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-Oscar Wilde

Suggested ban on youth¡¯s mobile phone

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. ...

China News 0 Comment January 29, 2010, 8:16 pm

Drug traffickers new target

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.
...

China Law 0 Comment January 29, 2010, 8:05 pm

China¡¯s green drive

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.
...

China News 0 Comment January 29, 2010, 7:20 pm

¡°When the well is dry, we know the worth of water.¡± Benjamin Franklin, Poor Richards Almanac

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.
...

China News 0 Comment January 29, 2010, 7:17 pm

Lehman, Lee & Xu: Cross-Straits talks to help boost economic relations

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
...

China Business 0 Comment January 29, 2010, 7:12 pm

China Unlocks Door to Foreign Security Firms

As of 2010, foreign security firms are now allowed in China for general security services only, such as guarding of residential and office complexes. The regulation was issued by the State Council on October 13, 2009 and took effect on January 1, 2010. A spokesman for the Legislative Affairs Office of the State Council said the regulation is crucial to the high speed development of China¡¯s security industry. As of today, many security guards in China are not registered with their local police departments and many guards have little or no training at all. China hopes to change this trend by allowing more sophisticated foreign firms to the market. The details of registering foreign security companies in Beijing have not been completely decided thus far. If interested in more details in regards to establishing a foreign security company in China, please contact the Chinese Ministry of Public Security or Lehman, Lee & Xu, a leading Chinese law firm with experience in both setting up foreign companies in China and the security industry. More information can be obtained at www.lehmanlaw.com. ...

China Law 0 Comment January 29, 2010, 6:55 pm

Suggested ban on youth¡¯s mobile phone

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. ...

China News 0 Comment January 29, 2010, 5:06 pm

China¡¯s green drive

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....

China News 0 Comment January 29, 2010, 5:04 pm

China¡¯s green drive

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....

China News 0 Comment January 29, 2010, 5:04 pm

Drug traffickers new target

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. ...

China Business 0 Comment January 29, 2010, 5:03 pm

Opportunities in China's Water Industry

¡°When the well is dry, we know the worth of water.¡± Benjamin Franklin, Poor Richards Almanac

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.
...

China News 0 Comment January 29, 2010, 1:49 pm

Drug Trafficking Cases Picking Up in China

According to the National Narcotics and Control Team, 2009 saw more drug cases and quantity of drugs than any other year in Chinese history. Chinese customs took control of 2,119.2 kilograms of drugs during its crackdown on drug trafficking. This figure is seen as 150 percent increase from 2008. 506 drug smuggling cases were brought before court with 553 suspects. The most common form of smuggling was through postal and express mail accounting for 151 of the cases. Baby diapers and auto axles were also used.

The largest case of the year was the result of a six month investigation that eventually lead to the arrest of 85 gang members on charges of producing and distributing crystal meth. Police destroyed 44 tons of raw materials that could be used to make crystal meth worth $318 million, and 900 pounds of ephedrine, a main component of methamphetamine, it said. They also destroyed eight illegal factories and confiscated 10 apartments and 21 cars belonging to the suspects.

The drug trade in China has flourished as social controls have been loosened over the last several decades. Government statistics put the number of known addicts at 1.2 million, including 700,000 heroin users, more than two-thirds of them being under the age of 35. ...

China Law 0 Comment January 28, 2010, 5:20 pm

Contradicting Policies

In an attempt to increase public transportation use in the capital city, Beijing will extend its rail and subway lines and open more express bus lanes in 2010. The end goal is to get 40% of Beijing¡¯s commuters using public transportation this year.. 38.7% of the city¡¯s residents used public transportation as their primary source of commute. The city government has approved a budget of 80 million yuan ($11.7 billion) for the construction of public transport facilities in 2010 alone. The lines will be extended by 140 km this year to 368 km and reach 561 km in 2015. An extra 800,000 vehicles were added to Beijing roads in 2009. The total number hit 4 million.

It appears the city¡¯s plan to increase public transit goes in direct contrast to the country¡¯s strong incentives to encourage the purchase of automobiles. 2009 saw extremely liberal policy incentives, such as subsidies and tax cuts, that helped the Chinese automobile industry grow 52.9% year-over-year with a total of 13.6 million automobiles purchased. As a result of such strong incentives, 2009 was the first year the United States was surpassed as the leading consumer of automobiles. As the Chinese market was skyrocketing, the American market sunk 21% to 10.4 million. Perhaps the incentives drew more attention than desired? I do not have the answer to that. But what I do know, the country of China and the city of Beijing are promoting contradicting policies.
...

