Tag Archives: China

Analysis on the Different Infringement Liabilities of Taobao Market and Tmall


Recently, the attorneys of Bridge IPR Commentary were interviewed by “China Intellectual Property “, an IPR magazine in China, and the details are as follows:

1. Taobao Market and Tmall are both the separate channels of Taobao, and Tmall was established after Market and now have its own domain name. Then is there any difference between Taobao Market and Tmall?

Unlike the stores in the Market applied by individual merchants with a relatively low threshold, the qualification for Tmall is much stricter for only licensed corporations could run the business in it, furthermore, the service of changing or refunding, after service and invoice are also demanded. Currently, the famous brands operating in Tmall include Lenovo, Haier, Nike and other well-known brands, which are similar to brand stores guaranteeing in service quality.

READ MORE

New Chinese Laws & Regulations of October, 2011 (2)


To follow the regulations posted yesterday:

4. The Ministry of Finance and the State Administration of Taxation issued the Notice of the Value Added Tax (VAT) Policy for Software Product (hereinafter referred to the Notice)

On 13th October, 2011, the Ministry of Finance and the State Administration of Taxation jointly issued the Notice to further define the applicable scope, applicable conditions, and the calculation of the tax refund amount and other specific details of the preferential policy for the VAT of software product. The Notice clarifies that when the general taxpayers of VAT selling the software products developed and produced by themselves, the VAT shall be charged at the rate of 17%, while the amount exceeding 3% of the actual imposed VAT shall be refunded immediately. This policy will enter into force on 1st January, 2012.

READ MORE

New Chinese Laws & Regulations of October, 2011 (1)

From this month, Bridge IPR Commentary will update the latest laws and regulations promulgated in China.

1. The Ministry of Commerce issued the Notice of the Problems regarding Cross- border Direct Investment Denominated in RMB (hereinafter referred to the Notice)

On 14th October, 2011, the Ministry of Commerce released the Notice, which regulates that the overseas investors (including the Hong Kong and Macau investors) can directly invest the RMB gained legally from overseas on business. The Notice defines the concept of “the RMB circulating outside China”, and regulates the investment scope, review and approval procedures and so on. By the Notice, the cross-border direct investment in RMB cannot be made in securities or derivatives (except otherwise specified), either be used for the entrusted loans. Regarding the administrative procedure of review and approval, there will be no alternation on the current review and approval power, which provides that the cross-border direct investment in RMB shall be approved by the local administrative departments of commerce according to the effective administrative regulations of the review and approval of foreign investment. For those investment projects and financial warrant of 300 million or more, foreign invested companies, macro control industry and other projects, the agreement from the Ministry of Commerce is demanded before the approval of the provincial commerce administration. And the procedure related will be simplified the Ministry of Commerce basing the practices of the cross-border direct investment in RMB.

READ MORE

The Latest Development and Analysis on the Social Security Program Covering Foreign Workers in China

Highlight: The new Measures concerning foreigners’ participation in the local social insurance in China has come into effect recently. In this essay, we would like to introduce you the detailed regulations of the new document.

As provided in the Article 97 of the Social Insurance Law, P.R.C, which has come into effect from 2011.7.1, all foreign workers with a valid work permit could be covered by the social security program. However, according to the reply from the hotline of the Shanghai Municipal Human Resources and Social Security Bureau, the participation in the program is on worker’s own choice as agreed in their labor contracts instead of being mandatory.

READ MORE

The Suggestion on the Patent Management of the Company in China from the former Huawei Patent Engineer

Highlight: The patent has been an integral part of modern companies. Bridge IP Commentary will give you the suggestion for the patent management and application under the laws and regulations of China.

Patent is the essential part of the intangible asset of modern companies for it may bring great profit with proper application. In recent years, it has brought to the attention of China companies the importance of the patent for the often encountered patent litigation and the Section 337 Investigation by U.S.A. Then how to manage and apply the patent? And the followings are our suggestions:

READ MORE

Blizzard, Valve or Others, Who will get DOTA Trademark in China?

