WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOIP/N/1/TPKM/U/1
25 June 2002
(02-3516)
Council for Trade-Related Aspects of
Intellectual Property RightsOriginal:  English/
anglais/
inglés
MAIN DEDICATED INTELLECTUAL PROPERTY
LAWS AND REGULATIONS NOTIFIED UNDER
ARTICLE 63.2 OF THE AGREEMENT
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU
The present document reproduces the text1 of the Trade Secret Act, as notified by the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu, under Article 63.2 of the Agreement (see
document IP/N/1/TPKM/1).
Conseil des aspects des droits de propriétéintellectuelle qui touchent au commerce
PRINCIPALES LOIS ET RÉGLEMENTATIONS CONSACRÉES À LA
PROPRIÉTÉ INTELLECTUELLE NOTIFIÉES AU TITRE
DE L'ARTICLE 63:2 DE L'ACCORD
TERRITOIRE DOUANIER DISTINCT DE TAIWAN, PENGHU, KINMEN ET MATSU
Le présent document contient le texte
1 de la Loi sur les secrets de fabrique, qui a été notifiée
par le Territoire douanier distinct de Taiwan, Penghu, Kinmen et Matsu au titre de l'article 63:2 de
l'Accord (voir le docu ment IP/N/1/TPKM/1).
Consejo de los Aspectos de los Derechos de Propiedad
Intelectual relacionados con el Comercio
PRINCIPALES LEYES Y REGLAMENTOS DEDICADOS A LA
PROPIEDAD INTELECTUAL NOTIFICADOS EN VIRTUD
DEL PÁRRAFO 2 DEL ARTÍCULO 63 DEL ACUERDO
TERRITORIO ADUANERO DISTINTO DE TAIWÁN, PENGHU, KINMEN Y MATSU
En el presente documento se reproduce el texto1 de la Ley de Secretos Comerciales,
notificado por el Territorio Aduanero Distinto de Taiwán, Penghu, Kinmen y Matsu de conformidad
con lo dispuesto en el párrafo 2 del artículo 63 del Acuerdo (véase el documento IP/N/1/TPKM/1).
                                                     
1 In English only.  The text in the original language is available for consultation by interested
Delegations at the WTO Secretariat./En anglais seulemen t.  Les délégations intéressées peuvent consulter le
texte, dans sa langue d'origine, au Secrétariat de l' OMC./En inglés solamente.  Las delegaciones interesadas
podrán consultar en la Secretaría de la OMC el texto en su idioma original.IP/N/1/TPKM/U/1
Page 2
TRADE SECRET ACT
(Promulgated on 17 January 1996 and effective on 19 January 1996)
Article 1  (The Legislative Purpose)
content This Act is enacted to protect trade secrets, maintain industrial ethics andorder in competition, and balance societal and public interests. Matters not
provided for in this Act shall be governed by other laws.
Article 2  (The Definition of Trade Secret)
content The term " trade secret " as used in this Act shall mean any method, technique,
process, formula, program, design, or other information that may be used in the
course of production, sales, or op erations, and also meet the following
requirements:
(1).It is not known to persons generally involved in the information of this type;
(2).It has economic value, actual or potential, due to its secretive nature; and
(3).Its owner has taken reasonable measures to maintain its secrecy.
Article 3  (The Ownership of a Trade Secret from Employment)
content If a trade secret is the result of research or development by an employee during
the performance of employment, the trade secret shall belong to the employer
unless otherwise provided for in a contract, and in which case the contract
shall prevail.If a trade secret is the result of research or development by an employee other
than during the performance of employment, the trade secret shall belong to the
employee. However, if the trade secret is the result of utilizing the employer's
resources or experience, the employer may make use of such a trade secret in the
employer's business after paying a reasonable compensation to the employee.
Article 4  (The Ownership of a Trade Secret from a Funded Contract)
content Where one provides funding and contracts another to conduct research or
development that resulted in a trade secret, the ownership of the trade secret
shall be determined by the terms of the contract. If the ownership is notspecified in the contract, the trade secret shall belong to the contracted
party; however, the contracting party shall be entitled to make use of such
trade secret within the contracting party's business.
Article 5  (The Ownership of a Jointly-Developed Trade Secret)
content Where a trade secret is the result of joint research or development by two or
more parties, the respective shares in the ownership of the trade secret shallbe determined by contract. In the absence of a contract, an equal share of the
ownership shall be presumed.
Article 6  (The Assignment of a Trade Secret)
content A trade secret may be assigned in whole or in part, or jointly owned.Any use or disposition of a jointly-owned trade secret shall be unanimously
approved by all co-owners in the absence of a contractual provision. However, no
co-owner shall refuse consent without proper justification.IP/N/1/TPKM/U/1
Page 3
No co-owner may assign its share of the ownership without the consent of the
remaining co-owners , unless otherwise provided for in a contract, and in which
case the contract shall prevail.
