China announced on Friday, February 5th that it will impose anti-dumping duties on broiler chicken imports from the United States. China is the largest importer of chicken products from the US, imports of which reached 584,300 tons in 2008 and accounted for 20 percent of US exports and 75 percent of Chinese imports during the same period. Expected to come into effect on February 13th, duties of 43.1 and 80.5 percent will be placed on US exporting companies Tyson Foods and Pilgrim＊s Pride Corp., respectively.
The duties attempt to correct the disadvantage local producers experience as a result of US chicken product dumping. As a result of the ruling, it is estimated that China's monthly chicken imports will fall by 63,000 tons while increasing the cost of US products by about 0.05 yuan more per pound than Chinese chicken products.
Many believe these increased import duties are a reaction to recent Sino-American political tensions, including the U.S. arms sales to Chinese Taiwan, American pressure on China to appreciate its currency, as well as the recent U.S. tire ruling issue. It is not believed, however, that it will escalate into a trade war between the two nations.
Expressing the importance of these issues for the U.S. and China, Managing Director of Lehman, Lee, and Xu Edward Lehman commented, ※We at Lehman, Lee, and Xu understand the legal and economic effects these issues can have on Chinese companies invested in international trade. We encourage Chinese companies to consult with us with any corporate, investment, or international legal concerns they may have.§
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February 9, 2010, 12:37 pm
The Chinese Central Government has sent eight inspection teams to 16 provincial areas to investigate and prevent melamine-tainted milk powder from being reclaimed illegally to produce milk products. Melamine, a milk adulterant added to poor quality milk to make it appear protein rich by increasing its nitrogen content. It can cause renal failure especially in children and infants.
Milk powder contaminated by melamine was sealed in 2008 after the death of six infants, yet due to difficulty of disposal and destruction, some may have been used as raw materials for dairy products illegally in certain areas. Especially endemic to difficult-to-monitor small dairy farmers as a way to cut costs, melamine is considered absolutely unacceptable to the Chinese Government.
On February 1st, ten-day checks for melamine-tainted milk products were launched across the country to locate any manufacturers still using the illegal powder. These measures in conjunction with arrests made in provinces such as Jilin, Shaanxi, and Heibi are examples of the government＊s efforts to restore confidence in the Chinese diary industry. Simultaneous scientific investigations of efficient ways to dispose of the powder are underway.
Scott Garner, director of the Lehman, Lee, and Xu Shanghai Office, commented, ※This is an excellent example of increased standards for Chinese consumers and the simultaneous spread of the rule of law throughout the country. Consumer confidence is vitally important for Chinese companies at home and abroad.§
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February 9, 2010, 12:35 pm
The pre-paid money card industry in China has flourished in recent years, especially in major cities such as Shanghai and Beijing. They are more convenient than cash and can hold anywhere from 100 to 200,000 yuan. With the exponential increase in the number of companies registered to distribute such cards, there has been a similar increase in the number of complaints especially in regard to their date of expiration.
Often, money left on the cards is absorbed by the companies after they expire. For example, it is estimated that 100 million yuan is left over on expired cards in Shanghai alone. Many people have voiced their opinion that pre-paid cards are an investment and their money should be at zero risk, especially if the company they purchased their card from goes bankrupt or their cards expire.
In lieu of this, the government is looking at ways to protect consumer rights and develop common standards. This relatively new industry experiences little to no supervision, so the PBOC is encouraging customers to purchase their cards from reputable institutions such as China UnionPay while it begins to launch a series of supervisory regulations to oversee the operation of pre-paid card companies.
Lehman, Lee, and Xu attorney Scott Garner of the Shanghai office, stated ※We at Lehman, Lee, and Xu are very conscious of consumer protection in China, and will monitor all developments regarding the increased supervision of the pre-paid card industry both in Beijing and Shanghai.§ For updates, please visit http://www.lehmanlaw.com/press-room.html
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February 9, 2010, 12:31 pm
As a testament to both the level of corruption present throughout China, and the governments dedication to rooting out such corruption; Chinese prosecutors continue to present startling evidence against Wen Qiang the former police chief of Chongqing Province. Wen is charged with accepting bribes, possessing suspicious assets, protecting gangs, and the repeated rape of a college girl.
As the evidence amounts, a portrait of rampant and extensive corruption begins to appear. Investigators found that Wen＊s total assets and spending reached 30.94 million yuan. Of this Wen and his family could only account for 4.08 million yuan in legal income. 16.25 million yuan were confirmed to be gained illegally, while 10.62 million remains unaccounted for.
A total of just over 15. million yuan was gained through bribes from 19 organizations or individuals given to Wen on 119 separate occasions from 1996 to 2009, when Wen was deputy director of the municipal's police bureau or director of its justice bureau.
In addition over 700,000 yuan was accepted between 2000 and 2008 from six bosses of mafia-style organizations, who have been convicted or are under prosecution.
The investigation also found that Wen＊s spending accounts are equally as ※dirty§ with over 120,000 yuan being spent on prostitution.
Locals told China Daily they were "shocked by the immense sum of dirty money" that had been amassed.§ One local taxi driver said that ※He must receive a heavy punishment. Nothing else can pacify people's anger,"
While the extent of this type of corruption is widespread throughout China, the government should be commended for cracking down on corrupt officials like Wen. This investigation shows that China recognizes the problem posed by corruption and is dedicated to reducing its presence in government.
Edward Lehman managing director of Lehman, Lee and Xu, said that ※This move is one of the many signals indicating that China is committed to eliminating corruption and expanding the rule of law throughout all aspects of the nation.§
-Alexander Pan
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February 9, 2010, 12:30 pm
In a report issued by China Business news, Chinas energy conservation, and environmental protection industries may contribute up to 5.3 trillion yuan or 776 billion USD by the year 2015. This would account for nearly 10% of predicted gross domestic product.
