These Regulations are stipulated according to Paragraph 2 of Article 9 of Statute for Industrial Innovation.

National Communications Commission (hereinafter referred to as the Commission) has established these Regulations to encourage innovation within the communications industry, develop information and communications technology or services, enhance information and communications safety, and promote a sound development of the communications industry.

Any party that applies for the subsidy of running a communications project (hereinafter referred to as the applicant) shall be limited to juridical institution, juridical administration, juridical association, academic institute or government research institute (agency), and shall comply with the following conditions:
1. A team with policy analytical and innovative research abilities.
2. With a fixed research location and basic manpower and equipment to conduct the project.
3. With an excellent project management system for financial management, manpower allocation, accounting system and internal audit.

The Commission may, within the scope of its regulatory duties as stated in the NCC Organization Act, provide subsidies for the following objectives:
1. Research on and development of policies and regulations that aim to build an innovative and forward-looking communications environment.
2. Technology, operation model or innovative services that facilitate the development of communications industry.
3. Other research, developments or application services related to communications industry.

The subsidies of the Commission come from:
1. Subsidy budget listed by the Commission.
2. Relevant budget listed by other government agencies
3. Other subsidy budget approved through other relevant procedures

Those that comply with any of the following circumstances may be appointed by the Commission to undertake promotional projects without regard to the requirements of Article 9:
1. Projects approved by the Executive Yuan or special time-based projects whose significance is recognized by the Commission.
2. Subsidy recipients specified during the compilation, application or acquisition of the budget as prescribed in Article 5.

The applicant shall submit the application form, project plan and relevant documents to the Commission.
The application form as prescribed in the preceding Paragraph shall specify the following details:
1. Project objectives.
2. Connection between the project and the Regulations.
3. Implementation schedule and progress.
4. Budget allocation.
5. Manpower allocation.
6. Expected results or benefits.
7. Specific performance index.
8. Other items designated by the Commission.

The application shall be rejected if the applicant is or was in any of the following circumstances over the last three years:
1. With records of significant violations or suspension during the implementation of government’s administration plan.
2. Provided documents, information, expenditure vouchers or expenditure fact are found to be false and seriously violating the Regulations or other legal terms.
3. Serious failure to fulfill a previously signed contract with the Commission.
4. The same or similar project being already approved by other agencies or subsidized by the Commission, but the applicant fails to specify this or otherwise misrepresents the truth.
5. Violations of other government regulations.
The applicant shall submit a declaration, specifying that none of above circumstances have occurred to it / him / her over the last three years. If the applicant rejects to make such declaration, the application shall be rejected. Should such declarations are found to be false, the Commission shall reject the application, withdraw the subsidy, terminate the contract and recall the disbursed amount.

The subsidy approval standards and operating procedures shall be conducted according to below regulations:
1. The Commission shall first review and approve the applicant’s qualifications, application form, project plan and prerequisite documents. Should the any of above criteria be found to be incomplete, the Commission shall notify the applicant to undertake corrective action within a prescribed period. If an applicant fails to do so, the application shall be rejected.
2. The Commission will hold review meeting to review the project proposed by the applicant. The review meeting shall, depends on its actual needs, notify the applicant to attend the meeting to state its / his / her opinions or to provide explanations.
3. Members of the review meeting shall provide opinions towards abovementioned project according to below review items and standards:
(1) Connection with the Commission’s regulatory duties.
(2) Implementation feasibility.
(3) Justifiability of the budget allocation.
(4) Appropriateness of manpower allocation.
(5) Possibility of expected results or benefits.
(6) Appropriateness of the performance index.
4. After the opinions are provided through the review meeting, the project shall be submitted to the Commission’s committee for approval.
5. The budget of the approved project shall be approved by the Commission and the Commission shall sign the contract with the applicant accordingly.

