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  • 2015-08-15
  • 3 minutes Read
Whether the “Priority Purchase Right “could be Applied among the Shareholders?

The “Priority Purchase Right “(“PPR”) refers to while a shareholder plans to transfer its equity, provided all conditions are equal, the other shareholders shall have PPR to purchase the equity. This is an arrangement in consideration of the nature of a limited liability company as a personal company. Article 71 of “Company Law” has stipulated that while a shareholder plans to transfer its equity, provided all conditions are equal, the other shareholders shall have PPR to purchase the equity. But for the transfer among the shareholders, Article 71 just prescribes that the shareholders may transfer all or part of their…

  • 2015-08-15
  • 3 minutes Read
Several Issues related to High-temperature Allowance

Lee had resigned from the Shanghai Branch of a Zhejiang company. While calculating the amount of high-temperature allowance, Lee required the company to pay the high-temperature allowance according to the standard of Shanghai (which is higher than the standard of Zhejiang) where he had worked for years. However, the company insisted that it had paid the high-temperature allowance according to the company’s rules and regulations, in which it had prescribed that the high-temperature allowance should be paid according to the standard of Zhejiang. Then Lee brought the dispute to the labor arbitration committee. Finally, the labor arbitration committee made the…

  • 2015-07-15
  • 2 minutes Read
Announcement of the SAT on Regulating the Administration of Cost Allocation Agreements ("Announcement") has come into force on 16th July 2015

Recently, SAT has released “Announcement”, compared with “Circular of the State Administration of Taxation on Printing and Distributing the Implementing Measures for Special Tax Adjustments (for Trial Implementation)” (Guo Shui Fa [2009] No.2), Announcement has discentralized the approval right and strengthen the afterwards management on the management of the cost allocation agreements. The main contents as follows: Requirement for the record-filing of the cost allocation agreements The cost allocation agreement shall be filed to the local tax authorities instead of SAT. The annual report of related party transactions shall be submitted while submitting the annual income tax report. The management…

  • 2015-07-15
  • 4 minutes Read
Confirmation of Non-infringement of IPR

In practice, it is very common that a patentee or a trademark owner would send warning letters to competitors or distributors. However, after sending out such warning letters, if the patentee or the trademark owner fails to take further action, then the receiver would be affected by such warnings, but the receiver could not get a judicial relief by claim for unfair competition. In order to prevent the abuse of IPR by the rights holders to restrict competition by such warning, the confirmation of non-infringement of IPR (“Non-infringement”) came into being. Non-infringement refers to the party whose interest is affected…

  • 2015-07-15
  • 4 minutes Read
Dissolve the Labor Contract for Illegal Birth

Ms. Lee was the customer service staff at a Nanjing Company, and she got pregnant again. The company confirmed that Ms. Lee had violated the family planning policy, so it dissolved the labor contract without paying economic compensation, according to Article 24 of “Employee’s Labor Contract Management System”, which says that an employee violates the family planning policy shall be deemed as the employee has severely violated the employer’s internal rules. Later on, Ms. Lee brought the dispute to the labor arbitration committee, but she failed to obtain the support of the committee. However, there is a similar case happened…

  • 2015-06-15
  • 2 minutes Read
Rules for the Implementation of the Provisions on Case Guidance issued by the Supreme People's Court has been come into force

The Supreme People’s Court has issued “Rules for the Implementation of the Provisions on Case Guidance” (FA [2015] No. 130, hereinafter referred to “No. 130”) on 13th May 2015. No. 130 is the symbol that the guiding cases of the Supreme People’s Court become the “quasi-precedent”. The main content of No. 130 includes as follows: Key points of judgement of the guiding cases shall be applied. According to Article 9 of “No.130”, while a court is hearing a case, which is similar as the guiding cases on the basic facts and the applied laws, the court shall make the judgement…

  • 2015-06-15
  • 3 minutes Read
Suspension System In Patent Ownership Disputes

During the procedures of the lawsuits related to the disputes over the ownership of the right to apply for a patent or the patent right (hereinafter referred to as “Patent Ownership Dispute”), the related patent may be invalid in the invalidation procedure, or the defendant may surrender, or transfer the relevant patent, which may bring significant disadvantages to the plaintiff. In regard of this, “Patent Law” has stipulated the “Suspension System” to solve such problem. “Suspension System” refers to the patent administration department shall be entitled to suspend the relevant procedures based on the application of the party (note: normally…

  • 2015-06-15
  • 3 minutes Read
Two Mistakes in the Management of Sick Leave

Mr. Lee graduated in July 2013, and joined a Beijing Company in September. He asked for sick leave on 20th January 2014 for the first time. Till 19th July, his sick leave was 79 days in whole. In August, he asked for another 31 days sick leave. On the 1st September, the company notified him to dissolve the labor contract for the reason that his had asked for sick leave more than 3 months. Mr. Lee brought the dispute to the labor arbitration committee, finally, the committee made the order which against the company. In this case, the company has…

  • 2015-05-16
  • 2 minutes Read
Provisions of the State Administration for Industry and Commerce on Prohibiting the Abuse of Intellectual Property Rights to Preclude or Restrict Competition (“Provisions”) will come into force on August 1, 2015.

The abuse of IPR to preclude or restrict competition is a hot topic in the recent years, such actions go against the legislative purpose on the protection of IPR, which could also bring the monopoly problems. Under such circumstance, “Provisions” has been issued on 7th Apr. 2015, which prohibits the business operator that has a dominant market position to abuse its dominant market position to preclude or restrict competition in the course of exercising IPR. The main content of “Provisions” includes: To define the definition of “abuse of IPR to preclude or restrict competition”, which says that a business operator’s…

  • 2015-05-15
  • 2 minutes Read
Provisions on Several Issues for Handling Enforcement Objection and Reconsideration Cases by People's Courts (“Provisions”) has come into force on 5th May

The Supreme People’s Court recently issued Provisions, in which it has prescribed the procedures for objection and reconsideration, in addition, it has also clarify some rules on dealing with those relevant practical disputes. The main content includes: Procedures To set the deadline for acceptance: in principle, enforcement objection cases shall be accepted within three days; To avoid postponing an enforcement by keeping submitting objections for different reasons: grounds for enforcement objection shall be submitted at one time; To provide a judicial relief approach for those who are restricted from departing China: persons restricted from departing China shall have the right…