International Patent Litigation.　The Government Assists in the Application for Loan for Litigation Fees with the Ceiling Limit of NT$ 50,000,000.

On January 5, 2004, the Executive Yuan’s financial head report agreed with the Draft of “Essentials of Loan for International Patent Right Litigation Made by Domestic Private Enterprises” (國內民營企業國際專利權訴訟貸款要點) proposed by Ministry of Economic Affairs to the effect that such a loan would be conducted by the bank’s own capital to grant the loan approval for the amount of 80% of the litigation costs occurring in applicant enterprises’ international patent litigation with the ceiling limit of NT$ 50,000,000. The Council for Economic Planning and Development decided to first allot $100,000,000 from the Sino-Us Fund to cooperate with the fund for credit guaranty of NT$ 300,000,000 as guarantee.

 

According to statistics, there are around 30 cases concerning patent right litigious dispute occurring to the domestic business entities with international enterprises per year. Due to the exorbitant cost of foreign litigation fee, it is estimated that only the first instance judgment costs 800,000 USD (equivalent to NT$30,000,000).

 

The approval of such a loan for credit guaranty would be granted based on 80% of the litigation costs occurring in applicant enterprises’ international patent litigation. Meanwhile, the government would also provide 70% to 90% of credit guaranty with the ceiling limit of NT$50,000,000. It is conservatively estimated that the number of the loan would fall into the range between NT$ 1,500,000,000 to $ 3,000,000,000. (2004.01)

CYJ/CCS