Chapter V: Rights in Things (“Rights in Rem”)
Article 38
(1) A property right in a thing is governed by the law of the place where the thing is located.
(2) A property right in a right is governed by the law of the place where the right is formed.
(3) Where the location of a thing has changed, the acquisition, loss, or change of a property right in the thing is governed by the law of the location of the thing at the time the decisive fact occurred.
(4) A property right in a ship is governed by the law of the nationality of the ship, and a property right in an aircraft is governed by the law of the State in which the aircraft is registered.
Article 39
The formal requisites of a juridical act concerning a property right are governed by the law applicable to the right.
Article 40
The law of the Republic of China governs the effect of a property right in a movable thing formed in accordance with the law prevailing in the foreign location from which it is brought into the Republic of China.
Article 41
The acquisition, creation, loss, or change of a property right in a movable thing during its transit is governed by the law of its destination.
Article 42
(1) A right in an intellectual property is governed by the law of the place where the protection of that right is sought (“lex loci protectionis”).
(2) Any right in an intellectual property created by an employee in the performance of his/her duties is governed by the law applicable to the contract of employment.
Article 43
(1) The legal relationship arising from an ocean bill of lading is governed by the law specified as applicable on the bill; in the absence of specification, it is governed by the law of the place most closely connected with the bill.
(2) Where goods covered by an ocean bill of lading are claimed by multiple persons on the basis either of the bill or of a property right, the priority of the claims to the goods is governed by the law applicable to claims of property right in the goods.
(3) The provisions of the preceding two paragraphs regarding ocean bills of lading apply mutatis mutandis to determine the law applicable to the legal relationship arising from a warehouse receipt or a bill of lading other than an ocean bill of lading.
Article 44
Where a security is held by a centralized depositary, the acquisition, loss, disposition, or change of a right in the security is governed by the law expressly specified as applicable in the contract of centralized deposit; in the absence of express specification, the law of the place most closely connected with the security governs.