”) did a great deal to bring Taiwan’s corporate governance procedures more in line with those in other developed countries. That being said, there are a number of corporate governance procedures which are now allowable pursuant to the Act, but which are not the statutory default. For instance, under the current Act the board of directors may act by written resolution. However, this ability to act by written resolution in lieu of convening a meeting must be explicitly granted in the relevant company’s Articles of Incorporation.The Act requires other corporate governance mechanisms, which foreign counter-parties often take for granted, to be specifically set out in the Articles of Incorporation. In light of this situation, we recommend a thorough review of how the parties plan to govern and operate the Taiwan venture so that we can recommend appropriate amendments to the Taiwan vehicle’s Articles of Incorporation.

2. Statutory preemptive rights

Very often, parties involved in a Taiwan venture wish to restrict share ownership and preserve their initial ownership percentages. The Act grants preemptive rights to each existing shareholder, subject to a requirement that ten (10) to fifteen (15) percent of new equity issuances by a corporation be reserved for purchase by employees (except under very limited circumstances). If the preservation of precise ownership percentages is of paramount importance to the parties, business forms other than a standard corporation could be employed. Alternative business forms each come with their attendant advantages and disadvantages so each would need to be evaluated to determine whether new, more serious, issues were not introduced while attempting to solve the employee preemptive rights issue.

3. Use and control of chops

In Taiwan companies and individuals often use chops instead of signatures. A chop is a stamp or seal that has the same legal effect as a signature. A Taiwan company will have at least one set of chops consisting of the registered chops of the company and its responsible person. These chops can be used to legally bind the Taiwan company, and therefore, their use and control are of great importance. We recommend that at the very least the operative agreement contain basic provisions addressing the custody and permitted use of the company’s and its responsible person’s chops. For larger enterprises with multiple sets of special-purpose chops, we recommend drafting more complete chop control procedures which can be included in the operative agreement as an exhibit.

4. Protection of intellectual property

Often the foreign counterparty is contributing some form of intellectual property right(s) to the Taiwan venture. In such cases, we recommend that the effectiveness of the operative agreement should be made contingent upon the signing of an appropriate intellectual property license agreement which includes, at a minimum, standard confidentiality, non-compete, and non-solicitation clauses. If the foreign counterparty’s intellectual property is of particular value, we often recommend (i) placing an additional affirmative duty on the local Taiwan party(ies) to take reasonable measures to police the local market for infringement of the foreign counterparty’s and/or the Taiwan venture’s intellectual property rights and (ii) making the local Taiwan party(ies) liable for any such infringement of which they were, or should have been, aware but failed to report in a timely fashion.

5. Specification of legal damages

In Taiwan, like many other jurisdictions, liquidated damages are legally permissible. Unlike many other jurisdictions, contractual punitive damages are also permissible in Taiwan. This creates interesting possibilities to erect significant disincentives to potential future bad behavior. While acknowledging that overly liberal use of punitive damage provisions has the potential to sour the relationship between joint venture partners even before the operative agreement is signed, we often recommend strategic use of such provisions particularly in conjunction with the protection of intellectual property rights of a foreign counterparty.

The list set out above represents issues that we see on a routine basis. However, this list is by no means exhaustive. We highly recommend having a lawyer review all agreements to be signed in connection with a foreign joint venture or other form of joint equity investment in Taiwan.

For more information, please contact Greg Buxton at

Exploring statistics at the Taiwan Intellectual Property Court: part II litigation

After taking a look at the caseload of Taiwan’s Intellectual Property Court (“IP Court”) in part one, we now focus on the number of litigation cases and trends over time.

Number of litigation cases closed

“Closed case” means a case decided at the IP Court, regardless of whether the decided case was subsequently appealed or not. The trend of closed litigation cases is similar to the number of all cases closed which we looked at in Part 1. The peak number was 1178 cases in 2011, after that, the number of cases gradually decreased to 862 cases in 2019. The number of closed litigation cases has never exceeded 1000 from 2012 onward.

Number of closed litigation cases from 2008 to 2019

Source:Judicial Yuan

Proportion of copyright, patent, and trademark litigation cases

The statistics show that patent and trademark litigation cases are the majority of all litigation cases handled and since 2014 have accounted for approximately 35% of cases each year. As for copyright litigation, the proportion has remained between 20% and 30%. Except for these three major categories, the proportion of other litigation, such as those involving trade secrets, shows an upward trend from 7% in 2008 to 13% to 2019.

