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 Restricts Tesla Driving Permits for Civil Servants

After Tesla was first targeted by the Chinese government earlier this year over allegations of quality shortcomings, the successful e-car manufacturer is now in the spotlight over espionage allegations and threats to national security. According to recent reports, military personnel, government officials, and employees of large state-owned enterprises are no longer allowed to use Tesla-branded… Continue reading China Restricts Tesla Driving Permits for Civil Servants

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

List of Unreliable Companies: Who Is Affected?

China is countering the USA. In September 2020, the Chinese Ministry of Commerce (MOFCOM) issued the first provisions for a list of unreliable companies, organizations and individuals that could have far-reaching implications for China’s foreign trade.  In future, foreign institutions and individuals whose activities endanger China’s national sovereignty, security or development interests are to be… Continue reading List of Unreliable Companies: Who Is Affected?

The Great Wall of Patents: Decoupling Strengthens China’s IP Regime

China’s 14th five-year plan sets clear signals: Beijing will continue to decouple itself from the Western world, especially from the USA, and become more autonomous in many areas. Imports and supplies from abroad will be reduced, the domestic market strengthened and its own companies protected and promoted – also abroad. The concept of dual circulation,… Continue reading The Great Wall of Patents: Decoupling Strengthens China’s IP Regime

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

China’s National Security Law: Restrictions on Data and Technology

The National Security Law (NSL), which came into force in June 2020, has implications for Hong Kong-based businesses in terms of technology and data. For example, Internet service providers must now grant the authorities access to user data and review their cross-border data flows. Technology companies must restructure their business activities if Western export bans… Continue reading China’s National Security Law: Restrictions on Data and Technology

Protection of Trade Secrets: The long Arm of the USA

As trade secrets are becoming more and more important for many companies, the question of how companies can enforce their rights against a foreign company is gaining in importance. The laws and regulations for the protection of trade secrets vary widely in different countries. There is no common standard for common law countries or civil… Continue reading Protection of Trade Secrets: The long Arm of the USA

China Loses the Battle for the WIPO Chairmanship

China has lost the battle for the chairmanship of the World Intellectual Property Organisation (WIPO), the UN organization regulating the international protection of intellectual property in Geneva. The new Director General will be Daren Tang, previously Chief Executive Officer of the Intellectual Property Office in Singapore (IPOS). The decision against the Chinese candidate Wang Binying,… Continue reading China Loses the Battle for the WIPO Chairmanship

Extension of the Patent Term: A Driver for Innovation

The trade agreement between the USA and China provides for the extension of the patent term of innovative medical devices to avoid undue delays. This is to the benefit of pharmaceutical companies in both countries. The contractual clause not only supports pharmaceutical manufacturers from the USA, it also benefits innovative Chinese pharmaceutical companies. These companies… Continue reading Extension of the Patent Term: A Driver for Innovation