An Overvieｗ ｏf the Recognition and Enforceｍent of Foreign Arbitral Awards in Taiwan

Party A sues Party B for patent infringement. The case is subsequently settled when the parties sign a settlement agreement under which Party B pays a substantial sum to Party A as compensation for past infringement and agrees to pay Party A a running royalty on certain future sales. A dispute as to whether certain sales are subject to royalty payment arise between the parties. Pursuant to the settlement agreement, the dispute shall be finally settled by binding, expedited arbitration in accordance with the Rules of the American Arbitration Association and the dispute is therefore sent to the American Arbitration Association in New York. An arbitral award is rendered against Party B which requires Party B to pay a large sum of monetary damages. Party B moves to vacate, modify or correct the award before a U.S. court. Meanwhile, because Party B, being a Taiwan corporation, may have minimal assets in the U.S.，Party A may have to enforce the arbitral award in Taiwan against Party B’s assets in Taiwan. Party A would like to know the process and issues that may arise regarding recognition and enforcement of a foreign arbitral award in Taiwan.