Proportion of closed copyright, patent, and trademark litigation cases from 2008 to 2019

Number of copyright, patent and trademark litigation cases handled

Copyright litigation

The number of closed copyright litigation cases has remained roughly the same. Since 2009 when the IP Court was in full swing, there have been 190 to 240 cases every year, except for in 2017 where there were 157 cases. The peak was 238 cases in 2010. The number of closed copyright litigation cases has increased for three consecutive years, with 210 cases in 2019.

Number of closed copyright litigation cases from 2008 to 2019

Source:Judicial Yuan

In terms of whether the litigation was civil, criminal or administrative in nature, we find that the majority are criminal cases. In 2008 and 2009, criminal cases accounted for 72% and 66% of all cases respectively.

The proportion of civil litigation cases surpassed those of criminal cases in 2014 for the first time, and has been increasing since then. In the last three years, civil litigation cases have accounted for more than 60% of all copyright litigation cases, peaking in 2019 at 78%. It is clear that the mode of solving copyright disputes in Taiwan has transferred from criminal prosecution by the state to civil litigation between private entities.

The proportion of administrative litigation is comparatively low, except for 2013, 2016 and 2018, never having been higher than 5%.

Proportion of closed criminal, civil, and administrative copyright litigation cases from 2008 to 2019

Patent litigation

The number of patent litigation cases solved has shown a downward trend since the highest period from 2010 to 2011, with 476 and 462 cases. Although there were years with more than 300 cases between 2012 and 2015, the number has never exceeded 300 since 2016. There were 267 patent litigation decided in 2019.

Number of patent litigation cases closed from 2008 to 2019

Source: Judicial Yuan

Only civil and administrative cases are included since there is no criminal liability under Taiwan’s Patent Act. Apart from 2008 where there was a higher proportion of administrative litigation, patent litigation was roughly 60% civil, 40% administrative.

Proportion of closed civil and administrative patent litigation cases from 2008 to 2019

Trademark litigation

The number of trademark litigation cases was comparatively high between 2009 and 2011, with a peak of 390 cases in 2009. There has been a downward trend until 2007 with 248 cases, but the numbers have risen in the last two years. The number of trademark litigation cases handled was 279 in 2019.

Number of closed trademark litigation cases from 2008 to 2019

Source:Judicial Yuan

Administrative litigation has always been the primary type of trademark litigation, accounting for more than half among all trademark litigation every year. It appears to be a decreasing trend in recent years, even though administrative litigation still accounts for 53%, its lowest point reached in 2019. The proportion of criminal litigation has gradually reduced from 25% in 2008 to 13% in 2009. The proportion of reduced criminal and administrative litigation has been replaced by civil litigation, whose proportion has doubled from 17% in 2009 to 34% in 2019. Overall, administrative litigation accounts for the largest volume of cases, while criminal litigation accounts for the smallest.

Proportion of closed criminal, civil, and administrative trademark litigation cases from 2008 to 2019

By looking at these statistics, we now know more about the quantity and type of litigation cases at the IP Court. The proportion of criminal, civil and administrative litigation cases provides interesting insights into each type of litigation. In the next part, we will focus on civil litigation and further explore statistics regarding the success rate, settlement rate and claims awarded.

For more information on IP matters in Taiwan, please contact Gary Kuo at

This article was co-written by trainee lawyer Yi-kai Chen.

*Sources: (1) Judicial Yuan (2) IP Court (3) DATA.GOV.TW.

*Note: Some of the figures provided in this report are calculated using raw data and may differ from those figures officially reported.

An update on Taiwan’s regulatory fintech sandbox

The regulatory sandbox was set up in Taiwan two years ago. The Financial Supervisory Committee (FSC) announced that since then, there have been 13 applications with seven of them permitted to start their business under the regulatory sandbox framework.

Two of the seven permitted applications have accomplished their set targets, and therefore, have already “graduated” from the regulatory sandbox. These applications are the KGI Bank’s implementation of an online personal unsecured loan service based on cell phone bill payment records; and Fubon Bank’s interbank transfer and payment system based on blockchain technology. The FSC is considering modifying the regulations based on the result of KGI Bank’s application. Once the regulations have been amended, the business model for KGI Bank’s online personal unsecured loan service may be adopted by other banks.

