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  • 2013-04-17
  • 4 minutes Read
Patent Infringement Problems Related to OEM

In practice, more and more cases on the infringement of patent, which are taken action by the third party against OEM separately or both OEM and the purchasing company to the court. OEM manufactures products based on the commission processing contract, if the products infringe the third party’s patent right, besides the tort liabilities undertaken by the purchasing company, whether OEM shall undertake such liabilities? Generally speaking, there is no dispute on the tort liabilities undertaken by the purchasing company. Therefore, there is a view that, since the manufacturer is the purchasing company, OEM only engages in producing products in…

  • 2013-04-17
  • 4 minutes Read
“Ten Times "or" One Time "?

Miss Wang brought a piece of cake in a store. After the payment, she found that the identified shelf life had expired, so she required the store to refund the payment, and pay a compensation equivalent to ten times of the price of the piece of cake. The store agreed to do so. A few days later, Miss Wang’s colleague Miss Zhang bought a piece of cake in the same store, after a few bites, she found a fly in the cake, thought of Miss Wang’s experience, she asked the store for the same compensation as Miss Wang, however, the…

  • 2013-03-17
  • 2 minutes Read
Announcement on Issues Concerning Income Tax on Policy-related Relocation of Enterprises (“Announcement”)

The State Administration of Taxation released Announcement on Mar. 12, 2013, in which it has further clarified the issues, where the relocation agreement of a policy-based enterprise relocation project has been signed prior to the effective date of Announcement of the State Administration of Taxation on Issuing the Administrative Measures of Enterprise Income Tax on Incomes Obtained from Policy-based Relocation (“Announcement No. 40”) released on Aug. 2012, but the relocation liquidation thereof fails to be completed before such date. The main contents include: The Announcement clarifies that, where the relocation agreement of a policy-based enterprise relocation project has been signed…

  • 2013-03-17
  • 4 minutes Read
Enterprises’ Obligation on Personal Information Protection

In recent years, the protection of personal information (“PI”) becomes a hot topic in China. Although, Personal Information Protection Law has not been promulgated yet, the legislation shows the trend on strengthening the protection of PI, especially, after Decision on Strengthening Information Protection on Networks (“Decision”) has been promulgated at the end of 2012, the employers’ obligation of PI protection has been legislatively defined to a certain extent. General Principles of the Civil Law and Tort Liability Act have limited PI protection in the scope of personal privacy, but have not regulated the collection and usage of PI by enterprises.…

  • 2013-03-17
  • 3 minutes Read
Non-competition Agreement is a "Double-edged Sword"

Mr. Zhang was an automotive chassis engineer of an auto parts company (“S”), and his monthly salary was 20,000 Yuan. He had knowledge about some S’s trade secrets, such as chassis’ data and drawings. When Mr. Zhang departed, S and him signed an Non-competition Agreement (“Agreement”), in which stipulated that he should not work for a competing employer that produces the same type of products, or being engaged in the same type of business against S, or establish his own business to produce the same type of products or engage in the same type of business, within 2 years after…

  • 2013-02-17
  • 1 minute Read
Interpretation of the Supreme People's Court on Several Issues about the Application of Laws for the Trial of Labor Dispute Cases (IV)(“Interpretation”)

Interpretation has been taken into force on Feb. 1, 2013. The biggest highlight of Interpretation is the further explanation on non-competition: Compensation: where the parties fail to mention the compensation, the employee can request a monthly compensation by the employer based on 30% of the average monthly salary over the 12 months preceding the termination or expiration of labor contract, and the minimum amount equivalent to 30% of the average monthly salary is the minimum wage standard of the place where the labor contract is performed. Non-competition restriction will not be automatically terminated where the employer fails to pay compensation.…

  • 2013-02-17
  • 5 minutes Read
Limitations of Cross-class Protection of Registered Well-known Trademarks

Well-known trademarks mean the trademarks, which are widely known to the relevant sector of the public and enjoy a high reputation in China (Article 2 of “The Provision on the Recognition and Protection of Well-Known Trademarks”, hereinafter referred to as “Provision”). Registration is not the precondition for well-known trademarks, but according to Article 13 of Trademark Law, for well-known trademarks, which have not been registered in China, the protection scope is limited to “the identical or similar goods”, it means that the principle of “similar class protection” is applied; for well-known trademarks registered in China, the protection scope is extended…

  • 2013-02-17
  • 3 minutes Read
Employment Issues about Resident Representative Office of Foreign Enterprises

The resident representative office of an American company (“S”) recruited Mr. Gao as its administration manager directly, instead of entrusting a labor dispatch company to recruit personnel. S and Mr. Gao agreed to a monthly salary of RMB20, 000, both parties had not signed a labor contract. 4 years later, S dismissed Mr. Gao, and Mr. Gao asked for RMB 80,000 as the economic compensation. However, S refused to pay such payment. Mr. Gao submitted the dispute to the court, the court determined that the relationship between S and Mr. Gao was not the labor relationship, and did not support…

  • 2013-01-17
  • 1 minute Read
“Rules on Responsibility for Repair, Replacement and Return of Household Automobile Products” (“Rules”) has been promulgated

On Dec. 29, 2012, Rules has been promulgated, which will be taken into effect on Oct. 1, 2013. It has stipulated the obligations of manufacturer, seller and repairer; responsibilities of 3 guarantees; waiver of the responsibilities of 3 guarantees; settlement of disputes; and penalty of manufacturer. It has also stipulated the term of 3 guarantees, the valid period for return or change, the term and standard for repair, the term and standard for replacement and return, the reasonable compensation undertaken by the consumers and etc. under a quantization principle.

  • 2013-01-17
  • 1 minute Read
Amendment of “Labor Contract Law of People’s Republic of China” (“Amendment”) has been promulgated

On Dec. 28, 2012, Amendment has been promulgated, which will be taken into effect on Jul. 1, 2013. Amendment has stipulated the restrictions on labor outsourcing, mainly including the following aspects: Make clear the definition of positions: “temporary” position refers to a temporary role of less than six months; “ancillary” position refers to a position providing support services to the primary business of the employer; and “replaceable” position refers to a position in which the temporary worker temporarily replaces an existing employee where the employee is unable to work due to further study, leave or other reasons. Restrictions on the…