—Analysis of DOTA (the Defense of the Ancient) Trademark Dispute 

Highlight: Recently Blizzard voiced its concern over Valve’s attempt to trademark DOTA, a popular map of Warcraft III. Could Valve register the trademark, and what measures could Blizzard take to against Valve’s attempt? Bridge IP Commentary will give you our analysis. 

DOTA is the only officially recognized Warcraft RPG map by Blizzard Entertainment, who is furious about Valve’s attempt to trademark DOTA. “To us, that means that you’re really taking it away from the Blizzard and Warcraft III community and that just doesn’t seem the right thing to do” as commented by Rob Pardo from Blizzard.

READ MORE

The Legal Protection over Open Source Software in China

Highlight: Although the OSS is the legal works protected by Copyright Law in China, there has promulgated few legal regulations on it. In this essay, you could know the method to protect the OSS by the current laws and regulations.

It has shown up an increasing trend to open the source code in the intellectual property practices of the world software industry, which is remarked in China by Microsoft’s decision to open part of its operating system code to China government. The protection over open source software is still a legal practices field with little specified regulations in China. However, on the other hand, most important software of China’s own intellectual property is developed on the opened source code and subject to the restriction of the OSS License. Bridge IP Commentary will introduce you the protection over the OSS under current legal environment in China and its legal status.

READ MORE

The Copyright Dilemma of the Online Literature Industry in China

   

Highlights: The online literature in China is jeopardized by piracy. And for the safe harbor rules and massive uploading by netizens, such long-standing could not be effectively combated. Bridge IP Commentary will make analysis on such phenomenon.

In 2010, Shanda Literature (“Shanda”) sued Baidu over pirated literature works on mobiles net and its refusal to delete such works upon the complaint from Shanda. To Shanda’s claim, Baidu holds that it has removed the infringed part while others are examined of no infringement, and it shall take no liability hereby. Baidu was sentenced to take the liability in first instance, and then appealed but withdrew the suit at the end. Thus Baidu shall compensate Shanda RMB 500,000 yuan by the effective decision of the hearing. In this essay, Bridge will analyze the case and legal issues concerning the development of the original literature on the internet in China.

READ MORE

No “iPad” Chinese trademark right for Apple after payment in the transaction, and our analysis.

—-the Key points to the trademark transaction under the frame of China laws

Highlight:Apple gets involved in the litigation against a Chinese company for the ownership of iPad trademark, which Apple has claimed the property from purchase. However, such conflict could be averted if proper preparation has been done before the trademark transaction.

Recently, the trademark conflict over “iPad” initiated by Apple Inc. (NASDAQ:AAPL, the “Apple”) against Proview Technology (Shenzhen) Co., Ltd. (the “Proview”) was heard for the third time on Shenzhen Intermediate Court. In the trial, Apple affirmed it owns the global trademark right of “iPad”, which was stroke back by Proview that such right in mainland China is exclusively held by Proview and the claimed transaction of Apple for the acquisition of such right has no permission or authorization from it, furthermore, Apple was also accused of its malicious purchase of the registered “iPad” behind the IP Application Development Company worldwide.

READ MORE

Nikon Succeeds in Combating the Trademark Infringement in Non-video Classes

—Judicial Solutions to the Conflict between Company Name and Trademark Right in China 

Highlight: The free-riding on the well-known trademark is not rare in China for the startups’ eagerness of rapid development, some ones may even register such marks as their company names. Bridge IP Commentary will introduce you the key elements in the trademark  right protection for trademark owner.

Recently, China’s Supreme Court released the Annual Ten IPR Cases in China, among which a case concerning the conflict between company name and well-known trademark heard in Xi’an Intermediate People’s Court of Shaanxi Province gets the attention of Bridge IP Commentary. In the case, a company established on 28th March, 2000 in Jinghua City of Zhejiang Province altered its name to Zhejiang Nikon Co., Ltd., which mainly sells bikes and scooters and applied for trademark registration. That discontented century-old Nikon Corporation (TYO:7731) and aroused the legal battle. Zhejiang Nikon was finally sentenced to abandon the registration, alter its infringing name and take the compensation liability.

