Legislature approves amendment to National Security Act to protect national core technology

　Legislative Yuan passed the amendment to the National Security Act in its third reading on May 20, 2022 with partial provisions thereof setting forth that any persons shall not acquire the trade secrets involving any national core critical technologies for any foreign countries, China and Hong Kong, Macao, and hostile foreign forces in such inappropriate manners as theft, misappropriation, fraud, coercion, unauthorized reproduction, nor further use or disclose such trade secrets.  Convicted offenders shall face imprisonment for a minimum period of 5 years and a maximum period of 12 years and, in addition thereto, a fine of TWD5 million to TWD100 million.  

　The amendment also introduces the offense of extraterritorial misappropriation of the trade secrets involving aforesaid national core critical technologies, and the offense is punishable by a prison sentence of 3 to 10 years and in addition thereto a fine of TWD5 million to TWD50 million; the punishment is applicable also to an attempt.  

　Under the amendment, current or retired military personnel, civil servants, teachers, and employees of state-owned institutions who commit the aforesaid offense must forfeit their rights to apply for their pensions, and for those who have received the pensions will be required to return them.  

　For coping with the massive commercial interests that might be involved in infringed trade secrets, the amendment states that the maximum amount of the fine to be imposed on the offender may be adjusted or increased to an amount 2 to 10 times the amount of the offender’s undue profits gained in his/her offense where the undue profits exceed the maximum fine; 

　The amendment also includes provisions governing procurement of limitary projects, products or services, according to which, delivery of military projects, products, or services provided by China or any foreign hostile forces will incur a penalty of up to 7 years in jail and in addition thereto a fine of up to TWD30 million.  Also, delivery or provision of counterfeit military weapons, ammunition, and military supplies in war will be punishable by a penalty of a jail term up to 10 years and in additional thereto a fine of up to TWD50 million; the amount of the fine imposed may multiply based on the undue profits gained therefrom.  

　In addition, according to this amendment, a specialized tribunal or division will be established to handle the cases in violation of the National Security Act.  (Released 2022.05.20)

/CCS