Liabilities of Contributed Capital Surreptitiously Withdrawn in New China Corporate Law

 (By You Yunting) In the end of 2013, China issued a revised Corporate Law updating the provisions about the contributed capital, as discussed in our previous post the Amendment to the Corporate Law. Today we will discuss the legal liabilities of promoters and shareholders with regards to the required contributed capital being surreptitiously withdrawn.

Assumption of liability

Pursuant to the updated Corporate Law, any shareholder who fails to make full payment of the capital contributions at the establishment of the company shall be jointly and severally liable for refunding the paid-in capital – in accordance with the amount of registered capital. As such, it is when the company is unable to pay its debts that the shareholders shall assume the liability of surreptitiously withdrawing the contributed capital.


How to Ascertain a Director’s Liability in Chinese Bankruptcy Liquidation?

(By You Yunting and Wang Ting) With many foreign investors establishing enterprises in China, there are many successful examples as well as the inevitable examples of failure. Bad management may lead an enterprise to eventual failure. In the situation where an enterprise goes bankrupt due to poor management, even an individual foreigner, playing the role as a director or senior officer, may have to assume personal liability. Such liability may arise from either civil or criminal laws. Today, we will discuss what kinds of liabilities directors may assume in bankruptcy liquidation.


What Legal Problems are GSK Scandal Involved within China’s Criminal Law?


(By Zhou Wei) On July 11, 2013, the Ministry of Public Security (the “MPS”) issued a piece of news on its official website that some senior executives of GlaxoSmithKline (China) Co., Ltd (the “GSK”) were being investigated for their involvement in serious unspecific economic crimes, demonstrating a scandal with GSK’s involvement in bribery in China. Utilizing currently disclosed information, this post is aimed at analyzing possible alleged criminal charges and criminal liabilities.


Could NetDragon’s Providing Plants vs Zombies 2 Be Protected under the Safe Harbor Principle?


(By You Yunting) In recent days, Plants VS Zombies 2, the sequel to the global hit game Plants VS Zombies, came on the market in Apple’s AppStore in Australia. Afer initial release, millions of users downloaded the app from the Australia store. In China, however, the situation is quite different. As reported by the media, within the first 24 hours of the game’s release, many unlocked versions of the application were uploaded to third party media providers, like, and that the encrypted in-game items had been cracked.


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

(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.


Latest Patent Law Revision Exposure Draft from SIPO

The State Intellectual Property Office (SIPO) published the exposure draft of the amendment to patent law on 9th August 2012. In this draft, we could find only some clauses are revised, and the followings are the articles translated by us for your reference.

The existing articles

The articles in the exposure draft

Article 46 The patent review board shall examine the request for declaring a patent right invalid and make a decision in a timely manner and notify the requesting person and the patentee of its decision. The decision on declaring a patent right invalid shall be registered and announced by the patent administration department under the State Council.

A person that is dissatisfied with the patent review board’s decision on declaring a patent right invalid or its decision on affirming the patent right may take legal action before a people’s court, within three months from the date of receipt of the notification. The people’s court shall notify the opposite party in the invalidation procedure to participate in the litigation as a third party.Article 46 The patent review board shall examine the request for declaring a patent right invalid and make a decision in a timely manner and notify the requesting person and the patentee of its decision.


How to Label Patent Mark Correctly in China?

In Recent, State Intellectual Property Office of China (“SIPO”) issued its No.63 order for the promulgation of Measures on the Labeling of the Patent Marks (the “Measures”) on its website, the Measures modifies the past Provisions on the Methods for Labeling the Patent Marks and Patent Numbers (the “Provisions”) and will come into effect from 1st May of 2012. (the image is the certificate of patent in China)

Today, we will introduce you how to label your patent marks in China under the new Measures, and its new provisions.


Fang Zhouzi V.S. Han Han & Chinese Legal System on Reputation Infringement

The most notably and widely discussed issue around this Chinese New Year, to Bridge IP Law Commentary’s opinion, is probably not the traditional spring festival variety show on CCTV, but the argument between Fang Zhouzi, a self-claimed anti-fraud cop or myth buster, and Han Han, an acclaimed writer in China. The flame battle started from a blog by Mai Tian, a better-known blogger, doubting many works of Han Han are actually written by his father or other unnamed writer while published in his name. Despite it ends in Mai Tian’s apology and admission of mistake, the issue opens the Pandora’s box of doubts on Han Han. Afterwards, Fang Zhouzi took the relay baton, who was counter-backed by Han Han and his father, and moreover Han Han showed his original manuscript for proving. After days of online words war, Han Han filed the lawsuit for the reputation infringement and claimed the compensation of 100, 000 yuan.


Why Youku is Reluctant to Delete The Infringing Video as Alleged by Tudou

Several Common Knowledge in Law concerning the Conflict between Tudou and Youku in China

Recently, two biggest video sharing portals in China are embroiled in the copyright dispute of some hit dramas. And it’s triggered by Tudou (NASDAQ: TUDO) ’s accusation of Youku pirating the entertainment show Kang Xi Lai Le with Tudou owns its exclusive cyber copyright in China, and Youku (NYSE: YOKU) ’s refusal on the deletion after Tudou’s allegation. Following that, Youku stated that Tudou had been long pirating its copyrighted films and television programs. According to the latest statement from the both sides, both parties have filed the lawsuit, and Tudou has made complaint to the industry association. The post of Bridge IP Law Commentary today will analyze several common knowledge in law, and give our answer on Youku’s reluctance to delete the infringing video as alleged by Tudou.


A Battle of Vague Justice or for a Brighter Future?

analysis on the copyright dispute between video-sharing giants Tudou vs Youku in China

Bridge IP Law Commentary will post two comments on the copyright conflict of the entertainment show “Kang Xi Lai le” between Tudou (NASDAQ: TUDO) and Youku (NYSE: YOKU), two China video sharing giant in China. The first post is from Attorney Albert Chen.

The hottest news hitting the headline of IT news in China these days may be the battle between Youku and Tudou, who are the top two online video providers in mainland China. The war was triggered by Youku’s streaming of Kang Xi Lai Le (the “Show”), a popular entertainment show from Taiwan, which is claimed by Tudou of piracy and against its exclusive right of the show in China.