2024.3 Common risks and preventive measures regarding headhunting
Jia and Company A, a Beijing company, signed a labor contract which expired on Feb. 16,2016. After the expiration, Jia was arranged by Company A to sign a 3-years labor contract with Company B, a wholly-owned subsidiary of Company A. During the implementation of the contract with Company B, Company A sold its share to a third party. Before the expiration day…
2024.3 An employee is transferred to a new employer for reasons not attributable to himself, whether the frequency of the labor contract signed with the original employer shall be consolidated into the frequencies of the labor contract signed with the new employer?
Jia and Company A, a Beijing company, signed a labor contract which expired on Feb. 16,2016. After the expiration, Jia was arranged by Company A to sign a 3-years labor contract with Company B, a wholly-owned subsidiary of Company A. During the implementation of the contract with Company B, Company A sold its share to a third party. Before the expiration day…
2024.2 The Impact of the 12th Amendment to the “Criminal Law” on Anti-fraud policies of Foreign-funded Enterprises
The 12th Amendment to the “Criminal Law” was reviewed and approved by the Standing Committee of the National People’s Congress on December 29, 2023, and will come into effect on March 1, 2024. This revision will bring a significant impact on anti-fraud policies of foreign-funded enterprises …
2024.2 Who bears the responsibilities for work-related injuries during the “gap period”?
Generally speaking, an employer should complete the social insurance registration for new employee from the date of employment, by which can avoid the risk that the employer has to bear all liabilities when a new employee suffers a work-related injury before the employer completes the registration …
2024.1 Whether overseas arbitration institutions could govern the contract disputes between two domestic foreign-funded companies?
Company A, a US funded enterprise in Jiangsu, and Company B, a Japanese funded enterprise in Shanghai, have signed a sales contract, in which stipulates that in the event of a dispute, either party may submit it to an arbitration institution in Hong Kong for arbitration. Is this agreement valid…
2024.1 An employee was hit by a car on his way home on the day of resignation, is it a work-related injury or not?
At noon on July 31, 2017, Wong completed his resignation procedures and left the company. Unexpectedly, Wong was dead in a traffic accident on his way home. He was not liable in this accident. Wong’s family filed an application for work-related injury recognition…
2023.12 Do AI generated images and articles shall be deemed as “works” protected by the “Copyright Law”?
At the end of November 2023, a judgment by the Beijing Internet Court sparked heated discussions. In this case, the plaintiff used AI to generate images and published them on Xiaohongshu (an app), the defendant used those images in his article…
2023.12 Shall we give a 30 days’ notice to the employee for the expiration of his/her labor contract?
The labor contract signed between a company in Beijing and Tian is valid until October 8, 2021. The company sent a renewal notice to Tian on October 8, 2021, but the two parties did not reach an agreement on the renewal afterwards…
2023.11 Risks and precautionary measures related to sponsorship
In order to contribute to the community and enhance awareness for brands, many companies would sponsor public service activities, themed conference, competitions, and etc., no matter voluntarily or not. Such sponsorship is supposed to be a win-win event…
2023.11 In business activities, whether alcohol-related deaths could be identified as work-related injuries?
At the end of each year, various business gatherings and enterprises’ annual parties are typical programs. Alcohol is one of the links in those activities. Some people may be tipsy, some people may get drunk, and some people may die…
2023.10 The concurrence of the liabilities for breach of contract regarding the same behavior
In order to effectively constrain the counterparty’s behavior and reduce the risk of breach of contract, a contract may prescribe more than one liability for breach of contract regarding the same behavior …
2023.10 Can you check your employees’ medical records?
The biggest headache for the HR department is the fake sick leave, such as, an employee went to a hospital and registered for an appointment with the doctor, however, he left after got the registration receipt …
2023.9 “Tanking”, when the counterparty breaches the contract
Recently, we received a consultation from company A, stating that its counterparty had breached the contract, whether they could “Tanking”? For example, they can suspend the supply. When there is an economic downturn……
2023.9 “Take a back seat” in the management of retirement
A company with a longer history may have more senior managers who are going to retire. The successors are ambitious. As the old saying goes, “There is a radish in every pit”……
2023.8 When a company’s business license is revoked, whether shareholders are jointly and severally liable for the company’s debts?
Mr. Wong invested in his friend’s company many years ago. The company has not made any profit for those years. Wong did not care, because he only subscribed for 5% of the company’s registered capital, which is not a real loss. Last year, the company’s business license was revoked, but the rest shareholders remained silent……
2023.8 Practical Guidelines for the Management of Retirement
Among all kinds of labor disputes, the retirement dispute is the fewest. However, there are many details regarding the management of retirement. Here is a Q&A list for those details for reference. (* The retirement age is a complicated topic, and we have analyzed in the previous article, so this list will not mention this topic.) ……
2023.7 Provisions on Prohibition of the Abuse of Intellectual Property Rights to Exclude or Restrict Competition
Recently, the SAMR issued the “Provisions on Prohibition of the Abuse of Intellectual Property Rights to Exclude or Restrict Competition” (hereinafter referred to as the “New Provisions”), which will come into effect on August 1, 2023. ……
2023.7 When can I unilaterally terminate a contract?
There are 5 main circumstances that a company may claim for compensation against an employee. The circumstances are, (1) the employee brings damage to the company’s property; (2) the employee infringed a third party’s rights while working, and the company has compensated the third party; ……
2023.7 Labor arbitration or civil litigation, which one is the first choice to claim for compensation against an employee?
Miss A ordered a piece of furniture at a store. The next day, the store called and begged her to modify the order with the reason that, “the furniture ordered by Miss A is an old model which has been just sold out, there is a similar new model at the same price.” .……
2023.6 The effectiveness of electronic signatures and relevant risk prevention methods
Compared with traditional signatures, electronic signatures are faster and more convenient, which are attractive. However, many companies have doubts about the effectiveness of electronic signatures, and they also have concerns about risks such as content tampering, information leakage……
2023.6 Caution, the “Counterespionage Law” has been revised!
The newly revised “Counterespionage Law” will come into effect on July 1, 2023. It has expanded the definition of espionage, adding espionage acts of “joining espionage organizations and their agents” and “network attacks, intrusion, interference, control, destruction and other activities against state organs, secret related units or key Information infrastructure”.……
2023.5 Whether an agreed non-assignable debt could be assigned?
An effective transfer of debt usually requires four factors: 1) there is a valid debt; 2) the debt has assignability; 3) there is an effective debt assignment agreement; ……
2023.5 Blind Spots related to the special working hour systems
There are 3 categories of working hour system, which are the standard working hours, the flexible working hours arrangement, and the comprehensive calculation regarding working hours, among which, the latter two could be implemented upon the approval of the labor administrative department ……
2023.4 Should a one-person company and its shareholder be joint defendants?
Company A sued Company B for a dispute over the sales contract and applied to add Company B’s shareholder, Company C, as a joint defendant. Company C defended that Company A had abused its right of prosecution, because the dispute between Company A and Company B had no business with Company C……
2023.4 How to design a better layoff plan?
In January 2023, ByteDance downsized the company for 10%. In March 2023, Google China initiated a layoff plan. … In 2023, various news of “layoffs” hit the hot search from time to time……
2023.3 How to determine the limitation of action for infringement?
Regarding different objects of infringement, the infringement behaviors could be divided into various categories, such as the behaviors which have infringed the right holder’s property rights (such as unauthorized possession of another person’s real estate), trademark rights, or the right to life and health of individuals, and so on. Regarding the status of infringement, the infringement behaviors could be divided into an accomplished……
2023.3 Risks related to the use of employees’ vehicles for business
To use employees’ vehicles for business has gradually become a common phenomenon. There are various reasons, such as a company brings the proposal due to cost saving, or an employee brings the proposal for his own convenience regarding commute and cost. However, there are risks related to such arrangement……
2023.2 Does well-known trademark have a significant value?
Before the revision of the “Trademark Law” in 2013, the well-known trademark was regarded as an honorary title, which became many enterprises’ selling point in marketing……
2023.2 How to deal with the unauthorized deletion of data by an ex-employee?
In practice, some employees may delete personal information stored in computers, mobile phones and other devices provided by their employers when leaving their posts……
2023.1 Precautions for canteen outsourcing
In practice, many companies outsource staff canteen to a contractor with relatively mature supply chain system and catering service experience. The food safety and staff health are the top two risks of a canteen, so laws and regulations have set special restrictions and requirements regarding the management of a canteen……
2023.1 Taking the risks related to interns into control
Enterprises prefer to recruit interns, because of 2 reasons: (1) enterprises don’t have to pay for interns’ social security, and interns’ remuneration could be calculated daily, so the cost is relevantly lower than employees; and (2) enterprises don’t have to sign the labor contract with interns, so it is flexible for enterprises to terminate the relationship with interns……
2022.12 What is the difference between a contract of work and a sales contract?
In commercial activities, when parties sign a contract for the supply of certain goods, they usually ignore the nature of the contact, which says a contract of work or a sales contract. However, when a dispute arises……
2022.12 Is it risky to gamble on football matches among acquaintances?
The 2022 Cartel World Cup is a big event for football fans. The topics about this event is everywhere, such as in the subway, the office, restaurants and etc. Among those topics, you may have heard people discussed about bet on the winner……
2022.11 “Substitute for XXX”, a smart idea or a stupid idea?
