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  • 2013-10-17
  • 6 minutes Read
“Use” in Trademark Revocation System related to “Cease to be Used”

The main function of trademark is to identify the manufacturer or seller of goods, symbolize the commercial value and quality of goods, and etc., which requires the manufacturer or seller to use it. So “Trademark Law” has regulated those “Cease to be Used” trademarks. “Trademark Law” Article 49 has stipulated that without a reasonable reason, if the user has not used the registered trademark for an uninterrupted period of 3 years, any units or individual shall have the right to apply to the Trademark Officer for relocating this registered trademark. However, what dose “Use” mean for a trademark, how to…

  • 2013-10-17
  • 4 minutes Read
Price Floor in Distribution Agreement May be Deemed as Monopoly

From the beginning of 2013, several Vertical Monopoly (“VM”) cases have caught the attention of the public. After the National Development and Reform Commission (“NDRC”) investigated “Mao-tai” and “Wuliangye” on their fixed resale price at the beginning of this year, NDRC carried on another investigation on milk manufactures about the same issue in the middle of the year. Recently, Shanghai Higher People’s Court (“Shanghai Higher Court”) made a final judgment on the Rainbow v. Johnson & Johnson case, which evokes the attention of enterprises on VM, especially brings worries to those influential big enterprises on the risks of such articles…

  • 2013-09-17
  • 6 minutes Read
Remedies for the Trademark Registered as the Other Party’s Enterprise Name

A well-known trademark is registered as the enterprise name by the other party, which brings the conflict between trademark right and enterprise name right, this circumstance is not rare. For the relevant legal issues, the trademark owner shall pay attention to 2 main aspects: (a) the standard on identifying whether the enterprise name has infringed trademark right; (b) the remedies. “Trademark Law” amended in 2008 (“Original Trademark Law”) and the relevant regulations have not stipulated a clear and definite standard on identifying such issues, nor stated distinct remedies, which result in the difficulties for the trademark owner to protect its…

  • 2013-09-17
  • 4 minutes Read
The Determination of Loss in Trade Secret Infringement Case related to Client List

Recently, a criminal case has aroused widespread concern on the infringements of Trade Secret (“TS”), in which a former employee abused the former employer’s client list. 4 former employees obtained the client list of Company A(“A”) by improper means, established a new company, and sold the similar equipments amount to a huge gross income to the overseas clients by pretending to be the branch of A. Eventually, Zhuhai Intermediate People’s Court in the second instance judgment determines that the defendants’(2 companies and 4 individuals) acts have caused loss to A amount to 22,700,000 Yuan(in the first instance judgment, the loss…

  • 2013-08-17
  • 3 minutes Read
Reform of Foreign Exchange Management of Service Trade will be started on 1st Sep.

According to “Circular of the State Administration of Foreign Exchange on Printing and Distributing Laws and Regulations for Foreign Exchange Management of Service Trade” (Hui Fa [2013] No. 30, “Circular”) released by State Administration of Foreign Exchange(SAFE), reform of foreign exchange management of service trade will be started on 1st Sep. 2013. The reform highlights 2 aspects: the procedures in dealing with foreign exchange will be more convenient, the taxation policies on foreign exchange will be relatively loosen. Measures for the more convenient procedures are stipulated in Guidance for Foreign Exchange Management of Service Trade, and implementation rules, mainly include:…

  • 2013-08-17
  • 5 minutes Read
Restrictive Terms in Technology Licensing Contract

Over the years, the Chinese enterprises used to be the licensee under a technology licensing contract (“TLC”), this is why the Chinese laws and regulations have stipulated provisions which are more restrictive to licenser under TLC, especially many prohibitive/restrictive provisions on the restrictive terms in TLC. For the licensers, on the one hand, they want to obtain economic benefits by licensing technology, on the other hand, they want to restrict the usage and improvement of the foresaid technology, control the sale of the products produced with the said technology and etc., so the legality and practicality are the two key…

  • 2013-08-17
  • 4 minutes Read
How to Stipulate the Confidential Term?

Mr. Wang (“Wang”) and Company A (“A”) have signed “Confidentiality Agreement”, in which stipulated that Wang shall keep confidential A’s trade secrets, including the experimental data and etc., and the confidential term shall be the term of the employment and 2 years after termination of this employment. 2 years after the termination of this employment, Wang disclosed the experimental data to Company B. By using those data, Company B produced similar products and sold them at a low price, which helped it to occupy the market quickly. A found Wang’s disclosure action, it filed a lawsuit against Wang for the…

  • 2013-08-17
  • 2 minutes Read
Amendment of "Trademark Law" will come into force in May 2014

Amendment of “Trademark Law” is adopted at the 4th Session of the Standing Committee of the Twelfth National People’s Congress of the People’s Republic of China on August 30, 2013, which will come into force in May, 2014. The highlights of Amendment lie in: Clarify the definition of “Trademark Use” Amendment has stipulated the methods and aim of “Trademark Use”, which can manage “Token Use”. In practice, for those trademarks which have not been used for an uninterrupted period of three years, by applying this Article, there would be more trademark removal application, and more application may be supported. List…

  • 2013-07-17
  • 2 minutes Read
The Intellectual Property Tribunal of Shanghai Municipal Higher People’s Court formulated the Guideline for Hearing Disputes Arising from Reward or Compensation to Inventors or Designers of Service Inventions ("Guideline")

Guideline was formulated at the end of June 2013, for reference by courts in Shanghai in hearing relevant cases. The following provisions stipulated in Guideline are very important for enterprises practically: Guideline has stated that the agreement between the unit and the inventor shall be prior to the statutory standard, and the standard listed in the agreement can be lower than the statutory standard. In order to avoid the direct application of statutory standard, enterprises shall add the relevant issues into their rules and regulations, or stipulate in the labor contract. According to “Guide” Article V, Article VI, the court…

  • 2013-07-17
  • 4 minutes Read
Preliminary Injunction in IP Lawsuits

A preliminary injunction (“PI”) in IP lawsuits is an injunction entered by a court prior to a final determination of the merits of a legal case, in order to restrain a party from going ahead with a course of conduct or compelling a party to continue with a course of conduct until the case has been decided. [1] When China joined WTO, in order to link up the relevant laws and regulations with TRIPS, it has added the relevant provisions on PI in the revised Patent Law, Trademark Law and Copyright Law, with reference to PI system of Britain, USA…