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China Supreme Court legalizes Part of Corporate Lending

Posted on February 28, 2014 by yytbest

(By You Yunting) China’s financial system is restricted regulated. Private corporate lending contracts, whereby an enterprise without qualified financial credit lends money to another enterprise is considered to be invalid, and China’s courts would order the lenders return the original amount of money without any interest. Recently, the President of Supreme People’s Court Xi Xiaoming delivered a speech at the National Civil and Commercial Adjudication Work Conference, indicating that the courts have recently begun to expand the validity of corporate lending and are attempting to legalize corporate lending contracts.

China Court Decision Repeals TRAB’s Ruling for Unified Review Standard

Posted on February 27, 2014 by yytbest

(By Luo Yanjie)Abstract: Pursuant to Chinese Trademark Law, those applications having unhealthy influences shall not be used as trademarks. “Unhealthy influences” refers to a negative, or inactive influence that may detrimental to the interests and social order of the public, including political, economic, cultural, religious and ethnic allusions which are a registered trademark itself or a mark that is applied to goods or services. However, the Chinese Trademark Office should have a consistent attitude regarding the trademark adjudication standard for these unhealthy influences.

Lessons to Be Learned from Apple Losing Their Apple Trademark for a Game Console in China

Posted on February 26, 2014 by yytbest

(By You Yunting) In the end of 2013, the Beijing Higher People’s Court rejected Apple Inc.’s trademark opposition towards “苹果” trademark (read “Pingguo” in Chinese and referring to “Apple” in English) under Class 28 for game console against Zhongshan Readboy Electronics Co., Ltd. Thereafter, Apple Inc. has gone through 4 procedures, including the Trademark Office’s opposition proceeding, TRAB’s review procedure and two administrative actions and ultimately lost the “苹果” trademark under Class 28 for game console. The following are abstracts from the judgment of the final trial and our comments.

Haidian Court Issued a Copyright Litigation Injunction Preventing Competitor from Broadcasting I am A Singer

Posted on February 25, 2014 by yytbest

(By You Yunting) We have already introduced litigation injunctions regarding patent, trademark and trade-secret proceedings in our previous posts. Today we would like to introduce a copyright injunction that Haidian District Lower People’s Court issued a copyright litigation injunction to prevent Funshion.com from copyright infringement of I Am a Singer (a popular Talent Show in China).

Introduction to the Case:

Plaintiff: Letv.com

Defendant: Funshion.com

Court:Haidian District Lower People’s Court

China Laws and Regulations Update in February 2014

Posted on February 24, 2014 by yytbest

Seven laws, including the Company Law, the Customs Law, etc. Are Amended

On 28 December 2013 the Standing Committee of the National People’s Congress adopted the Decisions on Amending Seven Laws of the People’s Republic of China, including the Marine Environment Protection Law, the Drug Control Law, the Metrology Law, the Fisheries Law, the Customs Law, the Law on Tobacco Monopoly and the Company Law.

The amendments to the Marine Environment Protection Law, the Drug Control Law, the Metrology Law, the Fisheries Law, the Customs Law, and the Law on Tobacco Monopoly entered into force upon promulgation and the amendments to the Company Law will be effective as of 1 March 2014.

Signals from Latest Company Law Amendment

Posted on February 21, 2014 by yytbest

(By Bai Lituan) On December 28, 2013, the 6th Meeting of the Standing Committee of the Twelfth National People’s Congress approved the Amendment to the Company Law of the People’s Republic of China. The Amendment has three highlights: replaced the paid-in system with the registered capital to-be-paid-in system, decreased requirements for capital registration and simplified registration items and files. No doubt amendment to laws aims at meeting the demand of economic development, then what did this Amendment to the Company Law positively signal?

A Brief Analysis of the 2013 Amendment to the China Company Law

Posted on February 20, 2014 by yytbest

(By Yu ZhiYuan) On 28 December 2013, the decision on amending the previous company law was promulgated by the National People’s Congress. The amendment this time will concentrate solely on changing the corporate capital system dramatically in the following three ways. First, the registered capital to-be-paid-in system will be launched. Second, the minimum registered capital will no longer be required. Third, the maximum proportion of intangible assets to the total registered capital will no longer be required. Obviously the amendment was made as a response of legislative authorities to the resolutions approved at the Third Plenary Session of the Eighteenth Central Committee. This article provides an analysis and brief comments on the amendment.

NOVARTIS Awarded Injunctive Relief in Trade Secret Action in China

Posted on February 19, 2014 by yytbest

(By You Yunting) According to reports, in February 2014, Shanghai No.1 Intermediate People’s Court approved plaintiff NOVARTIS’s application requesting the court to order an injunction ruling so as to protect its legal rights and interests in a trade secret litigation.

According to reports, NOVARTIS claimed that the defendant should not disclosure, use or allow another party to use the 879 documents on its trade secret lists that shall keep secret.

For intellectual property infringement, China’s supreme People’s Court may also set a temporary injunction on judicial interpretations of the Patent Law, Trademark Law and Copyright Law; we have previously provided posts discussing related systems in other areas of intellectual property law, such as patent preliminary injunction, copyright injunction and litigation injunction. With regard to trade secrets, however, no particular injunction is set on judicial interpretations of the Anti Fair Competition Law.