The assessment of subsidized projects will be used as a reference for the Commission to accept or reject subsidy applications in the future.
The subsidized target shall implement the project according to the plan. In case of needing to amend the project content, the subsidized target shall submit a written notification to the Commission to specify the reasons and propose amendment methods or measures. Only with the approval of the Commission, the subsidized target shall then amend or terminate the project.

The supervision and examination of the subsidy project shall be conducted according to the following rules:
1. The Commission shall examine the implementation status of the project through site-investigation, account checking or other methods during the project implementation period.
2. Regarding examinations stated in the preceding Paragraph, the subsidized target shall cooperate with the Commission and provide the project progress report or provide details of the budget use.
3. Where the subsidized target falls under any of the following circumstances, the Commission may reduce the management fees of the year or years afterwards and request to change the project manager:
(1) The implementation status or budget spending fall behind without any improvement.
(2) Inconsistency of the implementation items and contract content.
(3) The results of abovementioned examination fail to achieve expected results.
(4) Violations of contractual terms and conditions.
4. According to the examination results, the Commission may carry out a deliberation and then, according to the contract, adjust the project items or budgets or terminate or cancel the contract.
5. Where the subsidized target refuses to accept examinations held by the government’s supervisory unit, or fails to make improvement after the examination, the Commission may reduce the amount of budget, stop the appropriation, or terminate or cancel the contract according to the contract.
6. Where the subsidized target seriously violates the Regulations, the Commission may terminate or cancel the contract according to the contract.

The income and expenditure of the subsidized project shall be managed according to the following rules:
1. Project submitted to more than two agencies for subsidy shall have the entire budget content, subsidized items and subsidy amount listed. Where any intentionally concealed, false information is found, the subsidy (items and amount) shall be revoked and the disbursed amount shall be recalled.
2. The subsidized target shall establish a separate account for the subsidy and the account shall be managed independently. In the meantime, budget expenditure report shall be made and submitted to the Commission for approval on a regular basis during the contract period.
3. The subsidized target shall report back only the actually incurred amount and be verified with receipts. The subsidy must not be used for objectives other than those specified in the scope of applications.
Where the use of subsidy shows an unfavorable performance or the subsidy is used for objectives other than those stated in the project plan or is reported with a false or inflated figure, the Commission may, depending on the severity of the circumstances, stop subsidizing the project apart from recalling the disbursed amount.

The appropriation and verification of the subsidy shall be carried out according to the following rules:
1. The subsidy shall be disbursed according to the work schedule. The Commission shall specify appropriation schedule, methods and amount or ratio in the contract according to the condition and schedule of each project.
2. The verification works shall be conducted in accordance with the guidelines for handling government expenditure vouchers, central government agencies’ guidelines for the implementation of private and personal subsidy (donation) budget, and contract relevant regulations.

The research results of the subsidized project and relevant applications shall principally belong to the subsidized target, unless otherwise specified by law.
When the research results belong to the subsidized target, the Commission shall have gratuitous, non-assignable and non-exclusive rights of practice.
Income generated from the second research and development results shall be conducted according to Government Scientific and Technological Research and Development Results Ownership and Utilization Regulation and relevant regulations.
Within two years after the research results of the subsidized project are announced, the subsidized target shall not produce or use the results outside the territories of the Republic of China. However, this restriction shall not aplly to those cases where permission is granted by the Commission or other agreement are specified in the subsidy contract beforehand.
Where the subsidized target violates the rules as prescribed in the preceding Paragraph, the Commission is eligible not only to terminate the subsidy, but also reject other subsidy applications submitted by the applicant for three years, starting from the date of project completion. If it is caused by reasons attributable to the subsidized target, the Commission may cancel the subsidy contract and recall the disbursed amount.

The subsidy plan, schedule, amount, reports and research and development results conducted according to the regulations shall be made public appropriately in accordance with Paragraph 1 of Article 8 of The Freedom of Government Information Law, except those required to maintain confidentiality or prohibited from provision to the public as regulated in Article 18 of The Freedom of Government Information Law.

The regulations shall be in force from the date of promulgation.