Before Filing an Administration Suit, an Appeal Should Have Been Filed First (a written judgment No.126 made by IP Court in 2013)

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Patents
 
I. Before Filing an Administration Suit, an Appeal Should Have Been Filed First (a written judgment No.126 made by IP Court in 2013)
 
An official decision was made by the TIPO which deemed that the Claims 1 and 2 of a patent should be invalidated due to lacking inventive step according to the Patent Act, Article 22.IV. The patentee filed an Appeal up to the MOEA (Ministry of Economic Affairs, R.O.C.) arguing that the Claim 1 of the patent should be patentable. The MOEA dismissed the Appeal by holding the same opinion that the Claim 1 of the patent lacked inventive step. The patentee (plaintiff) filed an Administration Suit against the decision of the Appeal by the reason that the combination of Evidence 3 and 4 were not sufficient to prove the lack of inventive step of the Claims 1 and 2 of the patent.

The IP Court made a judgment concerning the part of Claim 2 raised in the Administration Suit:
 
  1. According to the Article 4.I of the Administrative Litigation Act, before filing an Administration Suit, an Appeal should have been filed first. It is not allowed to file the Administration Suit without going through the proceeding of Appeal.

In addition, according to the Patent Act, Article 73.II: where a patent contains more than one claim, an invalidation action may be filed against parts of the claims.

Article 149.II: With respect to a request for post-grant amendment and invalidation action which is still pending at the time of the implementation of the November 29, 2011, amendment of this Act, the amended Patent Act shall govern.
 
  2. The decision of the Invalidation against the Patent at issue has not yet been made before the enforcement of the new Patent Act effective on January 1, 2013, so it applied to the new Patent Act that the claims should be examined one by one in an Invalidation application. Therefore, the TIPO (defendant) made an official decision mentioning that the Claims 1 and 2 of a patent should be invalidated.

However, the patentee filed the Appeal for the patentability of the Claim 1 only but no allegation about the Claim 2 therein. Therefore, since the Claim 2 did not go through the proceeding of Appeal, the Administration Suit about the part of Claim 2 should be dismissed.
 
Source: TIPO Newsletter issued on October 05, 2014
(http://www.tipo.gov.tw/public/epaper/113/ePaper113_ep8419.htm)
 
II. Accelerated Examination for Patent Applications (AEP) in the field of Green Energy Technology Enhances the Efficiency of Patent Portfolio Thereof in Taiwan.
 
In order to encourage the development of green energy technology and enhance the efficiency of examination, Condition 4 for applying for accelerated examination was added and has been effective from January 01, 2014. By getting the patent right quickly, it is expected to enhance the efficiency of patent portfolio in the field of green energy technology in Taiwan.

Please refer to the statistics about the AEP in the field of green energy technology filed since January 01 until the end of August 2014 as listed in the table below:
 
 
Field case Field case
Solar cell Electrode modulation 6 Energy-saving electric vehicle Power generation equipment 4
Thin film materials 2 Driving performance 3
Cell structure 1 Electromagnetic induction 1
Finishing process 1 Engine structure 1
Smart grid Power control 3 Other technologies LED lighting device 2
Transmission performance 1 Energy-saving materials 1
Energy control 1 Fuel cells 1
 
Until the end of August 2014, the TIPO has received 28 AEP requests in the field of green energy technologies, in which about 82% of the applicants are domestic applicants. The top three technologies are: solar cell, energy-saving electric vehicle and smart grid. The patent applications in the field of solar cell are mainly the electrode modulation and thin film materials. As to the patent applications in the field of energy-saving electric vehicle, they mainly are power generation system with improved efficiency.

In order to encourage the green energy technologies, the TIPO proceeds with the examination of the AEP requests with the first priority. In average, it only takes about 70 days from filing the AEP to receiving the Official Actions. Among the 28 AEP requests in the field of green energy technologies, the TIPO has finished the examination and issued Official Actions for 18 patent applications in which two applications have received the Official decisions.

As long as an invention patent application conforms to any of the following conditions, it will be available to apply for Condition 4 for an accelerated examination:
  (1) It involves technologies with respect to energy conservation, new energy and new energy vehicle, etc.
  (2)
It involves technologies with respect to carbon reduction and resource saving.
 
Should you need our professional assistance in this regard, please feel free to contact us.
 

Source: TIPO News published on September 19, 2014
(http://www.tipo.gov.tw/lp.asp?CtNode=6712&CtUnit=3224&BaseDSD=7&mp=1)

 
III. Statistics of Accelerated Examination Program (AEP) until September 2014
  1. Average time for receiving the first notification of responsive examination opinions from TIPO after submitting an AEP request with all necessary documents
 
 
Condition Duration when the AEP requests were submitted Average time of receiving the 1st notification of responsive examination opinions (days)
Condition 1 January 2009 ~ September, 2014 72.8
Condition 2 January 2010 ~ September, 2014 81.1
Condition 3 January 2010 ~ September, 2014 142.7
Condition 4 January 2014 ~ September, 2014 78.4
     