When you see “Substitute for LV” and “Substitute for SK-II”, do you instinctively imagine that the quality and grade of the product may reach the same level as “LV” and “SK-II”? The public may have a positive answer to this question, so some enterprises take advantage of those famous brands by using……
2022.11 Can you reject employee’s application for getting medical treatment abroad?
Different people have different opinions on this topic. In fact, this topic does have different answers. Let’s take a look at 2 cases firstly.Case 1: Zhan went to a hospital on December 25, 2019, and was diagnosed with discogenic low back pain and soft tissue injury……
2022.10 Can you claim compensation for the depreciation loss of a vehicle crashed in a traffic accident?
Wong was overtaken by Lee when he was driving a new car for the first month, and the traffic police determined that Lee should undertake the whole responsible. Although Wong’s new car was repaired by the 4S shop, it was seriously damaged and its value was greatly depreciated. However, the compensation scope of the insurance did not cover the depreciation loss. Can Wong ask Lee to compensate for this loss……
2022.10 Whether an employer could terminate the employment contract with the employee who has violated its internal regulations on epidemic prevention measures?
In the 101st issue of Legal Notebook, we discussed an epidemic related topic, which is “Can enterprises prohibit employees from going hometown for the Spring Festival with the excuse of epidemic control?”, and our opinion is that, if local authorities……
2022.9 To well manage the recovery of creditor’s rights
Because the current economic situation is severe, the recovery of creditor’s rights of enterprises becomes riskier. It is very important for enterprises to well manage the recovery of creditor’s rights, including to take necessary measures to manage the risks, to take necessary measures to recover debt as soon as possible.
……
2022.9 Practical issues related to the implementation of subrogation
A owed B money, but was unable to pay it back. B found that C owed A money, then he required C to repay the money directly to himself. This is a typical case of the implementation of subrogation ……
2022.8 Is “Pay When Paid” article valid?
The “Pay When Paid” (hereinafter referred to as the “PWP”) clause usually applied in the chain contracts. The typical feature of PWP is that there are two contracts, a party sets the payment of the upstream party as the precondition for the payment to the downstream party. Such clause could help the party to reduce risks related to the payment, which is widely used in contracts such as construction……
2022.8 Potential risks of using maps in advertisements
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; ……”
2022.7 Is the “Safe Harbor” of internet platform disappearing?
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……
2022.7 Whether legal representatives could shake off the restriction of high-level consumption?
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……
2022.6 Has the era of personal bankruptcy in China come?
China has explored on the legislation on personal bankruptcy (hereinafter referred to as the “PB”) for a long time. On June 15, 2017, in the “Reply of the Supreme People’s Court to Pan Dingxin’s Proposal for Establishing and Implementing a PB System”, the Supreme People’s Court stated that it would promote the implementation of the PB system……
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2022.6 If the counterparty has been cancelled during the warranty period, what can I do?
In July 2020, F purchased an auto protector film service from Company N, with an agreed warranty period of 3 years. A year later, F contacted L, the shareholder of Company N, and asked him to provide warranty services. L said that Company N had been cancelled and the brand authorization had been revoked……
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2022.5 Whether the mortgagee could realize the mortgage after the expiration of the mortgage registration term?
In order to do business with Company A, Company B mortgaged two properties to A and completed the mortgage registration. A sued B for a dispute and won the case. However, when A applied for the enforcement of two properties, it encountered two problems……
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2022.5 Can you check on work attendance by GPS?
Company A’s “Employee Handbook” and “Fieldwork and Business Travel Attendance Management” state that fieldworkers shall use GPS to register for attendance……
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2022.4 How to protect the plaintiff’s interests when the defendant changes its shareholder or legal representative during the litigation?
Company Y failed to repay its debts, Company T had to sue Y. Chen was a shareholder of Y, and he subscribed capital of Y amount to CNY300, 000, which had not yet been paid……
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2022.4 Should a supervisor be liable for subordinate’s faults?
After C was dismissed by the company for false reimbursement, C’s supervisor H was also dismissed on the grounds that H neglected to perform his management duties, which brought damages to the interests of the company……
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2022.3 Is it risky to use model symbols similar to competing products?
A product’s model symbol (hereinafter referred to as the “Symbol” refers to a serial number marked on a product. Such serial number is used to identify products. It is common to design a specific “Symbol” with a few alphabets, digits, the combination of alphabets and digits ……
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2022.3 Does the “Significant damages” equal to the “Significant economic losses”?
Z was a company’s chief accountant who is responsible for accounting work. He should review reimbursement receipts as the first reviewer, then collect, bind, and double check the final reimbursement receipts after the whole review process had been accomplished. Z’s colleague L and H fabricated several diesel invoices, by which they had reimbursed RMB 640,000. During the review process……
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2022.2 What’s the judicial opinion regarding a claim of high liquidated damages?
In commercial transactions, the parties often agree on high liquidated damages
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2022.2 The right way to fire senior management personnel
Speaking of anime images, several famous images might jump out of your minds, such as One Piece, Crayon Shin-chan, Pleasant Goat and Big Big Wolf. If an anime image becomes popular, it might be pirated……
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2022.1 How to protect anime images in China?
Speaking of anime images, several famous images might jump out of your minds, such as One Piece, Crayon Shin-chan, Pleasant Goat and Big Big Wolf. If an anime image becomes popular, it might be pirated……
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2022.1 Checklist of female employee’s various leaves in Shanghai
In order to increase the fertility rate, the national and local governments have released many favorable polices which include those welfare policies regarding fertility. Female employees have various ……
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2021.12 Have you gotten the new rules of the “Standard terms”?
The “Standard Terms” (“STs”) refers to the clauses which have been drafted by one party in advance for repetitive use, and would not been or could not be negotiated with the counterparty. STs is very common in telecommunication service contracts……
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2021.12 Why an employer becomes collateral damage due to employees’ Wechat moments?
Wong, a salesman of Company A, posted a message on his Wechat moments with several pictures, which included a picture shows a burned up shared power bank marked with Brand B, and a picture ……
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2021.11 The use and risk management of big data
The application of internet in various fields has produced massive amount of data, such as the data from online shopping, online ticket booking……
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2021.11 Traps of Labor Secondment
Lee signed a labor contract with Company A, an ink company, with a monthly salary of 50,000. Company A temporarily suspended production, and Lee was arranged to work for A’s affiliate Company……
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2021.10 Investigation on anti-corruption vs. protection on personal information
Employees’ fraud not only damages employers’ interests and social image, but also corrupts workplace atmosphere. If employers fail to manage such behaviors, it would encounter “the embankment of……
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2021.10 How to fire a trade union president who has seriously violated discipline?
Zhan is the purchasing manager and trade union president of Shanghai K Company. K fired Zhan for serious violation of rules and regulations due to fake sick leave. Zhan filed labor arbitration……
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2021.9 Is there any risks related to endorsing commodities via We-media?
Have you ever been attracted by a commodity’s using experience video on “Xiao Hong Shu” app? Maybe some of you have brought the endorsed commodity……
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2021.9 Risks and prevention regarding the background investigation of “Employees”
The background investigation of “Employees” involves two circumstances. An employer requires an investigation of its candidate, or an employer is required to provide information of its former employee. Such investigation involves employees’ personal information which is sensitive……
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2021.8 Is there any legal risk in marking a company’s LOGO on the commercially available products as a gift to customers?
