Recently, the Executive Yuan made a ruling for the appeal Royal Philips Electronics N.V. (“Philips”) filed against the Fair Trade Commission’s (“FTC”) Decision Kung Chu Tze No. 021, in which the FTC found against Philips on the charge of the violation of Taiwan’s Fair Trade Law. The Executive Yuan decided that the original ruling made by the FTC should be overruled on the ground that the FTC did not take into account several critical issues in coming to its findings. In accordance with the ruling of the Executive Yuan, the FTC’s ruling is revoked. The FTC is further required to take an alternative decision within 2 months’ time. Philips welcomes the Executive Yuan’s ruling and believes that it will bring positive impacts to the protection of intellectual property rights in Taiwan. Furthermore, the Executive Yuan will also complement the Taiwanese government’s policy to encourage innovation and to nurture a knowledge-based economy. Always adhering to its principle of respecting and observing the law, Philips is confidant that the committee members of the FTC will make appropriate findings consistent with this Executive Yuan ruling.