Lehman, Lee & Xu is continuing in its mission to provide informative seminars on Chinese law for the Olympic committees of several nations. ※Our primary focus was the United States of America however other missions have expressed significant interest§, states Ed Lehman, managing director of Lehman, Lee & Xu. The presentations are designed to ensure all athletes and support staff are as up to date as possible on China＊s laws. ※Forewarned is forearmed best describes what our presentations are all about§.
There are over 170 diplomatic missions in Beijing and most are sending athletes to Beijing in August. ※We have even had positive responses from countries that are not yet sure they are sending athletes. I received a wonderful letter from the ambassador of an African country thanking us for offering them the private seminar but stating that the status of their Olympic squad＊s participation in the Games has not been confirmed§ relays Ed, whose enthusiasm is difficult to hide. ※As a former athlete myself I want to make sure the participants here have the best Games possible§
Chinese law differs from the laws of developed nations significantly; in some areas there is less regulation (for example there is no minimum age for the purchasing of alcohol) whereas in some areas there is much more regulation (for example the laws relating to group gatherings). ※The time the teams spend in China is about more than gold medals 每 it＊s about coming together and building bridges through sport 每 we hope our seminars can play a small part in bringing China and the rest of the world closer together§
Ed Lehman, a Chicago native is managing partner of Lehman, Lee & Xu, one of China＊s longest established law firms with offices throughout the country.
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July 21, 2008, 10:29 am
China Securities Regulatory Commission promulgated Provisions for Trial Implementation on the Compliance Management of Securities Companies (Compliance Management Provisions). The Compliance Management Provisions, which shall be implemented on August 1, 2008, provided that securities companies shall set up the basic compliance management system.
The Compliance Management Provisions stipulates that the board of directors, the board of supervisors and the senior management of the company shall, according the provisions of law, administrative regulations or the bylaw of the company, perform their obligations related to the compliance of management and shall be responsible for the validity of the compliance of their departments or branches. The employees of securities companies shall also be responsible for the compliance of their performance.
What matters most is that the Compliance Management Provisions stipulates that securities companies shall have a Chief Compliance Officer (CCO). A COO is the senior manager of the securities companies who is responsible for compliance work. COO shall inquire, supervise and investigate the business operation of the securities companies and the performance of the employees of the company. COO shall inquire and supervise the internal management system of the company, the important decisions, the new products and the new operation plans. If there is anything illegal with the securities company or any potential risk existing with company compliance, the COO shall initiatively report to the relatively departments of the company as well as to Securities Regulatory Bureau.
To promote the establishment of compliance management system, the Compliance Management Provisions also stipulates that securities companies shall have the performance inspection and drive mechanism system. The COO shall be included into the senior management of the company and their performance shall be assessed, and their remuneration shall be grounded on the outcome of the assessment.
Wei Wei Ye from Lehman, Lee & Xu＊s Beijing office thinks that the new Compliance Management Provisions are not only good for securities companies to establish compliance management system, but also good for the development of the securities industry. She also stated that the ※new provision will promote a healthy and regular securities environment§.
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July 18, 2008, 5:02 pm
Lehman, Lee & Xu welcomed the President and CEO of Ardit & Partners, Dr. Arben G. Shehi, to Beijing last week. Ardit & Partners is the leading patent and trademark firm in Albania. Dr. Shehi met with Lehman, Lee & Xu Managing Director Edward Lehman to discuss the possibility of the two firms cooperating in the future.
 Dr. Shehi comes from an engineering background where he became the first president of both the Albanian Chamber of Commerce and Industry and of the Tirana Chamber of Commerce and Industry. He is currently the president of both the Albanian Chamber of Economy and the Industrial Promotion Center of Albania. However, Dr. Shehi＊s finest contribution to the development of industry in Albania was his effort in spearheading the creation of the Industrial Property Law passed by the Albanian Parliament in 1995. After the law passed, Ardit & Partners was formed by Dr. Shehi and his father, Dr. Gani Shehi. Ardit & Partners is the only firm in Albania that specializes in both trademark and patent law as other firms specialize in only one or the other.