While discussing the 20th anniversary celebration event of Company M, the planning department proposed to buy a batch of thermos, mark with M’s logo, and distribute to consumers and other commercial partners as souvenirs……
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2021.8 What are “Shared Employment” and “Platform Employment”?
“Shared Employment” (“SE”) and “Platform Employment” (“PE”) become very popular in recent years. They are always mentioned as a method to reduce labor cost in social Medias. However, many enterprises donot have a comprehensive picture of the two, such as the employment model……
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2021.7Whether an Employer could use the Promotional Video involving Ex-employee’s Portrait?
Chen was the executive chef of Company H, and the model of H’s promotional photos, posters and videos, in which he wore a chef’s uniform, holding a plate of Hainanese chicken or a bowl of Hainanese chicken rice. After resigned, he found those promotional materials were……
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2021.7Four Special Occasions in the Management of Occupational Diseases
Article 2 of the “Law on the Prevention & Control of Occupational Diseases” stipulates that “……the ’Occupational Diseases’ refers to diseases suffered by the workers of such Employer as enterprises, public institutions, and individual economic organizations due to exposure……
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2021.6How to deal with IPRs when a company is going to be dissolved?
There are several companies applied for dissolution everyday. However, compared with tangible assets, such as real estate, equipment and etc., many companies have ignored IPRs……
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2021.6Who shall be responsible for the personal injury of employee’s family members who participate in the employer’s team building activities?
In order to increase employees’ sense of belonging and improve cohesion, Company A invited employees and their family members to take a tour of another city. One day, during the dinner, employee B’s husband and employee C’s father were passionate about toasting to each other……
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2021.5The Problems Related to the Inconsistency between the Registered Address and the Actual Business Address
In practice, it is common for companies to have a registered address and another actual business address. The reasons are various, such as, a company has been relocated, but it forgot to change the registered address in time; or a company sets its registered address in a specific……
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2021.5 Misunderstandings of Economic Compensation for Non-competition Restrictive Covenant
Many companies have signed a Non-competition Restrictive Covenant (the “NCRC”) with employees. However, the issues related to the economic compensation have been ignored in many cases, due to which many disputes arise……
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2021.4 Who shall be the Right Owner of the Service Invention Invented by the Personnel Dispatched by Affiliates?
A Japanese Company M appointed Mr. A to serve as the head of the R&D department of its subsidiary in China. Just few months later, Mr. A created a significant invention……
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2021.4 Have you heard about “Power Harassment”?
In August 2020, a bank employee released a real-name statement on Weibo, claiming that he had suffered long-term mental torture from his leader, such as, he was ordered to stay at the pantry next to the elevator for three consecutive months, and he could only go out for dinner and……
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2021.3 Right of Termination without any Reason and Relevant Compensation for Losses Related to Commission Contracts
Both “Contract Law” (repeal on 1 Jan. 2021) and “Civil Code” (effective from 1 Jan. 2021) stipulate that either the commissioning party or the commissioned party may terminate the commission contract at any time, which is the right of termination without any reason……
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2021.3The Application of the Principle of Good Faith in Employment
Article 3 of the “Labor Contract Law” stipulates that the conclusion of a labor contract shall follow the principle of good faith. Furthermore, Article 26 stipulates that a labor contract which is concluded by use of fraudulence is invalid. The above-mentioned provisions are the main……
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2021.2 How to set the guarantee term after the implantation of the “Civil Code”
Compared with the previous “Guarantee Law” and the relevant judicial interpretations, the “Civil Code” which came into force on Jan. 1, 2021 has amended the guarantee term……
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2021.2Whether you can fire an employee for smoking?
When you read this title, you may have two reactions: (a) employees who are addicted to smoking think this is too harsh; (b) other employees who are the victims of “second-hand smoke” take it as a good idea……
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2021.1 Whether manufacturers shall be responsible for distributors’ liabilities for selling fakes?
“X Sports Franchise Store” is an online store which has the authorization of a well-known brand H Racket. The store purchased some counterfeit rackets at low prices, and mixed those fakes with the real ones. H Racket found the store had sold fakes, so it terminated the authorization……
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2021.1Can enterprises prohibit employees from going hometown for the Spring Festival with the excuse of epidemic control?
The 2021 Spring Festival is approaching, but the epidemic becomes severer in many cities. Almost all the local governments have called on citizens to stay at their current cities during the Spring Festival, many universities have announced that students could leave the campus upon the approval……
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2020.12 Whether You can Use the Evidence Obtained in Breach of Contract?
Company Y required Company X to construct an E system, and provide maintenance services. Based on Y’s requirement, in the contract, both parties agreed that X’s staffs could only communicate and send documents by using the mailboxes provided by Y, and X’s staffs could not copy, or forward……
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2020.12Can an Employer Terminate the Labor Contract if an Employee Conceals Medical Treatment History?
Mr. L joined company S in October 2012, and did not inform S of his medical treatment history. In 2016, S found L had been identified as a grade 8 labor dysfunction……
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2020.11 If the debtor does not know the existence of a guarantee, whether the guarantor could directly seek for compensation to the debtor after assuming the guarantee liability?
In May 2019, Zhang borrowed 100,000 CNY from Lee for purchasing an apartment. Zhang issued an IOU, in which Zhang promised to repay in 1 year. Later, due to the epidemic, Lee was afraid that he would not able to recover the debt on the due time; he planned to ask Zhang to repay earlier……
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2020.11Whether 24 months medical treatment period shall be directly applied to employees suffering from special diseases?
Lee had worked for 11 years, and was diagnosed with lung cancer after he had joined the new company for less than 1 year. Lee took sick leave. The company decided that Lee’s medical treatment period (hereinafter referred to as the “Period”) should be……
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2020.10 New Trends in the Determination of Use and Infringement of Trademarks in Foreign-related OEM
Company B is a large-scale multinational motorcycles enterprise, which has registered several trademarks with English characters “HONDA” and relevant graphics, in the 12th trademark category in China in 1988 and 1998. An overseas Company M commissioned a domestic Company H……
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2020.10 How to determine a serious breach of employer’s rules and regulations?
Article 39 of the “Labor Contract Law” stipulates that where an employee has committed a serious breach of the employer’s rules and regulations, the employer could unilaterally……
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2020.09 Will you set an automatic renewal clause?
An automatic renewal clause is very common in the commercial contracts, in which the parties plan to keep a long-term cooperation, such as strategic cooperation agreements……
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2020.09 How to determine the period for suspension?
We have discussed the salary for suspension in the last issue, and this time the topic is the period for suspension ……
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2020.08 Is an apology applicable to intellectual property infringement cases?
We have discussed the salary for suspension in the last issue, and this time the topic is the period for suspension ……
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2020.08 Whether an Employer shall pay for the employee’s suspension period?
In January 2018, Guo caused losses to the company due to work errors, and Guo was suspended from his work without wages. Later, the company unilaterally terminated the labor contract, and Guo claimed for the wages of the suspension period. In the end, the court held that the labor relationship ……
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2020.07 The counterparty is merged by a third party, can you refuse to do business with the merger?
Company A signed a purchase contract with Company B. Later then, Company B was merged by Company C. Because Company A had disputes with Company C, it was unwilling to do business with Company C. Then ……
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2020.07 How to deal with missing employees?
In December 2016, a few days after Dong lost contact, the company terminated the labor contract for absenteeism. In April 2017, Dong was diagnosed with schizophrenia, and the doctor stated that the disease had begun in ……
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2020.06 The Keys on Handling the identical/Similar Business Name and Registered Trademark
The business name is administrated by SAMR, and the registered trademark is administrated by the Trade Office. These are two different administrative procedures, so nobody could check crosswise. How to defend rights when ……
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2020.06 Frequent Lateness, Can You Terminate the Employment Contract?