According to the secretary of the China Environment Service Industry Association, Luo Jianhua, China＊s ※Green§ sector could grow at up to 20 percent every year between 2011 and 2015. This sector of the economy already makes up a significant 4.9% of GDP thus this predicted growth would indeed be impressive.
These figures come in the wake of recent announcements regarding the details of the PRC＊s latest five year plan which places heavy emphasis on the development of the ※green§ sector and the reduction of China＊s carbon emissions. Please see our blog at http://blawg.lehmanlaw.com/english/ for more information
These figures indicate that China is committed to becoming a world leader in green technology and is dedicated to a so called green growth plan in which high levels of economic growth will be accompanied by high levels of carbon reduction.
Scott Garner the director of Lehman Lee and Xu＊s Shanghai office said that he is ※excited to see China stepping up its efforts to develop a thriving green technology sector and increase its environmental regulations. We are all excited to help firms operating in the PRC to navigate China＊s expanding system of environmental regulations in order to help create a sustainable future for us all.§
-Alexander Pan
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February 9, 2010, 12:10 pm
A Beijing man surnamed Gao is suing the Beijing Coca-Cola beverage company after he found a three centimeter long cockroach like incest inside a bottle of sprite that he purchased from a supermarket.
Mr. Gao took the company to court in 2008 requesting that the company apologize for the incident, pay him 2.05 yuan in compensation, 2.05 yuan as a penalty and 1 yuan for psychological damage.
The Daxing court recently ruled that the Beijing Coca-Cola Beverage Company must pay Mr. Gao 2.05 Yuan in compensation, and said that ※The Beijing Coca-Cola Beverage Company, as an influential drink producer, should improve its supervision of food safety. All of its products should meet the quality standard and avoid endangering their customers' health.§ The court however dismissed Mr. Gao＊s other requests. Mr. Gao said that ※ I don＊t want the money.§ However he was still dissatisfied with the results and is currently seeking appeal.
The 2.05 Yuan compensation is undoubtedly inconsequential to the Beijing Coca-Cola Beverage Company＊s overall financial health, however; the negative media and damage to the Coca-Cola brand could be irreparable.
This ruling takes place on the heels of recent reports that sprite from the same company had been found to be tainted with mercury. This tainted Sprite was allegedly the cause of two cases of mercury poisoning in nearby Tianjin.
If Coca-Cola wishes to maintain its reputation of being the producer of a world class beverage, it must take significant measures to ensure that all of its products adhere to the highest levels of health and safety standards.
Edward Lehman managing director of Lehman, Lee and Xu said that ※ the mere fact that an individual was able to bring a suit against a major company like this demonstrates how far China＊s legal system has come. While there is still much work to be done, we are all excited to be a part of China＊s expanding legal system and help to establish the rule of law in China.§
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-Alexander Pan
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February 9, 2010, 12:07 pm
Edward Lehman, Managing Director of top three Chinese law firm, Lehman, Lee & Xu has been invited to speak at the Asia Pacific 2010 Conference, to be held in Kuala Lumpur, Malaysia on April 28, and 29 2010. The event will be looking at the current issues affecting the oil and gas industry within the Asia-Pacific region.
Others who have been invited to speak at the conference include international law firm＊s Latham & Watkins and Baker & Mckenzie, and large multinational corporations, such as Shell.
From having numerous years of experience offering legal advice within this industry, Mr Lehman was more than happy to accept the invitation to speak at the Asia Pacific 2010 Conference, ※China＊s surge in economic growth has seen a hike in demand for oil. The country exhausted more than 5.1 % more oil in 2008, than it did in 2007. More recent figures from China National Petroleum Corp expect crude oil imports to go up to 9.1 % in 2010§ He continues by adding that ※the Tenth Five-Year Plan of Oil & Gas Exploration (2001 每 2005) was one of the first steps taken to reorganise the once restrictive industry in China.§...
February 8, 2010, 4:14 pm
Who＊s Who Legal has selected Edward Lehman, Managing Director of Lehman, Lee & Xu as one of the world＊s leading Corporate Immigration lawyers.
The award, which makes a selection of 410 lawyers internationally, only makes one selection from China, that of Mr Edward Lehman of Lehman, Lee & Xu.
Already this year, Mr Lehman has been awarded and acknowledge for his contributions and commitment within the fields of trademark and franchising law in China.
Mr Lehman commented that ※I am very honoured to be selected as the leading corporate immigration lawyer in China. This award which collates together the world＊s top 410 lawyers within this field, highlights the dedication and distance Lehman, Lee & Xu will go to in addressing and satisfying our client＊s needs.§ He continues by adding ※having practiced within the legal field in China for over twenty years now, my firm and I have coordinated with numerous international corporations in providing solid legal advice to their immigration concerns. This award demonstrates Lehman, Lee & Xu＊s ability in successfully doing this.§
Who＊s Who is an independent research firm that was named the Strategic Research Partner of the ABA Section of International Law, in addition to its position as Official Research Partner of the International Bar Association. The firm compiles thousands of nominations from clients and private professionals to determine the leading individuals in their respected practice areas.
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February 8, 2010, 11:31 am
Beijing, China, February 5, 2010 - It has been reported that China has been working on a draft law to ensure people with moderate or low-incomes will be able to rent or buy houses at cheaper prices.
Under the draft law, low income families could be guaranteed housing under a low-rent housing scheme, though they would not possess or fully own the rights to the housing they live in.
Apart from the low-rent housing scheme, public housing under the ownership of the government would be another way in which housing could be provided to low income families.
