Companies operating in China should be attentive to the Measures on Security Assessment of Cross-Border Data Transfers (Measures), published on July 7, 2022, as they take effect as early as September 1, 2022. Among other things, the Measures require data processors to conduct a security assessment when: 1. Providing critical data outside of China. 2.… Continue reading Cross-Border Data Transfer outside China: Attentive to the Rectification Period
Lack of Confidentiality Review: CNIPA Declares Patent Invalid
In May 2022, for the first time in Chinese history, a Chinese patent was fully invalidated by the CNIPA examination board (Decision 55586) because the patentee failed to apply for a confidentiality examination before filing the first foreign application. According to Article 20.1 of the Chinese Patent Law, any invention made in or partly made… Continue reading Lack of Confidentiality Review: CNIPA Declares Patent Invalid
Arbitration in the Field of Intellectual Property
To minimize IPR risks and properly resolve cross-border trade disputes, the China International Economic and Trade Arbitration Commission (CIETAC) established the IPR Arbitration Centre in July 2022, specializing in IPR dispute resolution. CIETAC has extensive experience and an outstanding team of experts in the field of IP dispute resolution. In the past five years, CIETAC… Continue reading Arbitration in the Field of Intellectual Property
Compliance Requirements for Software Development Kits (SDK)
China continues to regulate the collection of private data in apps. For example, the importance of compliance with software development kits (SDKs) has increased significantly. Since June 2021, the authorities have been cracking down on the illegal use of SDKs in apps with SDK Security Special Actions. A software development kit is a collection of… Continue reading Compliance Requirements for Software Development Kits (SDK)
Establishment of Corporate IP Compliance
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
