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
Tag: Know-how
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
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
The Export Control Law Requires Export Compliance
China’s new export control law is more comprehensive than many companies doing business in China believe. It targets not only the cross-border transfer of controlled items, but also the act of a Chinese subject providing controlled items to a foreign subject within or outside its territory. The controlled items include not only goods, technology and… Continue reading The Export Control Law Requires Export Compliance
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
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
Know-How Protection in Pharmaceutical Companies
Four years have passed since the first proposal of the strategic plan Made in China 2025 (MiC 2025). Although China is toning down the public media coverage and official statements regarding the MiC 2025, the plan is still running. Its goals focus on high-tech areas, including the pharmaceutical industry. The MiC 2025 plan sets ambitious… Continue reading Know-How Protection in Pharmaceutical Companies
Trade Secrets vs. Patents
Counterfeiting and trade secrets are still the biggest challenges for many IP managers in China. Patents in many industries are now about software, especially in the automotive industry. The biggest challenge is seen in protecting software-related technologies, the problem being patentability. This development corresponds to the task of improving the quality of intellectual property rights.… Continue reading Trade Secrets vs. Patents
E-Car Start Up XPeng: New Trade Secrets Theft Accusations
Last year FBI started criminal prosecutions against a former Apple employee who stole the secret technology for self-driving cars. Now, Tesla is suing out of same reasons a former employee of their Autopilot team. What is the connection between the two defendants? Mr. Zhang and Mr. Cao are not only countrymen but were also switching… Continue reading E-Car Start Up XPeng: New Trade Secrets Theft Accusations
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