The FSC has stated that Fubon Bank will probably begin a new sandbox application extending its blockchain technology for international bank transfers. It’s expected that the current regulations for inter-bank or international transfers will not be amended before the filing of the second round of Fubon Bank’s regulatory sandbox application.

The trial operation of innovative financial services is becoming more popular in the financial sector. Those with bank licenses, or those already cooperating with banks, are finding it easier to test out new ventures, which are not in conflict with current regulations, through this channel.

These developments are good news for companies that are looking to take part in Taiwan’s push for innovation and growth. If you or your company would like to know more about the regulatory sandbox or the trial operation for financial sector businesses, you can take a look at our earlier overview here.

If you have specific questions about whether your business qualifies for the sandbox and how to apply, please contact Christine Chen at

Exploring statistics at the Taiwan Intellectual Property Court: part I overview

Since its inception in 2008, the Intellectual Property Court (“IP Court”) has heard thousands of civil, criminal and administrative actions concerning Intellectual Property Rights (“IPR”). In part one of this report, we examine statistical data from multiple sources*, shedding light on the operations of the IP Court over the past twelve years.

The IP Court

The IP Court was established on 1 July 2008 as Taiwan’s first specialized court with the aim of improving IP law enforcement, the protection of IP rights, and promoting national economic development.

The IP Court exclusively hears IPR cases, mostly relating to the Copyright, Patent, Trademark and Trade Secret Acts. In terms of jurisdiction, the IP Court is the court of first and second instance for civil actions, the court of second instance for criminal actions (i.e. appeals against District Court decisions in the first instance), and the court of first instance for administrative actions.

Number of judges and amount of cases

There are currently 14 judges at the IP Court, including 8 male and 6 female judges. The number of judges has almost doubled from the original 8 presiding at the establishment of the IP Court. The proportion of female judges has gradually increased over the years, with female judges outnumbering male judges from 2014-2016.

Number of judges from 2008 to 2019

Source: Judicial Yuan

Numbers of cases closed by each judge per month

As of March 2020, a total of 16,208 cases, litigation and non-litigation, have been lodged with the IP Court. Of these, the IP Court has closed 15,717 cases. Since 2009, when the IP Court was in full swing, an average of about 2,000 cases have been lodged every year. The peak number was 2,380 cases in 2010. The number of cases gradually decreased from 2010 to 2017, but has again increased in the past two years. Please note that the number of cases lodged in particular year include cases previously lodged but not closed as well as newly lodged cases.

The IP Court closes approximately 70% of cases lodged per year.

We now turn to the average number of cases handled by each IP Court judge per month. In 2009 and 2010, due to the large number of cases and comparatively lower number of judges, the burden on each judge was as heavy as 17 to 20 cases to be closed per month. But after 2011, with the general decrease in the number of cases and increase in the number of judges, the average number of cases per judge went down to 7 to 8 cases per month. There has been an upward trend in the number of cases per judge in the past two years.

Number of cases and average number of cases closed by each judge per month from 2008 to 2019

Source: Judicial Yuan

Proportion of civil, criminal and administrative cases handled

The IP Court hears civil and administrative IPR cases, as well as appeals in criminal IPR cases. Statistics on closed cases show that by proportion, most cases heard by the IP Court are civil suits. From 2008 to 2019, the proportion of civil cases has gradually risen from 41% to 63%. The remaining cases are split equally between criminal appeal cases and administrative cases, with about 20% each in recent years.

Proportion of civil, criminal and administrative cases closed from 2008 to 2019

Source: Judicial Yuan

Average number of days to close a case

The average number of days for a case before the IP Court from lodging to closing gradually increased from 114.87 days in 2009 to 209.14 in 2015, the highest on record. From 2016 to 2018 the average time to a decision was about 200 days, but this dropped to 182.45 days in 2019.

Average number of days to close a case from 2008 to 2019

Source: Judicial Yuan

Comparing the time required to disposition of civil, criminal and administrative cases before the IP Court, it is clear that civil cases are the most time consuming. Since the establishment of the IP Court, the number of days to disposition for a civil case has continuously gone up, peaking in 2015 at 267.68 days. From 2016 to 2019, the IP Court has steadily reduced the length of time it takes for a case to be closed. In 2019, the number of days to disposition of a civil case fell below 200 days.

