On Wednesday, March 17, AmCham China Offices, Beijing, in conjunction with AmCham-China¡¯s Manufacturing and Sourcing Forum and IT Forum, will be hosting a seminar on the current trends in technology and manufacturing. The keynote speaker will be Dr. Pat Gelsinger, president and COO of Infrastructure Products at EMC, a market leader in information management. As the current head for EMC's Infrastructure and Products Group, Dr. Gelsinger is a leader in both technology and business innovation. Topics to be discussed include: discuss cloud computing, the role of innovation and technology in the manufacturing sector in China and in Asia as a whole.
For any information regarding the technology or manufacturing sectors in China, please contact Lehman, Lee & Xu at mail@lehmanlaw.com or visit the firms website at www.lehmanlaw.com.
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March 12, 2010, 3:17 pm
With it¡¯s rich natural resource deposits and close proximity to both China and Russia, It comes as a surprise that Mongolia has not been tapped for its resources during the recent worldwide mining boom. But this impoverished, agrarian country entirely missed out on the recent boom, hindered by its own overzealous legal restrictions and a government hungry for large shares of mining profits.
Recently, Mongolia has received a lot of international attention. This is, in part, a direct result of Parliament¡¯s decision to revoke four 2006 mining laws and shift their attention to seeking foreign investment. The important laws that have been revoked include a ¡°windfall tax¡± which extracted a 68% tax on all gold and copper sales. Another revoked law gave Parliament a 34% stake in non-government financed projects and a 50% stake in government financed projects.
After Parliament¡¯s change of heart, the ¡°windfall tax¡± is thrown out and the regime takes a flat 34% stake in all mines.
The looser restrictions have encouraged and allowed companies like Ivanhoe Mines and Rio Tinto to invest and develop the $3 billion Oyu Tolgoi, the Holy Grail of gold and copper mines. The Oyu Tolgoi, located in the Gobi Desert just north of China, is one of the world¡¯s biggest and untapped gold and copper mines.
Oyu Tolgoi would be Mongolia¡¯s first major mining project- and what a doozy it would be! With production slated to begin in 2013, the mine is estimated to produce 450,000 tons of copper and 330,000 ounces of gold annually for the next 45 years. That is roughly 3% of the current world¡¯s supply.
¡°That could almost double the country¡¯s GDP, which is roughly $5 billion today¡± says Edward Lehman, Managing Partner at Lehman, Lee & Xu, Mongolia¡¯s first and only international law firm.
¡°There is a lot of opportunity here. Mongolia is playing a larger part in the global economy by the day.¡± he said in a press conference.
One of the largest beneficiaries of the increase in mining could potentially be China. Mongolia is rich in coking coal, unlike China, who typically imports large amounts from a distant Australia. According to the World Bank, Mongolian coal exports could reach 45 million tons, which would be an increase from 5 million tons currently.
¡°We are first movers here. We know the local companies and key decision makers here better than anyone.¡± Edward Lehman stated.
¡°At Lehman, Lee & Xu we are in the business of providing the best service possible for our clients. By establishing an office in Mongolia, we felt we put ourselves in a position to achieve that goal and we are extremely excited about the prospects¡± he added.
For more information about Lehman, Lee & Xu, please visit the firm¡¯s website at www.lehmanlaw.com or feel free to email the Beijing office at mail@lehmanlaw.com.
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March 11, 2010, 4:49 pm
Taking a lesson from the collapse of the American real estate market that overwhelmingly contributed to the current global financial crisis, the Chinese government has had the difficult task of reigning in easy credit without stifling the market. The soaring price of housing coupled with the plunging sales of new homes has created anxiety that credit must be tightened further if the property bubble does not being to show signs of substantial shrinkage. Although the Lunar New Year holiday is always a slack time for the economy, real estate transactions involving the sale of new homes were unusually slow, with Shanghai reporting the lowest volume of sold square meters in 5 years. Unyielding prices, low supply, and uncertainties about whether the government will continue to implement policies to cool down the overheated real estate market, have contributed to the current buyer freeze.
This is a topic of hot debate in the current joint session of the legislature, with many suggesting a change in the land-auction system so that price isn't the only determining factor. Also being discussed are ways to reduce local governments' excessive reliance on revenue from land transfers. More than 1.08 trillion yuan (US$158 billion) was collected from land transfers in 70 major Chinese cities last year, an increase of 140 percent from 2008, according to China Index Academy, a major real estate research organization.
The high prices, especially in inner city districts, have been maintained due to short supply. Many real estate developers are more reluctant to put their homes on the market when few people are actually buying. New home supply in Shanghai, for example, plunged 70% to 220,000 square meters last month, following a dive of 47% in January.
The lower volumes, however, were accompanied by the highest average prices on record. Last month, the average price of existing properties rose 11 percent from January to 15,200 yuan per square meter, the first time prices have climbed above the 15,000 yuan mark.
¡°The repercussions of an inflated real estate market have been a painful lesson to the world,¡± Scott Garner, director of the Lehman, Lee, and Xu Shanghai office commented. ¡°Fortunately, our firm has substantial real estate experience regarding preparation of all types of acquisition and transfer of property land use and lease rights documentation, advising services to landlords, tenants, and real estate brokerage companies, as well as well as a multi-city base where we closely monitor all fluctuations in the Chinese market. We have the ability to custom tailor our services to both foreign and domestic clients.¡±
For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com or feel free to e-mail the Beijing office at mail@lehmanlaw.com
By: Morgan Crank
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March 11, 2010, 3:56 pm
China experienced a nearly 50% increase in exports for February, reaching $94.5 billion US dollars. China's exports surged more than expected in February as imports continued strong growth, indicative of a robust domestic economy and signs of recovery from the global financial crisis. Domestic demand will remain robust in the near future, enabling imports to retain the fast expansion China has seen since the end of last year. China's exports jumped 45.7% in February from a year earlier to US$94.5 billion, sharply up from 21 percent in January.
Trade surplus narrowed to US$7.6 billion last month from $14.1 billion (US) in January and $18.4 billion (US) in December. China's waning trade surplus is mainly due to more trade with emerging markets and new markets. For example, China's trade Brazil climbed 88.5% from a year earlier, the fastest among all of its trading partners. Despite the declining trade surplus, the nation will face more calls for appreciation of the yuan.
The revival of Chinese exports simultaneously escalated trade disputes. Its traditional trading partners, like the European Union and the United States, continue to demand a stronger yuan. However, any rise in the yuan's exchange rate would assuredly be gradual and controlled. The US has announced a slew of rulings against imports from China. In the past three months, the US has decided to levy tariffs on Chinese-made potassium phosphate salts, coated paper, steel tubes, gift-wrapping ribbons, electric blankets and wire deckings. China was targeted in 116 anti-dumping and anti-subsidy cases last year, with more than US$12 billion involved.
