Updates

Taiwan’s Labor Ministry relaxes rules for foreign professionals working at startups

On 7 January 2015, the Ministry of Labor (MOL) amended rules for foreign professionals working in Taiwan. Among the latest amendments, foreign professionals that have a bachelor’s degree or higher are no longer required to have work experience to work at qualifying startups. Qualifying startups are those that meet one of the following criteria outlined as part of the National Development Council’s HeadStart Taiwan project:

  • Have received NT$2 million or more in venture capital,
  • Have registered on the Go Incubation Board for Startup and Acceleration Firms (GISA) with the GreTai Securities Market (as of March 2015 known as Taipei Exchange),
  • Have been granted an invention patent in Taiwan, or have had a patent assigned or licensed to exploit by a Taiwanese invention patent holder, the assignment or license of which is registered with the Taiwan Intellectual Property Office (TIPO),
  • Incubators already part of the international startup cluster in Taipei approved by the Executive Yuan or directly operated by or cooperating with the Ministry of Economic Affairs and which have been rated as Quality Incubators by the Ministry in the last three years or,
  • Have won awards in recognized entrepreneurial or design competitions.

HeadStart Taiwan’s main objectives are to create an environment that supports the growth of Taiwan’s startup ecosystem through deregulation, attracting capital, and cluster building. For more information, please refer to the NDC’s website here.

Registering your .taipei domain and protecting your brand online

In August, Taipei City Government reached an agreement with ICANN to release the .taipei domain and make it available to businesses and individuals. Spearheaded by Taipei’s Department of Information Technology (DOIT), the .taipei project follows a trend set by other world cities such as New York, London and Berlin, which, in recent years, have launched their own city-level domains. According to the organizers, the new domains are a good way to market goods and services to the local community; attach a geographic location to brand identity; highlight a business’ location in relation to competitors; and provide a boost to search engine optimization (SEO).

From December 1, holders of global trademarks registered with the Trademark Clearinghouse (TMCH) will be given priority to register their new .taipei domains, following that in January 2015 Taipei-based companies and organizations will be able to register their .taipei addresses. General registrations won’t be permitted until March 31st.

Registrations will be processed in four waves:

Sunrise Period: December 1-31: Owners of trademarks registered with TMCH
Taipei Enterprise Sunrise Period
: January 21-February 19: Entities registered in Taipei City or New Taipei City only
Landrush Period
: February 24-March 26: First come, first served
Open Registration: March 31 onwards

*For detailed period policies please click the respective link

Domains registered in the Sunrise Period will cost a total of NT$4800 (approximately US$155) for three years. Taipei Enterprise fees will be NT$1920 for three years, while registrations made in the Open Registration Period will cost NT$800 for one year, according to information provided by Net Chinese (in Chinese), the domain registrar handling the .taipei project. Trademark holders wishing to register during the Sunrise Period can only register domains that exactly match the trademark listed with TMCH. During the Taipei Enterprise period, both full and partial matches are permitted.

The priority given to trademark holders allows for the protection of these marks online, and prevents domain squatting, a practice that can seriously damage a brand’s online identity and reputation, and can cause confusion amongst consumers. WP’s Daniel Chen, who has worked on many domain dispute cases for our international clients says, “We advise our clients, and indeed all trademark holders, to register their respective domains early to avoid the often lengthy and costly process of obtaining a suspension and/or transfer of domains registered by squatters”.

Additionally, Partner Peter Dernbach is active in the ICANN community as a member of the IP Constituency, currently serving as a member of the PDP Working Group on Translation/Transliteration of Contact Information. Peter also serves as a Panelist for WIPO’s Arbitration and Mediation Center, and has helped resolve numerous domain name disputes under the Uniform Domain Name Dispute Resolution Policy (UDRP).

Businesses interested in registering a .taipei address should visit the .taipei project website for more information, or contact Net Chinese.

3rd quarter trends in IP registrations released

Taiwan’s Intellectual Property Office has released IP registration figures and trends for the third quarter of 2014.

