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Intellectual Property Rights in Labor Contracts: A Guide to Protection and Ownership in Taiwan

In Taiwan, intellectual property rights (IPR) are protected through various laws and regulations, including those relating to labor contracts. Intellectual property refers to creations of the mind, such as inventions, literary and artistic works, symbols, names, images, and designs used in commerce. These creations can be protected by patents, copyrights, trademarks, and trade secrets.

When it comes to labor contracts in Taiwan, the protection of intellectual property is typically addressed through contractual agreements between employers and employees. Here are some key points to consider:

1. Ownership of Intellectual Property: By default, the Intellectual Property Rights Act in Taiwan states that an employee owns the rights to any inventions, designs, or other creations they develop during their employment, unless otherwise agreed upon in writing. However, employers can assert ownership if they can prove that the creation was made within the scope of the employee’s duties or using significant resources provided by the employer.

2. Confidentiality and Trade Secrets: Employers in Taiwan often include confidentiality clauses in labor contracts to protect trade secrets and confidential information. These clauses restrict employees from disclosing or using any confidential information acquired during the course of their employment, both during and after the employment period.

3. Non-Competition Clauses: Labor contracts in Taiwan may also include non-competition clauses to protect an employer’s intellectual property and business interests. These clauses restrict employees from engaging in activities that directly compete with their employer’s business for a specified period after termination of the employment contract.

4. Employee Inventions: If an employee invents something that falls within the scope of their employment or using significant employer resources, the employer may claim ownership or negotiate for rights to that invention. It is advisable for employers to include specific clauses in labor contracts addressing the ownership and management of employee inventions.

5. Licensing and Royalties: Employers and employees can negotiate licensing agreements or royalty arrangements to regulate the use of employee-created intellectual property. These agreements should specify the terms, conditions, and compensation for the use of the intellectual property by the employer or third parties.

It’s important for both employers and employees to clearly define the rights and obligations related to intellectual property in their labor contracts. To ensure the enforceability of these provisions, it is recommended to consult with legal professionals familiar with Taiwanese labor and intellectual property laws.

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