Edward Lehman, Senior attorney of Lehman, Lee, and Xu Law Firm stated, ¡°Many of our international trade and marketing clients request our expert advice concerning barter trade, product buyback, clearing account trade, compensation trade, counter-purchase and export import licenses, Certificates of Origin, and commodities inspection. The highly trained Lehman, Lee & Xu team of international practice attorneys has extensive experience in the complex import and export laws, including customs, and in assisting clients with their processing and assembly arrangements in China. We encourage our clients to consult with us, whether they are domestic or international businesses, small or large, at any one of our many offices throughout China.¡±
For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com or feel free to e-mail the Beijing office at mail@lehmanlaw.com
By: Morgan Crank
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March 11, 2010, 3:27 pm
The Chinese government certainly appreciates the delicate balance economic policy must strike between sustaining healthy, rapid economic development and transforming into a more domestic-consumption fueled nation. Stimulating domestic spending is necessary, but not sufficient to achieve a healthy economy in 2010.
This year is a crucial year in which China must stabilize its exports to ensure an 8% GDP growth, yet encourage and adjust current economic structure to support more domestic spending, a combination of which is vital to fend off the current global financial crisis. Furthermore, China seeks to achieve the targets of the 11th Five-Year plan and build the foundation for the 12th, putting equal emphasis on natural resource tax reform and the overall improvement of people¡¯s livelihood.
It is a common concern of the deputies to the NPC and CPPCC as well as the Chinese people to see whether China's economy can make a smooth transformation in 2010 in order to prevent an overheated economy and forestall a risky bubble in the real estate market, all the while managing capital inflow as well as currency reevaluation.
With its economic plate rather full, China presents itself as willing and capable to tackle the most pressing issues of 2010. The strength of its economy and people has been tested, and its businesses have proved durable and productive. As a top-3 Chinese law firm, Lehman, Lee, and Xu has experience in corporate business services, inbound and outbound investment, intellectual property, mergers, and acquisitions, and a variety of other services necessary to the thriving world of Chinese business. Scott Garner, director of the Shanghai office, stated ¡°We are especially excited about the business opportunities the upcoming World Expo is going to bring to China. Guaranteed to be a source of wealth for domestic growth, our services at Lehman, Lee, and Xu can be tailored to suit the needs of our customers, strengthened by the experience we have had in previous events such as the 2008 Beijing Olympics. The quality of the Chinese economy is sure to shine in the upcoming months.¡±
For more information about Lehman, Lee & Xu, please visit the firm's website at www.lehmanlaw.com or feel free to e-mail the Beijing office at mail@lehmanlaw.com.
By Morgan Crank...
March 9, 2010, 4:07 pm
Alexander Pan, March 9, 2010
Beijing, China
In a move to help alleviate the ever worsening air quality in Beijing, Miao Wei, vice-minister of Industry and Information Technology and deputy to the National People's Congress announced recently that the government plans to unveil a plan to subsidize the private purchases of electronic motor cars.
Experts speculate that the plan with offer between a 50,000-60,000 RMB Government subsidy for Beijing resident who purchase environmentally friendly, and emission free electronic cars.
The official plan will likely be revealed later this month. It is also likely the up to five cities will be chosen as pilot programs, depending on the programs success in these areas, Chinese citizens may expect to see these subsidies at a nation wide level.
Edward Lehman, Managing director of Lehman, Lee, and Xu said that ¡±This plan is yet another step in the right direction for China¡¯s environment. The Chinese government has repeatedly stated that it will take steps to reduce its environmental impact, and programs like this prove that China is committed to the cause.¡±
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March 9, 2010, 11:30 am
Alexander Pan, March 9, 2010
Beijing, China.
Beijing¡¯s Exorbitant, and rapidly increasing housing prices have come under fire from many senior government officials at the national legislative meeting. The officials are demanding that housing prices be contained fearing that any further increases could lead to a bursting of the housing bubble, and consequently a massive economic downturn similar to America¡¯s recent housing bust.
Du Deyin, a senior Beijing official and head of the Beijing's local legislative body implicated in a bold speech that Beijing¡¯s land resources and construction authorities were not doing their jobs.
Many experts on Beijing¡¯s housing market claim that for year Beijing¡¯s housing prices have been manipulated and pumped up through collaborations between real estate dealers and government officials. They claim that officials award lucrative land deals to major real estate developers in return for a hefty tax paid back to the government.
Du Deyin explicitly condemned this practice saying Instead of encouraging real estate dealers to snap up lucrative land deals, authorities should control land prices and offer special funds to house buyers."
The central governments work report charged local authorities with curbing this excessive growth of home prices in major cities and satisfy the publics basic need for housing.
These demands to curb housing prices come as overwhelming signs of a housing bubble begin to emerge. In Beijing, the average housing prices in popular residential areas increased from approximately 15,000 yuan per sq m to 20,000 yuan per sq m in 2009. Preliminary reports said the capital's property market saw a total increase of 23.5 percent last year, the major reason seemed to be government's failure to provide enough land resources for low-cost housing.
Government Officials are not only worried about the possible collapse of this potential bubble, but also recognize that the rapidly increase price of housing has made it extremely difficult for low income families to secure housing in major cities. This could potentially balloon in a major point of civil unrest.
Some actions have already been taken by government officials including a new plan that will allocate fifty percent of new land for construction to low cost apartments for the mass middle income earners. Also more than 134,000 subsidized apartments will be built to meet the needs of low income residents.
Edward Lehman, Managing Director of Lehman, Lee and Xu said that ¡° The Central Government should be applauded for recognizing the signs of a housing bubble and taking the appropriate precautions to deflate this bubble before it bursts. The government¡¯s actions to ensure housing for the lower and middle classes are also commendable. We at Lehman Lee and Xu have a great deal of experience in dealing with these types of market fluctuations and look forward to helping our clients deal with and take advantage of the current market condition.¡±
The LEHMAN, LEE & XU Real Estate team is comprised of both Chinese and foreign lawyers with many years of experience in all types of real estate transactions. This diversity of experience and foreign expertise enables LEHMAN, LEE & XU to provide creative, accurate and economical legal services to its clients.
With China's rapidly expanding economy there is an increased need for residential housing, commercial space and industrial parks that are structured to meet the unique requirements of the Chinese population. With the experience and background of various lawyers in our Real Estate group, we can provide the expert advice needed by real estate developers to formulate and complete innovative real estate projects in all parts of the country.
As LEHMAN, LEE & XU is also one of the oldest registered law firms in China, we take pride in the fact that we can provide real estate legal services to both Chinese and foreign clients. This fact is extremely important in dealing with real estate matters in China as it gives LEHMAN, LEE & XU the ability to finalize real estate transactions quickly and efficiently.
For more information please visit www.lehmanlaw.com....