It is also reported that the draft law also provides detailed rules on the amount of floor space for the housing, related service facilities, safety and quality standards, as well as locations of such housing.
※China liberalized its housing market in 1998, and housing prices have continued to soar ever since§ said John Lee, Senior Attorney with Lehman, Lee & Xu. ※The Chinese central authorities have encouraged local government to build more affordable and low-cost houses in an effort to address housing price hikes§ he added.
Lehman, Lee & Xu is a prominent Chinese corporate law firm and trademark and patent agency with offices in Beijing, Shanghai, Shenzhen, Hong Kong, Macau, and Mongolia. The firm is recognized as a leading expert in corporate law and an active member of the Shanghai community.
To learn more about us, please visit our website at www.lehmanlaw.com.
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February 8, 2010, 10:01 am
Sam Engutsamy, February 5 2010
Adopted by the by the sixth session of the Standing Committee of the 11th National People＊s Congress, the Decisions of the State Council to Amend the Implementing Regulations of the Patent Law of the People＊s Republic of China (※the Amended Regulations§) came into effect on February 1, 2010. The Amended Regulations are to be read in conjunction with the country＊s third amendment to its patent legislation, the Patent Law of the People＊s Republic of China (※the Act§), which came into effect on October 1, 2009.
Background: Patent Law
The Act was China＊s third amendment to its patent regime. Previous amendments had been brought about through international pressure for China to develop its IPR regime to international standards. The first amendment to China＊s Patent Law (※1992 Act§) came around through the 1992 Memorandum of Understanding between the United States and China, and China becoming a party to the Patent Cooperation Treaty. The second amendment (※2000 Act§) came around through entry requirements to the WTO and obligation to protect IPR under the TRIPS Agreement. China＊s most recently amendment, the Act, was not created through international pressures, or obligations. Positively, it was through China＊s own domestic realisation that changes and updates to their IPR regime were required. The Act was adopted at the 6th Session of Standing Committee of the 11th National People＊s Congress of the People＊s Republic of China on December 27, 2008, in accordance with the State Council＊s National Intellectual Property Strategy.
The Amended Regulations
The Amended Regulations make a number of modifications to the Patent Law＊s previous implementing regime; in total adding nine new rules, removing five previous rules, and amending forty-seven remaining rules. Outlined below are some of the amendments the Amended Regulations address:
(A) Compulsory Licenses:
Article 50 of the Act states that ※for the purpose of public health, the patent administrative department of the State Council may grant a compulsory license for a patented pharmaceutical so as to produce and export it to the country or region which conforms to the provisions of the relevant international treaty to which the People＊s Republic of China has acceded.§ This in effect allows the State to effectively bypass the country＊s Patent Laws, and grant a compulsory licence should public health issues aris. What the Act failed to do is provide a definition as to the meaning of ※patented pharmaceuticals§.
The Amended Regulations clarifies the Article 50 proviso, by defining patented pharmaceuticals as ※any patented product or product directly obtained according to patented processes in the medical and pharmaceutical field to address public health issues, including patented active ingredients needed in the production of the product and diagnostic supplies necessary for the application of the product.§
The Amended Regulations also go onto stipulate that the granting of compulsory licenses should be in line with international agreements China is a binding signatory to.
(B) Security Review:
Article 20 of the Act states that ※where an entity or individual intends to file an application in a foreign country for patenting an invention or utility model accomplished in China, he shall report in advance to the patent administrative department of the State Council for confidentiality review.§ Failure to submit such a report, would result in the patent being non registerable in China. Article 20 remained silent on the procedures surrounding the confidential examination, and would it would entail. The Amended Regulations, define the meaning of ※invention or utility model accomplished in China§ as ※substantive content of the technical solutions made in China.§ Pleasingly, it also provides details regarding the filing of the confidential examination.
(C) Protection of Genetic Resources:
Article 5 of the Act states that ※no patent will be granted for an invention based on genetic resources if the access or utilization of the said genetic resources is in violation of any law or administrative regulation.§ The Amended Regulations defines ※genetic resources§ as hereditary material with practical or potential values obtained from human, animals, plants or microbes. The Amended Regulations work in coordination with the Convention on Biodiversity; an international treaty that China signed in June 1992, and ratified in January 1993.
(D) Invention Incentives:
Article 16 of the Act states that ※the entity to whom a patent is granted shall give to the inventor or designer of the service invention a reward and shall, after exploitation of the patented invention, pay the inventor or designer a reasonable remuneration on the basis of the scope of popularization and application as well as the economic benefits yielded.§ The Act sheds little light on how such ※reasonable remuneration§ is expected to be calculated. The Amended Regulations outline the use of negotiations between the parties, or using the business entities internal rules in order to ascertain the levels of remuneration to be awarded.
Thoughts:
The Amended Regulations highlight two main pointers. Firstly, it allows certainty to prevail, by clarifying aspects left opened or undefined by the Act. Secondly, it highlights China＊s commitment in strengthen its IPR regime, and working hand in hand with international obligations she is a signatory to.
With China＊s Trademark laws currently being amended, we can only anticipate China＊s IPR regime strengthening in subsequent years, and the fulfilment of the country＊s National IP Strategy.
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February 5, 2010, 3:25 pm
Similar to most other major cities in China, Shanghai is experiencing a wealth of development and investment being pumped into the city. Expected to exponentially increase foreign and domestic investment in Shanghai is the upcoming World Expo, set to take place May through October. Predicted to grow between 9 and 10% thanks to the Expo, Shanghai＊s economy will benefit enormously from the increase in demands for restaurants, hotels, transportation, and retail. The 70 million people anticipated to visit the city will further its already impressive economic growth and status as a Chinese financial capital. Shanghai businesses should strive to retain the investment its visitors will soon offer and use this opportunity to consolidate its reputation as a world leader. Extremely supportive of these opportunities that the Expo will bring, Lehman, Lee, and Xu＊s dedicated Shanghai team offers a range of legal advice to both domestic and international companies to aid them with their ventures and legal concerns in Shanghai.