Mr. Lehman and Dr. Shehi discussed Albania＊s recent efforts to attract foreign investment in hopes of appealing to tourists wishing to visit the country＊s Mediterranean coastline. China and Albania have nearly 60 years of diplomatic relations, and Mr. Lehman and Dr. Shehi agreed that the Chinese may have a considerable interest in investing in Albania. As the meeting concluded, Dr. Shehi and Mr. Lehman agreed to keep in close contact in order to build a strong mutually advantageous relationship in the future.
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July 18, 2008, 8:27 am
I am Li Guangming, with my English name Frank, and I am from Peking University (Beida as called) Law School, second year for my master＊s degree and with the major in International Commercial Law. And I have passed the bar examination and also TEM8ㄗTest for English Majorㄘ.
Since the graduation date approaches, one of my ambitious dreams will come trueㄜto be a lawyer. Here in this summer, I feel it necessary to find an outstanding law firm to begin my internship. By an occasional and a lucky opportunity, I come to Lehman, Lee&Xu Law Firm, an outstanding law firm, which makes me feel greatly honored.
Though only several days passed, I have learned a lot here, not only about the profession itself, but also on how to behave myself. One sentence repeatedly emphasized by Dr. Lehman, managing director of the firm, impressed me deeply, ※People may forgive your professional mistakes, but never your bad manners as a man.§ Truly, good manners make perfect.
Of course, the professional skills the lawyers here reveal are also undoubtedly fantastic and unparalleled. The presentations given by some of them about their business have shown their proficiency. And in order to become a successful lawyer, I have a lot to learn from them. I know, to apply my school knowledge to practice, I still have a long way to go. But I believe I will be much improved here in this summer.
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July 17, 2008, 5:08 pm
What a fantastic chance it is to step from one of the most famous law schools in China to have an intimate contact with one of the most outstanding law firms in China! We are lucky to obtain it. We five students (including one graduate and four undergraduates) from China University of Political Science and Law (CUPL), namely Stone Shi, Alice Zhang, QD Qi, May Liu and Tak Tan, feel it a great honor to have taken this opportunity to be here in Lehman to finish our summer internship. We are ※old guys§ in our college for the three-year study of law there, with the indoctrinations from many eminent professors. However, in the professional world, we are just rookies. So we are prepared for the challenge, which is a must for a law school student to become a lawyer. And that＊s why we want to thank Dr. Lehman so much for enrolling us in his successful business, so that we learn a lot from the most superb lawyers in China about how to analyze a case, how to do a law research and how to solve a concrete problem, which are the abilities we can hardly gain in school.
Compared to other domestic law firms, Lehman is more open-minded and internationalized, which stresses cooperation and mutual benefit a lot. So we believe that this summer will be an unforgettable one in our life, and we will pride ourselves so much for it, since we are already here, in Lehman.
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July 17, 2008, 2:52 pm
Lehman Lee & Xu's sports law practice group, the most prominent of its kind in China, has been chosen to represent the U.S. Olympic Committee in all local matters related to the 2008 Olympic Games. The U.S. team traveling to Beijing will be the largest visiting delegation in the history of the Olympic Games, according to Dana Dershowitz of the United States Olympic Committee.
Lehman, Lee & Xu is a legal pioneer in the sports law field in China. The firm has been responsible for many sports related initiatives including providing tailor made presentations to national Olympic committees from nations throughout the globe on aspects of Chinese law relevant to foreigners
"We already feel like we've won the first gold medal" says Edward Lehman, Managing Director of Lehman, Lee & Xu. "Its fantastic to be representing my home country's team here in China, especially at this momentous juncture in this nation's history. This is the first time in many years that the U.S. team has attended the games in a country with a legal system so vastly different from their own. We're here to ensure that everything runs smoothly and that the U.S. team has their best Games yet"
Ed Lehman has a long history in the field of sports law. He has been an active member of the Geneva-based International Association of Sports Lawyers for ten years, and was the catalyst in creating Sports Beijing, a not-for-profit organization established to promote sports in Beijing's school system. "I was their first Chief Representative and it is a cause that will always be close to my heart, having been an NCAA track athlete for four years during college"
Ed Lehman has been in China for 21 years and, as the only foreign director of a Chinese firm, has seen the legal system develop from an embryonic state to a comprehensive system of laws. "What the Chinese really have going for them is their tremendous spirit and national unity. The Chinese are amongst the most gracious hosts in the world and this will really show during the games. There are differences in our legal systems though, and that is what spurred me to come up with a series of presentations for the USOC. I wanted to explain these differences and enable athletes and other participants to make the best of the games and their time in Beijing." Lehman, Lee & Xu has since been asked to provide these presentations to other national Olympic Committees. "We feel an obligation to make sure that all Olympic teams are going into the games as informed as possible on matters of Chinese law", says Ed.
