Regionalization: Avoiding Loss of Control

Many international companies are currently considering regionalizing their production and upstream supply chains for specific markets to a greater extent and making their subsidiaries in different world regions more independent of each other. The goal is to secure supply chains by deepening regional value creation and to better meet regional customer needs through regionally manufactured… Continue reading Regionalization: Avoiding Loss of Control

Development Partner for Smart Cities

The concept of Smart Cities is gaining importance in many countries. It aims to, significantly improve efficiency and quality in the areas of urban mobility, communication, shopping and living through the use of networked devices, cloud computing and Big Data. China is very successfully combining embedded sensors, meters, cameras and other surveillance technologies with Big… Continue reading Development Partner for Smart Cities

Patentability of Software-Related Inventions

Since patents were traditionally intended to protect technical solutions such as those required for mechanical devices, it is still not possible to obtain a patent for a computer program per se. However, there are ways to include software in a patent application. In 2020, the China National Intellectual Property Administration (CNIPA) revised its examination guidelines… Continue reading Patentability of Software-Related Inventions

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

Cybersecurity Review: Didi Is Not the Last Company

In just two days, Didi, China’s largest service platform for private car ride-hailing, has gone from investor darling to the first major case of a cybersecurity review by the Chinese government against a company after a stellar IPO on Wall Street. One of the bases of this review is the Measures for Cybersecurity Review 2020,… Continue reading Cybersecurity Review: Didi Is Not the Last Company

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