Category Archives: Laws & Regulations

Measures on Compulsory Licensing for Patent Exploitation

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Order No. 64 of the State Intellectual Property Office

(promulgated on 15 March 2012 and implemented on 1 May 2012)

Chapter I  General Provisions

Article 1  The Measures are formulated in accordance with the Patent Law of the PRC (hereinafter as “the Patent Law”), the Implementing Regulations of the Patent Law of the PRC (hereinafter as “the Implementing Regulations”) and the relevant laws and regulations for the purposes of regulating the procedures relating to granting, royalty adjudication and termination of compulsory licensing for the exploitation of invention patents or utility model patents (hereinafter as “compulsory licensing”).

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The Shanghai Branch of CIETAC Changed Its Name

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Today, we noticed an announcement published on the website of the Shanghai Branch of the China International Economic and Trade Arbitration Commission stating that it has changed its name to the Shanghai International Economic and Trade Arbitration Commission (the “Shanghai Commission”). At the same time, it will begin to use the name of Shanghai International Arbitration Center. Additionally, starting on May 1, 2013, the Shanghai Commission will begin using new Arbitration Rules and a new arbitrator name list.

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China’s Latest Laws and Regulations in March 2013

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I. The Ministry of Commerce Issued Opinions Concerning the 2013 Guide on Attracting Foreign Investment Jobs 

On March 19, 2013, the Ministry of Commerce issued Opinions Concerning the 2013 Guide on Attracting Foreign Investment Work (“Opinions”), which emphasizes attracting foreign investment in the high value-added manufacturing industry, enhancing openness of the service industry to the outside world, and strengthening the important role of foreign investment in the introduction of technology and knowhow. The Opinions also promote advancement of foreign investment in eastern areas and bringing change to central western areas, as well as further improving the investment environment to protect the legal rights and interests of foreign invested enterprises and improving protection of intellectual property rights. The Ministry of Commerce concurrently released a report on the situation of foreign investment attraction in 2012.

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Why China Withdrew its Reservation to Article 11 of the UN CISG

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(By Luo Yanjie) Recently, the Chinese government sent an official notice to the General Secretary of the UN to withdraw its statement made to the United Nations Convention on Contracts for the International Sales of Goods (the “Convention”) that “China would not be bound by Article 11 and the relevant regulations of Article 11.” (As provided in Article 11 of the Convention, “A contract of sale need not be concluded in or evidenced by writing and is not subject to any other requirement as to form. It may be proved by any means, including witnesses.”) Presently, the withdrawal has already come into effect. Therefore, the articles in the Convention and the Contract Law of China have become more integrated. Today, we are going to share with our readers our opinions on this issue.

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China’s Most Recent Revision of Regulations Concerning Computers and Intellectual Property Rights

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(By Albert Chen) In January 2013, China’s State Council revised several administrative regulations regarding computers and intellectual property rights, specifically the Computer Software Protection Regulations, the Regulation on Protection of the Right to Network Dissemination of Information, the Implementing Regulations of the Copyright Law, and the Regulation on the Protection of New Varieties of Plants. These revisions mainly focus on the punishments for violation of regulations, and they came into effect on March 1, 2013.

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Introduction and Interpretation of China’s Judicial Interpretation on the Right to Network Dissemination of Information, I

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Judicial Interpretation on the Right to Network Dissemination of Information, interpretation, analysis, Supreme People’s Court, Regulation on Several Issues Concerning Application of Law in Hearing Civil Disputes on the Right to Network Dissemination of Information, history, development, China Academy of Science, NCFC, NSFNET, copyright law, Interpretation on

(By You Yunting) On December 26 2012, China’s Supreme People’s Court published the “Regulation on Several Issues Concerning Application of Law in Hearing Civil Disputes on the Right to Network Dissemination of Information” (the “Network Interpretation”). The Network Interpretation came into effect on January 1, 2013. Therefore, in today and tomorrow’s posts, we are going to share an introduction and interpretation of the new regulation

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Introduction to the Resolution to the “Two Boards” Issue in China Listed Companies

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(By Yu Zhiyuan) Recently, the author was interviewed by the media on the issue of the “two boards” of Jiulongshan, a Chinese listed company. The author would like to analyze the basic legal principles concerned in the “board battle” in this particular case.

I. The ummary of the Issue

Shanghai Jiulongshan Travelling Co. Inc. (hereinafter “Jiulongshan”) is a listed company, and recently, its original biggest shareholder (represented by Mr. Li Qin Fu, chief of the company board) transferred approximately 29.9% of the company’s share options to HNA Property (hereinafter “HNA”). As a result of that transaction, HNA became the biggest shareholder and company registration with the Ministry of Industry and Commerce was amended to reflect those changes. However, HNA has not completed its payments in consideration of the stock transfer. On 21st December 2012, HNA called an impromptu shareholders’ meeting as the company’s biggest shareholder. At the meeting, it passed on the suggestion to recall Mr. Li Qin Fu to act as head of the board of the company, and thereafter voted in new board members. Beijing Kang Da Law Firm filed a brief to affirm the legal effectiveness of the decision and the voting. In reply to Kang Da’s brief, Jiulongshan held its own board meeting on 25th December 2012, at which most board members claimed that HNA lacked the ability to hold its own impromptu shareholders’ meeting. In addition, the board made an announcement, supported by the legal opinions of Shanghai-based Yan Yi Ming Law Firm, that any decisions made by the temporary shareholders at their previous meeting on 21st December 2012 were invalid.