Total patent applications have dropped 4.28%, but at a slower rate than the previous quarter. Even though pending invention applications from both international and domestic panel, semiconductor and computer manufacturers is still relatively high, the TIPO reports that the total number of applications has fallen from the previous quarter to under 110,000 cases. Trademark applications are stable however, having grown 1.40% this quarter.

A total of 19,218 new applications were made in the third quarter, of which 11,150 came from Taiwan. Of those 11,150 applications, 4,617 were invention patents. The TIPO speculates that a drop in applications made by industry leader Hon Hai Precision Industry Co. (the single largest patent applicant in the country) is due to changes in their application procedure. Hon Hai’s applications are down 70% year on year.

Invention patents filed from abroad include Japan (3,115 applications), the United States (1,619 applications), South Korea (508 applications), China (374 applications) and Germany (300 applications). Design application figures are largely the same year on year, with Japan, the United States, Switzerland, Sweden and Germany making up the majority of the 884 applications made.

19,574 trademark applications were made, of which 5,236 were made by foreign parties. The most trademark applications came from the United States, Japan and China.

The TIPO also notes that applications from both foreign and domestic technology companies are comparatively strong. Firms that have filed applications this quarter include familiar brands such as LG, Microsoft, Acer, Fuji, AU Optronics and Hewlett Packard.

The full report is available on the TIPO’s website in Chinese here.

When will a foreign national be banned from (re)entering Taiwan?

Foreign nationals can be prohibited from entering Taiwan on a number of grounds. This post outlines those grounds and provides an updated translation of the regulations governing entry bans.

Statutory basis

Taiwan’s National Immigration Agency has the power to prohibit a foreign national from entering Taiwan. Immigration Act §18.

New translation (as of October 2014)

The rules for entry bans are set out in the ‘Operation Directions for Banning Entry of Aliens’ (禁止外國人入國作業規定). The Operation Directions have been amended twice in the last year but no updated translation has been available. A new translation is here in a bilingual format. It is provided by the Winkler Partners Translation Department as a public service to the international community in Taiwan and is part of an project to translate important but previously untranslated Taiwanese laws.

Multiple grounds for entry bans

The Operation Directions were most recently amended in 2014. They provide for 18 different circumstances that can lead to prohibitions on entry to Taiwan for periods generally ranging from one to ten years. Some bans can be permanent. Reasons for imposing an entry ban include:

  1. violations of immigration rules such a failing to submit a passport for inspection or using another person’s passport (Operation Directions §2) ,
  2. criminal record in Taiwan (§4),
  3. overstays (§3), and
  4. likelihood of conduct jeopardizing national security, public safety or terrorist activities (§5).

Suspended sentences and suspended indictments grounds for ban

According to the Operation Directions, entry bans based on a criminal record include not only suspended sentences, but also decisions by or to suspend indictment. These bans last for two years. §4(8).

An overstay of up to 90 days is exempt from an entry ban but the overstaying foreign national will not be able to enter Taiwan on a landing visa for one year. §8(1). The exemption will be revoked if the foreign national fails to pay the overstay fine.

Reductions and exemptions to bans

There are also provisions that mitigate the harshness of these bans.  For example, a ban may be reduced from five years to three years in substance abuse cases where the foreign national has successfully completed a diversionary treatment program. §3(8). The National Immigration Agency’s Immigration Case Review Committee may also extend or reduce bans by one to three years. §5. Permanent residents, spouses of Taiwanese citizens, stateless persons with residence, and victims of human trafficking are eligible for 50% reductions or humanitarian exemptions. §§8-12.

Appeals

Entry bans are administrative decisions. They can be appealed in a two-step process. First the banned foreign national must appeal to the National Immigration Agency. If the National Immigration Agency denies the appeal, the appeal can be raised to the Ministry of the Interior. These appeals are intended to give the agency making the decision and its superior agency the opportunity to correct any errors. In practice, appeals to administrative agencies are rarely successful. These appeals are usually resolved in a few months.