  2. Country of the basic application for the AEP request (January ~ September, 2014)
 
 
Country Condition 1 Condition 2 Total Percentage
US 224 14 238 59.95%    
JP 91 2 93 23.43%    
EP 19 4 23 5.79%    
CN 19 0 19 4.79%    
KR 9 0 9 2.27%    
DE 4 0 4 1.01%    
SG 4 0 4 1.01%    
AU 4 0 4 1.01%    
GB 1 0 1 0.25%    
CA 1 0 1 0.25%    
NZ 1 0 1 0.25%    
Total 377 20 397 100.00%    
 
Source: TIPO’s statistics published on October 09, 2014
(http://www.tipo.gov.tw/ct.asp?xItem=531848&ctNode=7127&mp=1)

 

Trademarks
 
I. The Trademark “立脂妥Atorva"vs “立普妥” (a written judgment No.49 made by IP Court in 2014)
 
(Trademark at issue) (The cited trademark)
   
  The trademark at issue was allowed for registration by the TIPO in 2007. In 2011, an Invalidation was filed against the said trademark by the reason of being similar to the cited mark which was more famous before the filing date of the trademark at issue and using on the same business field of pharmaceuticals. The TIPO rejected the Invalidation by the reason of being dissimilar. The proprietor of the cited mark filed an Appeal up to the MOEA (Ministry of Economic Affairs, R.O.C.) against the TIPO’s decision.  The committees of the Appeal held the different opinions from the TIPO’s and deemed that two marks were similar. The registrant of the trademark at issue filed an Administration Suit up to the IP Court against the MOEA’s decision. The IP Court held the same opinion as the MOEA’s and deemed that two marks were similar. 

We herewith summarize the viewpoints of the IP Court: 
 
  1. Two trademarks are similar:
    (1) Similar appearance: The English part of the trademark at issue “Atorva” is a commonly known abbreviation of a pharmaceutical ingredient “atorvastatin”. Since “Atorva” is a direct description of the related goods, it is an indistinctive part of the trademark. The distinctive parts of two trademarks are the Chinese characters, “” and “”. They have the same prefix and suffix which are more distinctive than the middle characters in trademarks with three characters.
    (2) Similar pronunciation: “立脂妥” is pronounced as “li chi tuo” and “立普妥” is pronounced as “li pu tuo”. When calling the trademarks quickly, the middle character is usually not sounded clearer than the prefix and suffix, so the two trademarks with the same prefix and suffix sound similar.
    (3) Similar meaning: The prefix “” means “immediately” and the suffix “” means “well-managed”. The two trademarks with the same prefix and suffix have the same meaning of “making some symptoms get better immediately”.
 
  2. The cited mark “立普妥” is highly inherent distinctiveness:
    (1) There is high relationship between the distinctiveness of a trademark and the chance of causing confusion. The higher degree of distinctiveness of a trademark is, the deeper impression of the consumers on the relevant goods/services will be. When a distinctive trademark is imitated by a third party, the chance of causing confusion among the related consumers will be higher. Trademarks having inherent distinctiveness may be divided into coined trademarks, arbitrary trademarks and suggestive trademarks according to the degree of distinctiveness. The coined trademarks and arbitrary trademarks are more distinctive and easily cause confusion among consumers.
    (2) The cited mark “立普妥” is the transliteration of “Lipitor” which is the brand name of the medicine mainly containing the ingredient “atorvastatin”. Therefore, the cited mark  “立普妥” is a "coined trademark" with original creation. It has no specific, existing meaning, and is created to distinguish the source of relevant goods. Because of the originality, the cited mark does not convey to consumers any information about the goods, but only serves to identify and distinguish the source. Therefore, the cited mark “立普妥” has the strong distinctiveness. The trademark at issue “立脂妥” with high degree of similarity to the cited mark in Chinese characters is easy to cause confusion among consumers.
 
  3.
Two trademarks have the same marketing channels and sales locations:
The products of two trademarks are professional pharmaceuticals. The related consumers or medical care personnel have to get the products from pharmaceutical factories, pharmacists, pharmacies or hospitals. Thus, the marketing channels or sales locations of two products are highly overlapping. It is more likely that the two trademarks will cause confusion as there exists a higher probability that relevant consumers will come across these two kinds of products simultaneously.
 
  4.
1. The trademark at issue was filed with bad intention: 
Two parties are companies in Taiwan running pharmaceutical business. The registrant of the trademark at issue should have known the cited mark early because of the same business field.
 
  5.
1. Two trademarks are likely to cause confusion by the relevant consumers:
The Judge checked with two medical institutes in Taiwan and found that one felt confusion about two trademarks while the other did not. The Judge made the decision that two trademarks are likely to cause confusion by the relevant consumers because, as mentioned by the medical institutes, they would be confused and may have a wrong judgment to take the wrong products if there are no apparent differences in the designs and colors of the packages of two products. 
 
  6. The plaintiff argued that there are lots of three-word trademarks with only one word difference and have been allowed for registration without problem. The Judge pointed out that the system of Invalidation is for making up the insufficiency of the examination at the filing stage in the TIPO in order to have the legality of re-examination under the public examination system. So, when a trademark is allowed for registration by the TIPO, it does not mean that the trademark will not cause confusion with others. The relevant evidence cited by the plaintiff cannot apply to this case.

 

 

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