Eighty percent of public companies in Taiwan still treat their intellectual property (IP) management more as administrative matters, even as IP management has become an important competitive tool among international markets. In order to help domestic public companies fulfill the IP management requirements of internal control systems, the IDB held an IP Management and Internal Control Experiential Exchange Forum on October 26th, 2015. Collaboration among governmental bureaus where the SFB proposes amendments and interpretations for regulations and the IDB provides practicable propositions and examples will lead domestic companies to increase their R&D abilities, manifesting the value of intangible assets as well as strengthening competitiveness.
In order to help companies promote IP management from the administrative level to the strategic level, the SFB, with the invitation and facilitation of the IDB, announced amendments to Regulations Governing the Establishment of Internal Control Systems by Public Companies on September 22, 2014, officially connecting IP management and internal control systems within companies. The internal control systems of the future will not only be limited to the financial perspective, they will also include internal and external non-financial coverage. The acquisition, maintenance, and utilization of the newly incorporated IP management requirement fit into the information disclosure of non-financial perspectives. Utilizing the achievability of related control operations can enhance companies’ non-financial operating abilities and increase the reliability of their information disclosure.
The IBD has dedicated a long period of time to driving TIPS. Since 2007, the IDB has helped 1,046 domestic companies and organizations increase their internal IP management capabilities, effectively reducing the risks of R&D technology leaks, and preventing infringement litigations. This time, the SFB has added “The Acquisition, Maintenance, and Utilization of Intellectual Property” into the internal control guidelines, requiring companies to stipulate IP-related internal control policies and audit programs. In the future, companies with the IP management implanted by the IDB’s TIPS will automatically comply with standards under which companies can subsequently increase their IP management capabilities and ensure their R&D achievements and values. The IDB will continuou to drive the internal controls of IP management as well as the inspection mechanism, the Regulations Governing Information to be Published in Annual Reports, and the Corporate Governance Evaluation System of public companies. Also, in order to intensify the amendments of the supporting mechanism in association with the Statute for Industrial Innovation and Circulation and Utilization of Intangible Assets, the IDB will work in partnership with the SFB to drive IP management capabilities and promote the value of intangible assets.