Fu was late for more than 70 times within 10 months after he was onboard. The company terminated the employment contract with the reason that Fu had committed a serious breach of the company’s rules and regulations. Fu filed a lawsuit against the company. The court held ……
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2020.05 Determination of the Amount of Occupation by taking Advantage of Duties
The employee of a clothing company smuggled a batch of clothing with a cost of RMB 1 million out of the company’s warehouse, and sold it to a third party at an extremely low price of RMB 200,000. Later then, the company reported to the police, and claimed that the employee should ……
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2020.05 When a Company has encountered a Scam, whether it could claim Damages from its Employees?
In the previous issue, we introduced how to prevent scams. However, if a company encountered a scam, it would be very difficult to claim damages from the fraudsters. Some companies have another thought, which is to claim damages from the relevant employees……
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2020.04 How to Notify the Tortfeasor Effectively, which Encountering the Infringement by Network?
The FOCUS Company has obtained an exclusive information network transmission right of several works, which have been found to be spread by others by Baidu Pan. So The FOCUS Company sent a “Notification Letter” ……
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2020.04 How Could a Company Prevent Scams?
When a financial staff received an email or a SMS from the said GM or the Purchasing Manager, and the staff was urged to remit money to a designated account. Normally, the staff would arrange the payment as soon as ……
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2020.03 How to Determine the “Reasonable Profit” of the Tortfeasor in the Cases Concerning the Infringement of Technical Secrets?
Article 17 of the “Anti-unfair Competition Law” provides that in the cases concerning the infringement of commercial secrets, where it is hard to ascertain the actual losses of the infringed party ……
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2020.03 COVID-19 vs. Force Majeure, Let’s Make it Simple
After the outbreak of COVID-19, there are many articles concerning whether COVID-19 shall be deemed as a force majeure circumstance, how to defend the claim of the liability for breach of contract and so on ……
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2020.03 Management Tips on the Impact of COVID-19 in March for Foreign-invested Companies
The COVID-19 pandemic has lasted nearly 2 months. In China, the State Council extended spring festive, local governments postponed the date of resumption of business. COVID-19 is under control in China, however ……
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2020.02 The Same Company Names, Which One Should Be Rectified?
When a company becomes famous, it attracts not only business opportunities, but also imitators. Taiwan “南 X” Plastic Industry Co., Ltd. has successively established several subsidiaries under the name ……
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2020.02 Whether An Employment Permit Could Prove A Labor Relationship?
A Singapore company and Singaporean Bai signed a contract, in which the company hired Bai as the manager of Shanghai business development department. Soon, Bai signed a labor contract with the Shanghai branch of a Xiamen company invested by the company ……
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2020.01 Determination of a Repeated Lawsuit
Cao sued Company X on the ground of a dispute over a contract of house transaction, and required Company X to assist him to handle the property registration procedures. The court of the ……
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2020.01 Pay Attention to the Negotiation on the Termination of a Labor Contract
Lee, the former employee of Huawei, left Huawei at the expiry of his labor contract, and Huawei gave him “2N” compensation. 1 year later, Lee was arrested on suspicion of extortion, and after being detained for 251 days, he was released without charge ……
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2019.12 The Trademark Identification
Company S applied for trademark registration with the combination of the Chinese character “没事儿” and a circular pattern. The Trademark Review and Adjudication Board (“TRAB”) rejected the application. Company S applied for a ……
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2019.12 Should an Employee Return the Professional Qualification Certificate Obtained during the Employment to the Employer When the Labor Contract is Dissolved?
During the employment, Shen obtained 2 professional qualification certificates (“PQCs”), which are the ISO9000 Quality System Chief Auditor and the Chief Auditor. Because the company undertook the relevant training expenses, PQCs were kept by the ……
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2019.11 What are the Differences between a Warehouse Lease Contract and a Warehousing Contract?
Are you confused with the title? If a party leases a warehouse for storage, the two contracts shall state the same thing, and there shall be no difference. However, from the perspective of the nature of a contract, the two contracts have huge differences on the rights ……
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2019.11 Is it Valid to Announce the Internal Rules by Electronic Means?
Company A dissolved the labor contract with Ding, with the reason that Ding had severely violated the “Administrative Measures on Labor Discipline of Company A”, due to Ding’s habitual absenteeism. Ding filed a labor arbitration against……
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2019.10 Setting Other Party’s Trademark as the Search Keyword on Internet
If you type “金夫人” on the search engine Baidu, the first three links show “金夫人GOLDEN LADY” and relevant pictures; the official website of the trademark right owner Company J and its relevant information; and the promotion information with the words as “南京婚纱摄影领军品牌M公司”. Company J filed……
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2019.10 When is the Employment Relationship with Foreign Employees established?
A Canadian Mr. D was hired by Company W as its General Manager. Both parties signed a labor contract. Later, Company W dissolved the contract. Mr. D filed a lawsuit against Company W and claimed for the economic compensation……
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2019.9 Risk Prevention of Software Service Contracts
More and more companies apply software in handling business operations. They have to sign a software service contract (“SSC”) or a software development contract (“SDC”). In practice, many companies only pay ……
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2019.9 Feasibility and Attentions to Early Retirement System
An enterprise with a longer history would have more employees who are close to the retirement age. Some of those employees may have less improvement in skills, and be lack of energy. If they still occupy the……
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2019.8 How to Deal With the Cancellation Application for Ceased Use of a Registered Trademark for 3 Consecutive Years?
According to Article 49 of the “Trademark Law”, where the use of a registered trademark has been ceased for three consecutive years without good reasons, any entity or individual may apply to the Trademark Office ……
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2019.8 Is It Risky to Ignore the Social Insurance of Foreigners?
In the past many years, foreign-invested companies would purchase commercial insurance for foreigners instead of participate in social insurance, because China had not set any requirements in any laws or regulations ……
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2019.7 Legal Risks Related to Advertising Creativity
Bei Ji Rong (“BJR”) Underwear had published a creative advertisement. The spokesperson Zhao Benshan wore the BJR thermal underwear. He was hijacked by aliens, and frozen in an ice brick. After unfrozen, he was uninjured ……
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2019.7 Getting Injured or Suffering from a Disease During the Lunch Break, Is it a Work-Related Injury?
During the lunch break, Yang went home to get a work operation permit, and got injured in a traffic accident on his way to work. Yang filed an application for ascertainment of the work-related injury (“WRI”) ……
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2019.6 Is There Legal Risks in Using Videos Taken by Others for Promotion?
Liu took a short video for his self-driving trip to skiing by driving a Brand A car, and shared such video on the online platform. Company A used this video in a client’s advertisement, which was released ……
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2019.6 Pay Attention to the Leaving Reason Stated in the Employment Separation Certificate
Zhou was dismissed by Company A, and the leaving reason stated in the Employment Separation Certificate (“ESC”) covered two aspects, (a) Zhou has seriously violated the company’s rules and procedures ……
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2019.5 A Manufacturer Does Business with Its Distributor’s Clients Directly, Whether the Manufacturer Has Infringed the Distributor’s Trade Secrets?
In practice, many manufacturers would sell products to authorized distributors, and then the authorized distributors would sell to the end customers. Manufacturers focus on R&D and manufacturing ……
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2019.5 Ask for Sick Leave for Cosmetic Surgery!
Tan left the post for a “double eyelid surgery”, and the company dissolved the labor contract because of her absenteeism. Several days later, Tan provided the sick leave certificate issued ……
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2019.4 How to Distinguish a Distribution Contract with a Consignment Contract?
Some companies would entrust trading companies to sell products for various reasons, and both parties would sign contracts. In practice, those contracts have different titles ……
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2019.4 Whether an Employer Could Withdraw the Offer?
Company A sent Lee an offer, in which the company had stated the position, salary, the date of employment and so on. Lee replied to accept the offer, and applied for resignation to the current ……
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2019.3 Implementing the Transaction before Signing a Contract, How to Deal with the Relevant Disputes?
In commercial activities, it is not rare that the parties would implement a transaction before signing a contract, due to the time requirements, or a ……
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2019.3 Supervisor = Part-time Job?
Company A found that HR manager Chen was the supervisor of Company B, and dissolved the labor contract for violating the “Employee Handbook”, in which it ……
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2019.2 Changes in the Judicial Opinions on Trademark Coexistence Agreements
If a trademark for registration is identical with or similar to another party’s trademark which has been registered or preliminarily approved……
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2019.2 Failed to Sign the Labor Contract Timely
The labor contract signed by Shao and Company A expired in Nov. 2014. Company A failed to renew the contract timely……
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2019.1 Be Aware of the Potential Risks Related to the Commercial Usage of Chinese Fonts
Many companies tend to use distinctive fonts to attract consumers’ attention in promotion. However, if any company has made a wrong choice, such distinctive fonts might……
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2019.1 Can the Employer Repent After Issuing the Notice of Termination?
