IP Compliance Guidelines

The Shanghai Pudong New Area Procuratorate has released China’s first intellectual property rights (IPR) compliance guidelines. The goal is to highlight IPR-related risks and drive the establishment of a robust IP compliance system. IP compliance includes patents, trademarks, copyrights, and trade secrets. The guidelines distinguish IPR risks according to their level. For example, changes in… Continue reading IP Compliance Guidelines

China Cracks Down on Bad Faith IP Infringement Cases

The Supreme People’s Court of the PRC is emphasizing the need to step up its crackdown on false and bad faith IP litigation. The relevant document is the “Opinions of the OVG on Strengthening the IP Litigation System to Provide Effective Judicial Services and Ensure the Construction of an IP Stronghold”, published on October 29,… Continue reading China Cracks Down on Bad Faith IP Infringement Cases

Chinese Patent Flood: AI-Powered Search Tool Helps

The ever-growing flood of Chinese-language patents is causing increasing problems for foreign patent attorneys, corporate research and development teams, and in-house counsel. With traditional patent searches, it is not possible to identify and review all relevant IP rights within an acceptable period of time. Limited keywords do not scan the entire technology breadth and may… Continue reading Chinese Patent Flood: AI-Powered Search Tool Helps

Intentional and Punitive Damages in IPR Infringement

Punitive damages are applicable in all areas of IPR infringement and have been steadily improving in PRC legislation in recent years. It is also part of the latest Five-Year Plan through the government’s stated goal of establishing a comprehensive IPR infringement compensation system. The Judicial Interpretation of Punitive Damages for Intellectual Property Rights to Punish… Continue reading Intentional and Punitive Damages in IPR Infringement

Burden of Proof and Damage Assessment for Trade Secrets

In the rapidly changing innovative fields of technology, the protection of trade secrets is becoming increasingly important. Legislation in China currently offers different approaches to better protect one’s know-how.  For example, the Interpretation (III) of Several Issues Concerning the Specific Application of Law in the Handling of Criminal Cases Involving Infringements upon Intellectual Property Rights,… Continue reading Burden of Proof and Damage Assessment for Trade Secrets

The New Stamp Duty Law also Reduces the IP Costs

On June 10, 2021, the new Stamp Tax Law of the People’s Republic of China (中华人民共和国印花税法) was passed by the National People’s Congress. It will reduce or even eliminate the stamp tax previously levied on certain legal documents, licenses or certificates issued by an administrative authority. The new law replaces the previous Transitional Stamp Tax… Continue reading The New Stamp Duty Law also Reduces the IP Costs

Undesirable Technology Transfer through Chinese Investment

The method is familiar, what is new is that a lawsuit is being filed over it. Highly innovative U.S. company Icon Aircraft has filed a lawsuit in Delaware Chancery Court against its Chinese majority shareholders, including major shareholder Shanghai Pudong Science and Technology Investment (PDSTI). Icon developed the A5 amphibious aircraft, which set new standards… Continue reading Undesirable Technology Transfer through Chinese Investment

China Expands IP Legal System

The Chinese government is focusing more on legal certainty in intellectual property and is condensing the network of agencies responsible for IP. Currently, the structure of courts handling IP infringement lawsuits is organized according to the principle of “1 plus 4 plus 22.” Here, the number 1 represents the IP court at the national level,… Continue reading China Expands IP Legal System

Market Entry with Strong IP: Not Always Recommended

Western companies are often enthusiastic about their innovative technology and rely on their strong patents to be monetized globally. But what about the company’s own competitive advantage in the Chinese market and in third markets already served by strong-patent Chinese competitors? Does the company have freedom of exercise there, or does it infringe already existing… Continue reading Market Entry with Strong IP: Not Always Recommended

IP Due Diligence Reduces Risk of Investments in Startups

Because new technologies such as artificial intelligence, Big Data, the Internet of Things and blockchain are developing rapidly in China, Chinese high-tech startups have become the most popular investment targets for multinational companies. While intellectual property is the greatest asset of these startups, it also poses a high risk to investors. Is its IP protected… Continue reading IP Due Diligence Reduces Risk of Investments in Startups