March 2024
Jane Tsai, Doris Hsu, Andrew Huang
Drawing on our team’s professional qualifications and extensive experience, we offer customized solutions for the establishment of the Taiwan Intellectual Property Management System (hereinafter “TIPS”) and legal consulting. Our aim is to assist clients in enhancing the efficiency of intellectual property management and utilization within their organizations. For decades, we have successfully represented clients in a spectrum of intellectual property cases, such as patent strategy and portfolio management, trademark strategy development, copyright licensing and transfer, implementation of trade secret management systems, and negotiation and resolution of intellectual property disputes.
To provide a comprehensive understanding, we present this special issue on “TIPS”, explaining the “3+1 stages” of TIPS establishment and certification in a Q&A format. We expect this to serve as a practical guide, covering everything you need to know about TIPS.
Q1: What are the benefits for enterprises in establishing and obtaining TIPS certification?
A1: The adoption of TIPS effectively enhances the efficiency of internal intellectual property management and system utilization. Besides, TIPS bestows various benefits to enterprises, including, but not limited to, i) the standardization of intellectual property management documents, ii) improvement of cross-departmental communication, iii) reduction of operational deviations, iv) improved capabilities in research and development, and v) strengthened competitiveness. Furthermore, to encourage more enterprises to pitch in together, from 2022, both Taiwan’s Stock Exchange Corporation and the Financial Supervisory Commission have integrated “intellectual property management” into their respective “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” and “Corporate Governance Evaluation System.” This inclusion grants an extra point to enterprises that attain official TIPS certification.[1]
Q2: Does obtaining TIPS certification imply that the enterprise has fulfilled the regulatory requirements for implementing “reasonable confidentiality measures” to maintain the secrecy of the trade secret?
A2: Based on our considerable experience in handling disputes over trade secrets, in cases of trade secret misappropriation, the defendants in trade secret litigation often raise the initial defense of whether the enterprise has implemented appropriate and reasonable confidentiality measures, composing the claimants’ defensive focus. By introducing TIPS and obtaining certification, not only can it ensure effective management of trade secrets within the enterprise, from system establishment to practical implementation, but it can also erect robust and favorable evidence that the enterprise has taken reasonable confidentiality measures. As the adage goes, “an ounce of prevention is worth a pound of cure,” our firm’s TIPS-related services assist clients in establishing intellectual property management systems appropriately and effectively, thereby mitigating the risk of trade secret disputes from the outset.
Q3: Is TIPS necessary if we have already implemented an ISO9001 Quality Management System (QMS)?
A3: Absolutely. Notwithstanding the inclusion of a chapter related to intellectual property management within ISO9001, the primary goal and emphasis of this quality management system lie in maintaining the quality of products or services. As a result, there is insufficient depth and intensity in the content regarding intellectual property management. On the other hand, TIPS focuses on the acquisition, protection, maintenance, and utilization of diverse intellectual properties, comprehensively enhancing the intellectual property management capabilities of enterprises. As such, the adoption of TIPS is recommended for enterprises operating under the ISO9001 framework, with an emphasis on the seamlessly integrating and adapting both systems to maximize the effectiveness of enterprise management.
Q4: What is the timeframe for establishing TIPS and obtaining certification? What is the recommended schedule for the process?
A4: We recommend adhering to the “3+1 stages,” encompassing the introduction stage, establishment stage, certification preparation stage, and certification stage. Each stage typically spans from 1 to 2 months for planning the adoption of TIPS. Please be aware that the TIPS certification stage is open for application from June to August each year. For enterprises intending to adopt TIPS and apply for certification, it is advisable to plan ahead as early as possible. Tailored to the scale and structure of the enterprise, we can provide the most efficient and customized solutions according to the client’s conditions and requirements.
If you have any inquiries about the adoption of TIPS or related counseling services, please feel free to reach out to Lee, Tsai & Partners. Our professional TIPS Team is more than happy to serve as your dedicated intellectual property gatekeeper!
[1] Basically, an enterprise meets the criteria in evaluation indicator no. 2.27 of the Corporate Governance Evaluation to score a point by (i) drawing up an intellectual property management plan, (ii) disclosing the management outcomes on its website or annual report, and (iii) reporting to the board of directors in the annual meeting. If the enterprise obtains TIPS certification, it further meets the additional scoring criteria, resulting in an additional point added to the overall evaluation score.
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