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A Brief Analysis of the 2013 Amendment to the China Company Law

Posted on February 20, 2014 by yytbest

(By Yu ZhiYuan) On 28 December 2013, the decision on amending the previous company law was promulgated by the National People’s Congress. The amendment this time will concentrate solely on changing the corporate capital system dramatically in the following three ways. First, the registered capital to-be-paid-in system will be launched. Second, the minimum registered capital will no longer be required. Third, the maximum proportion of intangible assets to the total registered capital will no longer be required. Obviously the amendment was made as a response of legislative authorities to the resolutions approved at the Third Plenary Session of the Eighteenth Central Committee. This article provides an analysis and brief comments on the amendment.

How Mobile Game Protects its Intellectual Property Right?

Posted on December 19, 2013 by yytbest

(By You Yunting) Recently stock markets have heightened topics about mobile game and serious competition disputes of intellectual property rights (the “IPR”) between China mobile games enterprises are often appeared in the newspapers. According to the reports, Beijing Chukong Inc., the developer of popular “捕鱼达人”(Fishing Joy) mobile games, was engaged in a controversy of IRP because earlier in December the Guangzhou-based SEALY Technology suspected Beijing Chukong Inc.’s “捕鱼达人”(Fishing Joy) of plagiarism on its arcade game product “捕鱼达人”. In response, Beijing Chukong Inc. alleged that: first, the online time of its “捕鱼达人”(Fishing Joy) was earlier than that of SEALY Technology and its mobile game had been reported to the Ministry of Culture. Second, Beijing Chukong Inc. owns the “捕鱼达人”trademark. Third, there are significant differences in art images and playing methods between two products.

The Impact of Criminal Inducements and Controlled Deliveries on the Conviction of Business Secret Infringement Offences

Posted on December 14, 2013 by yytbest

(By Wu Pengbin) 1. Introduction

I was the defense counsel of this case, in which the defendant was induced to conduct an illicit transaction and involved in a controlled delivery. The case facts are summarized as follows:

The defendant, Mr. Zheng resigned from his employment as an engineer from the informant, Sany Heavy Industry Co., Ltd. (referred to as ‘SANY’ hereafter) two years ago before the crime was committed. As charged by the People’s Procuratorate of Fengxian District, Mr. Zheng sold SANY’s technical drawings he illicitly obtained to ‘Mr. Zhou’, who paid in cash for the sale (at the price of RMB 700,000), and was caught red-handed by the police of Fengxian Public Security Bureau. The drawings sold by Mr. Zheng was recognized to be business confidential and worth about RMB 800,000.

How Does the Federal Trade Commission Decide Whether Intellectual Property Licenses Violate Anti-trust Laws?

Posted on April 9, 2013 by yytbest

Day Five of the US Visit II

In late March, the author had the opportunity to make a journey to the United States at the invitation of the U.S. government in order to better understand how the US intellectual system operates. On the fifth day of the visit, the author went to the Federal Trade Commission (the “FTC”), and the following is a brief record of his visit there.

The FTC is the administration in charge of investigating and taking action against unfair competition and anti trust in the US. During the visit, FTC officials showed us a map showing that as of 1900, only the US and Canada had enacted competition laws, including unfair competition law and the anti trust law. Later by 1960, Sweden, France, and Japan passed legislation on competition. By 1980, many countries in Europe and South America passed competition laws, as well as Australia, India, Thailand, and South Africa. By 2012, almost all states of the world had laws in that field, except for a few African countries.

Why China Should Revoke the Regulations Which May Put All the Piracy Selling Vendors into Jail?

Posted on March 25, 2013 by yytbest

(By You Yunting) You could find the vendors selling the pirated films, TV dramas, music or software in almost each single street in the cities of China. And according to the current regulation that the amount of the sales totaled 500 discs could be prosecuted for the criminal law violation, any vendors who has been selling the pirated discs for at least one month could constitute the crime of copyright infringement, and to be sent in to jail. Despite what the vendor has done may damage the IPR of the copyright holder, it is fair to combat them under the laws and regulations. But it seems that the existing judicial interpretation has a too wide governing scope, and could have damaged the purpose of the Criminal law. And in the practices, the vendors who have been prosecuted for their piracy selling could be less than 1% of all. Thus it has made the vendors do not care the punishment regulated in the criminal law, and that on the other hand has broken the principle “any violation against the criminal law shall be prosecuted and punished”, and thereafter it may promote the law enforcement upon the selection or the law enforcement in the political campaign or the rule of man. And the at the same time, it could harm the IPR protection.

Analysis of the Assumption of Liability for E-Merchants in IPR Disputes in China, II

Posted on March 9, 2013 by yytbest

—Interpretations on Solutions to Several Issues in Hearing E-Commerce IPR Infringement Cases

In today’s post we will continue to discuss the standards to be considered in determining the liability of e-merchant platforms.

