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
Category: Know-how
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
CSCS is Extended to the Field of IPR
China intends to expand the Corporate Social Credit System (CSCS). In the IPR field, it is intended to establish an IPR Credit System to strengthen the protection of rights holders and fight counterfeiters. So far, the application of the CSCS in the field of IPR is still limited to serious infringements of patents and to… Continue reading CSCS is Extended to the Field of IPR
Stricter Criminal Law Punishes Industrial Espionage
China continues to tighten the legal reins in the prosecution of industrial espionage – even for foreign companies. In October 2020, the National People’s Congress published a new draft amendment to China’s criminal law, which includes better protection of trade secrets. In recent months, China has issued a number of amendments to the law or… Continue reading Stricter Criminal Law Punishes Industrial Espionage
Multi-Level Protection Scheme: China is Forcing Companies to Protect Their Data
With the new Multi-Level Protection Scheme 2.0 (MLPS), the regulatory pressure on companies operating in China continues to increase. The regulatory system for data and cyber security forces all companies to ensure, according to the specifications of a multi-level protection scheme, that their network is free of interference, damage or unauthorized access and that no… Continue reading Multi-Level Protection Scheme: China is Forcing Companies to Protect Their Data
The Genie in the Bottle: Know-how Protection for Start-ups
The consequences of the loss of know-how are far costlier than its protection. With start-ups, it is not uncommon for the entire investment to be at stake. For start-ups, further specific challenges appear besides the typical risks of know-how outflow. Start-ups, for example, face further challenges due to their open communication culture in coworking spaces… Continue reading The Genie in the Bottle: Know-how Protection for Start-ups
Unfair Competition With WeChat Data Rights
In China, the first decision on unfair competition with data rights on internet platforms has recently been published. The background: Tencent, the king of social media, owns the data and limited data rights of the 900 million daily users of the app WeChat. It is known that Tencent shares a large part of this data… Continue reading Unfair Competition With WeChat Data Rights
Credit China: Objection Against Incorrect Social Credit Information Possible
In July 2020, Credit China, one of the main websites of the notorious Chinese Social Credit System, finally introduced an online system to apply for removal of wrong information displayed on the website and for rectification of information about administrative penalties. The information displayed on Credit China is collected from several relevant administrative authorities, combined… Continue reading Credit China: Objection Against Incorrect Social Credit Information Possible
The New Civil Code of the PRC and Intellectual Property
The new Civil Code of the PRC, which will come into force on 1 January 2021, consolidates and elaborates some existing laws. It does not have a dedicated IP part, so the lex specialis such as the Patent Law, Trademark Law, Unfair Competition Law and Copyright Law will remain in force. What is the impact… Continue reading The New Civil Code of the PRC and Intellectual Property
Breach of Business Secrets for the Benefit of Foreign Parties
In the draft for the extension of the criminal law, a new paragraph against industrial espionage in particular attracts attention: “Anyone who steals, spies on, buys or illegally makes available trade secrets for the benefit of foreign corporations, organizations or persons shall be punished with a prison sentence of up to 5 years or a… Continue reading Breach of Business Secrets for the Benefit of Foreign Parties
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