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China’s Latest Laws and Regulations in January 2013 (II)

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VI. Thirteen Departments Jointly Issued Opinions on the Protection of the Rights and Interests of the Inventors of Service Inventions.

On January 1, 2013, thirteen departments, including the State Intellectual Property Office, the Ministry of Education, and the Ministry of Science and Technology jointly published the Several Opinions on Further Improving the Protection of the Rights and Interests of Inventors of Service Inventions to Promote the Implementation of Intellectual Property (the “Opinions”). The Opinions aim to protect the legal rights and interests of the inventors of the service inventions, particularly in state-owned enterprises, public institutions, and army units.

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China’s Latest Laws and Regulations in January 2013 (I)

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I.  The Standing Committee of the National People’s Congress Adopted the Decision on Amending the Labor Contact Law.

On December 28, 2013, the Standing Committee of the National People’s Congress adopted and issued the Decision on Amending the Labor Contact Law of the People’s Republic of China, which will take effect on July 1, 2013. Four articles were revised, all relating to labor dispatch. The changes include an increase in the minimum registered capital of labor dispatching companies and administrative licensing to initially engage in the labor dispatch business; emphasizing the dispatched worker’s right of “equal pay for equal work;” declaring labor dispatch is a supplementary arrangement of employment and limiting the usage of labor dispatch; and imposing more serious liabilities on labor dispatching companies and the companies receiving the dispatched workers.

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China’s Latest Laws and Regulations in December (II), 2012

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V. The Ministry of Finance Issued Interpretation Number Five on Accounting Standards for Business Enterprises 

Recently, the Ministry of Finance issued Interpretation Number Five on Accounting Standards for Business Enterprises, which provides interpretations on fives issues, including: business mergers, business launches, credit risk mitigation tools and related services, and how to process accounting step by step in cases where an enterprises invests equity in its subsidiary and ultimately loses its right of control through several transactions.

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China’s Latest Laws and Regulations in December (I), 2012

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I. The State Administration of Industry and Commerce and the Ministry of Justice issued the Administrative Measures for Law Firms Undertaking Trademark Agency Work, and DeBund Has Already Submitted a Renewal Record

On December 27, 2012, the State Administration of Industry and Commerce (“SAIC”) together with the Ministry of Justice issued the Administrative Measures for Law Firms Undertaking Trademark Agency Work (“Administrative Measures”), which were published on the SAIC’s website. The Administrative Measures clearly provide eight categories of work that law firms can provide related to trademarks, including: application for trademark registration or change, trademark renewal and transfer, pledge registration, license contract recording, opposition, cancellation, revocation, and Madrid System international trademark registration. According to the Administrative Measures, firms engaging in such business must apply for recordation with the Trademark Office of the SAIC. Additionally, the Administrative Measures list the matters handled by the State Trademark Review and Adjudication Board of the SAIC, such as reexamination of rejection, opposition, and cancellation and disputes concerning registered marks. The Administrative Measures come into effect on January 1, 2013.

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China’s Latest Laws and Regulations in November of 2012, II

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V. The Ministry of Commerce Released the Report on Chinese Foreign Trade Development (Autumn 2012)

On October 26, 2012, the Ministry of Commerce released the Report on Chinese Foreign Trade Development (Autumn 2012) (“Report”), which reviews the performance of China’s foreign trade in the first three quarters, forecasts on the full year’s foreign trade situation, and makes projections for development trends in foreign trade in 2013.

According to the report, since 2012, China’s foreign trade development has faced a complex and challenging environment both at home and abroad, imports and exports slipped to single digit growth, and import and export enterprises confronted increased difficulties. But, due to the implementation of a series of measures to promote foreign trade, there is optimism that imports and exports will maintain the upward trend seen in September and that China’s share of total global trade for the year will remain stable or rise slightly.

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China’s Latest Laws and Regulations in November of 2012, I

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I. The Ministry of Commerce has Issued the Interim Provisions of the Ministry of Commerce on Equity Contributions Involving Foreign-funded Enterprises

On October 24, 2012, the Ministry of Commerce published the Interim Provisions of the Ministry of Commerce on Equity Contributions Involving Foreign-funded Enterprises (“Interim Provisions”), which came into effect on October 22, 2012. The Interim Provisions apply to the formation and modification of foreign-funded enterprises by domestic and foreign investors that hold equity in domestic enterprises as capital contributions. The conditions for equity contributions, procedures for application for approval, and so forth are explicitly defined in the Interim Provisions.

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