As for criminal cases, the number of days to disposition has slowly increased from 88.96 days in 2009 to 142.43 days in 2019. The trend for administrative cases is similar, from 130.27 days in 2009 to 190.87 days in 2019.

Overall, criminal cases take the fewest days to a decision, while civil cases take the most. But in the last two years, the number of days to disposition for administrative cases has exceeded or equaled that for civil cases.

Average number of days to close a case from 2008 to 2019

Source: Judicial Yuan

The above statistics provide some interesting insights into the general operations of Taiwan IP Court. We will have a closer look at IP litigation statistics in part two of this report.

For more information on IP matters in Taiwan, please contact Gary Kuo at

This article was co-written by trainee lawyer Yi-kai Chen.

*Sources: (1) Judicial Yuan (2) IP Court (3) DATA.GOV.TW.

*Note: Some of the figures provided in this report are calculated using raw data  and may differ from those figures officially reported.

2019 Environmental Report

Since our founding, Winkler Partners has aimed to reduce our negative impact on the natural environment, while looking for meaningful ways where we can create positive impact, both in our immediate community and further afield. In 2006, we established a Green Office Department, to coordinate office greening by implement methods to reduce our energy usage, promoting the use of environmentally friendly products and services, collecting rainwater, reducing our carbon emissions and advocating for green office initiatives throughout our community by way of open visits to our office and roof garden. As part of that commitment, we will be publishing annual reports on our progress. At a glance, in 2019 we managed to:

  • Reduced our total emissions by 70%. Our total emissions for 2019 were 13 tons CO2e.
  • Generated 12,545 kilowatt hours of electricity via our solar panels, accounting for 17% of our total electricity needs.
  • Purchased green energy credits covering the remaining 83% of our electricity. This means that 100% of our electricity is sustainably sourced.
  • Reduced gas usage by 30% and water usage by 16%. We collected 25 tons of rainwater, used to irrigate our gardens and flush our toilets.
  • Reduced overall waste by 12%, including paper cup and bento box waste by 27%. Paper use increased by 2%.
  • Offset our international travel emissions, which in 2019 were 62 tons. We do this through a fellow B Corporation, Climate Care.
  • Planted 3,555 trees, roughly the carbon capture equivalent of our 2018 emissions, or 42.7 tons.
Goals for 2020

Net Zero. At the end of 2019, we joined over 500 B Corporations around the world by publicly committing to net zero emissions by 2030, 20 years ahead of the goals set in the Paris Agreement. We plan to reach this goal even earlier, by 2020. To that end, we will be looking for meaningful ways to offset our remaining 13 tons of emissions. We will also continue to strengthen our in-house waste reduction policies and look into improved window insulation in our offices, which we hope will reduce the amount of air conditioning used. We also plan to review our existing Green Purchasing Policy, to ensure that the firm spends locally and sustainably. Finally, we will look to offset our historical emissions since our firm was founded in 2002.

Our full environmental report is available in English here and Chinese here. For inquiries regarding our energy saving initiatives, please contact City Shen at

#Metoo Taiwan: how to handle sexual harassment cases at work

The #Metoo movement has increased people’s awareness of sexual harassment in the workplace. By law, companies have an obligation to create safe work environments and prevent sexual harassment from happening.

When employees report claims of sexual harassment, the objectives for the company are to a) determine whether sexual harassment occurred, b) protect the individual(s), and c) prevent it from happening again, all while maintaining a positive working environment. This sounds daunting, but can easily be accomplished by following some simple rules.

We list the following frequent asked questions and answers addressing issues which concern all employers.

What is sexual harassment in the workplace?

Taiwan’s laws define sexual harassment in the workplace into two categories:

1. Unequal targeting of an employee of one gender including pranks, jokes, yelling or other offensive conduct

This includes making sexual requests, using verbal or physical conduct of a sexual nature or with the intent to discriminate based on gender, creating a hostile, intimidating, and offensive working environment that leads to a negative impact on the victim’s personal dignity or physical liberty; or affects job performance, education, training, services, plans, activities, or other normal habits.

2. Unequal treatment of an employee because of the employee’s gender, including unequal discipline

This includes instances where an employer explicitly or implicitly makes a sexual request toward an employee or a job applicant, uses verbal or physical conduct of a sexual nature or with the intent to discriminate based on gender as an exchange for the establishment, continuance, modification of a labor contract or as a condition to their placement, assignment, compensation, evaluation, promotion, demotion, award and discipline.