Company A issued a Notice of Termination (“1st Notice”) to Sheng 30 days in advance, in accordance with item 2 of Article 40 of the “Labor Contract Law”. 15 days……
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2018.12 Copyright Registration for Graphic Works
Many companies would like to design graphic works which are related to their industries or products and etc., in promotion or marketing. In order to prohibit……
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2018.12 How to Deal with Gifts Related to Business activities?
Courtesy social among companies is very common. At the end of each year, companies would organize annual party, customer appreciation party and other similar business……
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2018.11 Deal with the Employment Conflict of Interest
Wang is the customer service manager of Company A. Her husband registered Company B, and Wang was one of the shareholder. Company B sold wallpaper to Company A. Later, Company A dissolved the labor contract ……
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2018.11 Debt Undertaking or Debt Accession?
Company A owes 2 million to Company B. Company C expressed its willingness to repay for Company A, and signed a repayment agreement with Company B. After repaid 500,000, Company C did not want to repay anymore ……
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2018.10 Online Private Chat, Commercial Disparagement?
Mr. Zheng, the legal representative of Company A sent some negative information related to its competitor, Company B, in a industry QQ group. After the mediation organized by the public ……
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2018.10 Whether the Testimony would be Valid, if the Witness fails to appear in Court?
Company A sued Company B for default. Company B provided a written testimony from its warehouse staff, Chen, in which Chen said that he had not received any relevant goods,……
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2018.9 Pay Attention to the Change of a Registered Trademark Registrant’s Information
There is a misunderstanding on the management of registered trademarks that once the trademark has been registered, the registrant only has to pay attention to the renewal procedure. However……
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2018.9 The Application of the Penalty Rule for Deposit
Both parties agreed in the purchase contract that if the seller delays the delivery for more than 15 days, the deposit amount to RMB100,000 shall be refunded, and the seller shall……
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2018.8 Risks Related to the Jurisdiction Objection
Company A and Company B entered into a sales and purchase contract, in which it prescribed that the disputes should be under the jurisdiction of the court where Company B is located. Later, Company B filed a ……
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2018.8 Is it Legal to Pay Social Insurance in the Name of a Third Party?
Company A is headquartered in Shanghai. The employees who are working in the Hangzhou office of Company A, and they require Company A to pay social insurance ……
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2018.7 The Determination on Changing Registered Trademark without Approval
In commercial activities, in order to cater to the promotion design style or for other reasons, many trademark owners might change registered trademarks. For example, if a registered trademark ……
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2018.7 How Important Leave Request Procedure Is?
Due to the bone hyperplasia, Jia submitted the application for sick leave and proofs to the department head. The department head approved the application, but the ……
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2018.6 Financing Leasing vs Operating Leasing
Zhu and Company Y signed a financing leasing contract, in which both parties agreed that Zhu would purchase a set of equipment and lease to Company Y, after the lease ……
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2018.6 How to Deal with the Employees’ Complaints on the Internet?
Lau did not get the year-end bonus, because his year-end assessment was poor. He complained about the poor welfare in the company’s WeChat group, and encouraged other employees……
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2018.5 Dispute Resolution Clause is Easy to be Ignored
A Nanjing company and a Harbin company entered into a sales contract, in which the dispute resolution clause was stipulated as “any disputes arising from this contract shall……
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2018.5 When the Probation Period Encounters the Medical Treatment Period
Chen and Company A entered into a labor contract, in which the term of the contract was prescribed as 1 year, and the probation period was 1 month. During……
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2018.4 Risks and Prevention Actions Related to the Land Use Right
Company A participated in an investment promotion event, the township government promised to provide many preferential policies in the land price, taxation discount……
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2018.4 Be Dismissed for Discipline Violations, whether a Lump-sum Disability Employment Subsidy shall be Paid?
Chen’s toes were bruised while operating a machine in the workshop, and he was ascertained to have suffered from work-related injury. After the treatment, Chen returned to work. Later, he……
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2018.3 To Prevent Patent Infringement in ODM
A well-known domestic air-conditioning brand company A likes the products designed by an air-conditioning manufacturer company B. Both parties agreed that company B will design and manufacture products with……
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2018.3 Can We Set Time Limits for the Personal Leave?
In Company A, many employees asked for leave frequently. What’s worse, some of those employees had asked for personal leave accumulated to……
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2018.2 Whether the Advertising Law Could Regulate a Company’s Website?
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……
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2018.2 Whether a Dispatch Agreement is Invalid if the Position is not Temporary, Alternative or Complementary?
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……
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2018.1 Issues Related to the Foreign Exchange Payment for Improting Technologies
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……
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2018.1 Any Permission for Foreigners to Use Commercial Cryptographic Equipment?
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……
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2017.12 Risks Related to Shares is the Guarantee for a Loan
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……
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2017.12 Will You Bring a Labor Arbitration Against the Company’s Punishment?
During the annual performance review, Company A found Chen had brought a huge loss to the company due to his serious fault. The company warned Chen in written and penalized two months’ salaries to compensate the company’s loss, in accordance with the “Employee Handbook”. Chen……
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2017.11 Be Serious of Environmental Protection
The “Environmental Protection Law” was implemented in the early 2015. Since Jan. 2016, the Central Government has dispatched four batches of environmental inspector groups to inspect the environmental work in different provinces and cities. Because ……
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2017.11 Risks and Preventions Related to Driving in China for Foreigners
As more and more foreigners come to China for employment, study, traffic accidents happened to foreigners are not rare. Especially, following with the new car using model, such as the time-sharing car, it is convenient for foreigners to drive a ……
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2017.10 The Effectiveness and Precautions of Unilateral Commissioning Authentication in IP Litigation
Article 63 of the “Civil Procedure Law” has listed 8 categories of evidence, which include the authentication opinion. Article 76 only prescribes 2 methods to initiate the ……
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2017.10 An Employee Refuses to Pay Social Insurance, Will the Employer be Liable?
In 2014, a company recruited Chen. Chen did not want to bear the individual payment part of the social insurance, and issued a “Commitment”, in which he said he would release the payment responsibility of the company……
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2017.9 The Impact of the IV Judicial Interpretation of the Company Law to Foreign Invested Enterprise
A foreign Company A and a Chinese Company B jointly set up a joint venture Company C, which is a limited liability company. The GM of C was assigned by Company B. Because the finance report showed years of loss, A decided to transfer all……
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2017.9 Risks Related to the Sharing Bikes for Foreigners
A Japanese Mr. A rode a sharing bike to home after work. He was knocked down by a car and got injured. Mr. A required the sharing bike company to compensate, and asked the company to apply for the work-related injury……
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2017.8 Who Signed the Contract With You?
Do you think this title is ridiculous? Many people may nod their heads. However, the fact is even more ridiculous. Wang planned to decorate his new apartment. He signed a contract with the “branch” of a well-known K……
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2017.8 Be Careful While Applying “Incompetent” in Dissolving a Labor Contract
Mrs. Wang worked in Company A for 6 years, and she worked in the Administration Dept.. Came back from the maternity leave, she often came to work late and left early, and became forgetful, which was not the right working attitude……
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2017.7 How to Write a Notice on the Dissolution of a Labor Contract
Company A’s “Sales Regulations” specifies that, where the price of any transaction is lower than the normal price level, such transaction shall be approved by the accounting dept. in advance, otherwise, the responsible person……
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2017.6 The Retroactive Wages related to a Resumed Labor Relationship
Company A dissolved the labor contract with Zhang. Then Zhang filed a labor arbitration on the grounds that company A illegally dissolved the labor contract. Hang also requested Company A to resume ……
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2017.5 Common Mistakes Related to Wages In lieu of Notice
Zhao was a sales manager of a Shanghai company, and his monthly base salary was RMB17,000. In September, his actual income was RMB37,650, which included the monthly base salary and the sales commission. Due to the adjustment of the management……
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2017.5 Risk Prevention for Software Development Contracts
With the development of information technology, it is very normal for a company to appoint another company to develop software for operation, production or promotion, such as an official website, mobile APPs, management system……
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2017.4 Whether an Employer Shall be Liable if an Employee Refusedto Take a Pre-departure Occupational HealthExamination?