Morgan Crank
Lehman, Lee, and Xu
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February 4, 2010, 3:42 pm
A 13 year-old boy was rushed to the hospital January 17th to treat mercury poisoning allegedly contracted from a can of Sprite. The Coca-Cola product was purchased by the boy from a supermarket in the Tongzhou district, where the remaining products have since been sealed off by the police. Although he faces sequelae and possible infertility, the boy has been released from the hospital. This is Beijing＊s second case in 3 months of mercury poisoning allegedly resulting from consuming canned Sprite. After inspecting its own manufacturing and production equipment, Coca-Cola insists its quality management system is safe and in line with Chinese quality standards. Although the police are conducting their own inspection, it may take some time before a comprehensive production, transportation, and distribution analysis is made. A comparison should be made between both cans of Sprite in the mercury cases, including date, place, and means of distribution. However, it is also necessary to thoroughly investigate the original stores in which the Sprite was purchased and to take caution when deciding where to purchase drinks. Coca-Cola, however, insists these are individual cases.
Morgan Crank
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February 4, 2010, 3:41 pm
Sam Engutsamy, February 4 2010
China appears to have ＆stepped up a gear＊ in making developments to commit itself down a more environmentally friendly route. Previously postings have highlighted how China has successfully reduced sulphur dioxide emissions for four consecutive years, have pushed for greater use of public transport, and have promoted the use of clean energy vehicles. These reforms are founded upon the 2005 Renewable Energy Law, and its 2009 amended version.
Post Copenhagen, China has submitted proposals, prior to the Accords January 31 2010 deadline, outlining the country＊s commitment to a greener future. China＊s plan was as follow: (i) lower carbon dioxide emissions by 40%-45% by 2020, from 2005 levels; (ii) increase share of non-fossil fuel to around 15% by 2020; and (iii) increase forest coverage by 40 million hectares, and forest stock volumes by 1.3 million cubic meters by 2020, from 2005 levels. The non binding Copenhagen＊s Accord, was reached between the United States, China, India, South Africa, and Brazil during the 2009 United Nations Climate Change Conference. Japan, the European Union, and Australia have since aligned themselves with the accord, and have submitted their commitments also.
As the 11th Five-Year Plan (2006 每 2010) is due to expire, plans and details pertaining to China＊s subsequent five year plans are crucial for the future. To date, China has taken massive strides in making commitments to minimise some negative effects arising from their growing economy. One such example, recently reported China having installed more new wind turbines than either Europe or the United States during 2009. China＊s energy progress is not merely limited to wind power. Announced in 2009, plans are in motion for the building of several solar power plants in Ordos City, Inner Mongolia. China＊s is making sure all surfaces are fully covered in order to become a world leader in renewable energy.
In a move that will both promote the use of solar energy, and the country＊s commitment to the cause, it was announced on February 3, 2010, that China＊s Yingli Green Energy Holding Company Ltd, shall be the global sponsor of FIFA＊s 2010 World Cup. We also should not forget the Three Gorges Dam project; China＊s biggest electricity generating project. Additionally, the creation of the National Energy Commission led by Premier Wen Jiabao, highlights the allegiance China has adopted in terms of green energy. Such a move can only be beneficial for China.
As the world＊s largest producer of greenhouse gases, I am glad to see China making such proactive steps in committing itself to the future. If China continues making such progress on climate change, it could soon emerge to be the world leader within the field, and a shining example for other countries to follow. Well done China.
For further reading, Forbes.com provides an interesting glance of the world＊s biggest green energy projects. ...
February 4, 2010, 3:41 pm
Fancy a trip to the Summer Palace?
＃or the Temple of Heaven, or the Badaling Great Wall? Well, you could stand the chance of winning entry to such locations, and others during the Chinese＊s Spring Festival with a free giveaway.
Beijing＊s tourism authority, www.visitbeijing.com.cn, are planning on distributing 300,000 free e-tickets to 32 of Beijing＊s premier tourist attracts, beginning from February 12, 2010. All applicants need do is visit the above website, fill in personal details, including mobile phone, and select their three preferences in tourist location. A mobile phone can only be registered once, and lucky winners are required to redeem their tickets between February 14, and March 15 2010.
China＊s tourism industry is expected to make 1.4 trillion RMB in 2010, as the number of domestic trips increase. Also as a result of inexpensive flights to Beijing, Shanghai and other mainland cities, China is becoming top destination for foreign tourists.
Such a move allows for more citizens to experience and visit their cultural background. With sites such as the Great Wall, I feel that pictures do not give this magnificent structure enough credit; you really need to get out there, and see it with your own eyes, to realise what an amazing feet of architecture it really is!
China＊s boom in domestic tourism was highlighted upon in a recent NY Times article. ...
February 4, 2010, 3:39 pm
With the coming of 2010 and the new decade, China＊s 11th five year plan (2006-2010) is drawing to a close. As Chinese officials begin to lay the ground work for the 12th five year plan, it is becoming apparent that protecting the environment is a top priority.
It seems that this new five plan aims to shift China into a more efficient, low emission, high growth economy. Experts say that the plan will attempt to reduce carbon emissions by up to 45% per unit of GDP by the year 2020 compared to 2006 levels
The plan will also endeavor to increase the total share of non fossil fuel based energy by 15% by the year 2020. It also aims to reverse the process of deforestation by increasing the total forest coverage by 40 hectares and increasing the total forest stock volume by 1.3billion cubic meters.