READ MORE

How Could McDonald’s Beat Free Rider of Trademark in China?

Highlights:This article introduces the case initiated by McDonald’s to protect its trademark right against malicious imitation and the related laws and regulations in China, also the legal suggestions from Bridge IP Commentary to McDonald’s in the case that to protect its right basing on the general vocabulary defined in the Trademark Law and the copyright of its trademark.


Recently, the McDonald’s (NYSE: MCD) administrative litigation against the imitation of its trademark by a Beijing company attracts the media’sattention. Several years ago, the trademark “wonderful and its graph” (hereinafter referred to trademark “W”)was registered by  the company in the State Administration of Industry and Commerce, and the registered ranges include restaurant, café, research and development, clothing design and so on. On finding the trade mark and the judgment of similarity with its “M”, McDonald’s then filed an opposition against the trademark to the Trademark Review and Adjudication Board(hereinafter referred to the Trademark Board) under the State Administration of Industry and Commerce for re-examination. The Trademark Board finally decides to cancel the registration of the trademark “W” in the field of restaurant, café, cocktail party service, hotel, bar, teahouse service, however, while to maintain the registration in clothing design and package design. Therefore, MacDonald filed an administrative litigation to the Beijing First Intermediate People’s Court to cancel the decision of the Trademark Board.

READ MORE

Should Apple Bear Liability for Infringing Contents in App Store?

Highlights:Two software developers was sentenced to bear the compensation liability recently in Beijing for the infringing gadgets in Apple App Store. Bridge IP Commentary will introduce you the liabilities Apple may take in such case.

Recently, a case concerning the alleged video infringement in App Store is sentenced by a local Court in Beijing, in which the LeTV Information and Technology (Beijing) Co., Ltd. (the “LeTV”, SZSE: 300104) found a TV series with the right to network dissemination of information reserved by it played on a software available from the App Store and then filed a suit against the two companies developing and operating the software. The first instance’s decision supported the claim of LeTV with the sentence of the compensation of RMB 40,000.

READ MORE

Will International Software Company Benefit from China’s New VAT Policy?

— the interpretation on the preferential policy of value-added tax

Recently, the Notice on the Policy of Value-added Tax of Software Product (the “Policy”) was jointly issued by the Ministry of Finance and the State Administration of Taxation of P.R.C., which shall back cover any VAT after 2011.1.1. The stock market reacts positively to the new policy.

However, as far as Bridge IP Commentary knows，the Policy is just the continuation of the past regulations, which include the Policies for the Development of the Software & Integrated Circuit Industries issued in 2000 (the “Policy in 2000”) and the Notice of Policies for Further Development of the Software and Integrated Circuit Industries released in first half of 2011 (the “Notice”). Even so, the introduction of the Policy once again shows the ambition of China government to boost the software industry. And the following is the interpretation on the Policy from Bridge IP Commentary:

READ MORE

Could Tmall Beat Back the Attack with the Aid of Police?

                   —Analysis on the Possible Legal Countermeasures against Attack on Tmall

Highlights: Tmall is facing the attack from its small merchants for the dissatisfaction on the ons side increase on the annual fee. We would like to analyze the possible legal measure Tmall may take to combat such attack.

Recently, many merchants of Tmall, a subsidiary of the biggest China e-commerce company Alibaba Group, attacked the big merchants on that platform for the upsetting on the higher annual fee with a flood of fake orders and regulatory products return leading to the cripple of the brand sites.

READ MORE

The First Criminal Case on Internet Video Copyright Infringement in China

Highlights: to introduce the first criminal case on the internet infringement, and also the analysis on the relevant laws and regulations in China. 

As one of the biggest video websites in China, the openV.com, which claims being able to provide multi-platform VOD services through mobile phone, computer and television, has been prosecuted for criminal offenses, with the website itself and six staffs are brought to the court. OpenV has been the first video website put subject to criminal liability for unauthorized film and television works on demand services. This unprecedented case shocks the industry currently with widespread infringements, and also shows the determination to combat internet infringement of China government.

READ MORE