Technological research and development (R&D) innovation is a critical factor to the Company's long-term sustainable growth. Realizing that intellectual property has become the most important asset of the Company, an intellectual property management system is to be established to avoid infringement and properly protect the Company’s intellectual property in order to further strengthen its competitive advantage.

1. Processing Program - Formulate a "Regulation on Intellectual Property Management", so as to explicitly provide a standard for the processing program of the Company’s intellectual property cases.
2. Incentive Measure - Formulate a "Regulation on Incentives for Encouragement" to encourage the innovation of employees, and to protect the creation and invention produced from R&D projects or relevant works, so as to enhance the quality and the quantity of the Company’s intellectual property rights.
3. Information Management - Self-develop an internal patent management system to conduct centralized management of the Company’s patent related information.
4. Competitor Monitoring - Monitor granted patent information of industry-related competitors so as to control the industry status. Casually provide industry-related patent information for R&D unit so as to facilitate research and innovation.
5. Maintenance Management - Regularly review the implement status of patents on hand and assess the necessity for keeping the maintenance, so as to save the maintenance fee for the Company’s patent rights.
6. Risk Assessment - Analyze and assess the potential infringement risk of technology and products on hand according to the needs of the R&D unit. Provide assistance for strategical guidelines or design around so as to decline the legal risk.
7. Education and Training - According to the needs of the R&D unit, intellectual property related training courses have been designed and produced. Training courses are available at the E-learning School of UTECHZONE for employees to engage in online learning. Courses on site are held from time to time.

1. Processing Program - Application and maintenance of the Company’s trademarks are conducted based on the "Regulation on Intellectual Property Management", as a standard for processing.
2. Layout Region - According to the Company’s business development, trademark layout is mainly in Asia and covers all product lines. The covered regional scope of the trademarks are regularly reviewed and adjusted.

1. Personnel Information Security:
   1. Employees shall sign a "Confidentiality Agreement" or a "Employment Contract" which explicitly specifies the ownership of intellectual property and the confidentiality requirements. For important R&D personnel, the agreement/contract may include clauses of non-compete requirements.
   2. New employees shall sign a "Use of Information and Declaration of Confidentiality" in order to comply with the provisions of the Personal Information Protection Act, and Company's policies and management of intellectual property.
2. Physical Environment Security:
   1. Employees are issued with access cards and have access permissions for different areas based on their task attributes. Visiting guests shall register their identities, and their range of activity is also limited.
3. Information Operation Security:
   1. Only equipment which is issued and authorized by the Company can execute job assignments.
   2. Company’s equipment is required to log in with employees’ personal identities. Employees are required to change passwords of their personal accounts so as to ensure the security and the accountability of employees’ accounts.
   3. Software installed in the Company’s equipment shall obtain authorization before installation, so that the legality of copyright and the security of software source can be ensured.

1. Plan the location of intellectual property allocation based on R&D location and sales area, and estimate the tax burden of all intellectual property rights as a whole, so that the layout of intellectual property rights can play a comprehensive effect to increase the tax efficiency.

The Company regularly reports the implementation status to the Board of Directors in the fourth quarter every year. The main implementations are as follows：

1. Main implementations in recent years:
   1. Ranked among the top 100 of Taiwan corporate invention patent application numbers in 2013.
   2. Self-Develop the internal patent management system in 2016.
   3. Ranked among the top 100 of Taiwan corporate invention patent granted numbers in 2017.
   4. Design and produce intellectual property related training courses for employees, and hold courses on site from time to time from 2017 to 2018.
   5. Granted the first AI patent related to deep learning in 2019.
   6. Granted applications for R&D investment tax credits (for which are submitted from 2017 to 2020) in four consecutive years from 2020 to 2022, so as to increase Company’s tax efficiency.
   7. In 2023, trade secret registration system is added to protect technical information, and intellectual property education courses are organized for employees with training completion rate over 90%.
   8. Approved for several consecutive years of R&D investment tax credit applications (2017 to 2022) from 2020 to 2024, significantly improving tax efficiency.
2. List of intellectual property and achievements acquired so far:
   1. As of the end of December this year, the number of the Company’s total global patent applications has reached 975 cases, including 85 patent applications from 2023 to 2024. Among which, about 80% were invention patent applications.
   2. As of the end of December this year, the number of the Company’s total global patents granted has reached 536 cases, including 40 cases from 2023 to 2024.
   3. As of the end of December this year, the number of the Company’s total global valid trademarks has reached 32 cases, with the majority concentrated in the Asia region.