Category Archives: Corporation

Why Shenzhen Proview Will Not Be Bankrupt Immediately?

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According to the report from the Beijing News (note: the link is in Chinese), Shenzhen Proview, the company battling against Apple in the iPad trademark dispute has been applied for bankruptcy clearance by its debtor Taiwan Fubon Insurance (Fubon), who first applied for the bankruptcy to Shenzhen Intermediate Court in June of 2011 and sent the written notice to urge the acceptation on 20th February, 2012.

According to the Enterprise Bankruptcy Law, “where an enterprise legal person fails to pay off its debts, and that if its assets are not enough to pay off all the debts or if it is obviously incapable of paying off its debts, its debts shall be liquidated in accordance with the provisions of the present Law.” That is to say the bankruptcy could only be applicable when the company’s assets are not enough to pay off its debts or it’s obviously incapable to pay off its debts. In the case, it’s arguable to say Shenzhen Proview is under such situations. For one hand, Fubon claims Shenzhen Proview has not made the payment on its debt and seems to be incapable to make the payment, while on the other hand, Shenzhen Proview disclaimed the accusation and insisted the iPad trademark is valuable enough to clear all the debt once it could be realized, and therefore it shall not be liquidated under the bankruptcy procedure.

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Why SARFT’s Order for Price Limit on Movie Ticket Daily Deal Is Illegal?

As reported, the State Administration of Radio, Film & Television (“SARFT”) has issued the Exposure Draft of “The Guideline on The Further Regulation of The Movie Tickets Management” (the “Exposure Draft”) to its affiliated industry associations, which says that the price of the member ticket, group ticket and the preferential ticket shall not be less than 70% of the listed price in the cinema. The regulation has aroused wide argument for it focusing on the heating ticket group buying business. In our opinion, the Exposure Draft is to establish the price cartel, which is suspected to violate the Price Law, Anti-trust Law and Anti Unfair Competition Law. And the following is the opinions from Bridge IP Law Commentary: (the image above is the logo of NUOMI.COM, the first daily deal website selling movie ticket in China)

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Apple Ignores the Interests of App Store Consumers in China?

Some suggestions to Apple’s Chinese Operation

As reported by IT Times (note: the link is in Chinese), some apps in Apple’s App Store are complained by clients for its poor quality due to the loose supervision by the company, and also the settlement on the problem is difficult when encountered such problems. (the image above is the screen shot of one of the complained apps in App Store)

Therefore, we have searched the reports and news concerning the apps on the internet, by which we have found more than ten apps are charged for its fraudulence, including the apps designed for Taobao, the biggest online shop in China, mobile phone carrier service apps and traffic violation record, and the complains focus on the non-conformance to its publicity or being available. Besides, it also comes to our attention that the refund application is complicated for the entrance for the refund application is too difficult to be found shall there were no aid from Apple’s service tel.

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Shall It be Companies’ Obligation to Pay Employees Confidentiality Remuneration by China Laws?

Recently, Bridge IP Law Commentary is consulted by some clients about whether it is necessary for an enterprise to pay its employees, who is subject to confidentiality obligation, the confidentiality fee. Today, we will answer such questions combining with the current laws and regulations as well as the practices. (the image above is the cover of the Guidelines of Trade Secret to Companies by DeBund Law Offices)

I. There only regulates the payment for the competition restriction but no fees for confidentiality  

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Newly Revised Investment Catalogue: JV can Operate Online Music in China without VIE now

The Guiding Catalogue of Foreign Investment in China (the Catalogue) revised in the last year has come into effect on 30th January, 2012. The new Catalogue contains some modified regulation on foreign investment in China, and today Bridge IP Law Commentary would like to introduce you the change in respect of internet business in the Catalogue. (the image above is the logo of myspace.cn, invested by Mr. Rupert Murdoch through VIE, which is claimed temporary shut down for technology reasons)

I. Permission of foreign investment in online music industry

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Tax Preferential Policy in China’s Animation Industry

It is reported by SECURITIES DAILY (note: the link is in Chinese) that there will be adjustment on tax policy in China animation industry. In recent, China Ministry of Finance and the State Administration of Taxation jointly issued a new policy supporting the animation industry, which introduces the VAT and the preferential business tax. And less tax and taxation of the both VAT and business tax will be made hereby.

