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

Creative Commons and Copyleft: Open-Source Licenses in China

Free open source software is highly popular in China. A recent report by the Chinese think tank China Academy for Information and Communication Technology (CAICT) states that in 2019, 87.4% of Chinese companies had already used open source technologies, and by now the figure is likely to be even higher. Standardized licenses (public copyright licenses),… Continue reading Creative Commons and Copyleft: Open-Source Licenses in China

Automakers Must Implement the MLPS for Autonomous Vehicles

China has gradually lowered barriers to foreign investors entering the auto industry in recent years, but is now stepping up regulation and supervision of companies in the areas of cyber security and data protection.   On April 7, 2021, the Ministry of Industry and Information Technology (MIIT) released draft “Guidelines for Approval of Manufacturers of Intelligent… Continue reading Automakers Must Implement the MLPS for Autonomous Vehicles

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

China Is Creating a Huge Reservoir of Prior Art

When it comes to patents, the U.S. increasingly finds itself at a disadvantage in the innovation race with China. For example, AI patent applications from China significantly outpace those from the U.S., which means that China’s patent applications hurt U.S. innovators because they create a huge reservoir of “prior art.” This dramatically increases the amount… Continue reading China Is Creating a Huge Reservoir of Prior Art

China Reports IP Data from 2020

In January 2021, the China National Intellectual Property Administration (CNIPA) released the 2020 statistics on patents, trademarks and geographical indications (GI). According to the data, Chinese IPRs were not affected by Covid-19 in 2020, and in fact rose to a new level. This can be seen in three areas. For example, CNIPA granted a total… Continue reading China Reports IP Data from 2020

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

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