The Internet Service Provider (ISP) Liabilities Bill, also known as the “Safe Harbor” Bill, seeks to define the liabilities of ISPs regarding infringers’ use of the Internet to distribute copyrighted material.  Specifically, the Amendment states ISPs will not be held civilly liable to rights holders or ISP users after the removal of suspected infringing material, as long as the ISP sends an initial takedown notice to the alleged infringer and the ISP in good faith removes infringing material.  Thus, ISPs are given a “safe harbor” from civil liability should they comply with the requirements of the Amendment.  The bill, if approved by the Taiwan Legislative Yuan, contains new Articles to be added to the existing Copyright Law.

The bill calls for the creation of a “notice and takedown” mechanism to protect copyright holders’ rights and to curb online copyright theft.  This mechanism would allow rights holders to inform ISPs about illegal use and to direct the ISP to remove the infringing material.  ISPs can apply for exemption from liability after removing the material, provided that all laws were obeyed and infringing material was removed in a timely manner.

A counter-notification mechanism would also be added to protect Internet users’ rights.  If an alleged infringing party’s material is subject to unwarranted removal, the alleged infringing party may send a written request to the ISP to restore the material.  The alleged infringing party may also hold rights holders liable for damages incurred by the removal of the non-infringing material.

The amendment is still pending with the Taiwan Legislative Yuan, which completed its first reading of the bill on October 14, 2008. Generally, the Legislative Yuan upon a third reading will pass a bill.