The second step is an appeal to the courts. If the Ministry of the Interior denies the banned foreign national’s appeals, the foreign national gains standing to take legal action in Taiwan’s Administrative Courts. Despite their name, the courts are part of the judicial branch of government. They are independent of executive branch agencies like the National Immigration Agency and the Ministry of the Interior and overturn administrative decisions with some regularity. Proceedings in these courts are likely to last at least one year. The ban normally remains in place during the proceedings.

Download and license

Download Operation Directions for Banning Entry of Aliens.

Creative Commons License
“Operation Directions for Banning Entry of Aliens” by Winkler Partners is licensed under a Creative Commons Attribution 3.0 Unported License.

Based on a work at http://www.immigration.gov.tw/.

Points test for foreign graduates of Taiwanese universities makes work permits easier

In early July, Taiwan’s Ministry of Labor amended its regulations governing work permits for foreign professionals to allow foreign graduates of Taiwanese universities to obtain work permits more easily. Previously, only an employer who was willing to pay the foreign graduate an average monthly salary of NT$37,619 could sponsor a foreign graduate for a work permit.

Under the new rules, the rigid minimum salary requirement has been replaced with a more flexible points system that awards points based on factors including compensation, language ability, and experience living abroad. If the foreign graduate scores 70 points, the employer can sponsor the student for a work permit for professional employment (‘specialized and technical work).

There is a quota of 2,000 work permits in the first year.

Although the new point system is not expected to increase the number of foreign professionals in Taiwan immediately, it is a very significant first step away from the minimum salary requirements that have discouraged Taiwanese employers from hiring foreign professionals.

The application period is 3 July 2014 to 2 July 2015. Application information in Chinese for employers is here.

As a public service, Winkler Partners has translated the eight-factor point system into English. It can be downloaded here.

Translations of Taiwan securities laws and regulations updated

Taiwan’s official portal for securities-related laws and regulations was recently updated with thirteen new or revised  English translations by Winkler Partners.

The Winkler Partners Translation Department has produced the English translations of securities laws and regulations for the portal since 2002. The portal is updated twice a month with new and revised content.

Currently, the site contains 1,489 securities laws and regulations, 665 of which have been translated into English. The site also contains 6,824 administrative letters of interpretation and 2,199 court judgments.

  1. GreTai Securities Market Rules Governing the Use of the Gofunding Zone
  2. Regulations Governing the Go Incubation Board for Startup and Acceleration Firms
  3. Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals
  4. Procedures and Fees for Inquiry, Examination, and Issuance of Copies of Computer-
  5. Processed Personal Data in the Securities and Futures Industries
  6. Standards Governing the Security of Personal Data Files in the Securities and Futures Industries
  7. Taiwan Stock Exchange Corporation Rules Governing Information Filing by
  8. Companies with TWSE Listed Securities and Offshore Fund Institutions with TWSE Listed Offshore Exchange-Traded Funds
  9. GreTai Securities Market Procedures for Press Conferences Concerning Material
  10. Information of Companies with GTSM Listed Securities
  11. GreTai Securities Market Rules Governing Information Reporting by Companies with GTSM Listed Securities
  12. Establishment of an Information and Communications Security Inspection System for Futures Commission Merchants
  13. Directions for Futures Trading by Overseas Chinese and Foreign Nationals

New rules on extensions of residence in Taiwan

The Ministry of the Interior announced amendments to the Regulations Governing Visiting, Residency, and Permanent Residency of Aliens (the “Regulations”) on 22 April. The amendments took effect immediately.

The amendments primarily benefit the adult children of foreign residents who grew up in Taiwan. They are now able to apply for two three-year extensions of residency if they meet certain minimum residency requirements as minors and apply during the 30 days before expiration of a current Alien Residence Certificate. Regulations §§ 8-9.  The ARC extensions do not confer work rights.

Foreign white collar professionals also now have up to six months of extended residency to seek new employment in Taiwan after a job ends. Regulations § 22.  The foreign professional must apply for extension of residence to seek new employment before his or her ARC expires or is cancelled.   During this period, the foreign professional cannot work until her new employer has obtained a work permit for her.

Graduates of Taiwanese universities may also apply for a six month extension of residency. Regulations § 22-1.

Below is a translation of the amendments to the Regulation provided as a public service to the international community in Taiwan.

