How Can the Double Wages Payment Provision be Misused In China?

(By You Yunting) In order to protect the legitimate rights and interests of laborers and to avoid enterprises failing to conclude a labor contract with laborers, China’s Labor Contract Law stipulates that, where an employing unit fails to conclude a written labor contract with a laborer that has provided labor services for more than one month but less than one year, it shall pay double wages payment to the laborer each month.

In practice, however, many enterprises found this stipulation being misused. To achieve double wages payment, some laborers intentionally failed to conclude the written labor contract with their employing units and then brought the employing units to labor arbitrations claiming for double wages payment. In our post, we would like to introduce a typical case where a laborer in charge of human resources who deliberately did not conclude a labor contract with its enterprise is supported by the courts to receive double wages payment after their departure. Foreign investors who do business in China should be aware of this potential labor risk.


China Supreme Court Issued A New Typical Trademark Infringement Case of OEM


(By You Yunting) As a big manufacturing country, China deals with a lot of products categorized as original equipment manufacturing (the “OEM”). With regard to whether OEM constitutes trademark infringement, where local courts had handed out different decisions and infringing standards for this problem, the Supreme People’s Court has not yet expressed a clear standard for determining. Recently, China’s Supreme People’s Court has published the 2012 Top 50 typical trademark cases, and, among them, there is a case concerning OEM trademark infringement, where the manufacturer of an OEM won an infringement claim against it by the trademark holder. From the SPC’s decision in this case, we find rather clear evidence of the court’s attitude toward this particular issue.


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

 (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;


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.