March 9, 2010, 11:25 am
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March 8, 2010, 11:07 am
AmCham Shanghai and Forbes Magazine will be hosting an event Wednesday March 10 from 11:30- 13:00 at the Four Seasons Hotel. as Forbes Shanghai bureau chief Russell Flannery unveils one of its most popular reports around the world ¨C the annual Forbes Billionaires List. Russell will interpret the fresh-off-the-press results in a presentation titled: "China's Billionaire Boom: Opportunities for Foreign Businesses." The presentation will be followed by a panel discussion among Chinese entrepreneurs and experts about the prospects for future business cooperation between fast-growing private sector companies in China and foreign businesses.
Russell Flannery is the senior editor of Forbes Magazine in Shanghai. He will be introduced by panel speaker Liang Xinjun. Liang Xinjun is co-founder of Fosun Group, China¡¯s largest private company founded in Shanghai. Liang is also a member of the 2009 Forbes Rich List.
When asked to comment on the event, Edward Lehman, Managing Director of Lehman, Lee and Xu, one of the largest and also privately owned law firms based in China stated, ¡° It is great two see two organizations that I have such great respect and support for come together. As the former president of AmCham Shanghai and an avid Forbes Magazine reader, I am very excited about the event and it is something I have been anticipating for quite some time.¡±
The event should be particularly interesting coming off the news of giant American private equity firm forming their first RMB fund in conjunction with Fosun Group. Carlyle is the first among the private equity industry¡¯s global elite to take this giant step forward in raising renminbi in partnership with a leading Chinese private company. When asked to comment, Edward Lehman stated, ¡°It marks an important milestone in the short but impressive history of private equity in China, and points the way forward for many of the private equity firms already established in China.¡±
For more information on this event or more information regarding the establishment of a renminbi fund, please visit www.lehmanlaw.com or contact Quinn Stepan at qstepan@lehmanlaw.com
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.
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March 5, 2010, 9:12 am
President Obama stated recently that he will take a ¡°tough stance¡± against the valuation of the yuan and that it will be a priority topic in international strategic economic development discussions. Obama said in a Feb. 9 interview with Bloomberg BusinessWeek that China¡¯s ¡°currency policies are impeding the rebalancing that¡¯s necessary¡± in the global economy, and also is leading to a bubble in the Chinese economy. The argument, bordering on statement, is the weak Yuan creates a huge trade surplus for China and an imbalance in international trade. Many people in the international community, particularly in the United States, feel that a reevaluation would likely accelerate the growth of their exports to China.
Growing up, whenever I did not get along with another child or a sibling, my mother would always say to me, ¡°maybe it is you who needs to change Quinn. Have you done everything you can to make this work?¡±
I think it is time Mom has a sit down with Barrack. I envision the lecture going something like this (in a wise motherly voice) , ¡°You cannot control other people Barrack. Is there anyway you can change yourself to get along better with China? Are there any newly instituted or significant incentives to encourage American manufacturers to come back home?¡±
Today, the United States is not a desirable place to build new factories and manufacturing plants. The United States invents a lot of the technologies produced but is an extremely small player in global production. Sure, there are the labor cost issues, but for many of these products require the same high skilled and high paid engineers and managers that can be found in any factory in the world. You can also offset the labor costs with the cost of shipment.
Why is the United States losing out on production output? Forget foreign exchange rates. It is not materials; they cost the same everywhere. If you go down the list, everything seems to match up pretty well, EXCEPT TAX POLICIES AND SUBSIDIES.
The Yuan will eventually be revalued. I believe China is currently keeping the value low to stem job loss and they are most likely torn between a one off increase or a gradual increase, fearing the gradual will bring fast cash into an already booming economy and create more headaches for a government in the midst of fighting off inflation.
Will the increased value of the Yuan bring manufacturers back to the US? Absolutely not. You have already scared them away. And all this talk about taxing American companies foreign income (which gets no press by the way), let¡¯s not lose our corporations as well.
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March 4, 2010, 5:48 pm
Edward Lehman of Lehman, Lee, and Xu has been named one of the best Trademark lawyers in China by the International Legal Who's Who 2010. This award accompanies Mr. Lehman¡¯s award from the same publication as one of China¡¯s best Franchise lawyers.
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 has also been recognized as one of the top trademark firms in China by several intellectual property magazines. The law firm is managed by Mr. Edward Lehman, a leading expert on corporate law with 20 years of practice experience in Mainland China.
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. The winners were formally announced in the The International Who's Who of Franchise Lawyers 2009....
March 2, 2010, 4:30 pm
Alexander Pan, March 2, 2010
Beijing, China
China sent a clear message to the world community last week that it will not put a fixed cap on its green house gas emissions. Indicating that while China will do what it can to significantly reduce its environmental impact, it will continue to prioritize economic growth over environmental conservation.
China top climate change negotiator at the climate change talks in Copenhagen Su Wei, said that China ¡°could not and should not¡± place an upper limit on its green house gas emissions. But rather should focus on reducing its green house gas emissions per unit of GDP in order to become a more environmentally efficient economy.
Experts claim that a fixed cap on green house gas emissions is unrealistic and unfair for China claiming that China is still a developing economy and it not yet fully industrialized thus it needs to look after the welfare of its people and the eradication of poverty before it can consider limiting economic growth in favor of environmental conservation.
This claim is consistent with historical evidence and an economic theory know as the ¡°Environmental Kuznets Crve¡± in which countries, as they begin to industrialize, do so with little to no regard for the environment; however, as these countries reach a certain point of development they begin to place a greater importance on minimizing their environmental impact.
While China may not be willing to cap greenhouse gas emissions, it appears that China is rapidly approaching, if not already past the apex of this environmental kuznets curve and will imminently begin growing more environmentally conscious.
Major indications such as China¡¯s new five year plan promises that China will make major strides in improving the environmental efficiency of its economy
While many developed nations would rather see a fixed cap put in place, many developing nations sympathize and agree with China¡¯s Green Growth strategy arguing that it is much easier for industrialized and developed nations to cap their emissions than it is for developing nations whose primary industry is int he emissions intensive manufacturing sector.
Edward Lehman managing director of Lehman, Lee and Xu said that£¢This is a perfect example of the west¡¯s lack of understanding for the problems and issues faced by the Chinese economy. While China clearly must work to become a ¡®greener¡¯ economy, it can not do so at the expense of economic growth. We here at Lehman Lee and Xu look forward to offering our experience and knowledge of Chinese economy to our clients, and helping them to navigate the myriad of new regulations that will undoubtedly accompany China¡¯green growth plan¡±
Lehman, Lee & Xu¡¯s Energy & Resources law practice is built on the firm¡¯s strength in the fields of project development and project financing, corporate, taxation and dispute resolution. Our strengths and experiences have resulted in a strong foundation for the representation of energy-related industries.
