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The ‘Detailed Rules for the Implementation of the Patent Law’ has prescribed that the agreement on the reward and remuneration for service invention (hereinafter refers to ‘Service Invention Rewards’) shall prevail, which further prescribed that an employer could make an agreement with the employee, or prescribe in the internal rules and regulations on the payment methods and amount of ‘Service Invention Rewards’.( hereinafter refers to ‘Agreement’) (Note: the internal rules and regulations are determined after the consultation with the labor union or employee representative on the basis of equality, so it is essentially a supplementary to the labor contract) Recently,…

Several engineers of Company A downloaded drawing software from the internet. A few months later, Company A received a Lawyer’s Letter from Company B, in which it stated that Company A had downloaded Company B’s software, Company B required Company A to pay the license fee amount up to RMB 1 million. The evidence of using was attached to the Lawyer’s Letter. Company A insisted that it was the employees’ personal behavior, so it refused to pay the license fee. Then Company B filed the lawsuit to the court, under the mediation of the court, finally, the two parties reached…

In order to be the leader in the market, Company A took the ‘Sales is Everything’ as its first priority. All the salesmen had done their best to make the deal, but ignore the examination of the clients’ credit and the management of the payment terms. Later on, the sale volume increased a lot, but the company had to face the serve finance burden on collecting debts. ‘Collecting debts’ is a common problem, and the reasons are varied, such as some companies may focus on the sale volume, but ignore the examination of the credit of the other party; some…

As the salesman of a Shanghai company, Liao had to travel throughout the country frequently, and apply for reimbursement with a lot invoices every month. At the end of the year, the company hired an accounting firm to conduct audit. The auditor found that some of the invoices submitted by Liao did not match the time and cities of the actual business travel. After investigation, the company found that Liao had used the invoices amount to nearly RMB30, 000 to apply for the reimbursement, and such invoices had no relationship with the business travel, which should be deemed as the…

In February 2014, Ms. Zhou asked for the marriage leave. Because Ms. Zhou got married at a late age as stipulated by the relevant law (Note: The late marriage leave would be abolished since the ‘Amendment of the Law of the People’s Republic of China on Population and Family Planning’ will come into force on 1st Jan. 2016 ), the company approved 10 days leave. Later then, Ms. Zhou got divorced. In 2015, Ms. Zhou remarried, and asked for the marriage leave again, but the company refused her application. In practice, the employers would ignore the issues related to the…

Mr. Wong was the technical department manger at Company A. One day, he downloaded Company A’s food formula and the entire process drawings into his personal computer, which had violated the company’s confidentiality provisions. After that, he resigned with the reason that he would go back to his hometown. Later, Company A was informed that Wong was working at Company B, who was the competitor of Company A. After investigation, Company A found that Company B was planning to use the new technology brought by Wong to build a new production line. Company A reported to the police quickly. But…

Company A and Company B had signed a “Sales Contract”, in which it had prescribed that Company A would purchase a set of machine from Company B. Later, the machine was delivered to Company A, but Company A refused to make the payment. After more than one year delay, Company B filed the dispute to the court, and required Company A to make the payment and undertake the late payment penalty. Company A defended that the contract had prescribed that the payment should be made upon receiving the invoice. Because Company B had not issued the invoice yet, Company A…