Bai worked in a Jiangsu chemical industry company,and his position was related to the occupational disease hazards.The company informed Bai to take a pre-departure occupationalhealth examination (hereinafter refers to the “Examination”) viaEMS……
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2017.4 To Determine the Statutory Compensation in Trademark InfringementCases in China
China’s current “Trademark Law” stipulates 4methods on calculating the compensation for infringement: theplaintiff’s loss, the defendant’s benefits, the reasonablemultiples of the royalties of a registered trademark, and thestatutory……
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2017.3 The Interests of the Victim of a Car Accident on the Way to Work
Zhang had a car accident on the way to work. The driver Wong paid medical expenses(“MEs”), lost wages and other relevant losses. Later then, Zhang requested the company to apply for the work-related injury. The company……
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2017.3 How to Deal with the Problems Related to the Double Licensing on an Exclusive Right Concerning the Same Trademark?
The trademark right owner A signed a trademark exclusive license contract with B. Later then, A signed another trademark exclusive license contract with C concerning the same trademark. Then who is the authorized licensee? Shall……
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2017.2 What is the Base for Calculating the Economic Compensation?
Chen and his employer agreed to terminate the labor contract. While calculating the economic compensation, Chen insisted that his employer should not delete the overtime pay, the social insurance and provident fund paid by the employee. Then a ……
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2017.2 The Inheritance of the Shares in a Limited Liability Company?
Lee, the shareholder of a limited liability company was dead. He did not make a will. His successors included his wife and son. Both wanted to be listed as the shareholder of the company, and recommended Lee’s wife to take over the……
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2017.1 The Treatment of Female Employees in the “Three Periods”
Mrs. Liu served as a department manager in Company A. During the gestation period, she asked for miscarriage leave, in addition to which, she requested the company to pay the monthly wage amounted to her normal wage, but the company……
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2017.1 The Trend of Judicial Practice for the Protection of “Merchandising Right” in China
Recently, in the retrial of “乔丹” trademark case, the Supreme People’s Court ruled in favor of Michael Jordan, determined Qiaodan Sports Co., had violated Article 32 of the “Trademark Law” (hereinafter refer to “Article 32”), overruled……
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2016.12 How to Deal with the Sick Leave after the Expiration of the Medical Treatment Period?
In April 2014, Wong took 5 months’ sick leave. Upon the expiration of the medical treatment period, the company informed Wong that the sick leave he would ask for should not be paid. Later then, Wong asked for another 2 months’ sick leave. And the dispute……
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2016.12 Local Government’s Promise, a Pie or a Trap?
A Japanese company established a WOFE in mainland China, the local government made a lot of attractive promises, such as the WOFE could only pay the social security for partial of employees, the WOFE could purchase the plant for free if its fixed asset would……
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2016.11 How to Calculate the Computational Basis for the Overtime Pay?
Zhang worked as a production line worker at Company A, and he had to work overtime. Company A calculated the overtime pay based on his base wage. One day, Zhang heard that the overtime pay should be calculated based on……
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2016.11 New Trends of the Regulations on the Commercial Bribery in China
The 2015 ‘Amendments to the Criminal Law (the 9th edition)’, and ‘Interpretation of the Supreme People’s Court and the Supreme People’s Procuratorate on Several Issues concerning the Application of Law in Handling of Criminal Cases of Embezzlement and Bribery’ are……
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2016.10 Whether ‘Equitable Estoppel’ Could be Applied to Resignation?
Lee was an engineer working at Company A. Jan. 2016, Lee sent a resignation email to his boss. The email was written as, ‘I decide to resign after the New Year’s Day, please approve my resignation.’ His boss replied and accepted his resignation……
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2016.10 Use the Other’s Registered Trademark as the Search Keyword, Trademark Infringement or Not?
With the hot competition of e-commerce, some companies use the registered trademarks of their competitors who are more famous, as the search keywords for their website. Once the user types such keywords, their website will……
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2016.9 How to Claim for Loss Effectively if a Golf Course is Shut Down?
Mr. Wong paid a membership fee amount to 250,000 for a life membership of a golf course in 2011. Unexpectedly, 5 years later, the course was ordered to suspend the business due to the illegal land occupation. So Mr. Wong required the course to……
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2016.9 Use of a Generic term V.S a Trademark Infringement
What will be shown in your mind when ‘优盘’ was mentioned? Shenzhen Netac Company’s trademark, or a mobile storage tool? The answer is probably the latter. In fact, Shenzhen Netac Company has registered ‘优盘’as a trademark in 1999, and……
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2016.8 Work Overtime, Overtime Pay?
Jiang was a business receptionist. He was assigned to be on duty for 6 days during the National Day and the New Year’s Day. 1 year later, Jiang dissolved the labor contract, and requested the employer to pay the economic compensation, because……
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2016.8 ‘Stealing an Order’, Embezzlement or Bribery?
In 2008, Company B purchased products from Company A. The price was decided in a special procedure, which said as Wong the employee of Company A provided the proposal to Jiang the employee of Company B, and Jiang submitted the proposal to the manager……
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2016.7 The Legal Risks and Tactic of Allograph
Lee and Wang jointly assigned an agency to handle the registration procedures for the establishment of their company. Because Wang was located in the other city, the agency signed Wang’s name on the documents without authorization. 3 years later, Wang……
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2016.7 The Exclusive Distributor Breaches of Contract by Distributing the Competitor’s Goods, Who Shall Bear the Liability? –From the perspective of the Third Party Encroaching upon Creditor’s Rights
Company A and Company B signed a contract, in which it has stipulated that B would be A’s exclusive distributor by selling A’s digital products, and B should not sell the other similar products. B promoted A’s products very well, and its sales amount was increasing step……
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2016.6 Silence Gives Consent?
Company A and Company B signed a contract, in which it has stipulated that B would be A’s exclusive distributor by selling A’s digital products, and B should not sell the other similar products. B promoted A’s products very well, and its sales amount was increasing step……
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2016.6 Can a Director Resign Voluntarily?
Mr. Wang was the director of Company A, a limited liability company. Because Wang had a different view on the theory of the business with the other directors, he wanted to resign. Unexpectedly, the shareholders of Company A were afraid……
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2016.5 Whether the Mental Illness shall be deemed as the Work-related Injury?
The sales staff Zhang was suffering from depression. He asked the employer Company A to provide the work-related injury welfare, because he insisted that this disease was caused by the sales pressure, which should be ascertained……
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2016.5 Warning Letter V.S. Unfair Competition
Recently, a case attracted the widespread attention. Honda was ordered to compensate Shuanghuan RMB16 million by the Supreme People’s Court (‘SPC’), because SPC decided that Honda had violated the Unfair Competition Law by sending the warning letter improperly. Since……
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2016.4 Can You Dissolve a Labor Contract, Because of The False Personal Information
Mr. Kang was the vice general manager of Company A. One day, the company found that he had provided the false personal information about education background, so it dissolved the labor contract with him. Later on, Kang brought the……
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2016.4 IP Protection on the Business Model—- From the perspective of patent
Before the emergency of the computer and internet, the majority of business models are carried out entirely or partly by the individual’s behavior, which says the pure business methods. Such business……
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2016.3 The Deadline of the Suspension-of-Work-with-Pay Period
Lee was the employee of a Shanghai Company. One day, he was injured within the working hour, and was sent to the hospital immediately. 4 months later, Lee left the hospital. After another 3 months, Lee was assessed as the 10th Grade……
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2016.3 IP Protection on the Business Model —- From the perspective of trade secrets
From March to September 2015, within 6 months, the State Council has mentioned that the relevant departments shall analyze on how to apply the IP protection on the new forms of the creative innovations including the business model, in 3 files, the……
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2016.2 The Potential Risks and Countermeasures in Using Software
Several engineers of Company A downloaded drawing software from the internet. A few months later, Company A received a Lawyer’s Letter from Company B, in which it stated that Company A had downloaded Company B’s software, Company……
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2016.2 How to Set the Service Invention Reward and Remuneration Rationally
The ‘Detailed Rules for the Implementation of the Patent Law’ has prescribed that the agreement on the reward and remuneration for service invention (hereinafter refers to ‘Service Invention Rewards’) shall prevail, which further prescribed that an employer……
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2016.1 How to Deal With the Fraudulent Reimbursement?
