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  • 2022-02-28
  • 5 minutes Read
What’s the judicial opinion regarding a claim of high liquidated damages?

In commercial transactions, the parties often agree on high liquidated damages in the contract, by which they hope that the counterparty’s behavior could be bound more effectively, and the observant party could obtain maximum relief in the event of a breach of contract. For example, in the “Agreement on Exclusive Purchase of Audio and Video Programs”, Company A and Company B agreed that if the drama failed to be broadcast on the agreed satellite TV channel and time period, Company B had the right to terminate the agreement, and Company A shall pay liquidated damages amount to 30% of the total amount of the payment, which is RMB10.8…

  • 2022-02-28
  • 5 minutes Read
The right way to fire senior management personnel

Lau was the general manager of Company A. A terminated the labor contract with Lau on the grounds that the board of directors had made a resolution to dismiss him. Lau filed a labor arbitration. The labor arbitration committee, the court of first instance and the court of second instance all held that the dismissal is illegally. Why Company A lost the lawsuit? Paragraph 9, Article 46 of the “Company Law” stipulates that the board of directors has the right to decide on appointment or dismissal of the general manager and his remuneration, and decide on appointment or dismissal of deputy managers and…

  • 2022-02-28
  • 4 minutes Read
The “Provisions on Intellectual Property Credit Management of CNIPA” has been released, and those entities which have dishonest IP records would be listed in the “blacklist”

On January 24, 2022, the “Provisions on Intellectual Property Credit Management of CNIPA ” (hereinafter referred to as the ” Provisions”) has been released and came into force on the same day. The main contents of this “Provisions” are as follows. 1. The categories of behaviors would be considered as dishonest behaviors. Article 6 of the “Provisions” clearly lists 6 categories of specific dishonest behaviors, including: (1) abnormal patent application not aimed at protecting innovation; (2) malicious trademark registration application; (3) violation of laws and administrative regulations to engage in patent and trademark agency who have been punished by CNIPA; (4) submitting false…

  • 2022-01-30
  • 3 minutes Read
The “Cybersecurity Review Measures (2021)” will be effective on Feb. 15, 2022

After the promulgation of the “Data Security Law” and the “Regulations on the Security Protection of Critical Information Infrastructures”, articles regarding security review stipulated in the original ” Cybersecurity Review Measures ” (implemented on Jun. 1, 2020, hereinafter referred to as “2020 Measures”) shall be updated. Therefore, 13 departments including the State Internet Information Office have revised the “2020 Measures”, and the revised ” Cybersecurity Review Measures ” (hereinafter referred to as “2021 Measures”) is released on Dec. 28, 2021, and will be effective on Feb. 15, 2022. The following is an introduction to the main revisions of the “2021…

  • 2022-01-30
  • 5 minutes Read
How to protect anime images in China?

Speaking of anime images, several famous images might jump out of your minds, such as One Piece, Crayon Shin-chan, Pleasant Goat and Big Big Wolf. If an anime image becomes popular, it might be pirated, (Note: normally the rights holder could claim for copyright infringement, due to space limitations, this article will not go further on this aspect.), and its constituent elements might be pirated as well. The elements mainly include the image, name, title of the work, catchphrases, props and etc. For example, a company produces children’s clothes, on which the image of Big Big Wolf and its catchphrase…

  • 2022-01-30
  • 3 minutes Read
Checklist of female employee’s various leaves in Shanghai

In order to increase the fertility rate, the national and local governments have released many favorable polices which include those welfare policies regarding fertility. Female employees have various leaves which have been adjusted from time to time. In order to help HRs, this article lists the latest regulations on various leaves in Shanghai for reference. Title Duration Remark Prenatal inspection leave The frequency shall be ordered by doctors, and there is no special requirement for duration. In practice, many employers would give half  a day to one day as needed.   The minimum frequency of the prenatal inspection could refer…

  • 2021-12-30
  • 4 minutes Read
The “Provisions of the Supreme People's Court on Several Issues concerning Equity Enforcement by People's Courts” will come into force on January 1, 2022

In order to unify the standards for equity enforcement and solve the disadvantages and difficulties in such enforcement, the Supreme People’s Court promulgated the “Provisions of the Supreme People’s Court on Several Issues concerning Equity Enforcement by People’s Courts” (Fa Shi [2021] No.20, hereinafter referred to as the “Provisions”) on December 20, 2021, which will come into force on January 1, 2022. The key points are described below. 1. Scope of applicable objects The “Provisions” shall be applied to equity interests in limited liability companies and companies limited by shares, and shares of companies limited by shares listed and traded…

  • 2021-12-30
  • 4 minutes Read
The “Provisions of the Supreme People's Court on Several Issues concerning Equity Enforcement by People's Courts” will come into force on January 1, 2022

In order to unify the standards for equity enforcement and solve the disadvantages and difficulties in such enforcement, the Supreme People’s Court promulgated the “Provisions of the Supreme People’s Court on Several Issues concerning Equity Enforcement by People’s Courts” (Fa Shi [2021] No.20, hereinafter referred to as the “Provisions”) on December 20, 2021, which will come into force on January 1, 2022. The key points are described below. 1.Scope of applicable objects The “Provisions” shall be applied to equity interests in limited liability companies and companies limited by shares, and shares of companies limited by shares listed and traded on…

  • 2021-12-30
  • 5 minutes Read
Have you gotten the new rules of the “Standard terms”?

The “Standard Terms” (“STs”) refers to the clauses which have been drafted by one party in advance for repetitive use, and would not been or could not be negotiated with the counterparty. STs is very common in telecommunication service contracts, insurance contracts, various online shopping contracts, and etc. Normally, the providers are mightier, in order to maximize their rights and minimize their obligations and responsibilities, the providers usually set such terms stricter or less favorable to the counterparty. Where such terms are too strict, and obviously unfair to the counterparty, the law would interfere relevant contracts. The “Contract Law” prescribes…

  • 2021-12-30
  • 3 minutes Read
Why an employer becomes collateral damage due to employees’ Wechat moments?

Wong, a salesman of Company A, posted a message on his Wechat moments with several pictures, which included a picture shows a burned up shared power bank marked with Brand B, and a picture shows a test report of a shared power bank marked with Brand A indicating its qualified quality. Later, B sued A. A defended that it had no knowledge of Wong’s behavior which is a personal one, the court held that A had constituted unfair competition. In recent years, the mainstream viewpoint shows that WeChat’s moments, Weibo and other similar individual’s media are We-Media, which has a…