Taipei Times: As you said in your inauguration speech this April, intellectual property rights (IPR) protection and signing the government procurement agreement are two priorities you would like to tackle during your tenure. Do you see any progress in the near future on these two issues?
Brian McDonald: I think there has been some improvement on IPR protection by looking at the statistics. Taiwan's software piracy rate dropped from 53 percent in 2001 to 43 percent last year. So there has been some real improvement. But we still need to see some efforts being maintained, there especially needs to be more prosecution of producers as opposed to just distributors, which is key, too.
Some may think that it is high-priced software that causes piracy. I admit that price may be a temptation toward piracy, but I think the pricing element is not the real issue here.
As for the government procurement agreement, it's hard to say exactly when, since some formal considerations still need to be sorted out under the WTO structure. For now, I would like to pursue a public-procurement law to guarantee big projects like public infrastructure access to foreign firms and to ensure the transparency of the bidding procedure.
Some foreign companies found that even though they did win a bid, they needed to renegotiate with another bidder. This is a risk that multinational firms don't want to take. It would be good if Tai-wan's purchasing authorities used international-standard contract terms to avoid this kind of dispute.
TT: Is IPR the No. 1 trade issue for the European business community and if so, why?
McDonald: Like I always say, IPR protection is a priority goal because it affects most foreign investment in Taiwan. A lot of firms stay away from Taiwan because the IPR enforcement is not good. I know the government provides rent cuts, tax breaks and other measures to attract foreign investment. I think they help. But IPR is still the most important issue here. Companies in some areas of specialization, for example, biotech industries, are highly dependent on the protection of their data and intellectual properties. Those weigh over other factors.
TT: What are the pros and cons of the recently revised Copyright Law (
McDonald: I think a recent revision to the Copyright Law made one big step forward, which is to criminalize or make a public offense of copyright practices. People can still use complaint procedures of course, but the government authorities are pursuing these activities in courts as a matter of duty.
The new law, well, makes life easier. It also sends a signal to people who are doing piracy, because they understand they are committing a criminal offense for which they can be arrested. I think that's a big improvement. Statistics on that actually are quite good. And I think there have been improvements in enforcement, prosecutions and punishment. The government just needs to sustain its efforts.
TT: Recently a government official pointed out that a major obstacle for Taiwan to signing government procurement agreements is the Chinese government. What advice do you have for the government under these circumstances?
McDonald: There has been some discussion between Taiwan and China over the issue in the WTO. We hope it can be resolved quickly. These are problems that hopefully can be resolved by diplomacy and negotiation. Regardless of the political issues, Taiwan is an important trading partner in the world and our largest trading partner in Asia. Taiwan can play a full role in WTO.
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