A Chicago native, Ed states there is only one sporting event he could see himself getting more excited for: "Chicago is in the running to host the 2016 Olympics - to see the Games in both of my hometowns- now that would be really incredible."
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July 16, 2008, 8:51 am
Guangzhou liaison office of the China Audio and Video Association has taken steps to stop KTV bar operators and VOD technology suppliers from using unauthorized music. The office recently appealed to the city's copyright bureau to take action against suspected bar operators and suppliers. The bureau has urged two KTV bar operators in the city to take part in an administrative investigation and has joined forces with the municipal cultural market comprehensive execution team and public security bureau to investigate two karaoke VOD suppliers to confiscate their products and business documents.
Amy Yang, of Lehman, Lee and Xus, has commented that ※KTV bar operators have always been the loser in the lawsuits launched by the Association. However, operators still try to escape royalty payments through various techniques. That strategy may not work any longer since the Association has taken more proactive measures to defend artists＊ copyright. This is part of a broader crackdown on intellectual property infringement in China§.
Guangzhou karaoke bars face the music(China Daily)
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July 15, 2008, 3:41 pm
China's first anti-monopoly law goes into effect on Aug. 1, and attorneys at global firms are trying to figure out how it will affect their clients, particularly multinational corporations with significant market share there. There are also concerns about whether politics will play a role in the implementation of the new law. Joey Zhu, from Lehman, Lee and Xu＊s Shanghai office, considers that ※the promulgation of the anti-monopoly law will be a new age for the regulation and amelioration of Chinese market economy§.
For more information see http://www.law.com/jsp/article.jsp?id=1202422835203
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July 15, 2008, 10:42 am
BEIJING, July 14 /Xinhua-PRNewswire/ 每 Pacific Rim and U.S. west coast corporate and litigation law firm Bullivant Houser Bailey PC and Lehman, Lee & Xu, a top-three China-licensed law firm, are pleased to announce their strategic alliance. The two firms will provide People＊s Republic of China (※PRC§) corporate clients with greater access to foreign capital markets and funding.
The alliance allows both firms＊ corporate finance and international securities practices to expand their global reach and to respond quickly and efficiently to the needs of PRC companies as they seek to enter foreign capital markets and engage in cross-border transactions. The two firms will maintain their separate identities and will serve as co-counsel on specific matters.
"Our strategic alliance with Lehman, Lee & Xu marks a new chapter in Bullivant's established history of providing quality, cost-effective legal services to our clients," said Scott E. Bartel, Chair of Bullivant＊s Corporate Finance, Securities, and International Transactions group. "With the PRC's growing prominence in the global marketplace, we sought a strong and reputable firm in China to assist our clients with their entry into the PRC marketplace."
Bartel added that Lehman provides the desired local legal knowledge and expertise that Bullivant was seeking. He noted that the alliance with Lehman allows both firms to serve the ever increasing needs of PRC companies as they navigate the complex legal environment to access the U.S. capital market. "We look forward to continuing to build our strong relationship with Lehman and to help our clients expand their business globally," he said.
※Our domestic Chinese clients have recently grown more proactive in seeking American investors to raise capital for their companies. We are confident that Bullivant Houser Bailey＊s strong corporate and securities practice will complement our firm＊s strengths in working with Chinese companies and our expertise in the PRC regulatory environment,§ said Edward Lehman, Managing Director of Lehman, Lee & Xu. ※Our alliance with Bullivant Houser Bailey will allow Chinese clients to access American capital markets with greater ease.§
About Bullivant Houser Bailey PC
Bullivant Houser Bailey PC is a business and litigation law firm with six offices and more than 160 attorneys on the Pacific Rim and West Coast of the U.S. Headquartered in Portland, Oregon, the firm maintains offices in Sacramento and San Francisco, California; Seattle and Vancouver, Washington; and Las Vegas, Nevada. In 2008, Multicultural Law magazine again named Bullivant a Top 100 law firm for workplace diversity. Learn more at www.bullivant.com.
