VisEra actively promotes intellectual property right (IPR) management plans, has established regulations governing the application, maintenance, and management of IPR that relates to patents and trade secrets, and prevents the leakage of R&D achievements and critical technologies through a stringent confidential information protection system, so as to comprehensively protect the Company’s intellectual properties.

The Company implements strict confidentiality protection in accordance with the Proprietary Information Protection (PIP) Policy for the R&D results in all stages. We established detailed regulations on the use, disclosure, transmission, publication, and copying of related information. We also restrict the entry and exit of computer equipment, video recording and mobile devices to prevent unauthorized disclosure or infringement of intellectual property. If the development of a technology meets the requirements for patent application, it will be submitted to the Invention Review Committee for a technical review. If it is approved, a patent application will be filed immediately to obtain a patent to protect the Company’s technology.

VisEra established the Patent Management Regulations for the protection of patents. We set up an incentive system to encourage R&D personnel to actively apply for patents for their R&D results. As of 2022, rewards have been granted in more than 100 cases. We consider R&D results that are not suitable for patent applications as trade secrets. We maintain strict confidentiality and protection measures in accordance with the aforementioned PIP Policy, and we established a trade secret management system in January 2022. We encourage R&D personnel to integrate and present technical information for production processes, technologies, formulas, procedures, or applications for production, sales, or operations that can be used for mass production or production improvement. After they are reviewed and approved by the Invention Review Committee, we award the R&D personnel with incentives based on the level of technology. We also implement a unified storage mechanism and assign dedicated personnel to manage the storage, access, use, and modification of such information to prevent unauthorized disclosure or infringement of such information.

VisEra has set patent strategies in countries including the United States, Taiwan, Mainland China, and Japan. Since the establishment of the Company, we have obtained more than 500 patents and the number continues to increase. At the end of each year, the management team sets appropriate KPIs for intellectual property for the following year based on the R&D status in the R&D units of each organization, future business strategies, and patent strategies for each country. The indicators are used to encourage R&D within the Company, and the performance achievement rate has exceeded 100% in the past three years. At least once a year, the head of R&D or the head of legal affairs also reports on the current R&D progress and future R&D plans at the board meeting for the Directors to learn about the Company’s plans for intellectual property rights. The report on the Company’s intellectual property management plan will be provided at the board meeting on May 10, 2023. Since 2018, the number of VisEra’s patent proposals and applications has exceeded 40 each year. To increase the efficiency of the employees’ invention proposals, we completed the establishment of the proposal system in September 2021 and improved the system functions in 2022. We systematically streamlined the process and management of patent application, defense, and certification, and upgraded the system to the intellectual property case management system with the aim of achieving effective management of the Company’s intellectual property rights. To help the management team and R&D personnel learn more about the intellectual property systems, future plans, and data acquisition, the Company organized at least 7 sessions of training for intellectual property rights in 2022. We also offer digital training courses to increase the quality and quantity of patents.