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All posts by legal

  • 2014-09-16
  • 4 minutes Read
Protections to the Drawing

Drawing is a form of visual art that makes use of points, lines, planes and all kinds of geometrical figures, which is aimed to demonstrate the specific technical solutions. Therefore, in view of the form and essence of the drawing, the designer or other right holder shall have different menthods to protect the drawing. Firstly, from the view of the form of the drawing, it can be protected as a copyright when it meets the requirements of “Copyright Law”. “Copyright Law” Article 3 has listed the forms of “works”, and drawings of engineering designs and product designs are listed in…

  • 2014-09-16
  • 3 minutes Read
Potential risks related to "Fake Contract"

In 2008, Company A purchased a set of equipment from Company B, but it failed to pay the rest 50% payment on time. After Company B’s requests for several times, Company A agreed to make the payment by a bank acceptance. However, when Company A applied the bank acceptance, the bank said that the bank acceptance would be issued upon the contract and invoice within 1 year. Company A asked Company B to sign a “fake contract” for the rest 50% payment, and issue the corresponding invoice. Company B was eager to collect the rest payment, so it did as…

  • 2014-08-16
  • 2 minutes Read
Interpretations of the Supreme People's Court on Issues Regarding Application of Law to Calculation of Debt Interests during a Deferred Performance Period in Enforcement Process ("Interpretations") has come into force on August 1, 2014

The system of debt interests during a deferred performance period is one of the enforcement measures in “Civil Procedure Law”, which aims to urge the debtor to perform the obligations in time and compensate to the creditor. However, the relevant articles are too general, so “Interpretations” has stipulated many aspects of the system, mainly include: (1)The debt interests during a deferred performance period includes: Average interest on the debt is the interest in effective legal instruments, according to the provisions of substantive law (such as contract law) determined. Doubling the interest portion of the debt refers to the enforcement proceedings,…

  • 2014-08-16
  • 4 minutes Read
"Dunning" By Embedded Software, Clever or Stupid?

Embedded software refers to the computer software, written to control machines or devices on site or remotely by embedding software, which shall be an invisible component of machines or devices, and shall be delivered with them. In practice, where the price of a machine is pretty high, both parties would adopt an installment payment. It is not abnormal for the buyer to pay in arrears after the seller has delivered the machine. In view of the time and cost for arbitration or lawsuit, and the execution difficulties occasionally, some sellers try to use embedded software for dunning, which says that…

  • 2014-08-16
  • 2 minutes Read
Non-Competition? Unfair Competition?

Company A and Mr. Yu had made a non-disclosure agreement, in which stipulated a non-competition clause. After resigned, Yu joined Company B, a competitor of A. A deemed that Yu had violated the non-competition clause, and disclosed its trade secret to B, which helped B to enhance its competitive advantage. Thus, A brought a lawsuit against Yu on unfair competition, due to Yu’s breach of non-competition clause. However, the court dismissed A’s claim. Why did the court dismiss A’s claim? In this case, Yu’s two actions belong to two different legal relations. Yu has breached the non-competition clause by joined…

  • 2014-07-16
  • 2 minutes Read
“Rules of the Administration for Industry and Commerce on Prohibition of Abusing Intellectual Property Rights to Eliminate or Restrict Competition " will be released soon(“Rules”)

Recently, the antitrust war related to intellectual property is not rare, such as the standards-essential patents dispute between INterDigital Patent Holdings Inc and Huawei, the National Development and Reform Commission launched an investigation on the abuse of market dominance and discriminatory charges alleged with Qualcomm. Article 55 of Anti-Monopoly Law has stated that it shall be applied in dealing with the activities which abusing intellectual property rights to eliminate or restrict competition, however, how to apply it is a question. In view of this, SAIC drafted “Rules” for public comments until 10 July, which will be released soon. “Rules” mainly…

  • 2014-07-16
  • 4 minutes Read
Who is the Real Inventor? —-An Omitted Problem for Service Invention

Recently, the writer has dealt with an ownership dispute related to a patent. A resigned from the original employer, established a new company dealing with the similar business as the original employer, and took the role as the legal representative of this new company. Although he had never participated in R&D, when the new company applied for patent, he named himself as the inventor. Unexpectedly, the original employer claimed for the patent right in terms of service invention. Whether the original employer’s claim could be affirmed by the court, it depends. However, the right of authorship of the inventor is…

  • 2014-07-16
  • 3 minutes Read
Limited Compensation or Full Compensation for the loss related to the Express?

Mr Lee sent items with a value of 20,000 Yuan by ZTO Express Company (hereinafter referred to as “ZTO”). He wrote the goods name, specifications, quantity on the express waybill, but he did not pay for the insurance. Unfortunately, the items were lost. Lee asked ZTO for compensation with express waybill and invoice of the items, however, ZTO only agreed to compensate part of the loss, and the amount should be calculated as several times of the express fee, in accordance with the “Postal Law” or Delivery Notice. Lee sued to the court, and the court determined that ZTO should…

  • 2014-06-17
  • 2 minutes Read
"Environmental Protection Law" (Amendment) was issued on April 24, 2014, and will come into force on January 1, 2015

After a lapse of 25 years, “Environmental Protection Law” (Amendment) (“New Law”) was finally enacted, as the basic and comprehensive law on the environmental protection, New Law has made huge changes. Overall changes include applying more requirements on the environment supervisor—-the government; strengthen the requirements and punishment on the environment protectors—-entities and individuals. As for the production-oriented enterprises, the following aspects shall be noted: New environmental economic incentives. Article 21, 22 and 23 of New Law stipulate that the government to take fiscal, taxation, pricing, and other aspects of government procurement policies and measures to encourage enterprises to use environmental…

  • 2014-06-17
  • 5 minutes Read
Principle of Good Faith in the Performance of Commercial Contract

A and B signed a contract, which stipulated that B should deliver the goods on a certain day before 12:00p.m, and if B failed to perform as agreed, it should pay 5% of the total amount of the contract to A for breaching the contract. However, B delivered the goods on 2:00p.m., A required B to pay 5% of the total amount of the contract for breaching the contract. Dispute raised, A brought the case to the court. Should A’s claim be supported? There are plenty of similar circumstances in various cases, such as, where both parties failed to stipulate…