Our lawyers have extensive experience in handling the approval, development and financing of oil and gas related projects and independent power production facilities, with a particular focus on renewable energy sources, such as wind and solar power, hydro-electricity and biomass...
March 2, 2010, 3:11 pm
By Morgan Crank
March 2, 2010
China¡¯s rural population may decrease by over 50% over the next three decades due to rising urbanization, dropping to 400 million people from the current 900 million. A large portion of these people are migrant workers who are moving into cities, but are not permanent residents. In fact, one in four residents currently in cities come from the rural population. The demographics of these migrant workers show that they are young people reluctant to go back to the countryside, seeking to establish a more urban lifestyle.
With this influx of migrant workers comes valuable goods and services as well as a substantial increase the cities¡¯ tax bases. The matter of migrant workers receiving their duly deserved social benefits follows close behind. As the importance of migrant workers to city life is being felt more and more every day, the low wages the migrants receive makes them unwilling or unable to remain for prolonged periods of time. A major policy document released last month addressed the new generation of migrant workers making it clear that the government is striving to reform the household registration system in cities, enabling the workers to receive more social benefits. Reforms would bring enticing benefits in education, housing, as well as social security.
¡°The gravitation of people all throughout China to its prosperous urban areas attests to the nation¡¯s growing economic strength and windows of opportunity,¡± stated Scott Garner, director of Lehman, Lee, and Xu law firm¡¯s Shanghai office. ¡°We have experience assisting our clients in negotiating and drafting employment contracts, advise them on governmental health and safety requirements and employee benefits, and assist with employment-related dispute settlement.¡±
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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March 2, 2010, 11:44 am
By Morgan Crank
March 2, 2010
Government policy resuming restrictions on local real estate purchases by foreigners is not expected to hurt premium property sales, many in the real estate market contend.
The government has chosen to reinstate its limitation on foreigners purchasing local real estate in China, after it had temporarily suspended the measure in the wake of the global financial crisis. Until last week, the government had suspended this in order to encourage foreign investment and strengthen the property market. Now, foreigners are able to buy only one apartment each in Beijing, and must prove one year¡¯s worth of study or work on the Chinese mainland as a precondition for purchase.
Alongside 11 other policies released by the municipal government, this move is intended to make housing more affordable and curtain price manipulation and speculation, widely regarded as root causes of the financial crisis in the American real estate market. Beijing is looking inward to encourage domestic demand rather than investment-led demand coming from foreigners.
The effect may be limited, however, due to the relatively low number of foreigners actually purchasing high-end real estate, comprising no more than 5% of the market in Beijing. In fact, foreigners mostly prefer to buy high-quality houses, and usually pay for them in one payment due to difficulties in acquiring loans on the Chinese mainland. Some luxury housing projects may be affected, for example by lowering their prices, but any extensive impact on the Beijing property market may be small.
¡°The world has seen the impact that the real estate market can have on the global economy,¡± Edward Lehman, senior attorney at Lehman, Lee, and Xu, stated. ¡°We specialize in Chinese real estate law and have the substantial knowledge necessary to assist our clients. Lehman, Lee, and Xu maintains up-to-date information on Chinese real estate law and can customize our services to fit the needs of our business clients. Since every area of China experiences variations in its real estate markets, we encourage our clients to visit any one of our offices throughout the nation so that we can specialize accordingly.¡±
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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March 2, 2010, 11:42 am
Global trend setting or introverted nationalism? This is the debate raging over the Chinese WAPI system, a substitute for Wi-Fi which is currently prohibited for use in Chinese cellular devices. Promoted by the government, the WAPI system is alleged to plug gaps in security and protect wireless internet users. This issue hit the spotlight as a result of consumer frustration over the government block on the iPhone¡¯s Wi-Fi function, debating whether China was interested in true industry development or whether it was a reaction against other countries¡¯ wireless standards.
Some argue that homegrown standards like WAPI are necessary for an industry¡¯s development, arguing that China should not have to use other countries¡¯ wireless internet standards forever. Wi-Fi was not blocked in order to promote WAPI, but because Wi-Fi did not sufficiently protect its users from problems such data loss and invasions of the network. Producing a fruitful industry is more important in the long-run, and the ministry is very supportive of the WAPI system.
Others argue China disabled Wi-Fi because of WAPI. In order to promote this so-called national innovation, China disabled Wi-Fi and sacrificed the interests of millions of cell phone users who can't freely and conveniently access the mobile Web, many taking the risk of buying a smuggled phone on the booming gray market, particularly the iPhone. Homegrown intellectual property rights may bring profits for the country but something is only a success if it is accepted by the customers and markets. Opponents of WAPI argue manufactures did not suffer by Wi-Fi being disabled because integrating the standards is cheap and easy because it only needs a software update. Rather, Chinese consumers did and have been unable to obtain legitimate wireless internet access.
WAPI was finally recognized by the International Organization for Standardization (ISO) last June. Soon after, the Ministry of Industry and Information Technology issued a notice to mobile phone manufacturers allowing them to enable Wi-Fi on handsets if they integrate the homegrown standard, arguing that WAPI is generally the same as Wi-Fi only with extra security protocols to resolve the existing security loopholes in Wi-Fi.
The booming grey market for iPhones is indicative of a demand for the high-technology that is necessary to keep up with modern, proactive Chinese people and businesses, as well as the rest of the world. In an era dominated by quick, convenient wireless technologies, many businesses may have concerns regarding their company¡¯s intellectual property rights. Scott Garner, Director of Lehman, Lee, and Xu Law Firm¡¯s Shanghai office, stated ¡°We are a leading firm in the protection of intellectual property rights in China and have worked with some of the largest businesses in the world to stop the counterfeiting of their products. We excel at maintaining up-to-date information in the dynamic world of Chinese intellectual property rights, and are prepared to tailor our services to fit any of our clients¡¯ needs.¡±
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
By Morgan Crank
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February 25, 2010, 2:33 pm
The worlds of online gaming and movie production are beginning to cross paths in an effort to increase their presence and competitiveness in the Chinese entertainment industry. Companies like Shanda Games Ltd. and Perfect World, two of the largest online gaming companies in China, plan on releasing major motion pictures based on their company¡¯s online games, following the multi-million yuan success of their first productions.
Although there are more than 60 million online gamers in China, the movie industry is another way to reach viewers and to gain an advantage in the increasingly competitive world of online gaming. The cost of developing, popularizing and operating an online game is very high, considering there are nearly 500 online gaming companies in the market. Companies are increasingly looking to other means of marketing their games. For example, Shanda Interactive has delved into games, literature, music, movies, online videos as well as the tourism industry by setting up joint ventures and making new acquisitions.
Yet the online gaming companies are not the only ones being creative. China Film Group Corporation, the country's largest film maker, intends to form a new company to transform the plots of its movies into online games via cooperation with game developers. This may prove more difficult, however, considering to competitiveness of the online gaming market.