As the salesman of a Shanghai company, Liao had to travel throughout the country frequently, and apply for reimbursement with a lot invoices every month. At the end of the year, the company hired an accounting firm……
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2016.1 Tips for Collecting Debts
In order to be the leader in the market, Company A took the ‘Sales is Everything’ as its first priority. All the salesmen had done their best to make the deal, but ignore the examination of the clients’ credit and the management of……
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2015.12 How to Manage the Marriage Leave?
In February 2014, Ms. Zhou asked for the marriage leave. Because Ms. Zhou got married at a late age as stipulated by the relevant law (Note: The late marriage leave would be abolished since the ‘Amendment of the Law of the People’s Republic……
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2015.12 How to Demonstrate ‘The Dormant Shareholder shall be Entitled to Request the Company to Register it as the Registered Shareholder with the Consent of the Majority of Other Shareholders’?
Zhao was the dormant shareholder of Company A, he has made the capital contribution, and attended many shareholders’ meetings. Due to the dispute on the dividends pay-out, recently, he filed a lawsuit on the recognition of shareholder, in which……
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2015.11 Issuing An Invoice Shall Be Prior to Making A Payment?
Company A and Company B had signed a “Sales Contract”, in which it had prescribed that Company A would purchase a set of machine from Company B. Later, the machine was delivered to Company A, but Company A refused to make the payment. After……
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2015.11 The Trade Secrets Has not Been Used By the Tortfeasor, Can I Ask For the Loss?
Mr. Wong was the technical department manger at Company A. One day, he downloaded Company A’s food formula and the entire process drawings into his personal computer, which had violated the company’s confidentiality provisions. After that, he……
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2015.10 Is There Any Given Period in Dealing with the Employee’s Misconduct?
In the “Employee Handbook”, Company A has stipulated while an employee asks for an emergency sick leave, the employee shall go through the formalities in 3 working days upon the completion of the sick leave, otherwise, the employee’s……
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2015.10 The Shareholder’s Right to Know V.S. The Company’s Trade Secrets Protection
In order to protect the shareholder’s right to know (‘SRK’), Article 33 of the ‘Company Law ‘has stipulated that a shareholder may request to examine the articles of association, the meeting minutes of the shareholders’ meeting, the resolution……
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2015.9 Whether the Dormant Shareholders Could Review the Company’s Accounting Books?
Mr. Wang is the dormant shareholder of a Jiangsu company. He has made the capital contribution to the company, and received dividends for several times. Because he had doubts on the calculation of the company’s profit, he filed an……
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2015.9 How to Deal with the Malicious Lawsuit Brought by the IPR Holder
Company A planned to engage in the production and sale of a particular device, and filed an application to the authority for qualification. During the examination period, Company B which is the competitor of Company A, brought a lawsuit……
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2015.8 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……
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2015.8 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……
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2015.7 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……
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2015.7 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……
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2015.6 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……
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2015.6 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……
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2015.5 Annual Leave, Welfare or Pressure
In order to improve the employee’s welfare, Company A has stipulated an additional paid annual leave, which is 5 days, in its “Employee Handbook”. However, such employee’s welfare becomes Company A’s pressure. When an employee plans……
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2015.5 Will You be the Next “New Balance”?
New Balance(“NB”), the famous U.S. sneaker brand was sentenced for 98 million RMB for the infringement of “新百伦” trademark, which demonstrated a giant’s tragedy due to “Reverse Confusion”. In fact, NB is not the only giant, Pepsi (“蓝色风暴” trademark infringement……
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2015.4 How to Deal with Slack Off?
Company A deemed that Zhang worked with a low efficiency, which should belong to the serious violation of the conduct rules as stipulated in the “Employee Handbook”, so it dissolved the labor contract with Zhang. Zhang filed……
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2015.4 Don’t Ignore those Issues While Using a Registered trademark
With the improvement of the awareness of IPR protection, more and more enterprises have applied for the registered trademark (“RT”). However, if the RT has been used improperly, it could not add the reputation and value of the owner……
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2015.3 Pay attention to the Employee’s Departure
After resigned from the company, Lee found that the company failed to fill in the reason for termination of the labor contract in the proof of termination of the labor contract, so he filled in the resaon with “layoff”. Then, he submitted a file to……
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2015.3 The Impact of the New Judicial Interpretation of the Civil Procedure Law on “Online Shopping”
Recently, Suzhou Intermediate People’s Court has ruled on the jurisdiction dispute on a Tmall Online Shopping case, which raises a widespread concern. In this case, the court applies the article of the newly promulgated “Interpretation of the Supreme……
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2015.2 To Pay or not to Pay, the Bonus to the Ex-employee
Mr. Zhao, an employee of a Yangzhou company, submitted the resignation at the end of the year. While calculating the rest salary, he found that the year-end bonus was missing, so he asked the company to pay this bonus. However, the company put forward……
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2015.2 Using Online Images may Infringe Other’s Copyright
While a company plans to build a website or design some promotion materials, either the company or the third party entrusted by it would use some images. Some of the images may be made by the company or the third party, however, most of……
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2015.1 The Impact of the Employer’s Relocation on the Labor Contract
Due to the business need, Company A plans to relocate from the downtown to the suburbs, for which it has prepared some resettlement measures, such as the shuttle bus and etc.. However, some employees still refuse to be relocated with……
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2015.1 Risk Prevention Related to the Bankruptcy of the Licensor in the Performance of a Patent Licensing Contract
In the fierce competition, it is not uncommon to find that some enterprises have gone bankrupt. However, when signing a patent licensing contract (“PLC”), the relevant parties would seldom be aware of the risk related to the bankruptcy of the counter party. In……
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2014.12 How to manage the employee with mental illness?
Shortly after Mr. Q joined Company X, he suffered from melancholia. Company X was worried that Mr. Q’s illness might affect his work and other colleagues, so it terminated the labor contract with Mr. Q after he had been……
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2014.12 Strategies for Trademark Parallel Imports
Trademark Parallel Imports (“TPI”) refers to the owner of the registered trademark, or the other licensee has produced and sold the goods with the registered trademark in the export country, a third party (importer) imports the goods with……
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2014.11 WeChat Official Accounts Forward Articles, Caution!
The operator of a WeChat official account forwarded an article of another WeChat official account without authorization, and be deemed as infringing the other operator’s copyright, including the right of authorship, the……
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2014.11 The Effectiveness of the Declaration of the Patent Right Invalid to the Relevant Patent Infringement Proceeding
In the patent infringement proceedings, the plaintiff applies for the declaration of the patent right invalid to the Patent Review Board (“PRB”) during the defense period, which is a common……
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2014.10 Determination of and Countermeasures to the Work-related Injury Related to “Unlicensed Taxi”
Zhang took an “Unlicensed Taxi” from his home to the company, the “Unlicensed Taxi” was crushed by another car, and Zhang was injured in the accident. Then, Zhang applied for the determination of the work-related injury, however, the company……
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2014.10 Say No to the Named “Fact-Based” Business Slander
Company B filed a lawsuit against Company A on the infringement of trade secrets, and the court of the first instance ruled in the favor of B. Whereat, B released a piece of news on its website, said that A might bear a huge amount of compensation for the infringement of……
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2014.9 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……
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2014.9 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……
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2014.8 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……
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2014.8 “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……
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2014.7 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……
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2014.7 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……
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2014.6 Who shall be Responsible for Disservice?
Lee invited neighbor Wang and Zhang to help him make a move. When moving the mirror, Lee reminded Wang to pack the mirror before move. Wang hated troublesome matters, so he moved the mirror without package. Unfortunately, the mirror hurt Zhang’s arm……
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2014.6 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……
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2014.5 The Effectiveness of Data Message Evidence in Labor Disputes
Company A notified Ms. Chen on dissolution of labor contract for her absenteeism. Ms. Chen filed to Labor Arbitration Committee, and claimed that she had asked for leave for those said absenteeism, so Company A should pay economic compensation for its illegally……
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2014.5 Whether A Logo Similar To A Registered Trademark Shall Be Deemed As An Infringement?
