TAIWAN Law and Practice Contributed by: Jaclyn Tsai, Aaron Chen, Teresa Huang and Jaime Cheng, Lee, Tsai & Partners
or indirectly involving the collection, processing and/or use of others’ personal data must notify individuals who provide their personal data of such collection, processing and/or use. Cloud service providers entrusted to collect, pro - cess or use others’ personal data are required to comply with the same legal obligations as the entities that engage them (Article 4 of the PDPA). Moreover, the entrusting entities must supervise the cloud service providers and be responsible for any violation made by the cloud service pro - viders (Article 8 of the Enforcement Rules of the PDPA). Such supervision measures include: • defining the scope, categories, specific pur - poses and duration for the collection, pro - cessing or use of personal data; • ensuring the implementation of adequate personal data security measures; • knowing the subcontractors when subcon - tracting occurs; • requiring timely notification of any violations of the PDPA and taking remedial measures; and • ensuring that when the commission relation - ship ends or is terminated, personal data is returned or deleted. 3. Artificial Intelligence 3.1 Liability, Data Protection, IP and Fundamental Rights Regulations on AI Currently, Taiwan does not have a single act spe - cifically addressing AI. It was not until 15 July 2024 that the National Science and Technology Council drafted the Artificial Intelligence Funda - mental Act and sought public consultation. This draft is still pending approval by the Executive Yuan. Despite the lack of an overarching AI law,
several sector-specific guidelines have been issued. For example: • On 3 October 2023, the Executive Yuan released the Guidelines for the Use of Generative Artificial Intelligence (AI) by the Executive Yuan and its Subordinate Agencies, which provides guidance for civil servants when using generative AI. • In June 2024, the FSC issued the Guidelines for Artificial Intelligence (AI) Applications in the Financial Industry, serving as a reference for financial institutions when using AI. Legislation on Deepfake Technologies Deepfake technology has been linked to crimi - nal activities, particularly the creation of falsi - fied sexual images, posing significant threats to personal privacy and dignity. To address these issues, Taiwan amended the Criminal Code on 7 January 2023, introducing a key provision, Article 319-4, to criminalise the creation of false sexual images using computer synthesis or other technological methods. Violators may be sentenced to up to five years of imprisonment. If the offence is committed with the intention to profit from such offence, the maximum sentence may increase to seven years of imprisonment. Regulations on the Application of AI in Transportation Taiwan has implemented laws governing the use of AI in transportation: Unmanned Vehicles Technology Innovative Experimentation Act (2018) This allows companies that wish to launch unmanned vehicles on the market to apply for approval from the competent authority to conduct innovative experiments beforehand. “Unmanned vehicle” refers to a driverless trans - port vehicle that may be an automobile, aircraft,
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