How to Judge the Validity of Trademark Transfer without Inner Approval of the Company in China

(By Albert Chen) Abstract:

When a company’s trademark agent transfers a trademark without approval, a judgement of the validity of said transfer requires not only a consideration of the company approval, but also a determination of the third party good faith in the transfer. When a condition is not fulfilled the transfer will invariably be considered invalid.

Case Introduction:

In 2001, Leidi (China) Co., Ltd. (“Company L”) was granted the exclusive right in the use of the trademark “雷迪” (read as “Leidi” in Chinese). In November of 2002, Wu, as the executive director of Leidi China, transferred the trademark to the Hua Qu Duo Investment Company (“Company H”). The State Trademark Office made an announcement regarding the transfer in October 2003. Subsequently, Company H licensed the trademark to the Shanghai-based Leidi Mechanics Co., Ltd. (“Company S,” which had no affiliation with Company L).

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How to Judge the Validity of Trademark Transfer without Inner Approval of the Company in China

Abstract:

(By Albert Chen) When a company’s trademark agent transfers a trademark without approval, a judgment of the validity of said transfer requires not only a consideration of the presence (or lack of) company approval, but also a determination of whether there was good faith when considering the third party in the transfer. When it can be shown that no inner-company approval was made, and that the transaction was not undertaken in good faith, such a transfer will invariably be considered invalid.

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Why the Cybercafé could be Exempted from the Liability of Pirate Video Broadcast?

By You Yunting

In the past few days, a Beijing court published a case (note: the link is in Chinese) involving a cybercafé who has purchased the Video-on-demand (VOD) system, and that made the court refuse the claims of the plaintiff though the right holder proved the piracy in the VOD.

VV8.com Company, a professional video system provider to cybercafé invested by IDG and Disney, detected the pirated TV drama against its copyright in the video system of a cybercafé. And then, the right holder filed a lawsuit against the piracy. The cybercafé afterwards argued that the system was purchased by it from Hero Inc. Company, who is a third party video provider, and in that transaction, both parties has agreed that all the copyright dispute shall be handled by Hero Inc.. Moreover, all the contents in the system are updated and ciphered by Hero Inc. with remote control, thus the cybercafé could not delete any videos in it. In the lawsuits, VV8.com expressed no intention to add Hero Inc. as the co-defendant and make no claim thereby.

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