When the Taiwan Intellectual Property Office (TIPO) granted compulsory licences for five CD-R patents owned by Philips to Gigastorage (a small local manufacturer of CD-Rs) in July 2004, it might not have foreseen the amount of international attention the decision would draw. TIPO's decision, confirmed on appeal, was based on Article 76.1 of the current Patent Act, which stipulates that in addition to coping with national emergencies and non-profit-seeking use of a patent for enhancement of public welfare, a compulsory licence, if used predominantly for the supply of the domestic market, may be granted to an applicant who has offered reasonable terms and conditions to a patentee but has failed to reach an agreement with the patentee within a considerable period of time.