About Lehman, Lee & Xu
Lehman, Lee & Xu, established in 1992 and with more than 300 attorneys and 22 offices throughout the Asia-pacific region, is at the forefront of international law practice in China. Over the past sixteen years, the firm has built a strong reputation in banking, foreign direct investment, mergers & acquisitions, international trade and dispute resolution. In the last year alone, Lehman, Lee & Xu has advised on more than U.S. $1 billion of China-related deals. Headquartered in Beijing, the firm maintains offices in Shanghai, Shenzhen, Hong Kong, Macao, and Ulan Baator. To learn more about the firm, please visit www.lehmanlaw.com.
Mike Schnurr,
Lehman, Lee & Xu
Tel: +86-10-8532-1919
Kristen Leis
Bullivant Houser Bailey PC
Tel: +1-800-654-8972
To learn more about our exciting strategic alliance with Bullivant Houser Bailey please see the Press Room on our website at http://www.lehmanlaw.com/press-room.html !
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July 14, 2008, 8:30 am
Looks like the Beijing Organizing Committee for the Olympic Games' (BOCOG) declaration that they would be fining ambush marketers during the Olympics might actually have some teeth to it, at least enough to scare companies into canceling their ambush marketing deals - the Wall Street Journal reported last week that Chinese sportswear maker Li Ning has canceled its deal to clothe CCTV broadcasters during the Olympic broadcast:
The company, which isn't an official sponsor of the Beijing Games, suspended a coveted deal under which it had furnished clothes and shoes worn by sportscasters on China's giant state-run sports channel.
...
[T]he demise of a deal between two such well-connected entities sends a warning that the Chinese government is serious about enforcing sponsorship deals.
A lot of the damage has already been done in terms of Chinese consumers' perception of brands associated with the Olympics. Undoubtedly, the BOCOG was well aware of the issue of ambush marketing far in advance of the games, but they chose to make a statement regarding ambush marketing only two months before the games. Even though Li Ning, a brand that is virtually un-known outside of China, won't be able to make impressions on viewers during the game, they've already made a tremendous showing in their biggest market.
The government appears to be planning a good faith effort during the games themselves. However, considering that the poll reported in WSJ shows four of the ten brands most associated with the Olympics are non-official sponsors, it's not so obvious that the government was serious about enforcing sponsorship deals. As is often the case in China, government inaction or delay may have been tantamount to action in itself, granting increased awareness of Li Ning's brand well before the Olympic events.
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Background:
Athletic-Wear Firm's Olympic Dream Fades (Wall Street Journal)
Rule Bans Ambush Marketing (China Daily)
Beijing Regulations on Ambush Advertising During the Olympic Games (Lehman, Lee & Xu's China Law Digest)
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July 3, 2008, 10:12 am
On June 10, 2008, the National Tourism Administration has announced that it will appeal the following regulations:
Interim Regulations on Tourist Complaints
Date announced: June 1, 1991
Replaced by: "Procedures for Interim Compensation on Travel Agent Quality" (National Tourism Administration Decree No. 7) and "Ordinance on Travel Agent Management Rules" (National Tourism Administration Decree No. 16)
Interim Procedures for Pilot Sino-Foreign Joint Venture Travel Agencies
Date announced: December 2, 1998
Replaced by: "Travel Agency Management Ordinance," State Council Decree No. 334
Travel Agency Management Personnel Qualification Regulations
Date announced: May 8, 1997
Source: Gov. cn Laws and Regulations (Chinese)
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June 18, 2008, 11:33 am
Government-issued awards have played a substantial role in promoting social cohesion and stability in a formerly restive Anhui county.
According to Legal Daily, the Justice Bureau has found in a survey that issuing financial awards to community mediators who resolve social disputes in Jinping county has reduced crime rates, property disputes, and civil suits. The awards range from RMB 200 to RMB 500 depending on the impact of the dispute on the community.
