China Laws and Regulations Update in July 2017

1.Circular on Special Administrative Measures for the Access of Foreign Investment to the Pilot Free Trade Zone (Negative List) (for 2017)

The revised edition is intended to further improve the access for foreign investment. The new negative list consists of 15 categories, 40 sub-categories and 95 special administrative measures, with 10 sub-categories and 27 measures removed from the negative list 2015, including 6 sub-categories with respect to subway equipment manufacturing, pharmaceutical manufacturing, road transport, insurance, accounting and auditing and other business services removed and 4 sub-categories combined with other sub-categories. The Special Administrative Measures on Foreign Investment Access to the China (Shanghai) Pilot Free Trade Zone (Negative List) published on 8th April 2015 was abolished at the same time.

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China Laws and Regulations Update in May 2017

1.The State Administration for Industry and Commerce Releases the Opinions on Making the Registration Process More Efficient and Reforming the Registration of Business Names System

In order to deepen the business system reform, make the process of registering business names (including names of farmers’ cooperatives and individually owned businesses) more efficient and reform the registration of business names system, the State Administration for Industry and Commerce released on 19th April 2017 the Opinions on Making the Registration Process More Efficient and Reforming the Registration of Business Names System, opening the database of business names and related services.

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Laws and Regulations Update in February 2017

1.The State Council Issues the Notice on Active Measures to Expand Opening Up and Use Foreign Funds

On 17th January 2017 the State Council issued the Notice on Active Measures to Expand Opening Up and Use Foreign Funds in order to clarify opening up and foreign fund use policies and create a fair and favorable market environment.

(Source: Website of the Central Government)

http://www.gov.cn/zhengce/content/2017-01/17/content_5160624.htm

2.The State Administration for Industry and Commerce Publishes the Opinions on Comprehensive Promotion of the Simplified Registration Cancellation Policy

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Qvod Vs China Government: RMB 260 million Punitive Fine for Copyright Infringement?

qvod

(By You Yunting) Introduction to the Case:

Plaintiff: Shenzhen Qvod Technology Co., Ltd (the “Qvod”)

Defendant: Market Supervision Administration of Shenzhen Municipality (the “MSA”)

Court of first instance: Shenzhen Intermediate People’s Court

The MSA filed a case with the Shenzhen Intermediate People’s Court, and claimed to cancel the punitive fine of RMB 260 million from the MSA. On 30th of December 2014, the Shenzhen Intermediate People’s Court held the trial as the case is still on that trial.

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Does Proposed Anti-Monopoly Investigation against the Merger of Didi and Kuaidi Affect Innovation?

(By You Yunting) China’s two largest Taxi apps Didi Dache (“Didi”) and Kuaidi Dache (“Kuaidi”) confirmed merger on the Western Valentine’s Day, triggering the whole industry, which also lead to the suspicion of a monopoly. Afterwards, the Taxi apps Didi and Kuaidi responded this with much larger travel markets, and told that their merger does not lead to a monopoly, because mobile taxis only count a small proportion with lots of participators. As for whether their merger is accused of monopoly, there are hot discussions among legal professions. At present, third parties were tending to make anti-monopoly investigation from the Ministry of Commerce, and I am no exception. But after full consideration, I fell into confusion.

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Is Integrated Circuit Layout Design Protected by China Judicial Judgment?

(By You Yunting) Introduction to the case:

Appellant (plaintiff at first instance): Hi-Trend Technology (Shanghai) Co., Ltd (the “HTT”)

Appellant (defendant at first instance): Shenzhen Rui Micro-Technology Inc. (the “RMT”)

Respondent (defendant at first instance): Shanghai Yachuang Electronic Component Co., Ltd. (the “YEC”)

Court of first instance: Shanghai No.1 Intermediate People’s Court  No.: (2010)沪一中民五(知)初字第51号

Court of second instance: Shanghai Higher People’s Court  No.: (2014)沪高民三(知)终字第12号

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Is It Illegal for WeChat to Block Sharing Link of Alipay?

WeChat vs Alipay_副本

(By You Yunting) Recently, China Internet giant enterprises generated an intense competition during their hand-to-hand combat, but this time the main character is the Tencent which successively block sharing link with Alipay, Xiami Music App and NetEase Cloud Music App on its WeChat platform. It means that WeChat users could not use the mobile applications to link the contents of Alipay Red Envelope Gifting, Xiami App and NetEase Cloud Music App on its WeChat platform.

Afterwards, Tencent implied externally that the act of sharing link with Alipay Red Envelope Gifting is a malicious marketing and promotion on its WeChat platform, even a shattering experience, and its blocking should have something done with the uninstallation of WeChat Payment on Alipay platform (Chinese Link: http://tech.techweb.com.cn/thread-642700-1-1.html) For cutting off link with Xiami App and NetEase Cloud Music App, Tencent implied to have relationship with its content piracy (Chinese Link: http://tech.sina.com.cn/i/2015-02-05/doc-ichmifpx7018268.shtml).

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Why Did Using a Literal Meaning of “智慧背囊” be Judged Trademark Infringement?

送给青少年的智慧背囊

(By You Yunting) Introduction to the Case:

Appellant (1st defendant at first instance): Qingdao Publishing House

Respondent (plaintiff at first instance): Shandong Shiji Tianhong Education Technology Co., Ltd (the “Tianhong Education”)

2nd Defendant at first instance: Beijing Readbuy Tianxia Information and Technology Co., Ltd (the “Readbuy”)

Court of first instance: Beijing Fengtai District People’s Court No.: (2014)丰民初字第03829号

Court of second instance: Beijing No.2 Intermediate People’s Court No.: (2014)二中民(知)终字第10356号

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Youku Steals the Originality, How Can the Student Fight Against Plagiarism?