III. Standards in Determining the Indirect Infringement Liability of E-Merchant Platforms

As discussed above, an e-merchant platform may only assume indirect infringement liability under the law, and therefore it would not be necessarily always be liable for infringement occurring on its platform. The pressing question then, is what standards shall be utilized when determining their liability? In response to this question, we would like to share our analysis based on a comparison of similar statutes:

Analysis of the Assumption of Liability for E-Merchants in IPR Disputes in China, I

Posted on March 8, 2013 by yytbest

—Interpretations on Solutions to Several Issues in Hearing E-Commerce IP Infringement Cases

(By Luo Yanjie) In recent years, E-Commerce in China has thrived along with the development of online shopping. According to some news reports, the volume of the transactions from 360buy.com totaled more than RMB sixty billion Yuan, and Suning’s online sales achieved a comparatively paltry RMB 18.336 billion Yuan. With respect to Taobao.com and its affiliated websites, their business gains have vastly superseded all other rivals. By November 2012, Taobao.com and Tmall had sales of over RMB 1000 billion Yuan, which is almost three times that of Bailian Group, Suning and Gome’ s annual income in 2011 combined. The aforesaid three companies are currently the top three retail chains in China.

The Legal Sense of the Punishment over the Vertical Monopoly of Mao Tai and Wu Liang Ye By NDRC

Posted on February 21, 2013 by yytbest

(You Yunting) According to the report, Mao Tai Company and Wu Liang Ye Company, both are the top distilleries in China, would be ordered the penalty of 1% of their annual sales in 2012, approximately RMB 449 million yuan, by the National Development and Reform Commission (the “NDRC”) for their restricting or fixing the retail price of their downstream dealers. You might have noticed “would be”, and we have no idea about whether the final decision has been made, and it could not exclude the possibility that the news report is only the public opinion test by NDRC for its punishment in consideration.

9 Billion Yuan Financing from Patent Pledge in 2011

Posted on February 15, 2012 by You Yunting

In 2011, the patent pledge financing amounted to 9 billion yuan in China (involving 1953 patents), which enjoyed a 28% increase year by year and be the highest in recent 3 years. At present, the State Intellectual Property Office is studying and drafting the Guidelines of Intellectual Property Loan by Financial Institution in Banking Industry, which now has been made the exposure draft and will be issued soon.

How to Apply for the Trademark Record in China Custom

Posted on December 14, 2011 by You Yunting

Highlight: You could get to know the effective way of combating infringing product by trademark record in China custom in today’s post.

As reported by xinhuanet.com, the first instance of the knockoff brand product case with the biggest amount involved in recent was heard. The suspect of the case purchased the knockoff LV, Adidas, LACOSTE and other brand products for export, afterwards the knockoffs were detained for the suspicious infringement basing on the recorded trademark by the customhouse after the inspection, and finally the products were appraised fake with the market value of more than 230 million yuan.

Legal Commentary on the case of Founder VS P&G and Chinese Character, II

Posted on November 16, 2011 by You Yunting

—Analysis on the law Nature of the Works of Word Stock

Today’s essay follows “Legal Commentary on the case of Founder VS P&G and Chinese Character, I”

(2) The Founder Word Stock is the composite works

The Stock here refers to the Founder Word Stock composing all the individual words in it rather than the stock software. The new works come from the selection or arrangement of the existing works is called the composite works. In our opinion, it’s necessary for Founder to apply the copyright registration for the whole Stock since only focusing on the determination of the copyrighted works over the Stock Software or the individual words is not enough. And such registration could benefit the protection over the Stock against any other infringement, such as to print a book or magazine in the script in the Stock with no license.

Legal Commentary on the copyright infringement case of Founder Electronics VS P&G, I

Posted on November 15, 2011 by You Yunting

—Analysis on the law Nature of the Works of Chinese Character Word Stock

Highlight: Today and tomorrow, Bridge IP Law Commentary will introduce and analyze you the case of script copyright conflict between Founder and P&G, and also the system of word stock works behind the case. And the following is the first half—the introduction on the case and the part analysis on the nature of the works of word stock.

On the morning of 5th July, 2011, the appeal of the Founder Electronics (HKEX:0418, 0618) was rejected by the No.1 Intermediate People’s Court of Beijing in its case of the script copyright conflict against P&G (NYSE: PG), and the decision of the first hearing was supported. The final judgment maintains an ambiguous attitude towards the determination of “飘柔”, the localized name of the Rejoice brand of P&G , to be a fine art works, neither to support it or opposite it.

China Begins to Try Out Intellectual Property Pledge System

Posted on October 9, 2011 by You Yunting

Highlight：China’s new policy on intellectual property pledge，which will help startup firms in technology or creative industries but increase the risks for the banks.

For more innovation and settlement on fund shortages with startups in the technology and creation industry, the Guidance on Financial Support on Revitalization and Development of Culture Industry was issued on 19^th March, 2010, by which the collaboration is established between the government of China and more loans to support with company culture is also demanded.

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