Between the period of January and March, RMB 69,800 was awarded to 349 meditators who successfully solved community disputes.
Source: http://www.legaldaily.com.cn/0705/2008-06/02/content_871013.htm (Chinese)
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June 5, 2008, 10:27 am
Beijing Found Online Software Company Limited (also known as Found Online), the entity responsible for the search engine zhongsou.com, was fined RMB 100,000 by the Hebei Province Punishment Administration for copyright infringement.
According to Hebei Province Copyright Bureau Director Hai Bopan, the fine is the first fine imposed on a search engine for direct infringement. Unlike the suit that is currently on-going against Baidu for linking to unlicensed music, zhongsou.com was found to have hosted unlicensed music directly on its servers.
Source: Legal Daily: "Found Online" Fined 100,000 Yuan (Chinese)
Earlier: U. S. Record Companies vs. Baidu, Redux
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June 4, 2008, 9:47 am
The Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Finance stated that it will issue 3G licenses after industry restructuring is completed. Regulatory agencies have encouraged fixed-line operator China Netcom to merge with China Unicom and for China Telecom to purchase China Unicom's code-division multiple access (CDMA) network.
According to China Daily's analysis,
China Mobile will be granted a 3G license based on the country's home-made technology TD-SCDMA, while China Telecom and China Netcom will get theirs based on the WCDMA and CDMA2000 standard respectively.
The 3G licensing will also unleash huge demand for infrastructure, equipment and handsets, presenting opportunities to foreign companies like Ericsson, Motorola and Nokia as well as domestic players such as ZTE and Huawei Technologies.
Source: 3G licenses to follow telecom restructure (China Daily)
See also: Rewired: The long-awaited reorganisation of China's vast telecoms industry begins (The Economist)
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June 2, 2008, 4:59 pm
In response to an increasing number of goods confiscated by Customs for intellectual property right infringement, Legal Daily reports that Customs has issued an announcement detailing regulations on manufacturers of goods destined for export addressing intellectual property infringement issues:
1. Manufacturers are now responsible for checking on intellectual property rights before accepting an order. If Customs determines that manufacturers have infringed intellectual property rights, the goods will be confiscated and the manufacturing company will be fined. Moreover, the manufacturer will be criminally liable for the infringement.
2. Customs will impose obstacles for companies known to violate intellectual property rules. Customs ranks manufacturers from grades A through D. A company with grade A has no history of intellectual property infringement and goods produced by an A-rated company will be rapidly cleared through customs. However, should Customs discover three instances of intellectual property infringement in a single year, an A-rated company can be immediately downgraded to D-grade and face substantial delays in the clearance of their goods for export.
Source: http://www.legaldaily.com.cn/0705/2008-05/26/content_865194.htm (Chinese)
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May 28, 2008, 2:28 pm
The following organizations are currently accepting donations in support of earthquake relief in Sichuan:
Red Cross Society of China
Oxfam Hong Kong
Mercy Corps
World Vision
Pandas International - relief for the veterinarians, researchers, keepers, stranded up in the mountains near the epicenter of Dujiangyan.
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May 15, 2008, 8:49 am
All readers of this blog should be aware we are one of the foremost intellectual property law firms in China. I do not say this for self-promotion but rather because I want talk about one of the most common things we see in our daily practice 每 the failure by organizations to register their trademarks in China.
We are constantly engaged by clients to prevent abuses of their trademarks in China. Unfortunately, many clients assume that, since they have registered their trademarks in other jurisdictions, their trademark is protected in China. We have had clients who have engaged in business in China for several years based on this assumption. This becomes a significant problem when someone else decides to profit from the client＊s ignorance and registers the mark. Usually, the sole reason why these people register trade marks is so that they can blackmail the legitimate business.
If we become aware of this early, there are legal mechanisms available to remedy the situation 每 this comes at cost that could have easily been avoided. However, worse is when considerable time has lapsed and the client＊s rights are barred by statute. This makes it extremely difficult to achieve an effective solution for the client that does not involve purchasing the trademark from person who has registered it, and nobody likes meeting a blackmailers demands.
This reiterates the importance of obtaining comprehensive legal advice prior to venturing into China. Not considering intellectual property issues when establishing your presence will leave you open to a sea of troubles at a later date; troubles that could have easily been avoided by seeking some prudent legal advice.
