Multi-national Piracy Syndicate Fined TWD7.6 billion by Taipei District Court, Making Unprecedented Award for Damages in Taiwan’s Judicial History.

With reference to the criminal action initiated by Microsoft Corporation, a U.S.-based company, with a monetary claim against the largest multi-national piracy syndicate in the world, Taipei District Court rendered judgment on 18 May, pronouncing that defendants, Chungtek Hightech Enterprise Ltd. and the responsible person of Being Technology Co., Ltd. (hereinafter referred to as “Party D”), namely the wife of Chungtek’s responsible person, Hu Zhong-Lin (deceased), should jointly and severally pay damages to Microsoft Corporation in the amount of TWD7.6 billion, making the unprecedented award for damages in Taiwan’s judicial history.

Judge Yu Ming Xian of the Taipei District Court civil division indicated in the judgment that “The four companies, including Chungtek Hightech Enterprise Ltd., Being Technology Co., Ltd., Global Circuit Technology (Global Circuit) and Zhi Yang Enterprise (Zhi Yang), and Party D and the responsible person of both Global Circuit and Zhi Yang, namely Party C, should pay Microsoft Corporation US$54,805,710.95 jointly and severally, and Chungtek Hightech Enterprise Ltd., Being Technology Co., Ltd. and Party D should also pay Microsoft Corporation TWD5,881,135,012 jointly and severally; therefore, the indemnity totals around TWD7.6 billion, plus the interest accruing at the annual interest of 5% from 12 August 2003 until the payment date, and defendants should publish the gist of the civil judgment in newspaper”.

Notwithstanding, the claim made by Microsoft Corporation against defendants for business reputation impairment was overruled, because Microsoft Corporation failed to provide the relevant substantial evidence.

In November 2001, the L.A. customs office and police seized a total of more than 820,000 pirated discs exported by Chungtek Hightech Enterprise Ltd. from Taiwan, valuing over US$9.8 million in total.  The investigation showed that Chungtek’s responsible person, conspiring with the other co-offenders, utilized the various member companies of the group to export the pirated software and VCDs overseas in order to seek huge profit.

On 4 December 2002, Taipei District Prosecutors Office prosecuted defendants including Chungteck’s responsible person (among others) for violations of Copyright Act, Trademark Act, and Criminal Code for using forged documents.

Meanwhile, the buyer of the counterfeits smuggled by Chungteck in the U.S.A., Lisa Wu Chen (陳吳莉莎), received a 9-year prison sentence and ordered to pay for damages in the amount of USD11 million to Microsoft and Symantec by California Supreme Court.  (2010.05)
/DC