The plan will also set specific targets for different economic regions of China and thus will be capable of setting realistic goals instead of broad unattainable targets. In addition the plan will become domestic law and thus firms will be legally required to meet the reduction targets.
This move to reduce carbon emissions and protect china＊s already fragile environment will undoubtedly have significant economic repercussions as energy intensive industries scramble to find ways to reduce their impact. However some experts estimate that environmental degradation currently costs the Chinese economy up to 8% of its GDP. While this move may force firms make painful modifications, it is undoubtedly beneficial, and necessary for China＊s long term growth.
Perhaps more importantly this move indicates that China recognizes and is actively working to ameliorate its environmental problem. Furthermore it shows that China is picking up the mantle of one of the worlds largest economies and is dedicated not only to economic growth but doing it in a more responsible and sustainable manner.
-Alexander Pan
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February 4, 2010, 2:37 pm
Three men were arrested in Shanxi province last week in connection with selling and producing melamine tainted milk products. These arrests come as part of China latest crackdown on tainted consumer products.
Investigators followed the trail of this melamine tainted milk from the discovery of tainted milk candies found in the market. These candies were found to be produced in plants in both Guangdong and Fujian province. Investigators found that these candies had been produced using a milk powder from Weinan Lekang Dairy Company. This company, the investigation concluded, had purchased 10 tons of expired milk powder from a farmer in Weinan and had mixed it to become 32 tons of toxic milk powder. Over 28 tons of this toxic powder were sold to various food companies who used the powder to make candies.
The central government acted quickly to pull all products produced with this tainted milk from shelves and has destroyed the remaining milk powder. The governments quick action can been seen as an indication of China＊s sensitivity towards such issues after 2009＊s tainted milk incident which left six babies dead and countless others sick..
While these arrest and China＊s latest efforts to catch and punish those producing and selling tainted milk products should be applauded, they are only punitive measures. China has yet to implement an effective system of preventative measures to stop these tainted products from being produced in the first place. It is good to see that China is serious about cracking down, however much more is yet to be done.
For more information please visit our website at
http://blawg.lehmanlaw.com/english/archives/2010/01/15/734.html
-Alexander Pan...
February 4, 2010, 2:32 pm
More than 140 German investors have established their invested companies in Taichang, making it the most German- intensive investment destination in the Jiangsu province.
Recently, the local intellectual property office of Taicang carried out a survey among those German-Invested companies. The survey was sent to 100 companies, of which 58 responded.
Patents, trademarks and copyrights infringement and trade secret issues cause concern among foreign investors who want to transfer core technologies into China, according to a survey.
The Survey results show that only 17 companies, less than one third of the total 58 respondents, have applied for patents in China.
Of the 17 that did file applications, 11 were granted a total of 30 patents - seven for designs and 23 for utility models, a form of patent that legally protects rights to a product's shape and structure.
Cutting the investigation costs for collecting evidence, a requirement for filing an intellectual property infringement case, and shortening the time for patent application examination were other needs cited by survey respondents.
IP is one of Lehman, Lee & Xu＊s founding and core practices. Our dedicated IP department deals with applications, and enforcement of patents, trademarks and copyright matters. Our commitment to one of our core practices is highlighted by our successful representation of clients, which recently included the Chinese branch of American online retailer Newegg.com Inc. Additionally, we strive to keep our clients and interested parties updated with IPR related news, and updates via our China IP Insights Newsletter. For further information on the scope of our IP services, or to subscribe to our IP newsletter please email mail@lehmanlaw.com.
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February 3, 2010, 7:20 pm
In order to promote and encourage the use of public transport, parking fees for areas of Beijing shall be raised.
The Municipal Committee of Development and Reform announced that as from April 1, 2010, the highest parking fees would be raised to 10 RMB per hour. Such fees such apply to areas including railway stations and business districts. Underground parking shall be priced at 6 RMB per hour.
The new pricing scheme is based on the promotion of two policies. The first, being to reduce the amount of traffic on Beijing＊s busy roads, and the second, to encourage the use of public transport.
The fees are very reasonable, if comparisons are made with other capital cities. Westminster City Council in London for example places a maximum charge of 2.50 pounds per hour, which equates to 27.28 RMB. Other privately owned car parks impose much higher fees. Additionally, Monday through to Friday between the hours 07.00 and 18.00, motorists are required to pay an 8.00 pound (87.28 RMB) daily charge, labelled the Congestion Charge to drive through areas of central London. Since the implementation of the Congestion Charge scheme, traffic has reduced by 21%, there has been a 6% in the number of bus passengers, and 137 million pounds has been raised during 2007 每 2008 to be invested back into improving London＊s transport infrastructure.
Beijing operates a fantastic public transport network. Line 4 was the newest introduction to the existing subway network, with further lines planned to be introduced in the coming years. The public transport provides for low-priced and extremely efficient travel.
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February 3, 2010, 5:38 pm
In order to elevate Beijing＊s status and align itself with international cities such as New York, Paris, London, Hong Kong and Tokyo, local authorities are looking at how to tackle and address problems that are halting Beijing from rising to such levels.
Issues highlighted as affecting Beijing＊s future development include rubbish disposal, restrictions on traffic, overpopulation and house prices. Such concerns are required to be tackled in order to Beijing to keep on track with its four decade deadline to become a world city.
One major concern facing the Beijing authorities is the disposal of the 18,000 tons of garbage produced every day within the city. In line with Beijing＊s environmental friendly policies, there is more focus on the recycling of waste, rather than incineration.