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May 7, 2008, 4:35 pm
Consistent with its aim of improving transparency in the government's policies, the National Development and Reform Commission has launched an initiative to post government policy on its website (Chinese). Any information not available on the website can be requested by submitting the NDRC's information request form (Chinese), which the NDRC guarantees will be responded to within fifteen business days.
Source: Xinhua/China Daily
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May 5, 2008, 5:10 pm
A controversial issue in the last few weeks in China has been the comments made by CNN commentator, Jack Cafferty, where he labeled the Chinese as ※thugs and goons§. In late April a group of Beijing lawyers instituted legal proceedings claiming that Cafferty＊s comments ※seriously violated and abused the reputation and dignity of the plaintiffs as Chinese people, and caused serious spiritual and psychological injury to the plaintiffs.§ MSNBC
Under China＊s case management system the case still needs to be accepted by the court. Many people have laughed off the claim as a frivolous suit with little grounds of success 每 a mere publicity stunt. However, those with a more thorough understanding of Chinese defamation law recognize that it is not as hopeless as it first seems.
Article 101 of the General Principles of the Civil Law provides that insult or slander that harms individuals or citizens is prohibited. The Explanation of the Supreme People＊s Court Regarding Some Questions in the Trial of Cases Concerning the Right of Reputation outlines three situations in which defamation will be found: (1) where the content of news reports is ※seriously mistaken§ or, in the case of critical news reports, where the ※basic content§ of such reports is incorrect, and such mistakes or inaccuracies result in harm to reputation, (2) where insulting or slanderous language results in harm to reputation, or (3) where unauthorized revelation of personal details causes harm to reputation
Accordingly there is no doubt that a person can bring a claim in respect of the publication of false and derogatory material in China. Further, in the case of a claim based on points 2 and 3 above, it appears that the truth of the comments will not provide a defense to the claim.
The interesting issues in this case, if it is accepted and ultimately litigated, will be whether expressions of opinion can infringe Article 101, and whether an individual has standing to bring a claim where the expressions are directed at a large group. Chinese
Chinese law does not provide a fair comment defence to defamation and, as such, the prevailing view is that an opinion may be defamatory for the purposes of Article 101. Whether an individual can bring a claim for defamation of a group is not clear.
If this case is accepted by the court (it may not be for political reasons) then it may answer some interesting questions about the state of China＊s defamation laws.
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May 5, 2008, 12:07 pm
The e-bulletin released by China Labour Bureau on the new Labor Arbitration Law on April 23, 2008 may be of interest to our readers:
The report is based on a detailed analysis of three work-related injury and illness cases handled by CLB as part of its Labour Rights Litigation Programme. In one case it took an injured worker over a decade to get any disability compensation. In another, it was only after a migrant worker died of leukaemia that his parents were partially compensated for the family's massive medical bills. And a former gemstone worker suffering from silicosis only received compensation after a high profile official intervention. He died six months later.
Help or Hindrance: China's Institution of Public Redress (via China Law Mailing List)
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April 30, 2008, 8:58 am
Quick post with a couple of law updates:
Stamp tax has been reduced from 0.3% to 0.1% in order to encourage trading activity.
Political Bureau of CPC has ratified its five year anti-corruption plan. (I love that the government still does five year plans here.) Keywords in the plan: prevention, punishment, and education.
Macau has placed a moratorium on new casino building.
Statement: Shanghai Tobacco Regulation Office to introduce smoking ban (Chinese) to include all public indoor areas, including workplaces, taxis and government buildings.
Taiwan residents now eligible to sit for mainland exams. Details of eligibility and application process have not yet been announced, which is why we sat on this for a bit before posting it to the blog, but we'll post them later.
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April 29, 2008, 11:20 am
The Standing Committee of the National People's Congress (NPC) has disclosed its agenda for 2008. The focus of its attention will be on "[Improving] the Socialistic Legal System with Chinese Characteristics." From China Daily:
The NPC Standing Committee will review draft amendments to 11 laws this year, including the Law on Protection of the Disabled, the Law on Insurance, the Patent Law, the Law on State Compensation, and the Electoral Law.