Companies, local labor regulators and the courts will determine whether the behavior at issue constitutes sexual harassment based on the totality of the circumstances, including the facts of the incident, the work environment, the relationship between the parties, the accused’s testimony and conduct, and the victim’s perception of the incident.

How to prevent sexual harassment?

By law, companies have an obligation to prevent sexual harassment. Posting a sexual harassment policy in the workplace is one option.  Companies with more than 30 employees are statutorily required to announce and post a sexual harassment prevention, correction, complaint, and punishment policy.

In addition, employees should be given sufficient training on sexual harassment prevention and policies. If an employee has suffered or witnessed sexual harassment they should feel encouraged to document it and report it to the company. Fostering an open and transparent work environment can help ensure that employees feel safe and that their concerns are being listened to. Similarly, employees should be informed that the company will take necessary measures to combat harassment and that they risk punitive measures including the possibility that they will lose their job. Employees should also know that employers have an obligation to assist victims file complaints with the police. Sexual assault and other serious offenses carry criminal liability.

What should companies do when they receive a complaint?

Once the company becomes aware of a sexual harassment complaint, it is required to conduct an investigation and implement immediate and effective corrective and remedial measures. The measures include:

(i) trying by all available means to protect the victim’s rights and privacy;

(ii) strengthening maintenance and improvement of the safety and security of the workplace;

(iii) setting up a Sexual Harassment Grievance Committee (“Committee”) to investigate the complaint and make a decision within two months after the complaint is lodged (this can be extended for one more month if necessary); and

(iv) adopting other preventive and improvement measures.

Taiwan’s laws on sexual harassment at work do not have a statute of limitations for complaints. Any complaint should be addressed even though it might refer to conduct from several years ago.

How should the companies conduct an investigation and make a decision?

The key principle is to keep the matter highly confidential. Except for the victim(s) and the accused, the company should carefully select other employees as witnesses to sit in on any interviews held. In addition, all Committee members, the victim(s), the accused, and the interviewees should be informed that they have an obligation to keep all information and discussions confidential and private. Signing a non-disclosure statement would therefore be good practice. Interview records and/or meeting minutes are important documentation to serve as evidence if needed. After the investigation, the Committee should make a written decision including its grounds based on the findings of the investigation.

For confidentiality purposes, different versions of the decision can be prepared for the victim(s) and the accused. The company should give the victim(s) and the accused written notice of the conclusions of the investigation. Both the victims and the accused can file written appeals within a specific period (e.g. twenty days) from the date of receiving the decision if they are not satisfied with it. The Committee should then make a decision on whether to conclude the case or not. After this, no more complaints can be lodged with respect to the same incident.

Can companies terminate employees found to have conducted sexual harassment?

If through the investigation process it is found that the accused’s behavior constitutes sexual harassment, the company can terminate them as this constitutes a serious violation of the work rules. A termination on these grounds must be carried out within 30 days of the completion of an investigation. Advance notice and severance pay are not required in cases of sexual harassment.


Due to their unpleasant nature, sexual harassment complaints are not something many companies will want to deal with. Ignoring the problem however will not make it go away, and will likely make it worse. It is better for companies to be prepared before a claim is brought to their attention. We suggest companies review and check whether their current sexual harassment prevention policy is compliant with relevant laws, that all employees are aware of it, have access to it, and that related training is provided to all staff.

When sexual harassment complaints are raised, it is better for companies to consult with their legal team who will be able to advise on the process and the next steps, prepare necessary documents, review evidence, and even take part in the investigation. Doing so can help the company avoid violating the law and prevent potential legal disputes in the event that a sexual harassment complaint was handled incorrectly.

For more information on employment matters in Taiwan, contact Christine Chen at

Partner Greg Buxton takes part in Covid-19 webinar

On Thursday, 30 April, partner Greg Buxton took part in a webinar titled “The New Economic Normal? Assessing the Immediate and Longer-term Prospects for Asian Economies Post COVID-19“, held in collaboration with our Interlaw partner firm in Singapore, CNPLaw. Partner Bill Jamieson of CNPLaw co-organized the webinar, inviting economist Manu Bhaskaran at Centennial Asia Advisors in Singapore to join them in discussing how Asia-Pacific economies are weathering the pandemic and what considerations they may face as governments and businesses look to opening back up.

A recording of the webinar is available here.