Similar to other foreign capital cities, Beijing encourages and welcomes corporations and business to enter into the Chinese market. As China continues making economic progress, further foreign nationals are likely to pinpoint Beijing as a source of employment, thereby aiding to the capitals push in becoming a major city.
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February 3, 2010, 5:37 pm
The most expensive parcel of land on the Chinese mainland was sold for 9.22 billion yuan (US$1.35 billion) to Shanghai Zendai Property Ltd. to be redeveloped into commercial properties and office buildings. This 57,000 square-meter plot on the Bund in Shanghai was also bid on by 3 other Chinese conglomerates, including an entity consisting of China Enterprise, China Pacific Life Insurance and Taikang Life Insurance, as well as Shanghai New Huangpu Group, and finally another entity which included Shanghai Forte Land and Shanghai Fosun, with Shanghai Zendai Property Ltd. being the highest bidder. This area of the Bund is to be turned into a financial metropolis that will put Shanghai on the main stage of global finance. The project will require much capital and government cooperation, in which Shanghai Forte owner Guo Guanchang (the 37th richest person on the Chinese mainland) will take part in as an 8% shareholder. Estimated development plans include buildings as large as 270,000 square meters above ground and 100,000 meters of space underground. Construction of the primarily office-building structures is expected to begin between November 2010 and April 2011.
Scott Garner, Director of Lehman, Lee & Xu＊s Shanghai office stated that ※Similar to most other major cities in China, Shanghai is experiencing a wealth of development and investment being pumped into the city. Our dedicated Shanghai team offers a range of legal advice to both domestic and international companies, to aid them with their ventures and legal concerns in Shanghai.§
Having offices throughout mainland China, has allowed Lehman, Lee & Xu to promptly deal and assist with client＊s queries throughout the country. Our Shanghai office, situated in the heart of the commercial and business district allows us to interact with our client＊s on a face to face basis, and deal with any legal issues they may be experiencing.
Should you have any queries related to our Shanghai office, or any aspect of the scope of work Lehman, Lee & Xu performs, please contact us at mail@lehmanlaw.com...
February 2, 2010, 5:25 pm
The real estate development business in China is increasing at a feverish rate. Throughout most areas of Beijing, you are likely to witness some form of development taking place such, be it residential housing, or the construction of buildings for corporate and commercial use.
Article 13 of Constitution of the People＊s Republic of China states the following:
※The State may, in the public interest and in accordance with law, expropriate or requisition private property for its use and shall make compensation for the private property expropriated or requisitioned.§
The above article outlines that the state may permit the destruction of private property if it falls within the public interest remit. However, new draft regulations appear to have been written which directly conflicts with Article 13.
No. 40 of the draft regulations states the following:
※to demolish housing for construction of non-public interest, the constructors, such as real estate developers, need to ask permission from related governments.§
If the new draft regulations came into effect without any revisions, it would appear to be going against the spirit of the Chinese constitution, whilst also opening up for the potential of thousands of residential housing to fall risk to real estate developers. As the regulations are still in draft format, China＊s legislatures still have the ability to correct and amend such an anomaly.
The draft provisions have come under scrutiny from China＊s academics.
Lehman, Lee & Xu will keep you updated with the end results of these draft provision.
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February 2, 2010, 5:10 pm
International branded drinks are being targeted by counterfeiters, as foreign brands increase in popularity in China.
The whiskey industry in particular has come under attack from counterfeiters. Currently, Chivas Regal is the leading imported whiskey in China. The Chinese Trade Mark Office (※CMTO§) having recognised the importance of the brand protected both ＆Chivas Regal＊ and ＆Chivas＊ as well known trademarks, with the former protected in both English and Chinese, the latter protected in English, under the PRC＊s Trademark Law. The CMTO＊s approval of the Chivas brand as a well known trademark in China allows for cross class protection, and is not merely limited to alcoholic beverages under Class 33.
In addition to affording such protection to the Chivas brand, China is also working in close connection with the Scotch Whiskey Association (※SWA§) who＊s aim is to ※promote, protect and represent the interests of the whisky industry in Scotland and around the world.§ The CMTO has protected ※Scottish Whiskey§ as a collective trademark.
Article 16 of the PRC＊s Trademark Law states the following:
※Where a trademark contains a geographic indication of the goods in respect of which the trademark is used, the goods is not from the region indicated therein and it misleads the public, it shall be rejected for registration and prohibited from use; however, any trademark that has been registered in good faith shall remain valid.§
This provision therefore prohibits counterfeiters from passing off spirits as Scottish Whisky where they have not been produced in Scotland.
The importance of protecting a company＊s IP rights should be a number one priority even before taking steps to enter the Chinese market, since the PRC is a first-to-file jurisdiction. This means that the holder of a trademark for example in a foreign jurisdiction has no priority in PRC unless and until it has filed its marks. The sole exception is ※well-known§ foreign trademarks. Additionally, foreign companies should look at adopting a Chinese name for their company and/or brand. This can be beneficial for numerous reasons, such as increasing potential client base, by appealing to more in the Chinese market, and also to stop your competition from legally registering the new Chinese name of your company. The most prominent example was the registration of the ※Starbucks§ trademark by a Shanghai based caf谷.
At Lehman, Lee & Xu our professional and dedicated IP department deal with such issues on a daily basis. Our years of experience, allows us to make a full and practical assessment as to the best course of action to protect our client＊s business interests in China. Our prominence within the Chinese legal sector is evident in the numerous accreditations and awards received, with our IP practice being ranked as a Tier 1, and our lawyers recognised as leading lawyers within such fields. For further details related to our IP department, or if you have any legal queries please contact us at mail@lehmanlaw.com. ...