The draft amendment to the Law on Protection of the Disabled, which includes added details about stable financial support, better medical care and rehabilitation for the disabled, and favorable jobs and tax policies, is likely to be passed within this year, according to the work agenda. However, a date is not yet available.
Additionally, the NPC Standing committee will review seven draft laws on:
- Management of an environment-friendly economy
- Administrative enforcement
- Management of state-owned property
- Food safety
- Social insurance
- Protection of intangible cultural heritage
- Arbitration of land dispute in rural areas of the country
The China Daily report predicts that five of the above laws will be passed this year. Additionally, the Standing Committee will evaluate the efficacy of laws passed recently, including the Law on the Protection of Minors, the Law on Employment Contracts, the Law of Farmers' Specialized Cooperatives, the Law on Environmental Impact Assessment, and the Compulsory Education Law.
We often find ourselves repeating to our friends and colleagues that China's chief leaders are extremely intent on making China an ever-improving place to do business. We sincerely believe in this sentiment. Food safety, the environment, social security, rural land disputes -- all of these affect the Chinese business climate.
The Standing Committee's explicit focus this year, "Improve the Socialistic Legal System with Chinese Characteristics," is just another confirmation of this strongly-held belief. In reality, however, this has been a goal of the government for years.
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April 23, 2008, 12:23 pm
By now, frequent travelers to China have probably heard that China has been tightening the restrictions on visas to China. We've been following the developments of these restrictions since late March, and now bring you a summary of the developments and what to expect in the latest Lehman, Lee & Xu China Law Digest e-newsletter:
The latest development was announced on several Chinese embassies＊ websites on April 14th that an original letter must now accompany applications for ※F§ visas from a Chinese state organ confirming the bona fide nature of the applicant＊s business in China. Currently this is appearing on websites belonging to the embassies of Singapore, South Africa, Australia and the United States though it can be assumed that the policy is being applied to all countries. Compared to the prior situation where a letter from the businessperson＊s employer would suffice, this demonstrates a major departure from the previous situation.
As always, please feel free to contact us with any questions regarding these recent developments in Chinese visa regulations.
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April 21, 2008, 5:14 pm
The National People's Congress has vowed to publish all draft laws in order to invite public participation and comment. According to China Daily,
"The draft laws will be published on our official website (www.npc.gov.cn). If they're closely related to the interests of the people, the drafts will also be published on major newspapers," the Committee said.
Unfortunately, it appears that the draft laws are currently being published only in Chinese.
The latest draft law to be published for public comment is the Food Safety Law, introduced on April 20, 2008.
Other draft legislation for which the NPCC is currently soliciting public comment on its website:
- Water Pollution Restrictions Amendment Bill
- Employment Promotion Law
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April 21, 2008, 4:44 pm
Last night, Edward Lehman awarded the China University of Politics and Law Lehman Law Scholarship. Ten scholarships were granted to the following students: Liang Jiaolong, Liu Jiaxin, Wang Qingyu, Yin Wen, Tan Yongchao, Guo Hainan, Tang Yiqi, Zhang Yi, Liu Mei, and Qi Dan.
The scholarship winners were selected on the basis of their academic performance, community involvement, and contribution to the university.
Congratulations to this year's China University of Politics and Law Lehman Law Scholarship!
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April 17, 2008, 4:32 pm
As part of its celebration of World IP day on April 26, 2008, Shanghai will hold an Intellectual Property Rights Awareness Week from April 20 to 26. The focus of this year's Intellectual Property Rights Awareness Week is on audio-visual piracy.
According to the China Intellectual Property Network (via Shanghai Intellectual Property Training Center - Chinese), all levels of government departments will be promote intellectual property protection awareness by participating in seminars, forums, and training courses; and also by advertising in all forms of broadcast, print and online media.
As part of Intellectual Property Rights Awareness Week, inspections on street vendors selling audio-visual goods will intensify with a push to destroy pirated audio-visual goods.
WIPO has an extensive listing (English-language) of the activities in Beijing and Shanghai in celebration of World IP day. Of interest is the major conference in Shanghai, but our Google searches aren't turning anything up, and the U. S. Consulate Shanghai website isn't working in our browser at the moment.
