TFTC Deemed Issuance of Warning Letters During Patent Lapse Period Violates the Fair Trade Act
Date: 15 May, 2024
【Volume 134】
The resolution adopted by the Taiwan Fair Trade Commission (hereinafter "TFTC") on March 6, 2024 indicates the issuance of warning letters by Force-MOS Technology Co., Ltd (hereinafter “Force-MOS”) to assert rights of its US Patent No. 7,812,409 during the patent lapse period to competitors for downstream trading has violated Article 25 of the Fair Trade Act. The TFTC has rendered a disposition to cease the above-mentioned misconduct1.
The patent owned by Force-MOS, relating to “MOSFET” (Metal Oxide Semiconductor Field Effect Transistor), is applied to microprocessors and such products. On May 23, 2022 Force-MOS sent warning letters to the informer and its downstream trading counterparts, further mentioning the informer would infringe its patent rights and such while visiting the informer’s downstream trading counterparts. The TFTC deems that Force-MOS’ patent has lapsed because Force-MOS failed to pay the annuity within the specified time period. Moreover, Force-MOS’ claim of patent right towards its competitors within industry and downstream trading counterparts while the patent lapsed is “obviously unfair conduct” to the extent “that is able to affect trading order.” The issuance is decided as a violation of the Article 25 of the Fair Trade Act and a disposition is rendered.
[1]https://www.ftc.gov.tw/internet/main/doc/docDetail.aspx?uid=126&docid=17744