In the context of building a dual circulation system and creating a unified domestic market, China is guiding all enterprises to strengthen their compliance management to prevent business risks at home and abroad, promote modernization and transformation, and improve competitiveness. The compliance system is to cover areas such as market transactions, environment, human resources, finance,… Continue reading Establishment of Corporate IP Compliance
Certification for Systems of Data Security Management
The Chinese Government has been encouraging companies to have mobile app certifications for some time. Search engines and app stores are encouraged to prioritize applications from companies that have certifications. Now, enterprise data security management certification is also to be developed. In early June 2022, the General Administration of Market Supervision and the Office of… Continue reading Certification for Systems of Data Security Management
NFT Copyright Infringement in China
The protection of intellectual property rights in non-fungible tokens (NFT) is an important element in the process of distribution and trade of digital works. There is now a first case on this in China. In April 2022, the Hangzhou Internet Court held a public hearing on the first NFT infringement case in China. The plaintiff… Continue reading NFT Copyright Infringement in China
New Data Exchanges in China
On April 10, 2022, the Chinese government announced to accelerate the construction of the unified domestic market. Part of this is to also establish a data market to promote Big Data applications and AI development, focusing on data security and control of cross-border data transfer. To be allowed to provide data outside China, data processors… Continue reading New Data Exchanges in China
Data Compliance Can Prevent Penalties
Due to the three laws in the field of data – the Cyber Security Law, the Data Security Law and the Personal Information Protection Law – companies in China must set up a complete system to comply with data protection and security regulations. A good data compliance system can avoid warnings from administrative authorities during… Continue reading Data Compliance Can Prevent Penalties
Recoupling through Controlled Localization
The Ukraine conflict is increasingly impacting the business of foreign companies in China. China is responding to massive Western sanctions on Russia by accelerating decoupling in order to become self-sufficient more quickly. Western companies are responding by recoupling their Chinese branch or subsidiary through controlled localization. Headquarters are putting their Chinese subsidiaries back on a… Continue reading Recoupling through Controlled Localization
First Tribunal for Data Resources Established
China continues to forge ahead in the development of the digital economy. For example, on May 18, 2022, China’s first professional court to handle cases related to data resources was established – the Data Resource Tribunal of Wenzhou Ouhai District People’s Court. The background: with the development of the digital economy, the production, storage, use… Continue reading First Tribunal for Data Resources Established
New Specifications: IT Security of Apps in China
On November 1, 2022, the national standard GB/T 41391-2022 “Information Security Technology Basic Requirements for Mobile Internet Applications (Apps) Collecting Personal Information,” published in April, will come into force. It applies to all app operators in China and is intended to regulate personal information collection activities. This standard is relevant to all companies that operate… Continue reading New Specifications: IT Security of Apps in China
Fighting Trademark Squatting as Unfair Competition
Trademark squatting and trademark hoarding have long been a troublesome problem for many foreign companies in China. Now, a breakthrough has been made in Chinese IP jurisprudence: Trademark rights holders can sue for unfair competition against trademark applications filed in bad faith and obtain injunctive relief and damages. One precedent is the case of Emerson… Continue reading Fighting Trademark Squatting as Unfair Competition
Crises Fuel Counterfeiting
The global economic weakness and persistent inflation are leading consumers and business customers to deliberately replace originals. To compensate for their current income losses and sales slumps, consumers and businesses are deliberately replacing high-priced originals with cheap copies from China. By replacing, they can significantly reduce their purchasing costs in the difficult economic situation –… Continue reading Crises Fuel Counterfeiting
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