February 2, 2010, 5:02 pm
With Chinese New Year just around the corner high end market liquor producers are experiencing rocketing sales.
The Chinese Spring Festival (also known as the Chinese New Year) begins on February 14th, with most people in mainland China enjoying seven days off work from February 13th until February 19th for the New Year celebrations. The exchange of gifts upon such a cultural significant day is commonplace. Gifts range from money to gifting tea, and cakes. 2009 has experienced a surge in the purchasing of expensive branded liquor. Moutai 53, retailing at 735 RMB per a bottle, is one such example of good quality liquor in high demand. Sales of Moutai store in Mudanyuan expects sale of 4 million RMB during 2009 festive season.
2009 marks a diverse change from the Spring Festival of 2008 where the industry experienced suffered a slump in sales, which may have been attributed to the effects of the global downturn. This year however, there appears to be direct correlation between China＊s growing GDP with the amount of money being spent on liquor. Some believe that this trend, in high demand for such liquors, is likely to increase throughout the year as China＊s economy continues to pick up steam and momentum.
With the Chinese economy predicted to grow by 10% + this year, additional foreign companies will be looking towards establishing a foothold in China. For numerous years, Lehman, Lee & Xu have lead the way in the successfully establishment and provision of legal aid to foreign corporations investing in China via corporate vehicles such as JVs, or WFOEs. In addition to establishment, we are able deal with the necessary registration of the business＊s IPR, and also any labour and employment issues corporations working in China are likely to come up against. Our IP, and labour and employment departments are wholly dedicated in keeping our clients are interested parties up to date with important legal issues via our China IP and China Labour Insight Newsletters. Should you wish to subscribe to these newsletters, or if you have any questions or queries relating to the scope of our legal services please email mail@lehmanlaw.com....
February 2, 2010, 10:26 am
The State Intellectual Property Office (※SIPO§) recorded an 18% increase of patent applications from 2008 numbers.
From statistical data outlined on the SIPO＊s website, 976,686 patent applications were received for the year 2009, where as 828,328 were received for 2008. The figure is the cumulative total for invention patents, utility models, and design patents, including both domestic and foreign applications.
Such data highlights the steady increase of domestic applications since 2006. Nearly 90% of the total number of patent applications received in 2009 were in respect of domestic filers, where as in 2006, this figure was only 82%.
As highlighted by some of our previous postings, China recently enacted the third amendment to the PRC＊s Patent Law, which became effective on October 1, 2009. This amendment was in line with the National IP Strategy, which looked to revise and update China＊s IPR regime.
IP is one of Lehman, Lee & Xu＊s founding and core practices. Our dedicated IP department deals with applications, and enforcement of patents, trademarks and copyright matters. Our commitment to one of our core practices is highlighted by our successful representation of clients, which recently included the Chinese branch of American online retailer Newegg.com Inc. Additionally, we strive to keep our clients and interested parties updated with IPR related news, and updates via our China IP Insights Newsletter. For further information on the scope of our IP services, or to subscribe to our IP newsletter please email mail@lehmanlaw.com.
Further details can be located on the SIPO＊s website at the following location: www.sipo.gov.cn...
February 2, 2010, 10:04 am
Plans have been announced for the building of a community, for foreign benefit only in Chengdu, sub provincial city of China＊s Sichuan province.
The planned community, compromising of a church, hospital and playgrounds, are expected to be completed in two phases. The first of these phases is likely to be completed by October. In a move that attracted mixed reactions, Zheng Xiaoming, Chieft of Planning and Construction Bureau of the Chengdu National Hi-Tech Zone, stated to maintain the international-ness of the community no apartments will be sold to local residents, only rented out to foreign nationals.
One side of the argument supports such a move, as it would allow foreign nationals to meet, and would benefit those who have just arrived into China without knowing anyone. However, others feel that by going ahead with this project, it would cause segregation, and isolation between foreign and Chinese within Chengdu.
As a foreigner in China, and a foreign employee at Lehman, Lee & Xu, it is through integration and unity, and not segregation which is the way forward. My thoughts are such plans would not be beneficial to either to the Chinese citizens, or foreigners living in Chengdu. It＊s through people coming together, that we are able to understand and experience each other＊s cultural fingerprints. Both sides can learn a lot from each other.
※We cannot be separated in interest or divided in purpose. We stand together until the end.§ 每 Woodrow T. Wilson (1856 每 1924)...
February 2, 2010, 9:43 am
Cracking down on the access of pornographic and vulgar content has always been a priority concern for the Chinese authorities. In further attempts to reduce the access of such disturbing materials, suggestions have been raised for legislation to be put in place to ban children under the age of 12 from using mobile phone devices.
The suggested idea stems from the fact that through most mobile phone devices, the internet can be access via WAP sites, and children under the age of 12 could be potentially subjected to such materials. Currently, over 15,000 pornographic websites, and 11,000 WAP sites have been blocked in the fight against pornographic content.
By aligning it＊s stance with other countries, such as France, China has shown its determination in enforcing its efforts to combat pornographic materials. China current has approximately 384 million internet users which accounts for over one-fifth of the cumulative world＊s total. ...
January 29, 2010, 8:16 pm
Alarming tales of young Chinese women being targeted to traffic drugs into China are coming to light at an increasing rate.
What individuals believe to be a mere collection of packages for their ※boyfriend§, in fact turns out to contain an illegal substance. More worryingly it appears that the problem is increasing through the use of the internet, and online dating. Most who are targeted claim that they are unaware that the packages contain any illegal content.
Monitoring the borders, China Customs deals with incidents such as these, and also the transportation of drugs through the postal and special delivery services.
