The Legislative Yuan passed partial draft amendments to the Copyright Collective Management Organization Act at the third reading on April 29. The amendments ensure smooth operation, increased transparency, and prudent management of Taiwan’s collective management system to protect the rights of members and facilitate circulation of copyrighted works. After adjustment, a total of 6 amendments were additions, and 15 were revisions – the main highlights of which are as follows:

I. Introduction of a public consultation mechanism

When a CMO applies for an establishment permit, TIPO shall make the information publicly available on their official websites for general copyright users to leave comments, which shall serve as reference for TIPO when processing the permit application.

II. Term limits for management-level positions and internal controls

To ensure that a CMO can fulfill its duty of good governance, the amendment would curtail the duration and number of terms for the positions of director and supervisor, reducing the possibility of a monopoly or any abuse of power. The amendments also stipulate the need for internal controls to manage personnel, finances, and operations, etc.; royalties must also be deposited in designated accounts to ensure CMOs conduct operations in a reasonable, prudent, appropriate, and transparent manner.

III. Use of Technology to Enhance Management and Operations of CMOs

To facilitate the development and use of technology, a new amendment has been added that stipulates TIPO’s responsibility to counsel CMOs in the use of innovative technology for more efficient management and operations thereof, as well as to lower the cost of copyrights licensing.

IV. Expansion of TIPO's Supervisory and Guidance Capacity

Amendments have been added ensuring TIPO’s authority to supervise and penalize any CMOs in violation of the law. TIPO is authorized to request that CMOs submit financial declarations and plans for improvement within a specified timeframe. TIPO also has the power ex officio to suspend or dismiss any directors or supervisors found guilty of illegal conduct. If the CMO commits a major violation of the law by misappropriating allotted funds or not allocating royalties in accordance with the law and fails to rectify their actions, then TIPO has the power to revoke its establishment permit and eliminate any CMOs not adhering to prudent management practices.

• Publish Date : 2022-06-02
• Update : 2022-06-02
• Organization : International Legal Affairs Office
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