How Much Income Tax Should Be Paid for Foreigner’s Income in China ?

Posted on by

 (By Albert Chen)“Nothing is certain but death and taxes.” Although neither is pleasant to encounter, they are both unavoidable. So then, this post focuses on how foreign nationals working in China pay individual income tax for their gains in China.

I. For what income shall individual income tax be paid?

The taxable items most related to foreign nationals working in China as stipulated by Article 2 of the Individual Income Tax Law of the PRC include:

(1) Income from wages and salaries;

(2) Income from remuneration for services;

READ MORE

Jurisdiction of the Criminal Investigation by Police in the Taobao Malicious Reviewer Case

Posted on by

(You Yunting) In the widely-covered corporate espionage dispute between Sany Heavy Industry (“Sany”) and Zoomlion Heavy Industry Science & Technology Development Co., (“Zoomlion”), Sany has criticized the Hanshou Public Security Bureau (“Police”) in Changde City, Hunan Province, stating that it did not have jurisdiction to investigate the case and that its investigation was in violation of the law. The Hanshou Police, however, replied there is no problem with it handling this investigation. As of now, there has been no final decision in the case, but the jurisdiction issue it has raised has captured the public attention. Coincidently, the author also believes that there are Police jurisdictional issues in the recent Tabao malicious review extortion case.

READ MORE

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

Posted on by

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.

READ MORE

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

Posted on by

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.

READ MORE

Could Nike Get the Trademark “Liuxiang”?

Posted on by

(By Luo Yanjie) Recently, the lawsuit filed by Nike against China’s Trademark Review and Adjudication Board (“TRAB”) (note: the link is in Chinese) was heard in the Beijing No. 1 Intermediate People’s Court. The case was brought because TRAB refused Nike’s application to trademark Liu Xiang (刘翔) for the reason that the trademark had been registered by another company twenty six years ago, namely in July of 1986. At that time, a company named Shanghai Liuxiang Company applied for the trademark Liu Xiang Brand (刘翔牌) in the class of clothing, and the exclusive period for the use of that mark will last until 2017. Incidentally, the Liu Xiang Brand trademark happens to have the same name as the famous Chinese athlete, Liu Xiang. The case is currently being heard, but the author believes Nike has little chance of winning the case. Today’s will examine the issues involved in this case.

READ MORE

What Legal Risk May Come to Companies Enrolled in the Non Bank Loan in China?

Posted on by

(By Albert Chen) The capital shortage is inevitable during the company operation, and many operators could be head aching with the financing. Due to the strict demands and procedures for the credit approval in the banks, the company may suffer from the refusal of loan application or delay in lending. At that time, the non-bank loan could play another main role in the company financing. Then what risks may come to foreign invested companies as they enrolled in the non-bank loan when running business in China? Please check today’s post for the answer.

READ MORE

Tonghuashun VS. Wind and the Judgment Standards for Software Copyright Infringement in China

Posted on by

(By Luo Yanjie) Recently, Wind Information Co., Ltd (“Wind Info”), a well-known stock speculation software developer in mainland China, made an official announcement that it would sue its competitor Zhejiang Hexin Tonghuashun (300033) to seek RMB 99.22 million yuan in compensation. According to Wind’s spokesman, “more than ninety-nine percent of its software’s function has been copied by Tonghuashun without any changes, including data, organizational structure, column names, connection mode, index, function, text interpretation, parameters, interface, operation or transfer method, and etc.” At present, the ninety-nine percent figure claimed by the spokesman refers to the interface, operation, or transfer method and database. Even if this claim is true, it is still not certain that Tonghuashun has infringed because the judgment of infringement depends on comparison of the source code of both parties’ software. Today, we would like to share the following information on the protection of software copyrights:

READ MORE

Which Copyright Should Internet TV Operators Purchase?

Posted on by

Analysis on the Prohibition of Xiaomi Box and Legal Issues Concerning Internet TV

(By You Yunting) Recently, Xiaomi Tech (the “Xiaomi”), a thriving Chinese smart phone maker, released its “Xiaomi Box” (the “Box”), which enables the user to play online video on their television. Moreover, it also supports TV, games, music, and photos. Strangely, however, the Box ceased its video service under the claim of system maintenance only one week after its release.