Edward Lehman, Senior attorney at Lehman, Lee, and Xu Law Firm, stated, ¡°As a top-3 law firm in China, we have enormous experience dealing with antimonopoly, antitrust, mergers, acquisitions, entertainment, and intellectual property law-to name a few. The entertainment industry is only getting larger in China, and our firm has the resources and knowledge to suit the demand for quality legal expertise.¡±
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
By Morgan Crank
...
February 25, 2010, 2:33 pm
Alexander Pan, February 25, 2010
Beijing, China
Competition for a spot in one of China¡¯s most prestigious universities has always been fierce. However, with the emergence of elite private elementary schools and kindergartens, Chinese children are becoming indoctrinated in this spirit of academic competition from day one.
The intense competition for admission to the nation¡¯s elite universities has created an influx in demand for top tier education all the way down the academic line. To meet this demand for high-end early education, many elite private kindergartens have emerged in China. While these institutions claim to offer a superior education and undoubtedly open up many opportunities for further education, their services do not come cheaply.
One such institution that offers a top of the line education to young students ages one and half to twelve years old, the International Montessori School of Beijing, charges a tuition of between 80,000 to 150,000 RMB. This price tag makes the school nearly as expensive as many American Universities.
While this price tag may seem absurd to many, it does not seem to deter the many parents who are more than willing to pay any price for their children¡¯s future and what they believe to be a superior quality education.
The International Montessori School of Beijing, as well as many of its competitors utilize what is called the Montessori method of education in which students are encouraged study and explore their own individual interests rather than learning through a pre prescribed curriculum. This style of education requires intensive training for its teachers and requires a much higher faculty to student ration than most other styles of education and is thus much more cost intensive.
Parents of perspective young students now must exercise caution when applying for these schools. Many institutions have caught on to the rising demand for these style schools and now claim to offer a ¡°Montessori¡± style education and charge similar prices while the quality of the education is by far inferior to a true Montessori style education.
Scott Garner the director of Lehman£¬ Lee, and Xu¡¯s Shanghai office commented that ¡°The growing popularity of these types of schools that focus on creativity and free thinking, rather than on rote memorization as is so common in many other schools, demonstrates an important trend in the Chinese psyche. The Chinese people are no longer happy with being the factory of the world. They now have a clear ambition to become world leaders in ingenuity and to develop a powerful creative economy that deals in ideas, rather than raw materials and products. The world should pay close attention to this trend because if a thriving creative economy can be established, China will have no trouble in eclipsing the United States as the world¡¯s most powerful economy. We at Lehman, Lee and Xu look forward to assisting the Chinese people in their efforts to establish this creative economy and are excited to be working in such a dynamic market¡± ...
February 25, 2010, 2:32 pm
Alexander Pan, February 25, 2010
Beijing, China
In yet another effort to curtail the problem of widespread corruption in China, The State Council recently passed new regulations on the implementation of audit law. These new regulations will do much to strengthen the country¡¯s auditing system and will increase the supervision of areas that have demonstrated high levels of corruption, in particular the field of construction.
According to the new regulations, which take effect May 1st, auditors will be granted the authority to monitor and supervise the use of fiscal funds by all state owned firms and projects, as well as any other company or project that utilizes any amount of public funds.
Furthermore, the regulations specifically speak to the field of construction where corruption has been notoriously common. The regulations state that in any construction project that has a government investment of over fifty percent or any project that has government control of construction or operation must submit to auditing.
The new regulations will also increase the transparency of the auditing process by removing restrictions on the publication of audit results
Most experts agree that these regulations will do much to ensure the legitimate and efficient use of public funds. In addition they will help to increase the autonomy of the auditing process and consequently reduce the extent of corruption.
The regulation and supervision of the construction industry is particularly poignant as large amounts of public funds flow into major construction projects to meet the demand for such projects as the nations economy continues to boom at such a rapid pace.
Edward Lehman, managing director of Lehman Lee and Xu said that ¡°these new regulations clearly demonstrate China¡¯s seriousness about cracking down on corruption and ensuring the efficient and proper allocation of public funds. These regulations and attempts to reign in the rampant corruption present in China is a good sign that China will continue its efforts to establish a true rule of law. We are excited to be working in this ever evolving market and look forward to helping our clients to navigate these new regulations.¡±...
February 25, 2010, 2:31 pm
Edward E. Lehman, Managing Director of Chinese law firm Lehman, Lee & Xu, is scheduled to participate in a webinar discussing patent protection in China on April 28, 2010. Other confirmed attendees include Alex W. Zhang of King and Wood and Elizabeth Chien-Hale of Institute for Intellectual Property in Asia.
Mr. Lehman is planning on addressing the audience on the subjects of: the current state of Chinese IP law, determining the most effective protection and enforcement strategy for your patent portfolio, and the impact of the proposed 3rd amendment of China patent law.
Edward Lehman is the Managing Director of Lehman, Lee & Xu in China where he specializes in the legal aspects of doing business in China. He advises foreign companies on joint ventures, wholly-owned subsidiaries and holding companies, technology licensing, engineering and construction projects, and the financing of such projects, as well as the protection of intellectual property rights in transactions and projects in China. In practice for over 20 years, Edward has advised on a wide variety of China projects ranging from cars to pharmaceuticals to power plants and websites....
February 25, 2010, 2:28 pm
The Supreme People¡¯s Court and the Supreme People¡¯s Procuratorate have jointly issued the Judicial Interpretation (II)[1] 1 to further clarify the issues concerning the application of laws for handling criminal cases related to making, reproducing, publishing, selling and broadcasting obscene electronic information via the internet, mobile communications terminals and information service centres as well as the benefit chains stemming therefrom. The Interpretation comprises 13 articles mainly providing that: 1. the criteria of conviction and sentencing on the cases of distributing obscene articles for profit shall be applied to the acts of any telecom operator or internet information provider providing any website that is obscene to the knowledge of the operator or provider with services such as internet access, server escrow, network storage space, communications transmission channel, charge collection, and collecting service charges from the website; 2. the criteria of conviction and sentencing on punishing joint offences in making, reproducing, publishing, selling and distributing obscene articles for profit shall be applied to those providing, directly or indirectly and for profit, funds to any website that is obscene to their knowledge by means of releasing advertising or rendering fee settlement services.
[1] Intepretation (II) of the Supreme People¡¯s Court and the Supreme People¡¯s Procuratorate on Several Specific Issues concerning the Application of Laws for the Handling of Criminal Cases related to Making, Reproducing, Publishing, Selling and Broadcasting Obscene Electronic Information via the Internet, Mobile Communications Terminals and Information Service Centres
...
