Publications

Many companies prefer to use maps to mark business scope, by which they could introduce their scale or business scope. Article 9 of the “Advertising Law” stipulates that advertisements shall not, …… (4) harm the dignity or interests of the State and divulge State secrets; ……” Since 2017, administrative penalty cases due to the improper use of maps are very common. In practice, although many companies hope to avoid such penalty, many of them do not have a comprehensive understanding of how to avoid such risk. After analyzed the previous administrative penalty cases, in order to avoid such risk, it is…

Company B sued Company A regarding a contract dispute, and won the lawsuit. A failed to perform the effective judgment, so B applied for enforcement. As W is the legal representative of A, B applied the court for adopting measures on restriction of high-level consumption on W. In 2019, A changed its legal representative from W to Z, and then W applied to the court for lifting the order of such restriction. (See (2020) Yue 01 Zhifu No. 349) It can be seen from the above case that in some cities, a legal representative adopted with such restriction could replace…

The video of the “Tan Tan Transportation”(谭谈交通) was removed from several major internet platforms, which is the latest typical network infringement case. In similar cases, the obligee may claim for infringement against the infringer and relevant internet platforms. The “Safe Harbor Principle” derived from the “Digital Millennium Copyright Act of the United States”, which has built a safe harbor for internet platforms, that is, unless an internet platform ignores the obvious infringement and does not take corresponding measures, it could be exempted from liabilities according to this principle. However, in recent years, there are changes in the legislative and judicial…

In commercial transactions, the parties often agree on high liquidated damages in the contract, by which they hope that the counterparty’s behavior could be bound more effectively, and the observant party could obtain maximum relief in the event of a breach of contract. For example, in the “Agreement on Exclusive Purchase of Audio and Video Programs”, Company A and Company B agreed that if the drama failed to be broadcast on the agreed satellite TV channel and time period, Company B had the right to terminate the agreement, and Company A shall pay liquidated damages amount to 30% of the total amount of the payment, which is RMB10.8…

Lau was the general manager of Company A. A terminated the labor contract with Lau on the grounds that the board of directors had made a resolution to dismiss him. Lau filed a labor arbitration. The labor arbitration committee, the court of first instance and the court of second instance all held that the dismissal is illegally. Why Company A lost the lawsuit? Paragraph 9, Article 46 of the “Company Law” stipulates that the board of directors has the right to decide on appointment or dismissal of the general manager and his remuneration, and decide on appointment or dismissal of deputy managers and…

Company A was punished by the administration authority for stating, “The first store for brand “XX” in XX city”, “The Only Seller for Free Shipping”, on its company website. A foreign-invested Company C entrusted Company D to design its company website, in which “Taiwan” and “Hongkong” were listed beside “China” in the introduction of the company. Later then, Company C and Company D were punished by the administration authority. The basis of the above 2 punishments is the “Advertising Law”. Those companies could not understand such punishment. They insist that these are only the description of the company on its…

Lee signed a labor dispatch contract with Shanghai Company A, and was dispatched to Company B as an operator. One year later, because of a dispute, Lee insisted that the position was not complementary, so the dispatch contract was invalid, Company B was the de factor employer and should pay double the wages for unsigned a labor contract. In the end, the Shanghai No.2 Intermediate People’s Court determined that the position was not complementary, but since this article is a regulatory requirement, the dispatch contract should be deemed as valid. Coincidentally, in a similar case in Nanjing, a labor dispute…

It seems that the foreign exchange payment for importing technologies is only a foreign exchange management issue. However, there are laws and regulations on the management of the technology import and taxation in China, so enterprises shall also pay attention to those requirements. Overall, enterprises shall pay attention to 3 aspects related to the foreign exchange payment for importing technologies: the management of importing technologies, foreign exchange, and taxation. When importing technologies, the importer shall check the category of the imported technology. According to the relevant laws and regulations, China set 3 categories on the management of the imported technologies,…

According to “Measures for the Use of Encryption Products by Overseas Organizations and Individuals within China” (2007), if a foreign would like to use commercial cryptographic equipment (“CCE”) imported from overseas within the territory of mainland China, he shall obtain the Permit for Use of Cryptographic Products Manufactured Overseas; if he would like to buy any CCE produced within the territory of mainland China, he shall obtain the Permit for Use of Cryptographic Products by a Foreign Organization or Individual. In practice, a few foreigners have been warned by the public security authorities for using CCE without permits, and the…

Zhu borrowed 2 million from Wang, and transferred 20% of Company A’s shares to Wang for guarantee. Zhu also promised if he failed to repay the loan on time, the loan should be converted into shares, which means Wang could have the ownership of shares. As Zhu failed to repay, Wang informed Zhu that the loan should be converted into shares. However, Zhu argued that the agreement on the guarantee is a fluidity clause, which was invalid. In practice, if a debtor uses shares as the guarantee for the loan, normally, the debtor would enter into a written hypothecation contract…