Should Qian Zhongshu’s Letter Manuscripts be Protected After He Passed Away?

Posted on February 18, 2014 by yytbest

(By You Yunting) Abstract: In the proceedings of Qian Zhongshu’s letter manuscripts, in ruling whether the privacy right of decedents to a person should be protected by laws, the court decided that the relevant letters and manuscripts are irrelevant to the public interest and thus are private. However, the protective scope of the privacy right between the decedents of a person and a currently living person is different, and the protection of privacy right of decedents is weaker than the right of the public to be informed. The auctioning of these letters and manuscripts would, if it didn’t act to harm the reputations of Qian Zhongshu’s successors and relatives, not constitute an invasion of privacy.

Why Court Decision Exempts Wal-Mart From liabilities of Trademark Infringement?

Posted on February 17, 2014 by yytbest

(By Luo Yanjie) Abstract: In the event that a party unknowingly sells goods that infringe upon another party’s exclusive right to use a registered trademark but can prove that it has obtained the goods lawfully and is able to identify the supplier shall not be held liable for damages. In a case that a trademark holder separately sues sellers, despite no laws requesting the manufacturers to join in the lawsuit, for the purpose of preventing contradictory judgment, the courts could notify him or her requesting joinder. It is the manufacturers that could decide whether acting as a third party to join the lawsuit.

Why Could “Kellogg Company” not be Registered under Class 41 for Educational Services?

Posted on February 14, 2014 by yytbest

(By You Yunting) Kellogg Company, an American multinational food manufacturing company, produces cereal and convenience foods, including cookies, crackers and fruit-flavored snacks. However, in China, someone tried to apply for “Kellogg” as a trademark under Class 41 for educational services. After discovering this, Kellogg Company filed an opposition, but suffered a setback at first in that both the TRAB and Beijing No.1 Intermediate People’s Court rejected its claim. After Kellogg Company appealed, Beijing Higher People’s Court supported its claims, on the ground that the disputed trademark infringed the prior enterprise name of Kellogg Company.

How does Microsoft Settle its Problems of Software Copyright Infringement in China?

Posted on February 13, 2014 by yytbest

(By You Yunting) With the serious intellectual property rights infringement in China, many foreign enterprises find it difficult to protect their rights. In today’s post, we will introduce a case detailing how Microsoft settles its problems of software copyright infringement in China.

Introduction to the Case:

Plaintiff: Microsoft

Defendant: Sailun Co., Ltd (SHA: 601058)

Court of first instance: Qingdao Intermediate People’s Court

No.: (2013)青知民初字第80号, (2013)青知民初字第81号, (2013)青知民初字第82号

Questions and Solutions to Enforcement of Rights Protection by Overseas Software Enterprise in China

Posted on February 12, 2014 by yytbest

(By Luo Yanjie) Abstract:In the litigation of software infringement, the most fundamental evidence is that which is used to prove that the infringed software used by the defendant is plaintiff’s. It is urgent that China strengthens its punishment of infringement so as to protect commercial order and stability.

Rhino Software Inc. (hereinafter the “RhinoSoft”) developed “Serv-U”, a widely adopted FTP server software. In recent years, RhinoSoft have been trying to enforce its rights against the unauthorized use of Serv-U in China. Our previous post Analysis on the Assumption of Liability in the Serv-U Infringement Lawsuit in China has already introduced some of our analysis on this issue. In today’s post, we will be doing a complete analysis of the problems and potential solutions of RhinoSoft’s enforcement of rights in the proceeding litigation from a practical perspective.

Tenfold Punitive Damages for Auchan’s Inferior Foods Reasonable in China?

Posted on February 11, 2014 by yytbest

(BY You Yunting) Chinese food safety problems have always puzzled consumers in China. The Food Safety Law that came into force in 2009 strengthens the legal liability of food enterprises that produce inferior foods. Earlier in 2013, China’s Supreme People’s Court published a guidance case regarding the judgment handed down by Jiangning District Lower People’s Court, in Jiangsu Province. In this case, the Auchan Store that sold expired foods was ordered to offer tenfold damages to consumers. For overseas companies that intend to invest in the industry of food production and sales in China, such legal risks should be noted. In judicial practice, however, some local courts have made judgments deciding that products for personal use should not be compensated. Another point of this case is that the Supreme People’s Court has overruled the verdicts issued by some local courts.

GAP Defeated a Trademark Squatting in China After 20 Years

Posted on February 10, 2014 by yytbest

(By You Yunting) It is well known that GAP is a famous brand in clothing. However, in China, someone attempted to register “GAP” under Class 9 for eyewear products as a trademark. GAP has been defeating similar trademark squatting for over 20 years.

Introduction to the Case:

Applicant of a retrial (Plaintiff in the first instance and Appellant the in second instance): GAP (ITM) INC.

Respondent (Defendant in the first instance and Appellee in the second instance): Trademark Review and Adjudication Board (the “TRAB”)