Article 7  (The Licensing of a Trade Secret)
content An owner of a trade secret may grant a license to another for the use of the
trade secret. The territory, term, contents, methods of use or other matters in
connection with the license shall be determined by the contract between the
parties.
The licensee as referred to in the preceding paragraph shall not sub-license the
licensed trade secret without the consent of the trade secret owner.
No co-owner shall grant a license to another for the use of the jointly-ownedtrade secret without the unanimous consent of the remaining co-owners. However,
no co-owner shall refuse consent without proper justification.
Article 8  ( The Unavailability of a Trade Secret's Being Pledged and
Compulsorily Enforced )content A trade secret shall not be used as the subject matter of a pledge or compulsory execution.
Article 9  (The Government Officials' Confidentiality Duty)
content No government employee shall use or disclose without due cause any trade secrets
of others known or obtained through the performance of his official duties.No parties, representatives of the parties, advocates, expert witnesses,
witnesses, and other parties related to the case shall use or disclose without
due cause any trade secrets of others, k nown or obtained by virtue of a judicial
investigation or proceeding.
The provision of the preceding paragraph shall apply mutatis mutandis toarbitrators and other relevant parties involved in arbitration matters.
Article 10  (The Infringement of a Trade Secret )
content Any of the following acts shall be deemed as a misappropriation of a trade
secret:
( 1 ) To acquire a trade secret by improper means;
( 2 ) To acquire, use, or disclose a trade secret as defined in the precedingitem knowingly or unknowingly due to gross negligence;
( 3 ) To use or disclose an acquired trad e secret knowing, or not knowing due to
gross negligence, that it is a trade secret as defined in item one;
( 4 ) To use or disclose by improper means a legally acquired trade secret; or
( 5 ) To use or to disclose without due cause a trade secret to which the lawimposes a duty to maintain secrecy
The term "improper means " as referred to in the preceding paragraph shall mean
theft, fraud ,coercion, bribery, unauthorized reproduction ,breach of an
obligation to maintain secrecy ,inducement of others to breach an obligation to
maintain secrecy, or any other similar means.
Article 11  ( Civil Remedies )
content If a trade secret is misappropriated, the injured party may request for the
removal of such misappropriation. If there is a likelihood of misappropriation
,a prevention may be requested .When requesting for a remedy available under the preceding paragraph, the
injured party may request for the destruction or other necessary dispositions of
products generated from the misappropriation or items used exclusively in the
misappropriation.IP/N/1/TPKM/U/1
Page 4
Article 12  ( Civil Liability and Statutory Limitation )
content One who intentionally or negligently misappropriates another's trade secret
shall be liable for damages. If two or more parties jointly misappropriate, such
parties shall be jointly and severally liable.The right to claim for damages as referred to in the preceding paragraph shall
be extinguished if the right is not exercised within two ( 2 )years from the
date when the owner of the right has knowledge of both the act of
misappropriation and the identity of the party liable for the damages ,or within
ten ( 10 ) years from the act of misappropriation.
Article 13  (The Methods of Calculating Damages)
content An injured party may choose any of the following provisions to request for
damages in accordance with the preceding Article:
( 1 )To make a claim based upon Article 216 of the Civil Code. However, if the
injured party is unable to prove the amount of damages, the party may take
as damages the amount of profits normally expected from the use of the tradesecret minus the amount of profits earned after the misappropriation; or
( 2 )To request for the profits earned through the act of misappropriation from
the one who misappropriated. However, if the one who misappropriated is unable
to prove the costs or the necessary expenses, the total income gained from the
act(s) of misappropriation shall be deemed the profits .Based on the provisions set forth in the preceding paragraph, if an act of
misappropriation is found to be intentional, the court may, at the request of
the injured party and by taking into consideration the circumstances of the
misappropriation, award an amount greater than the actual damages, provided that
the amount shall not exceed three times the amount of the proven damages.
Article 14  ( The Secrecy Maintenance of Trial on a Trade Secret )
content To try trade secrets suits, the court may establish a special tribunal or
appoint a designated person(s) to administer the case.
If assertions or defenses advanced by parties to a litigation relate to trade
secrets, and at the request of the parties, the court may, as it deems
appropriate, close the trial to the public and/or restrict access to the filesof the litigation related information.
Article 15  ( The Reciprocity Principle )
content A foreign national's trade secret(s) will not receive protection in the R.O.C.,
if the foreign national's home country has not signed a bilateral trade secretsprotection treaty or agreement with the R.O.C., or does not provide protection
to trade secrets owned by R.O.C. nationals according to the laws and regulations
of the foreign national's home country.
Article 16  ( Effective Date )
content This Act shall come into force from the date of promulgation.
Note
Lee and Li Attorneys-At-Law prepared this English translation.
In case of any discrepancy between this English translation and the original
Chinese text of the Law, the Chinese text shall govern.
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