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Newsletters

Deep & Far Newsletter 2016 ©
May, 2016

PROPOSED IMPLEMENTATION REGULATIONS FOR THE CUSTOMS TO DETAIN AN ARTICLE INFRINGING A PATENT

Wei-Ting Chou, Patent Director, Patent Group I

ˇ˝ Master of Agricultural Engineering, National Taiwan University

ˇ˝ Bachelor of Medical Engineering, National Cheng Kung University

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Articles

Introduction

1. This Act is enacted in accordance with Paragraph 4 of Article 97 of the Patent Law (referred to as the Law hereinafter)

This is the basis according to which this Act is enacted.

2. A patentee requesting the Custom authorities through which an imported article that is likely to infringe its patent right(s) is imported, to detain the article shall submit to Customs a written request with the following documents:

  2.1 a certificate of the patent, and, in case of a utility model patent, a technical report shall also be submitted;

  2.2 a copy of the certificate of the identity of the Applicant or the juristic person, or any other document that proves the qualifications therefor;

  3.3 an infringement analysis report, and descriptions to fully identify the suspected infringing article, and a sample or photograph, catalog, or picture and electronic file therefor shall be provided;

  3.4 sufficient information for Customs to identify the article to be detained, for example: the importer name, business registration number, declaration number, article name, article type, specification of the article, possible import date, import port or transportation vehicle; and

  3.5 a power of attorney, if the request is filed by an appointed agent.

  The Applicant in the paragraph above refers to the patentee and/or the exclusive licensee.

  If there are documents that should be supplemented according to Paragraph 1, Customs should notify the Applicant of this, and the customs clearance procedures for the infringing article will not be affected until the supplement is made.

1. Paragraph 1 stipulates the procedures to request detainment of the articles, which agency is the administrative agency, and the documents that should be submitted, including the certificate of the patent right, copy of the certificate of the identity, infringement analysis report, and sufficient information for Customs to identify the article to be detained to facilitate the detainment process.  In addition, because a utility model patent is subject to a formal examination instead of a substantive examination, a technical report therefor should be provided, so as to objectively determine whether the patent rights are valid or not.

2. Paragraph 4 of Article 96 in the Law stipulates that the exclusive licensee can also claim damages, prevention of infringement, and preclusion of infringement from the infringer under the licensed scope.  Therefore, Paragraph 2 of Article 2 stipulates that the party who can request detainment includes the patentee and/or exclusive licensee.

3. Paragraph 3 stipulates that when the documents are not sufficient to request detainment, the Customs should notify the Applicant to make a supplement, and inform the Applicant that the customs clearance procedures for the infringing article will not be affected until the supplement is received.

3. If the detention request complies with the preceding article, Customs shall notify the Applicant to provide a security equivalent to the duty-paid price of the imported article as estimated by Customs, or any of the following equivalent assurance:

1. a bond issued by the government;
2. a certificate of deposit issued by a bank;
3. a certificate of deposit issued by a credit cooperative;
4. a common trust certificate for over one year from a trust and investment company; and
5. a guarantee from a loan institution.

   The assurance in accordance with Clauses 1-4 of Paragraph 1 should be pledged to Customs.

Before the Applicant provides the security or equivalent assurance, Customs shall deal with the article  suspected of infringing the patent right(s) in accordance with the customs clearance regulations for importing the article.

1. To guarantee the Applicantˇ¦ benefits, Paragraph 1 stipulates that Customs, if considering that the request from the Applicant to request Customs to detain the article suspected of infringing the patent rights complies with the relevant stipulations, should notify the Applicant to provide the security equivalent to the duty-paid price of the imported article as estimated by the Customs or the equivalent assurance which includes a bond and certificate of deposit for enforcement.

2. Clauses 1-4 of Paragraph 1 stipulate that the assurances are creditor rights and should be pledged to the Customs.

3. Paragraph 3 stipulates that before the Applicant provides the security or equivalent assurance, the Customs shall act in accordance with the customs clearance regulations for importing the article.

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