Article 8

Aliens applying for an extension of residency pursuant to paragraph 1, Article 31 of the Act, shall submit the following document and a photograph to the National Immigration Agency within thirty(30) days before the expiration of residency:

1. An application form;
2. The passport and the Alien Resident Certificate;
3. Other supporting documents.

An alien who is permitted to reside in the Taiwan region, is at least 20 years of age, and whose father or mother holds an Alien Resident Certificate or a Permanent Alien Resident Certificate may apply to extend residency if any of the following circumstances apply:

  1. [The alien] has lawfully accumulated ten years of residence and has lived in Taiwan for more than 270 days in each of those years;
  2. [The alien] entered Taiwan before the age of 16 and has lived in Taiwan for more than 270 days each year; or
  3. [The alien] was born in Taiwan, has lawfully accumulated ten years of residence. and has lived in Taiwan for more than 183 days in each of those years.

The alien in the preceding paragraph shall submit the following document and a photograph to the National Immigration Agency within thirty(30) days before the expiration of residency:

1. Application form;
2. Passport and the Alien Resident Certificate;
3. Documents proving relationship [to parent]
4. Other supporting documents.

Article 9

The validity of Alien Resident Certificate issued to the following aliens shall not exceed one year:

1. Anyone undertaking study in a school, or a Chinese language institute affiliated with an university, registered with the education competent authorities;
2. Anyone undergoing study or training with the approval of the education or other competent authorities;
3. A foreign missionary or Buddhist preacher;
4. First-time applicant of residency based on the marriage to an citizen ROC national;
5. Any others for whom such residency is necessary.

Where the alien stated in subparagraph 1 of the preceding Article is a recipient of a university scholarship award under the special approval of the Ministry of Education, the validity of Alien Resident Certificate thereof shall be exempted from the one year restriction.

Where the alien in paragraph 2 of the preceding Article applies to extend that validity of an approved and issued Alien Residence Certificate, the effective period is extended for three years from the day following the expiration of the alien’s original period of residence. If necessary, the alien may apply for another extension once. The period [of the second extension] shall not exceed three years.

Article 22

An alien, the residency for whom is granted based on the investment in Taiwan, the employment in Taiwan pursuant to subparagraphs 1 to 7 of paragraph 1 of Article 46 or Subparagraph 1 of Paragraph 1 of Article 48 of the Employment Services Act, or the special approval by the Ministry of the Foreign Affairs, under special circumstances may submitted a written explanation to extend the length of stay from the National Immigration Agency prior to the expiration of the residency; spouses and underage children of the aliens who have been verified for residency can also apply through the same process. Upon approval, applicants can leave the State six months after the expiration of the residency.

Article 22-1

Before residency expires, an alien who has come to Taiwan to study may, if necessary, explain the alien’s reasons in writing and apply to the National Immigration Agency for an extension.

An alien who applies for an extension of residency under the preceding paragraph and is approved may have residence extended for six months from the day following the expiration of the previous period of residence.

Winkler Partners ranked in Chambers Asia Pacific Guide (2014)

Winkler Partners has been ranked in Chambers Asia Pacific Guide (2014) for its insurance, intellectual property, and employment practices.  The guide notes Winkler Partners’ focus on intellectual property work related to Taiwan’s technology industry in its overview of the Taiwan legal services market.

Partner Chen Hui-ling is recognized as a noted practitioner for her insurance work as is Peter Dernbach for IP.

Winkler Partners closed for Lunar New Year

Our office is closed from 30 January to 4 February for the Lunar New Year. Please direct any inquiries or urgent matters to info@winklerpartners.com. Happy Year of the Horse.

Peter Dernbach on Taiwan’s new exclusionary measures against patent infringing goods

The World Intellectual Property Review recently interviewed WP’s Peter Dernbach on Taiwan’s new border interdiction measures for goods infringing on Taiwanese patents. Patent owners will be able apply to detain infringing goods being imported into Taiwan but must provide a security bond and file an action for patent infringement within 12 days. The new measure are expected to come into effect in two months.

 

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