According to some media reports (note: the link is in Chinese), the Box is a kind of set top box, and according to the rules of the State Administration of Radio, Film and Television (“SARFT”), such products must first be administratively approved before they can be used in online TV. Despite the cooperation made with WASU, other content available from Xiaomi’s box, such as video from Sohu, Tencent, PPTV, or iFeng are against Notice No. 181 issued by SARFT, which regulates that each set top box can only provide content from licensed video providers.

READ MORE

How to Judge the Copyright Holder of Musical Works

Posted on by

 (By Luo Yanjie) Previously, we introduced how to determine the copyright holder of cinematographic works, and today we would like to continue by introducing how to determine copyright ownership of musical works. Similar to cinematographic works, we have confronted situations in infringement cases in which it is difficult to determine the copyright holder of musical work. For example, in one case the copyright conducted in mainland China was licensed by an overseas rights holder, but the name in the signed and issued license was different from what was written on the original CD. Although the issue might have come from a mistake in the translation, it still created a real obstacle for the rights holder. Now, let’s take a look on the way to determine the copyright holder of musical work in China.

READ MORE

How to Judge the Copyright Holder of Cinematographic Work in China?

Posted on by

(By Luo Yanjie) In a previous infringement case against cinematographic we handled, the plaintiff submitted several articles of evidence to the court, which showed that the work belonged to different copyright holders: according to a certificate issued by the Hong Kong Copyright Center, it was Copyrighter A’s property while the subtitle authorship rights belonged to Copyrighter B. And yet, as demonstrated by a license agreement, C shall be the exclusive holder of the copyright. That made the plaintiff argue for his ownership of the copyright. In fact, due to the complexity in determining copyright ownership, contradictory disputes like the one described above are quite common in actual practice. In today’s post we will share our understanding of the issue.

READ MORE

How Companies in China Apply for Reserve Trademarks and Defensive Trademarks?

Posted on by

(By Luo Yanjie) A reporter from China Industry & Commerce News asked the author how companies should apply for reserve trademarks and defensive trademarks. The interview is as follows:

1. How to decide between the registration of a reserve or defensive trademark?

Reserve trademarks are prepared for coming new business. Because the period from application to reservation requires one year, it is suggested to prepare some spare names for new products or services being prepared or under research and development. Then, before the product is released, the company can directly select and use a name it has already registered. Generally, it is only necessary to apply for the classes the company intends to adopt, and there is no need to register many other related classes.

READ MORE

How to Acquire the Trademarks of Companies Whose Business Have Been Canceled or Whose Licenses Have Been Revoked in China?

Posted on by

By Albert Chen

Trademark assignees may sometimes encounter an awkward situation: the target trademark is in the hands of a company that has had its business license revoked or that has been cancelled. Although the trademark is still valid, others seem to have no legitimate means to acquire it. So, under these circumstances, does the assignee really have no means to acquire the trademark? In today’s post, you will find the answer.

I. Why would trademarks be left unused?

According to relevant statistics, the average life of Chinese companies is seven years, and the average of life of privately owned companies is only 2.9 years. On the other hand, however, the validity period of a trademark is ten years, and there is nothing in Chinese law that states that the trademark shall automatically become invalid when the business license of its holder is revoked or the company is cancelled. Especially when the business license has been revoked, the company still has legal capacity. It is merely incapable of conducting civil acts, including the use and transfer of trademarks, because its business license or chop has been announced invalid or has been confiscated under the punishment of business license revocation.

READ MORE

What Geographical Names Can be Registered As Trademarks in China?

Posted on by

It is reported that (Note: the link is in Chinese) Wakayama County of Japan recently announced that the trademark application for “Ji Zhou” (纪州) filed by a Hong Kong company on the Chinese mainland concerns a publicly well-know geographical name. The County has also filed an objection with the Chinese Trademark Office because this name is not appropriate to serve as a trademark. The report also stated that Wakayama County has been paying close attention to trademark applications in China since 2010 and has already had two objections granted against trademark applications for “Wakayama.” Today, we would like to discuss whether geographical names can be registered as trademarks:

READ MORE

How Long Is the Copyright Protection Period of Foreign Companies and Individuals in China?

Posted on by

By You Yunting

A reader asked: Does Chinese law protects the copyrights of foreign companies and individuals? And, how long is the protection period? Today’s post will discuss this question.

I. The three requirements for granting copyrights to the works of foreign individuals or companies

Whether or not the work of a foreign person, company, or stateless person enjoys the copyright protection period depends on whether or not they qualify as a Chinese copyright holder. By Article 2 of China’s Copyright Law, one of the following three conditions must be met:

READ MORE