I. For the sales of the independently developed animation software by the company of the general tax payer itself, the VAT shall be levied at the rate of 17% first, and the exceeding 3% amount of the actual tax bearing will be refunded. That’s the so called levy-refund policy.

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MCC Released the New Foreign Investment Industry Guide Catalog of 2012 Version


The Ministry of Commerce of China (the “MCC”) has recently revised the Foreign Investment Industry Guidance Catalog (the “Catalog”) recently, which will come into effect on 30th, January, 2012.

The Catalog is the important industry policy on guiding the foreign investment, and before this modification, it has been modified forth in 1997, 2001, 2002, 2004 and 2007 since the promulgation in 1995. And this post is the conclusion on the newly revised Catalog by Bridge IP Law Commentary.

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The Officer of U.S. Consulate Visited Bridge IP Law Commentary

On 20th December, Mr. Steven Duke （杜史文）, Vice Consul of U.S.A, visited DeBund Law Offices/Bridge IP Law Commentary for the survey on the IPR protection in China.

On the meeting with the Consul, Mr. You Yunting introduced the IPR protection in China and replied the questions interested by the visitor, which mainly include the national treatment of foreign companies in IPR dispute settlement, the destroy of knockoff model through judicial way, the copyright of video-sharing programs, the transaction and transfer of patent, the protection of trade secret and the development of IPR judge and lawyers in China.

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Common Problems Concerning the Notarization of Internet Evidences in China

Recently, Judge Gao Fei, from Dongcheng District People’s Court in Beijing, has published an article on the China Press and Publishing Journal, discussing the relevant problems of the electronic evidences of network copyright in China. The article analyzes the four main problems in the evidence preservation of network copyright infringement disputes due to the evidence being intangible and easy to be modified, and it also gives the solution. Bridge IP Law Commentary today will introduce you our interpretation on the article.

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Analysis on the Legal Liability of Kaspersky for Customer Fraud

In recent, it has aroused public concern that the well-known security software firm, Kaspersky, was reported by CCTV, the Chinese state television, that its sales agents are likely to be fraudulent to the customers.

“Weekly Quality Report”, a program on CCTV, reports that some agents of Kaspersky trick customers to buy security software of Kaspersky by using ads which kept displaying a false virus warning. When the computer users are normally surfing the Internet, a pop-up ad appears to warn them that many serious threats such as viruses and Trojan horses are found in this computer and the computer system will be seriously damaged if the loopholes fail to be repaired in time. Because of worry about such viruses, many computer users spend RMB 20 buying the security software. In fact, such warning is just a trick to induce computer users to buy the security software. Ironically, when the customers visit the same web again after purchasing the recommended security software the virus warning still appears.

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Legal Problems on the Payment in RMB in Apple App Store

Highlight: Apple’s acceptation of payment in RMB in its App Store may be deemed as the intention to operate in China, which by local laws shall be administrative licensed of the value-added telecommunication service first and the entity shall be at least 50% owned by local companies. Furthermore, the applications sold in App Store are also demanded for administrative license and registration of Chinese government.

On the afternoon of 17th November, I was interviewed by Mr. Zeng Hang, the journalist from the 21st Century Business Herald, an influential Chinese financial newspaper, on the Apple’s plan to accept the payment in local currency for the purchase of applications of iPhone and iPad. Mr. You replied that it’s infeasible basing on the existing regulations, for any app purchases by Chinese clients is kind of shopping in U.S.A and shall be settled in dollar. And carrying out of the payment in RMB means App Store begins its operation in China which involves many administrative licenses.

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The Introduction on the Chinese Laws and Regulations concerning the Withholding Tax

Highlight: to introduce you the regulations concerning the withholding tax in China, including the scope and the calculation base of the tax.

Recently a reader consult our website for the relevant legal problems regarding the withholding tax in China. The withholding tax is a usually encountered question in foreign exchange payment for those foreign companies having cooperation with Chinese enterprises in intellectual property right. Ms. Chen Danhong, the attorney of our website replied the question as follows:

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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.

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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.

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