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  • 2015-09-15
  • 2 minutes Read
‘Law of the People's Republic of China on Promoting the Transformation of Scientific and Technological Achievements’ (‘Amendment’) will come into force on October 1, 2015

The ‘Amendment’ was adopted at the Meeting of the Standing Committee of the National People’s Congress of the People’s Republic of China on August 29, 2015. There are several articles shall be paid attention to. Agreement shall prevail, but there is a special occasion Like the ‘Patent Law’, the ‘Amendment’ has prescribed that the agreement on the reward and remuneration shall prevail. However, for those R&D institutions that are set up by the State, colleges and universities, the standard for the reward and remuneration shall be no less than the statutory minimum standard as prescribed in the ‘Amendment’. The statutory…

  • 2015-09-15
  • 4 minutes Read
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 on the dispute over the utility model patent infringement against Company A. In addition, Company B reported to the authority. Company B insisted that Company A was involved in an IPR infringement case, so it failed to meet the approval requirements. The strange thing was that the involved utility model patent was lack of novelty as prescribed in the patent evaluation…

  • 2015-09-15
  • 3 minutes Read
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 application in written to the company on reviewing the accounting books. However, the company refused his request. Then Mr. Wang filed a lawsuit against the company on the violation of shareholder’s right to know. Finally, Mr. Wang won the lawsuit. The dormant shareholder of a Beijing company, Mr. Zhang has faced the same situation, and filed the same lawsuit, but he…

  • 2015-08-15
  • 2 minutes Read
Regulations on Application of Laws to Certain Issues for Hearing of Private Lending Cases ("Regulations") will become effective on 1 September 2015

Previously, due to the “General Rules for Loans” and relevant regulations, the validity of the private lending, especially the private lending between enterprises, is questionable. With the development of the needs of capital flow, in order to regulate the private lending, the Supreme Court has released the Regulations recently. The Regulations has comprehensively prescribed the aspects of private lending, such as how to define a private lending, the validity of the relevant contracts, the liabilities of the P2P platform, interest rate and so on. The highlights include: To clarify the legal liabilities of P2P platform The provider of a P2P…

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

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

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

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

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

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

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

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

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

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

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

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