February 25, 2010, 2:27 pm
Volkswagen Inc. V. Trademark Review And Appraisal Board Of The State Administration For Industry And Commerce Of The People¡¯s Republic Of China Re: Dispute Over Trademark Administration
Volkswagen Inc. (Volkswagen) applied on 8 June 2004 to register the trademark ¡°Tuan¡± (No. 418302) (the proposed trademark) on motorcycles, bicycles, auto tires, land, air, water and rail transport means, automobiles, light vehicles, off-road vehicles, caravans, automobile bodies, engines of land vehicles and interior vehicle accessories. Zhejiang Shaoxing Kesiweiteli Electromechanical Co., Ltd. applied on 10 October 1986 for the registration of the trademark ¡°Antu¡± (No. 276188) (the referenced trademark) and extended its exclusive rights to use the referenced trademark to 29 January 2017 on auto parts. Therefore, the Trademark Review and Appraisal Board (TRAB) decided (the No.13002 Decision) not to approve Volkswagen's application for the registration of its trademark. Volkswagen filed a claim with the Beijing No. 1 Intermediate People's Court against the TRAB's decision.
Volkswagen claimed that: 1. The proposed trademark and the referenced trademark were completely different in terms of their names and meanings. In addition, the texts and logos formed to express the referenced trademark was distinctively different from the proposed trademark; 2. The products on which the proposed trademark was to be used were different from those on which the referenced trademark was allowed to be used in terms of the nature, purposes, target consumers and sale channels. Therefore, those products could not be seen as similar; and 3. Consumers had already recongized the Chinese brand, ¡°Tuan¡± as the Chinese trademark of the Touran multi-purpose cars. The proposed trademark and the referenced trademark would not cause confusion; 4. The owner of the referenced trademark had already expressed its consent to the registration of the proposed trademark.
The TRAB did not intend to amend or revoke the No.13002 Decision.
It was held that: 1. By comparison, the consumers of the products on which the proposed trademark was to be used were end users of automobiles. The key consumers of the products on which the referenced trademark were allowed to be used were manufacturers and repairers of automobiles. The majority of the consumers of the products on which the proposed trademark was to be used would not be confused by the sources of the aforesaid products. Therefore, the aforesaid products were not seen as similar; and 2. Both the proposed trademark and the referenced trademark included the two characters ¡°an¡± and ¡°tu¡±, but such characters were presented in different orders. Therefore, the two trademarks in Chinese were not similar in terms of their patterns, pronunciations and meanings. The proposed trademark and the referenced trademark in English were also obviously different, and the proposed trademark did not include a logo or any other elements. Thus, the proposed trademark and the referenced trademark were not similar trademarks.
Based on the above reasoning, it was concluded that: No.13002 Decision of the Trademark Review and Appraisal Board of the State Administration for Industry and Commerce of the People¡¯s Republic of China was hereby overruled and the TRAB must re-decide on the review application filed by Volkswagen in respect of its trademark ¡°Tuan Touran¡± (No.4108302).
...
February 25, 2010, 2:27 pm
Issued By: State Intellectual Property Office
Issue Date: 29 September 2009
Effective Date: 29 September 2009
For the purpose of effectively enforcing the amended Patent Law, the SIPO published the Notice concerning the Enforcement of the Amended Patent Law on 29 September to clarify submission of patent applications and the rules governing other patent issues.
Applications for Patent of Utility Model and Invention
Where the same applicant, on the same day, applies for both a patent of utility model and a patent of invention in respect of the same invention, Statements shall be filled separately to specify that an application for another patent in respect of the same invention has also been submitted. Any organization or individual who intends to apply for a patent in a foreign country in respect of an invention or utility model created in China shall in advance apply for a confidentiality assessment to be conducted by the SIPO and complete the required request form. Any applicant who applies for a patent in respect of an invention which is created based on genetic resources shall complete the Source Disclosure Registration Form to explain the direct and original sources of such genetic resources, and where the applicant is unable to explain the original source, reasons must be given.
New patent applications made in the above events as well as request forms and registration forms filed after the application date shall be delivered by the applicants in person or by post to the application counters at the Patent Office under the SIPO.
Applications for Designs
An applicants who applies for a design shall submit a brief description of the proposed design in writing with reference to the "Brief Description of Design" (October 2009 Version), or else the application shall be rejected. The SIPO will make patent evaluation reports on patents of utility models and designs whose date of application is after 1 October 2009.
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February 25, 2010, 2:26 pm
The Ministry of Industry and Information Technology (MIIT) has promulgated the "Notice on Improving the Safety and Security of the Internet Domain Name System" in response to the recent increase in threats and risks against domain name safety and security. The Notice requires the authorities concerned to take measures to improve the protection and contingency plan in connection with the domain name system. Basic telecommunication service providers, domain name registration management companies and domain name registration services companies must be aware of their authority in providing their services and improve the protection and security measures for their recursive domain name analytical system and domain name registration system. A series of standards for domain name safety and domain name system safety are expected to be formulated and promulgated....
February 25, 2010, 2:25 pm
Konica Minolta Holdings Inc. V. Trademark Review And Appraisal Board Of The State Administration For Industry And Commerce Of The People¡¯s Republic Of China, Etc. Re: Trademark Administrative Dispute
Konica Minolta Holdings Inc. (Minolta) applied on 18 January 1985 for the registration of the trademark ¡°MEINENGDA¡± and successfully registered such trademark (Register No. 238453) (the referenced trademark) on 30 November 1985, which was approved to be used on ¡°photocopy machines and microfilm readers as well as toners and colour developing reagents used within photocopy machines¡±. On 10 November 1997, Jinfeng Paint Factory filed an application with the Trademark Office to register the trademark ¡°MEINENGDA¡± (No. 1248053) (the disputed trademark), which was to be used on its paint products. The products on which the referenced trademark was used and those on which the disputed trademark was used were not similar so that the Trademark Review and Appraisal Board (TRAB) decided in the No.2051 ruling on 4 June 2007 that the registration of the disputed trademark was approved. Minolta disagreed with this ruling and filed a lawsuit with the Beijing No. 1 Intermediate People's Court.
Minolta claimed that: 1. The TRAB failed to evaluate correctly the impact of the popularity of the referenced trademark in this case. The products on which the referenced trademark and disputed trademark were used were optics-related materials, and were in their nature very close to each other. ¡°MEINENGDA¡± was the Chinese version for their trademark ¡°Minolta¡± (which had been recognized as a well-known trademark in Japan), and since they had completed a wide range of registration in China for the trademark ¡°MEINENGDA¡± and had been using the same in China for a long time, the trademark ¡°MEINENGDA¡± should have been identified as a well-known trademark. 2. The TRAB had granted to the referenced trademark a protection at the well-known trademark level. 3. The referenced trademark was an original creation of Minolta and was of high distinctiveness, and the application for the registration of the disputed trademark was obviously a malicious act.