Recently, Zhejiang Tea Group Co., Ltd., (“ZJ Tea”), the owner of the registered trademark “Shifeng “, files a lawsuit against Hangzhou Shifeng Tea Co., Ltd. (“HZ Tea”). ZJ Tea claims that HZ Tea has used “Shifeng Tea”, “Taste Shifeng” on……
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2014.4 Prenatal Leave V.S. Long-term Sick Leave
Ms. Zhang, who has a working age of 11 years, got pregnant in the fifth year in Company A. In order to prevent miscarriage, Ms. Zhang had asked for sick leave total of 6 months out of 7 months. In accordance with the rules and regulations of the company, Company A offered……
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2014.4 Prior Art Defense in Patent Infringement Disputes
Prior Art (“PA”) defense is one of defenses in patent infringement disputes. It’s claimed by the defendant with regard to plaintiff’s claim of cessation of the infringement, compensation for damages, which aims at affirming the legality of defendant’s act, rather……
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2014.3 The Hidden Risk in ‘Proof of Income’
Yang was engaged in a labor dispute with Company A, and applied to the Labor Dispute Arbitration Committees (‘Committees’) for arbitration. Yang offered a ‘Proof of Income’ affixed with the official seal of Company A, and asked for corresponding salary……
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2014.3 Does Invention-Creation after Demission belong to Service Invention?
As intellectual property plays a more and more important role in competition, disputes over ownership of patent increase. Among which, the disputes triggered by application of patent by former technologists are usually too complicated to……
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2014.2 Why Should Legal Representative be Liable for Company’s Offence?
Company A works on the manufacture and sale of electronic products, which are sold in the domestic market, or to the overseas market by processing on order. It arranges production according to orders, and the raw materials supply will be in……
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2014.2 The Risk Prevention of Anonymous Investment
In practice, the anonymous investment is quite common. However, under the existing laws and regulations, the legal risks faced by dormant shareholders are noteworthy, there are mainly as follows……
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2014.1 Plagiarizing Contract will Infringe Copyright or not?
Company A had made a contract named as “Research on Particular Conditions of Construction Contract 2009” (“2009 Contract”), and obtained “Copyright Registration Certificate” in 2010. 2011, Company B published its announcement of tender, together……
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2014.1 The Impact of Company Law Revision on the Transaction Security
The reversion of “Company Law of PRC” (“New Company Law”) has been released on Dec. 28, 2013, which cancels the requirement of the minimum amount of registered capital for those limited liabilities companies, changes the paid-in capital into the capital……
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2014.1 Whether “Three Guarantees” shall be applied to Premiums?
Miss. Zhang bought a TV set, the seller gave her a soymilk maker and a fan as premiums. On the same day, Miss. Zhang found there was something wrong with the soymilk maker, she asked the seller to replace. The seller explained that the premium was free, which……
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2013.12 What are the Benefits for Foreign Investors to Invest in Shanghai Free Trade Zone?
From Sep., many companies consult about investing in SFTZ, some foreign investors whom have invested companies in Shanghai, are also interested in the benefits of SFTZ. Actually, whether an investor shall invest in SFTZ, the special benefits……
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2013.11 “Right of Revocation” in Online Shopping
Mr. Huang had to purchase sportswear for the company. Because the company’s logo is light yellow color, he ordered 50 sets of yellow sportswear. After received the sportswear, he found that the color was earth yellow, which……
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2013.11 How to Mark the Enterprise’s Name on OEM Products?
In the OEM system, how to make the enterprise’s name on OEM products? Shall we make the name of consignor or consignee, or both? This is a confusing problem in practice, even different local industry……
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2013.10 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……
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2013.10 “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”……
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2013.9 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……
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2013.9 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……
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2013.8 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……
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2013.8 Restrictive Terms in Technology Licensing Contract
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……
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2013.7 Comparative advertising shall be absolutely prohibited?
“1 Hz is OUT, please do not confuse consumers”,” Full DC is OUT, 10 years old technology is old”. Midea and Gree, 2 air-conditioner companies, were involved in an advertisements’ fight in April 2012, Jiangxi Province. After the advertisements were launched, both……
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2013.7 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……
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2013.6 Can a borrower claim for the compensation of commercial third-party liability insurance for motor vehicles
In 2011, Mr. Zheng brought commercial third-party liability insurance for motor vehicles (“CTLI”) for his car. One day, Mr. Zheng lent the car to his friend Mr. Pan, unfortunately, a traffic accident happened, Mr. Pan was identified with full responsibility. The……
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2013.6 The Employment and Management of Retirees
In accordance with relevant laws and regulations, retirees mean the person whom terminates the labor contract with the employer when he/she meets the criteria of age, type of work the work ability and the endowment insurance. Nowadays, some High-tech retirees are rehired by the enterprises in the relevant……
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2013.5 The Boundary for Work-related Injury and Non-work-related Injury
Mr. Chen is the salesman at company Shadow (“Shadow”). One day, Mr. Lee whom was the client of Shadow invited Mr. Chen to play cards. A few hours later, Mr. Chen lost 20,000Yuan in gambling, and Mr. Chen promised to pay the money within 1 month. 1 month……
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2013.5 New Requirements on Labor Dispatch Will be Applied: What Course to Follow?
“Labor Contract Law (Amendment),” will go effective on 1st, July, 2013, and the new requirements on labor dispatch (“LD”) become a compelling topic, the widely focused topics include: the new requirements on 3items of the position in LD, the issues……
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2013.4 “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……
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2013.4 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……
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2013.3 “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……
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2013.3 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……
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2013.2 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……
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2013.2 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……
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2013.1 Impractical KPI
Shadow (“S”) is an electronic components manufacturer. In order to improve efficiency, S issues “Rules of KPI”, a hundred-mark system is applied, in which 40 points for fulfillment of task, 40 points for attitude, 20 points for attendance, and points……
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2013.1 Restriction and Risk for Making Capital Contributions in the Term of Land Use Right
In accordance with “Company Law” and relevant regulations, the investor may make capital contributions (“CC”) in other non-currency properties that may be assessed on the basis of currency and may be transferred according to law, excluding the……
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2012.12
The company “Shadow” (“S”) thought that Ms. A had disclosed the secret of S and dismissed her. After the accomplishment of arbitration on labor issues, and litigation, since S could not provide enough evidence, S was ordered to……
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2012.12 What’s the impact the New Regulations on Recall of Defective Auto Products Works?
“Regulations on the Administration of Recall of Defective Auto Products” (“Regulations”) was promulgated on Oct. 10, 2012, and will come into force on Jan. 1, 2013. Being the new regulation which has a higher legislation hierarchy……
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2012.11 The Follow-up Consideration on the Ceased Operation or Production
The market was in a downturn, so “Shadow” (“S”) decided to cease a line. On Feb. 5, S notified its 20 hourly employees of the news that the line was ceased, and all the employees should still register at company every day. Mar. 1 was the payday, S said that……
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2012.11 “Untruthful Declaration” Shall be Inevitably Imposed of Administrative Punishment?
In the procedure of the import and export declaration, to identify the commodity classification (“CC”, viz choosing the Tariff Code) is a skill requires high technicality and professionalism. In practice, different enterprises, even……
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2012.10 Lose Weight Crazily VS Keep Fit Reasonably
“Shadow” (“S”) is a mid-sized company, in the past few years, with the improvement of R&D, the added value of S’s products has been increasing and S has made a sizeable profit. However, the KPI system exists in name only, the……
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2012.10 The Identification and Countermeasure to Commercial Bribery in China
In the recent years, the commercial bribery (“CB”) events related to foreign invested companies happened frequently; some internationally renowned companies such as Lucent, Siemens and etc. are involved in……
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2012.9 Protection of an Enterprise’s Reputation in the Virtual Space
A and B know that the famous company ”Shadow” values its reputation very much, so they fabricate dozens of accounts on the BBS of a foreign trade website, “disclose” the negative news about Shadow,and blackmail Shadow into……
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2012.9 How to Identify Customer Listas Business Secret?
The former employer’s customers are solicited by the employee by utilizing its Customer List ( “CL”) after he/she has made a job-hopping, which is a common occurrence. Some of those former employers……
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