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April 17, 2008, 10:41 am
Over the last few months, there has been a crackdown on local governments that illegally granted land to property developers or industrial parks. According to Xinhua/China Daily:
Chinese authorities uncovered 31,700 cases of unlawful land seizure from September 15 last year to January 15, involving a total land area of 3.364 million mu (about 224,267 hectares), said Zhang Pu, deputy director of the law enforcement and supervision bureau of the Ministry of Land and Resources, on Monday.
Nearly 60 percent of the land was used before obtaining government approval. The rest was illegally rented or misappropriated, Zhang said at a press conference.
Cooperating with local governments often isn't sufficient to guarantee the legality or safety of land or business deals: the government must be involved on all levels.
In Beijing municipality, the approval process is managed by the Beijing Municipal Bureau of Land and Resources. However, all foreign-invested real estate purchases must go on record with the Ministry of Commerce, who has the final say on whether or not to approve the process.
If you have any questions about the real estate approvals process in any jurisdiction, please feel free to contact us. Meanwhile, we remind you that now might be a good time to review any land held by your company in China and keep all of your approvals and permitting up to date!
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April 15, 2008, 11:31 am
We just wanted to say congrats to our colleague Sinky Tang, who has been appointed to Shanghai Jiang'An District Court. We wish you all the best in your new position!
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April 14, 2008, 6:11 pm
After losing their lawsuit last fall in the People's High Court of Beijing, Warner Music Group, Vivendi SA and Sony Corp have turned to the International Federation of the Phonographic Industry to file a suit in their behalf against two popular Chinese search engines, seeking record damages of US$9 million from Baidu and US$7.5 million from Sohu.com, according to China Daily. The suit, filed in February, was accepted this month by the Beijing No 1 Intermediate People's Court.
According to China Daily:
The lawsuits against Baidu and Sohu may make Chinese Internet companies liable for more damages. Compensation in the cases was calculated on the basis of $71,000 in damages per track, the record-industry federation says in an e-mailed statement. The $9 million being sought from Baidu is based on copyright violations for 127 songs, while the IFPI says the Web site offers links to more than 250,000 pirated tracks.
Should the suit be found in the record companies' favor, search engines' liability for links to pirated music would grow astronomically: the requested damages exceed the U. S. dollar-denominated value of the largest work-injury compensation to date, RMB 60 million shared among 148 plaintiffs.
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April 14, 2008, 2:52 pm
China Daily reported that the State Council approved the intellectual property strategy suggestions developed by the Standing Committee of the CPPCC National Committee on Wednesday. The original suggestions posted to SIPO's website are here, but here's a quick rundown of the seven points in the document by China Law Blawg: 1. The goal of the national development strategies of intellectual property (IPR) rights in should be compliance with international treaties and agreements that is suitable for the China＊s current conditions.
The purpose of scientific development of China's intellectual property (IP) strategy is to:
- Strategically promote adjustments to the economy
- Establish the rule of law and a market
- Promote the development of advanced production capabilities
2. Formulate a unified code of IP research: a comprehensive and systematic study of IP lawmaking. Coordinate existing IP laws and related regulations. Increase protection against unfair competition.
3. Draw from foreign experiences on judicial protection by establish a unified IPR Court of Appeal, and promote administrative and judicial coordination.
4. Optimize integration of administrative resources and unify coordination between administrative bodies. Adopt Hong Kong＊s approach as a guide to IP protection and for guiding and supporting SMEs in the role of IPR.
5. The formulation and implementation of the IPR strategy must be easily understood: the national IP development strategy should be a model for the establishment and execution of industry＊s IP strategy.
6. Improve the training of intellectual property professionals. Increase conferral of master＊s and doctoral degrees in IPR, and increase faculty specializing in IPR. Establish "intellectual property personnel training bases." Create IP courses in science & engineering university departments.
7. Enhance IPR awareness. Reach out to all levels of the government, to the science and technology sectors, and to the general public.
Considering that the proposals explicitly stated that they're looking to foreign experiences on intellectual property legislation, it seems likely that SIPO will solicit comments on any upcoming legislation regarding an IPR Court of Appeal, as they've done on other regulations involving significant international interests. China Law Blawg will keep you updated if we hear anything about it.
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April 11, 2008, 2:22 pm
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