The TRAB argued that: the evidences submitted by Minolta proved that the referenced trademark was used earlier on the designated products and had certain popularity, but failed to support the Minolta¡¯s claim that the referenced trademark had become a well-known trademark before the date of application for the disputed trademark, and the products on which the disputed trademark and referenced trademark were used were obviously different. Therefore, Minolta was unable to prove that the application for the registration of the disputed trademark may cause damage to the interests of Minolta.
It was held that: 1. the question of similar products should be determined by whether, according to the general knowledge of the relevant public, the products in question were the same or similar in terms of their functions, purposes and raw material, or whether the relevant public would believe that the products in question were connected or caused confusion. In this case, the products on which the referenced trademark and disputed trademark were used were obviously different in terms of their functions, purposes and other features. Therefore, they were not similar products.
2. The evidences submitted by Minolta proved that the referenced trademark had certain popularity, but failed to prove the fact that the referenced trademark had become a well-known trademark before 10 November 1997 on which the application for the registration of the disputed trademark was filed.
Based on the above reasoning, the claim of Konica Minolta Holdings Inc. was dismissed. ...
February 25, 2010, 2:24 pm
The Ministry of Industry and Information Technology (MIIT) recently promulgated the Administrative Measures for Communications Network Security Protection to be effective as of 1 March 2010. The Measures provide that communications network operation units shall, in accordance with the requirements of the telecom authorities and standards of communications industry, carry out the work related to communications network security protection and be responsible for their own communications network security. Under the Measures, communications network operation units are required to divide their own communications network units that have been put into service into Class 1 through Class 5 subject to the degree of threat to national security, economic operation, social order and public interest that may be caused by each damaged communications network unit. The Measures clarify that any communications network operation unit that violates any provision of these Measures will be ordered to remedy the situation by the telecom authorities according to its authority and, if the unit refuses to effect such remedy, it shall be given a warning and may be imposed with a fine of more than RMB5,000 but less than RMB30,000.
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February 25, 2010, 2:18 pm
Increasing environmental concerns and rising crude oil prices are forcing countries including the United States and China to look for alternative energy resources. As the world's second largest oil importer, China is promoting the development of biofuel energies to reduce its dependency on imported crude oil, the demand for which is in the millions of tons.
One way China plans to take biofuel production into its own hands is by utilizing its own abundant natural resources. The jatropha plant, farmed in the Yunnan Province, has typically been regarded as a pest, not a mover for major economic production. However, when the seeds are crushed, the resulting oil can be processed to produce biodiesel fuel. The residue can also be processed and used as a biomass feedstock to power electricity plants or used as fertilizer. It can be grown in a range of difficult soil and weather conditions, making it a candidate for growth even in China¡¯s non-arable areas.
Planting jatropha has been the focus for the Yunnan Province local government¡¯s biofuel development plans for nearly 3 years. It plans to be able to produce 500,000 tons of biodiesel annually by 2015. If China could achieve the target of turning 75 million mu (5 million hectares) of wasteland into jatropha plantation by 2020, biofuel produced by China could replace 40 percent of the current global aviation jet fuel demand.
There are some obstacles that need to be overcome regarding the quality and commercialization of the jatropha plant and biodiesel fuel on the whole. Yields of jatropha are variable as the plant has not yet been domesticated or improved by plant breeders. It will also take a few years to develop a mass production and distribution system for the commercial application of biofuels, especially as the Chinese government has not mandated use of biofuel in cars.
Environmental concerns and alternative energy solutions should be a top priority for China. To provide a healthier living space for its citizens, as well as break into a growing area of international economic investment, biofuel production can only be encouraged. Development of biofuel technologies draws millions in investment from large companies, particularly in regards to the planting and processing factories of the jatropha plant which can be grown indigenously. Scott Garner, director of Lehman, Lee, and Xu Law Firm¡¯s Shanghai Office, stated, ¡°We are very confident about the biofuel industry. Many countries, including China, have realized the renewable energy industry would become a new engine for economic growth. Lehman, Lee, and Xu has years of experience regarding foreign direct investment for Chinese businesses and will be happy to consult with our customers at any of our numerous offices throughout China.¡±
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
By
Morgan Crank
...
February 23, 2010, 11:11 am
Alexander Pan, February 23, 2010
Beijing£¬China
Over the past several years China has proven to be a world leader in renewable energy production with heavy investment into the hydro, solar and wind power industries. The growth of China¡¯s wind power sector has been particularly impressive with a twenty fold increase in total wind power capacity of over the past five years. Now, however, the industry seems to have become a victim of its own success and lack of prior planning as an over abundance of obsolete technology and competition from abroad has sent prices for wind power technology plummeting.
The current ¡°bust¡± of the wind power bubble can be largely attributed to the rapid, yet irresponsible growth of the industry from 2004 through 2009. In 2004 there were only six wind turbine producers in China, this number has expanded to nearly 70 producers in 2009. As these firms rushed into the industry, many of them lacked any prior knowledge of wind power technology and began producing what was in demand at the time with out planning or consideration for future demand. These firms also paid little to no attention to the research and develop of new more efficient technologies
Take turbine blades for example. During the height of the wind power boom.37.5 meter blades were considered to be the most efficient blades available and nearly 75% of all blades produced were of this length. However recent research has shown that a 40.3 meter blade is dramatically more efficient than the smaller blade. This sent demand for the shorter blades crashing and left the firms with a large surplus of blades that had to be sold off at dramatically reduced prices.
In addition Chinese firms are now facing more intense competition from the international market. The Chinese wind power industry had previously been protected by strict trade laws that¡¯s required 70% of all wind turbines used in the country to be produced domestically. The Chinese government recently abandoned these measures leaving the market open to free competition.
While these recent developments may have hurt some of the smaller and less efficient producers of wind turbines, It has provided an opportunity for dramatic growth to those producers who have poured resourced into R&D and have managed to stay ahead of the curve. One such company is the Sinovel Wind Group Co which currently holds the largest share of the domestic wind power product market. Companies like Sinovel and other leading manufactures will no doubt look to acquire the assets and holdings of other smaller firms who have not fared as well during this boom bust cycle. Experts predict that the industry will enter a so called ¡°consolidation phase¡± and we should expect to see a wave of mergers and acquisitions taking place.
Edward Lehman, managing director of Lehman Lee and Xu commented that ¡° What we are current seeing is the bust of a once booming industry. As in any period of bust we can now expect to see the rapid and dramatic reorganization of this industry. We at Lehman Lee and Xu look forward to assisting this industry reorganize and get back on its feet as quickly as possible so that China can continue on its path to becoming a world leader in renewable energy production.¡±
The corporate department at LEHMAN, LEE & XU includes one of the best Mergers and Acquisitions teams in China. In the past, we have advised acquirers, targets, sellers, financial advisors, institutional investors, and special committees of public and private companies in both negotiating and contesting transactions. Our extensive client list ranges from small start-up, high-technology companies to large and experienced private and public corporations.
