INNOVATION AND RESEARCH

The company's focus on technology development lies in the integration of acoustics, visuals, and human-machine interfaces, known as "three-sensesin-one" product applications. In an era of constant technological advancements, Primax Electronics strives to develop key new technologies and products that sustain profitability and extend its business into every individual's living environment. In 2022 , the company investeda total of NT$ 3,366 million in research and development (R&D), accounting for 4.25 % of its operating income.

Technology and Manufacturing Development

Primax will continue to expand its global manufacturing footprint. In addition to its main production basein mainland China, the company will deepen production at its manufacturing base in Thailand to achieve regionalized customer service.

Ratio of R&D Expenses to Operating Revenue Trend Chart

Ratio of R&D Personnel

Intellectual Property Rights Management

We continuously engross sufficient resources in R&D and analysis for the variation of marketing and technology in relation to our products. We also formulate intellectual property policy which integrates the operation goal and R&D resources so as to reinforce the advantage in competition.

Strategies and Goals

To protect the main products and key technology of the Company, we encourage colleagues to innovate and keep a watch on the products and patents of competitors so as to reinforce the patent layout and formulate the best patent strategy. We target to be the top thirty of Taiwan Patent Applications by 2030.

Intellectual Property Tactics as Described

01

Implement the Intellectual Property Regulations

02

Carry Out the Quality Management of Patent and the Encouragement of Innovation

03

Reinforce the Patent Layout

04

Implement the Intellectual Property Management

05

Implement the Management of Confidential Document

06

Implement the Management for Research and Technical Notebook

Management Plan for Intellectual Property Rights

• Management of Patent

For the purpose of protection of technical achievement and leading position, we not only constantly encourage our staff to file application for utility patent via the corporate innovation award, but also establish the patent management policy and risk control mechanism. In addition, the quantity and quality for patent application has been managed by means of AI analysis through the entertainment patent system. We contact and cooperate with the patent competent authority closely to raise efficiency of patent examination and acquire the high-level patent protection. We also take efficient actions to reduce patent risk. We strive to monitor the competitors of certain products and analyze relevant market and patent information.

• Management of Copyright

The company has established copyright management regulations and procedures to govern the acquisition, preservation, and maintenance of copyrighted works.

• Protection of Trade Secrets

Primax Electronics has formulated measures and procedures for managing confidential information and protecting trade secrets. Employee codes of conduct and employment contracts stipulate relevant rules, and educational training is conducted to emphasize the importance of trade secrets and protective measures.

Operation

The report of the implementation of intellectual property events has been submitted to the Board of Directors on Nov.8, 2023. We have carried out the management of intellectual property rights since 1990, the details are listed as follows:

Application of Patent

Primax group has filed numerous patent applications in countries since 1990.

Process Management

1990: We formulated and promulgated Regulation of Patent Application.
2002: Regulation of Risk Management and Patent Usage was put into force.
2004: The Enterprise Patent System was introduced.
2021: Regulation of Copyright and Regulation of Trade Secret were put into force. In addition, the AI analyze system was introduced for data calculation to identify the valuable innovative employee.
2022: Procedure of Copyright and Procedure of Trade Secret were put into force.
2023: Procedure of patent, Regulation and Procedure of IP confidential documents were put into force.
2024: Amend the Procedure of patent, the Procedure of confidential documents.

Activation of Property

To realize Patent Monetization, we sold almost 900 patents in 2006.

Risk Control

To reduce the patent risk during the period of product development, we have carried out the management of patent search archive since 2012.

Trade Secret Management

The provisions of trade secret which have been stipulated in Regulation of IP confidential documents, Employee Handbook and Employee Contract are summarized below:

It’s staff’s duty to maintain secrecy pertaining to his work and the company’s business.
Staff shall not disclose, inform, provide or transfer such Confidential Information to third party, or announce to public or make use for third party of such Confidential Information during and after the termination of employment period. We are eligible to request the staff who breaches the foregoing to compensate the damages incurred by the Company and the said staff will be punished by Section 317 of Criminal Code of the Republic of China on account of offense of disclosing trade secret knew or possessed because of occupation.
Staff shall not disclose or use the trade secret owned by his former employer.

Measures for Dealing with the Risk of Intellectual Property Rights

We occasionally receive the notices from third parties who assert that our products may involve in the controversy of intellectual property rights. We respect and try not to infringe third parties’ intellectual property rights for all time. In view of the foregoing, we will analyze the related issues pertaining to legitimate, technical and business aspects to formulate the best tactics for resolution of the IP controversy so as to protect the Company’s and stakeholders’ interests.