Unfair competition of Siemens Nixdorf Information Systems Ltd., Chinese Taipei Branch for abusive issue of warning letters
Chinese Taipei
Case:
Unfair competition of Siemens Nixdorf Information Systems Ltd., Chinese Taipei Branch for abusive issue of warning letters
Key Words:
automatic teller machines, computer software programs
Reference:
Fair Trade Commission Decision of January 13, 1999 (375th Commissioner Meeting); Disposition (88) Kung Er Tzu No. 00256
Industry:
Business Machine Manufacturing (2960)
Relevant Laws:
Article 24 of the Fair Trade Law
Summary:
The Directorate General of Postal Remittances & Savings Banks ("DGPRS") under the Ministry of Transportation and Communications announced a bid for supply of Automatic Teller Machines in May 1995. The complainant, Li Chia Company, authorized Tatung company and two other companies to represent Li Chia in the bidding. On May 4, 1995 Siemens retained a lawyer to issue a letter to DGPRS, along with a copy to the Directorate General of Posts, stating that Siemens believed that Li Chia and its responsible person were liable for copyright infringement. The letter stated that Siemens had already filed a lawsuit with the courts and if Siemens was successful in the court action neither Li Chia nor its responsible person could provide the software for the ATM and related equipment to any other persons. The letter also stated that third persons receiving the equipment in question would be prohibited by the Copyright Law from directly using such equipment. The letter concluded by stating that in order for the DGPRS to avoid being unwittingly injured and implicated in litigation, it should carefully review the documents submitted in connection with the bid.
Upon investigation it was found that Siemens only attached the first and last pages of the complaint and a copy of the document receipt from the court. Nowhere in the letter are the terms of the copyright agreement, the scope of the copyright, or the facts underlying the alleged infringement described. There was insufficient data in the letter for the recipient to make an informed decision with regards to the alleged infringing activity. Nor did Siemens take steps through other legitimate procedures to protect its copyright against infringement before sending the letter accusing Li Chia of breach of contract and copyright infringement. The acts of Siemens issuing the warning letter under such circumstances was unethical and unfair to Li Chia. They were to the extent that they would impair trading order in violation of Article 24 of the Fair Trade Law. Siemens was ordered to immediately cease such acts.
Summarized by Wang Hung-hsuan
Supervised by Li Yen-hsi
Appendix:
Siemens Nixdorf Information Systems Ltd.'s (Chinese Taipei Branch) Uniform Invoice No.:
22818765