Tag Archives: joint liability

How to Determine Joint Liabilities of shareholder for IPR Infringement in China?

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(By Wang Ting and You Yunting)The limited liability of the shareholders means that the liability of the shareholder to the company are limited to its capital contribution, and the independent personality of corporation means that the Company shall fulfill its external liabilities by all of its properties. Therefore, the shareholders usually do not take personal responsibility in IPR infringement cases even when the long-term business of the company is infringement of the intellectual property rights (“IPR”) in most cases. However, today we will introduce a recent case, in which the shareholders were determined to take such joint liabilities for the IPR infringements.

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The Confusion of Affiliated Companies shall Assume Joint Liability for Their Debts

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(By Luo Yanjie) Abstract: Company’s independent status as a legal person is a prerequisite for bearing liabilities independently incurred to the company. If a company loses its independent status as a legal person, shareholders shall bear several and joint liability for the debts of the company or the affiliated company, similarly for debts incurred in affiliated companies.

    In recent years, there are many disputes regarding abuse of company’s independent status as a legal person that many intelligent merchants attempted to evade the payments of debts by abusing the company’s independent status as a legal person or the limited liability of shareholders. In today’s post, we would like to introduce a typical case regarding the confusion of company’s independent status as a legal person on the Cases Guidance of the Supreme People’s Court in China as follows.

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Why Hainan Netcom Is Judged Infringement Liability for IP Addresses It Manages?

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(By Albert Chen) Hainan Netcom is an Internet Service Provider (“ISP”), but it also provides the content on the Internet. Even after the company failed todemonstrate that the IP address is used by a third party, and it fulfilled its obligation to check the content of the webpage, the company should still be liable for any corresponding infringement.

Case Summary:

Beijing Ciwen Filming Co., Ltd. (“Company C”) is the copyright holder of film Qi Jian (also known as “Seven Sword”) in mainland China. However, Company C discovered that Hainan Netcom hadbeen providing a link on its homepage (www.hai169.com) for its visitors to stream Qi Jian, without the authorization of Company C.As a result,in September of 2005, Company C filed a lawsuit against Hainan Netcom because it believed that Hainan Netcom had infringed upon its copyright.

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Why Hainan Netcom Is Judged Infringement Liability for IP Addresses It Manages?

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Abstract

(By Albert Chen) Hainan Netcom is an Internet Service Provider (“ISP”), but it also provides the content on the Internet. For the URL available on its web pages, the company should be obligated to take an even higher care with regards to its content. Even after the company fails to demonstrate that the IP address is used by a third party, and it has fulfilled its obligation to check the content of the webpage, the company should still be liable for any corresponding infringement.

Case Summary:

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Can Employees’ Nondisclosure Warranty Letter Be A Confidential Measure in China?

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Abstract

(By Albert Chen) According to the Anti Unfair Competition Law, one of the conditions required for something to constitute a trade secret is whether sufficient measures have been taken for such information to remain confidential. In practice, apart from an NDA (Non Disclosure Agreement), other confidential articles that explicitly indicate the inclusion of remuneration for confidentiality in an employee’s pay, as well as written warranties issued by an employee can both be considered confidential measures in law sufficient to properly maintain a trade secret.

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Introduction and Interpretation of China’s Judicial Interpretation on the Right to Network Dissemination of Information, I

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Judicial Interpretation on the Right to Network Dissemination of Information, interpretation, analysis, Supreme People’s Court, Regulation on Several Issues Concerning Application of Law in Hearing Civil Disputes on the Right to Network Dissemination of Information, history, development, China Academy of Science, NCFC, NSFNET, copyright law, Interpretation on

(By You Yunting) On December 26 2012, China’s Supreme People’s Court published the “Regulation on Several Issues Concerning Application of Law in Hearing Civil Disputes on the Right to Network Dissemination of Information” (the “Network Interpretation”). The Network Interpretation came into effect on January 1, 2013. Therefore, in today and tomorrow’s posts, we are going to share an introduction and interpretation of the new regulation

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Encyclopedia vs Apple: Why AppStore Could Not Ship into Safe Harbor?

By You Yunting

As reported by media, Beijing No.2 Intermediate People’s Court made the first instance decision for infringement claims made by Encyclopedia of China Publishing House (Encyclopedia) agains Apple’s AppStore. With the decision, Apple shall compensate Encyclopedia RMB 520, 000 yuan and immediately cease the infringement. In current, no intention to appeal has been expressed by Apple.

Case: Encyclopedia discovered Apple’s user could purchase and download apps of its copyrighted works, which could be read in iPhone and iPad. With the anger of the infringement, Encyclopedia filed a lawsuit against Apple, who counter-stroke that the actuall operator of AppStore is a company registered in Luxembourg, not Apple. And Apple provided no services in the process of software uploading, and therefore Apple shall be with no engagement in the dispute.

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App Store: Duty Free for Safe Harbor Principle in China?

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By You Yunting

In March of 2012, 22 Chinese authors filed a lawsuit against Apple in Beijing No.2 Intermediate People’s Court and claimed  compensation of more than ten million. In the case, the plaintiffs stated that their works have been adapted into apps used on iPhone, iPad and iPod Touch, free of being charged at App Store. The case is the first lawsuit with the operator of App Store being the defendants, and will produce a prominent influence on the newly developed online store, which was launched in 2008 and with more than 360 million users . Now the litigation is under the spotlight, and this essay is focusing on the legal status of Apple and the defects in the process complaints of the store.

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Music Industry’s Revision Suggestion to Drafted Copyright Law, II

The exposure draft of revised Copyright Law (the “Draft”) has gained wide attention among the public after its publication on the website of the National Copyright Association of China (NCAC). One of the reasons contributing to the heated discussion is the articles possibly damaging the interests of musicians who have expressed their strong opposition to the Draft.

In recent, the Record Committee of China Audio & Video Association (CAVA) affiliated to General Administration of Press and Publication of PRC has made their suggestions to the modification on the Draft. To the introduction on the website of CAVA, it has more than 520 member units that are engaged in audio-video production, duplication, distribution and marketing. The member units have not only the largest state record corporation, audio-video press, but also the best music-make corporation, distribution and marketing corporation and the large chain marketing corporation at home. Under CAVA there are several working committees such as distribution, record, disc, educative publishing, digital audio-video and china marketing committee. And the Record Committee making the suggestion this time is the working committee of the CAVA.

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Music Industry’s Revision Suggestion to Drafted Copyright Law, I

The exposure draft of revised Copyright Law (the “Draft”) has gained wide attention among the public after its publication on the website of the National Copyright Association of China (NCAC). One of the reasons contributing to the heated discussion is the articles possibly damaging the interests of musicians who have expressed their strong opposition to the Draft.

In recent, the Record Committee of China Audio & Video Association (CAVA) affiliated to General Administration of Press and Publication of PRC has made their suggestions to the modification on the Draft. To the introduction on the website of CAVA, it has more than 520 member units that are engaged in audio-video production, duplication, distribution and marketing. The member units have not only the largest state record corporation, audio-video press, but also the best music-make corporation, distribution and marketing corporation and the large chain marketing corporation at home. Under CAVA there are several working committees such as distribution, record, disc, educative publishing, digital audio-video and china marketing committee. And the Record Committee making the suggestion this time is the working committee of the CAVA.

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