With varied experience in the field of Mergers & Acquisitions, we have provided transaction support in the structuring and execution of M & As. Our highly praised Mergers & Acquisitions team of lawyers provides advice to public and private enterprises. As one of the most experienced M & A teams in China, we realize that we are constantly learning from our clients' experiences, always supplementing our knowledge and advancing our legal practice and knowledge.
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February 23, 2010, 11:11 am
Sam Engutsamy, February 11 2010
Markets such as the Silk market, the Pearl market, and Yashow are famous amongst foreign visitors to Beijing looking for a deal on fake goods. At any of the above places counterfeit watches, bags, shoes, wallets and much more can be haggled down to an impressive and affordable price. However, in light of recent arrests how long is this all likely to last for?
I recently read a Chinese news article announcing that the once general manager of Beijing¡¯s Silk Market, Wang Zili, had been detained by police for allowing the sale of counterfeit products and bribe taking. Wang Zili, who resigned from his post in July 2009, faces allegations that he supported, and even encouraged retailers to sell illegal goods.
The article also outlined that a Silk Market vendor had been sentenced by the courts to three and a half years for selling counterfeit bags, including brands such as Louis Vuitton and Gucci. As well as imposing a custodial sentence on the individual, the courts fined him 10 000 RMB (approximately 1500 USD)
Intellectually property right protection has long been seen as a serious issue for many foreign corporations looking to enter the China market. Progress is however being made. Recently, Strix, a company established on the Isle of Man, successful won a patent infringement case against two domestic Chinese corporations, who were fined in total 9.1 million RMB.
During my nine month sprint in Beijing, I have come across a number of obvious and blatant fakes such as Paul Smith trainers, Ray Ban sunglasses, and Armani watches. The demand for such products is extremely high. A pair of genuine Ray Ban sunglasses which may cost 195 USD for example, will set you back (if you¡¯re a good bargainer) around 25 RMB in one of the above markets, which is approximately 3.65 USD, around a 98% mark down in usual RRP. The price may be great, however you are loosing out on the high quality production standards, uncomfortable fits, and likely breakable within a matter of days.
Article 9 of China¡¯s National IP Strategy states the following:
The intellectual property law enforcement and administration systems need to be strengthened. The judicial protection and administrative law-enforcement systems need to be strengthened, while judicial protection of IPRs should play its leading role. The efficiency and level of law-enforcement need to be improved and public services need to be strengthened.
Source: http://www.gov.cn/english/2008-06/21/content_1023471.htm
From recent IPR developments, it appears that this is in fact what is happening. The judiciary are leading the way in protecting IPR, and stories as the one above highlight that enforcement is in fact taking place. The steps being made are positive; however an incrementing policy of enforcement and higher deterrents are likely to be necessary to make a mark upon the counterfeiting industry in China.
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February 11, 2010, 3:52 pm
Trademark infringement has always been a major concern for firms doing business in China. However£¬ as new figures emerge, it seems that this problem is only getting worse. According to the Customs General Administration (CGA) The total value of all goods seized for trademark infringement totaled over RMB328,000,000 in 2007.
The process of Customs seizures is the primary line of defense for trademark owners to prevent the infringing goods from reaching the market. Under current protocol the CGA will monitor all good during export inspection for suspicious trademarks. If an item is deemed to be questionable, the suspected goods will be detained, and the rights owner will be notified. If infringement is verified, Customs will then confiscate the goods and issue a nominal fine. While this process has had limited success in preventing the export of counterfeit goods, it lacks sufficient deterrent measures as the seizure of goods and small monetary penalty do not outweigh the potential gains of exporting these infringing goods.
How then is a trademark owner supposed to deter the exportation of infringing goods? Recent research has shown that China has sufficient laws and regulations to hold the exporter civilly liable for trademark infringement. This will force exporters to pay significant compensation to the rights owner and will act as strong deterrent to exporting counterfeit goods.
The legal basis for imposing civil liabilities on the exporter includes Artile 118 of the General Principles of Civil Law of the PRC which states that the trademark owner is entitled to compensation from the infringer. Also Article 56 Article 56 of the Trademark Law of the PRC sets out various elements to be taken into account when determining the amount of compensation to be awarded, including the illegal gains obtained by the infringer from the infringement, the loss suffered by the rights owner including its ¡°reasonable costs¡± in stopping the infringement, and a right to statutory damages of no more than RMB 500,000, to be awarded by the court according to the details of the infringement.
In addition to these regulations, there are a number of other articles, detailing the various forms of copyright infringement and the corresponding monetary penalties applicable to said infringement.
Edward Lehman, Managing Director of Lehman, Lee and Xu said that ¡°the emergence of these regulations as a method of penalizing trademark infringers will have a massive impact on the market. Not only will these heavy penalties serve as a deterrent that will prevent exporters from continuing to engage in infringing activities, it will also serve as a warning to other potential exporters. We at the firm are very excited to help our clients take advantage of these measures in order to punish copyright infringers and protect our client¡¯s interests.¡±
Alexander Pan
...
February 11, 2010, 3:07 pm
Beijing, China As companies search for new methods of marketing their products, advertisements have begun to push the envelope of acceptability, and legality.
The State Administration of Radio, Film, and Television has recently banned over 3,000 television ads claiming that they were ¡°illegal¡± Some of these ads were banned because of ¡°vulgar¡± or ¡°inappropriate¡± content; however, a large majority of the banned commercials were found to be making exaggerated, or false claims about their products.
According to a study conducted by major watchdog organization, The Professional Committee of Media Shopping, most commercials for health foods and medicines broadcast on local television stations across China violated advertising laws and regulations from the State Food and Drug Administration.
As these ¡°phony¡± commercials begin to be exposed, many celebrities who were featured endorsing the ¡°phony¡± product are also coming under fire. Such celebrities include popular entertainment show host Wang Yang and Zhou Yanhong, a female singer who paired up in a medicine commercial that overplayed the product's anti-aging properties with unfounded claims that it could make consumers look "10 years younger.
In addition to these celebrity endorsements, many commercials now feature fake experts and fake testimonials from ¡°consumers¡± of the products.
Scott Garner, Director of LEHMAN, LEE & XU Shanghai office said that ¡°The governments crackdown on these illegal commercials shows both China¡¯s efforts to ensure only quality products reach the market, and its tightening control of the content of media and advertising. We as a firm look forward to assisting our clients navigate the local laws and regulations in their attempts to reach the Chinese market.¡±
LEHMAN, LEE & XU advertising law specialists offer complete legal service to a broad spectrum of advertising clients on a wide diversity of matters. We have advised some of the biggest players in the industry in some of the advertising industry's most significant and intricate matters. The consequential breadth of expertise allows us to handle all aspects of any advertising law matter and gives our clients an upper hand in representation on matters falling outside the sphere of more traditional advertising law firms.
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 11, 2010, 2:57 pm
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