To protect the output of the Company’s intellectual property, reduce the risk of operating infringement, and achieve the purpose of sustainable operation, the intellectual property management plans formulated by MACHVISION include “Basic Intellectual Property Policies” and “Intelligent Property Management and Protection Measures” and “Linkage between Operational Objectives and Intellectual Property Rights”, respectively, which are detailed as follows:

Basic Policy on Intellectual Property Rights

In the process of business development, the Company shall make sure that technology, innovation, and know-how are fully protected and that it will not infringe on the intellectual property rights of others.

Management and Protection of Intellectual Property Rights

1. When an employee enters into an “employee agreement” on the first day of his/her employment, the Company shall notify him/her that he/she shall keep all information of the Company confidential and shall not bring the former employer’s trade secrets to the Company; in addition, the ownership of intellectual property rights arising from an employee’s position is clearly defined in the documents separately signed with the employee.

2. When entering partnership with an external unit or a new supplier, the Company shall sign a non-disclosure agreement with the unit/supplier to ensure that the Company is not exposed to any risk of leaks of confidential information. When employees participate in major projects that require confidentiality during employment, they are required to sign a non-disclosure agreement separately.

3. The image files, software programs, and electronic documents generated within the Company shall be encrypted. They may be decrypted for transmission externally only after being reviewed by the department head or MIS department.

4. The Company has access control systems, including face recognition, card readers, and CCTV, set up at all entrances/exits and elevators to control the time of entry/exit and all office floors. For visitors, their mobile phone lens and laptop sockets shall be sealed with stickers before they enter the Company.

5. On the premise that costs are under control, the Company has established relationships with well-known patent and trademark firms in major markets by hiring legal counsels and providing patent and trademark applications, so as to respond in the first place in case of litigation.

6. Courses on intellectual property rights are held to promote the concept of intellectual property rights to colleagues.

Linkage between Business Goals and Intellectual Property Rights

1.At the Company, the Intellectual Property Department is responsible for making patent searches for R&D cases, assisting the R&D team in designing around and obtaining patent rights, and checking and maintaining intellectual property cases. Whenever necessary, the Intellectual Property Department may invalidate/revoke the competitors’ patents to make sure that the Company’ technological development and market share are protected and linked to the business goals. The R&D flowchart is shown below.