追气球的熊孩子

(By You Yunting) A post named the Teenagers Cannot Be Bullied was made by a 19-year-old student to complain that Youku.com ripped off his idea, causing a big stir online. The 19-year-old student and his fellows succeeded in taking photos of the earth from flying a hot-air balloon and then published their experience named the Kids Who Chase the Balloon and photos online. Afterwards, staffs from Youku.com contacted him, saying that they would like to address a short video to write down their behaviors. Then they reached an agreement through emails that the 19-year-old student and his fellows would cooperate with Youku.com in making a creative short video from the post the Kids Who Chase the Balloon.

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China Laws and Regulations Update in November 2014

  1. The State Intellectual Property Bureau of the P.R.China Publishes the Opinions on Investment Administration Regulations Concerning Intellectual Property to Foster Growth of Small and Micro Enterprises.      

On 11th of October 2014, the State Intellectual Property Bureau of P.R.China published the Opinions on Investment Administration Regulations Concerning Intellectual Property to Foster Growth of Small and Micro Enterprises. The Opinions involve fifteen specific measures to help small and micro enterprises obtain rights to their innovative achievements, improve patent sponsorship policies for small and micro enterprises and support small and micro enterprises by properly tackling intellectual property related issues, in order to foster innovation and growth of small and micro enterprises, perfect intellectual property services for small and micro enterprises, improve the ability of small and micro enterprises to use intellectual property and optimize the intellectual property development environment for small and micro enterprises.

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China Laws and Regulations Update in Octorber 2014

  1. Intellectual Property Tribunals to Be Established in Beijing, Shanghai and Guangzhou

On 1 September 2014, the Standing Committee of the National People’s Congress approved the Decision to Establish Intellectual Property Tribunals in Beijing, Shanghai and Guangzhou. The Decision stipulates that the Supreme People’s Court should be entitled to set up intellectual property tribunals in Beijing, Shanghai and Guangzhou by taking into account types and numbers of intellectual property cases. Such tribunals govern first-instance civil and administrative intellectual property litigation cases relating to such technically demanding issues as patents, new species of plants, layout designs of integrated circuits, confidential know-hows, etc. and have the right to decide on any appeal against first-instance judgment or verdict by a local lower-level people’s court on civil and administrative intellectual property cases relating to copyrights, trademarks, etc.

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An Analysis on Chinese and Foreign Entrepreneurs’ Equity Disposal Options

(By Wang Qiurui) Selfishness is nature of human beings and difficult to get rid of, out of which a problem arises that employees and even high-level managerial staff of a company care much more about their own interest than the company’s rise and fall when dealing with managerial issues. Adam Smith raised a question related to such problem in his masterpiece the Wealth of Nations, known as ‘Smith’s Difficult Question’.

Many past and living Chinese and foreign entrepreneurs have turned to equity to find a way of thinking a solution to overcome such weakness of human beings. However, being governed by the current Company Law of P.R.China, settlement of a case in such a way would give rise to many legal issues. It should be more advisable for Chinese entrepreneurs to create and apply to their businesses a phantom equity system.

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Does Tudou.com Require Permission for the Use of YYeTs’ Unauthorized Subtitle Translation in China?

tudou

(By You Yunting) YYeTs is one of fansub groups in China, which translated foreign films and television program and subtitled into a language other than that of the original by fans (not officially licensed translator). YYeTs have translated many foreign films and television programs and developed very fast in China.

Recently,  YYeTs claimed that, as Tudou.com used, without permission, YYeTs’ subtitle translation for the video of the Voice and deleted the names of translator, YYeTs tried to negotiate with Tudou.com but was blamed for illegal translation. That raised a question: without the permission of the right holder for the Voice, could YYeTs’ translation receive protection from the Copyright Law?

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Will Alibaba’s App Information Leakage Trigger Strict Supervision and Regulation on Mobile Games?

alibaba

(By You Yunting) “疯狂来往” App, an in-game of China’s leading e-commerce Alibaba(NYSE: BABA)’s Messaging App Laiwang, was blamed for user’s private data leakage, according to the news. “疯狂来往” App (pronounced as “Feng Kuang Lai Wang”) was made to record players as one persons holds up a mobile device displaying words and others use gestures to provide clues to an answer, a little like guessing game. Considering that “疯狂来往”App is an interactive game among friends and acquaintances, many of the players were dressed rather casually when caught on the videos and some videos shows users in their underwear or naked while playing the game at home with family or friends. Worsen the videos also involved private information of teenagers under eighteen. Regardless of its sharing features into social networking websites such as Wechat and Qzone, some sharing videos were also automatically stored on Youku.com, a video website, which anyone can read online.

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China Laws and Regulations Update in September 2014

1.The PRC State Administration of Foreign Exchange releases the Notice on the Pilot Reform of the Administrative Approach Regarding the Settlement of the Foreign Exchange Capitals of Foreign-Invested Enterprises in Certain Areas

On 4 August 2014, the PRC State Administration of Foreign Exchange released the Notice on the Pilot Reform of the Administrative Approach Regarding the Settlement of the Foreign Exchange Capitals of Foreign-Invested Enterprises in Certain Areas to launch the pilot reform of the settlement of the foreign exchange capitals of foreign invested enterprises on a discretionary basis in 16 areas throughout the P.R.China, including the Suzhou Industrial Park, on 4 August 2014, after such reform was first launched in the Shanghai Free Trade Zone.

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