During January to November 2009, China＊s public security forces arrested 82,000 drug suspects, and cracked 70,000 drugs case. The year 2009 also attributed to Customs seizing over 2000 Kg of drugs through its effective monitoring of drug trafficking. The Chinese judiciary enforce a strict application of the law in respect of drug related offences.
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January 29, 2010, 8:05 pm
China continues in its efforts to encourage a green and healthier environment through the promotion of the use of clean-energy vehicles.
With clean-energy vehicles receiving the full backing of the Chinese government, it is predicted that the relevant industries associated with these vehicles will prosper and benefit greatly. These industries will range from power companies, to recharging equipment manufacturers.
Shenzhen, the sub provincial city of southern China＊s Guangdong province was the first city to promote the use of electric powered vehicles. The city intends on investment over 300 million RMB over the course of five years. In addition to this, 250 recharging stations, and 12,500 parking lot recharging towers are also planned.
China appears to advancing forward in its implementation of a greener China. In one of our previous postings, (dated January 28 2010 which can be located at the following location: http://blawg.lehmanlaw.com/english/archives/2010/01/28/768.html), we highlighted another green success for China, with the successful reduction of sulphur dioxide emission for the four consecutive year running.
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January 29, 2010, 7:20 pm
There are recent talks about Beijing diverting seawater from nearby provinces as an immediate solution to supplying the capital city with a much needed water supply. Seawater is not the number one choice for Beijing, but a delay of the massive diversion projects has forced key decision makers to come up with a quick and feasible solution. So far, China and the rest of the world have struggled to produce an economically viable option to curb our energy and water issues. Seawater is a start but it is a temporary solution to a permanent problem.
After almost 30 years of double digit economic growth and the migration of hundreds of millions of villagers to cities, gaining access to clean water becomes a bigger issue by the day for many residents of China. If the current trend continues, China＊s water supply, or lack thereof, has the ability to halt industrial and population growth in one of the worlds most expansive and dynamic economies.
The majority of China＊s 270,550 sq km of water is polluted, threatened by drought or being overused. I have read some reports estimating as much as 90% of China＊s water supply is polluted. This, of course, is a by product of rapid economic expansion. Today, there are few restrictions or legal enforcement preventing firms from dumping waste products in large bodies of water. This is very similar to what happened in The United States during the Industrial Revolution. Overuse primarily comes from China＊s dominant agricultural sector and droughts affect 15% of the country forcing some 300 million people living in rural areas to travel great lengths for safe drinking water.
In its 11th five year plan, China dedicated 1 trillion RMB in attempts to alleviate the water crisis. Most of the money will go towards desalinization and reclamation projects. There is one ambitious plan to move water from water rich regions such as the Yangtze River to the deprived Yellow River. However, moving water around is not the final answer to the problem.
Many firms, both foreign and domestic, are positioning themselves to take full advantage of the current water crisis in China. Companies looking to take advantage of this future trend range from high tech purification services to firms that deal more in water transportation and infrastructure. In the water business, having exposure to China should allow firms to benefit from Beijing＊s attempts to bring cleaner water throughout a country in great need. Gaining access to clean water becomes a bigger issue by the day for many in China.
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January 29, 2010, 7:17 pm
Beijing, China, January 28, 2010 --- Experts from the Chinese mainland and Taiwan held their first talks in Beijing Tuesday, January 26, 2010, to pave the way for the long-awaited Economic Cooperation Framework Agreement (ECFA).
According to a statement released after the meeting, experts from both sides agreed that the basic content of the pact would include market access for commodity trade and service trade, Rules of Origin, early harvest program, trade remedy, dispute settlement, investment and economic cooperation. The two sides also exchanged tax regulations and economic and trade regulations and statistics.
Lehman, Lee & Xu, one of the top three Chinese law firms, many of whose clients are engaged in businesses related to enterprises of both sides of the Taiwan Strait, showed strong interest in this event.
※The economic pact might exert certain negative influences on a number of industries on the mainland and in Taiwan§, commented Edward Lehman, Managing Director of Lehman, Lee & Xu Law Firm, ※but it would benefit cross-Straits trade and economic development in the long run§ he added.
※As the ECFA will cut import tariffs and scrap Taipei's current restrictions on many mainland investments and products, some industries in Taiwan may face strong competition from products imported from the mainland in the short term and vice versa,§ said John Lee, Senior lawyer of Lehman, Lee & Xu. However, he further commented ※from the world point of view, the ECFA would play an important role in helping mainland and Taiwan jointly cope with the financial crisis and fierce competitions in international trade§.
※We have a number of clients who are engaged in cross-Straits businesses and the expected Agreement will surly have strong effects, both negative and positive, on them,§ said Scott Garner, Head of Lehman, Lee & Xu＊s Shanghai office, ※We will therefore keep a close watch on the progress of the cross-Straits talks and provide our clients with timely legal advice for their business activities, helping them to make good use of any positive effect of the pact and try to keep away from negative ones§ he added.
Lehman, Lee & Xu is one of the first five private law firms established in the People's Republic of China. After nearly twenty years of practice and development, Lehman, Lee & Xu now has more than two hundred patent, trademark and PRC-licensed attorneys working in numerous branch offices located in the most-developed cities in China. As one of the leading IP firms in China, Lehman, Lee & Xu provides high quality legal service to its clients and has been consistently rated among the top five IP law firms in China. Lehman, Lee & Xu is also a top-three commercial law firm, and has provided a variety of commercial legal services to hundreds of clients, many of them multinational corporations (MNCs) and Fortune 100 companies. The firm's diverse catalog of commercial services covers foreign direct investment (FDI), merger and acquisition (M&A), tax, employment and many other areas.
For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com
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January 29, 2010, 7:12 pm
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