China Law 0 Comment January 28, 2010, 5:19 pm

Successful reduction of sulphur dioxide emissions

Zhou Shengxian, Minister of Environmental Protection, announced the reduction of China¡¯s chemical oxygen demand (¡°COD¡±) and sulphur dioxide emissions for four consecutive years.

Sulphur dioxide emissions were recorded to have dropped 10.4 percent in 2009, compared with the figures for 2008. The target plans set by the government, aimed at reducing the emissions of major pollutants by 10% starting from 2006 until 2010. This is termed the 11th Five Year Plan.

Such a fall in sulphur dioxide emissions could be attributed to the use of desulphurisation. This is a process whereby contaminated gases are cleaned using wet scrubbers. Such a system reduces the contamination level which may have adverse effects on humans, animals, and on plant life. Since 2006, China has built more than 411 million kilowatts of desulphurisation units, in an attempt to reduce the harmful effects of such emissions.

China¡¯s success in achieving and successful adhering to the 11th Five Year Plan has highlighted the country¡¯s determination to reduced such emissions and promote a healthy and greener environment....

China News 0 Comment January 28, 2010, 3:51 pm

The meat of the day¡­

Walk down any street in Beijing, and within minutes you are likely to cross paths with several proud dogs and their owners. Just like in any other city, Beijing¡¯s pet community can enjoy a happy life of pampering, being fed and watered, and taken for walks. Their standard of living (and life expectancy) is only likely to increase, now that legislation is in draft mode to ban the consumption of dog and cat meat in China.

China legislative process has begun the procedure of drafting laws which will punish those who both consume and sell such meats. According to the draft law, a fine of up to 5000 RMB, and 15 day detention shall be imposed upon those guilty of dog and/or cat meat consumption. Those found guilty of selling the meat, shall face heftier fines of between 10,000 RMB and 500,000 RMB.

Dog and cat consumption in China is viewed as a part of the traditional culture, dating back thousands of years. It is believed the consumption of such meat will promote body warmth and heat during the winter months.

The proposed law, renamed Anti-cruelty to Animals (¡°the Act¡±), is sparking fierce debate between those for and against such a ban on dog and cat¡¯s meat consumption. In support the Act, the Chinese Animal Protection Network (¡°CCAPN¡±) established in January 2006, has been active in the promotion of a prohibition on the consumption of such meats. The Act does not focus solely on this issue. It shall strive to protect six categories of animals; those on farms, in laboratories, pets, working animals, animals for entertainment purposes and wild animals....

China News 0 Comment January 28, 2010, 3:51 pm

State Council to issue plan to address heavy metal pollutant concerns

Zhou Shengxian, Minister of Environmental Protection, has stated that by Jue 2010 a plan to control heavy metal pollution shall be released.

The urgency of the matter was highlighted when in 2008, 4035 people were found to have excessive lead in their blood, and a further 182 found to have excessive cadmium. The plan, undergoing review from the State Council, is likely to be issued before June, and will look to control and prevent the use of certain heavy metal pollutants. As part of the ministries procedure a list of industries involved with metals such as lead and mercury, and their locations shall be cultivated.
...

China Law 0 Comment January 28, 2010, 3:42 pm

New Master of European and International Law in China Offered at the China-EU School of Law, Beijing

A new one-year Masters program in European and International Law is being offered by the China-EU School of Law (CESL) in Beijing. Responding to the increase in demand for highly qualified legal expertise in matters of Chinese, European, and International law, this master¡¯s program taught in English combines renowned international faculty from 15 Chinese and European universities in a competitive atmosphere. A joint project of the Chinese Government and European Union, the tuition is 60.000 RMB (about 6.000 EUR) for the entire program, with some scholarships available. The application deadline is April 20th. The application and more information can be found on the CESL website.
...

China Law 0 Comment January 28, 2010, 3:07 pm

IIT Avoided On Transfer Of Restricted Shares To Be Pursued

The ¡°Circular on Strengthening the Administration of the Collection of Individual Income Tax on the Transfer of Restricted Shares¡± was released by the State Administration of Taxation (SAT) to explain the collection process of Individual Income Tax (IIT). It states that a taxpayer is required to pay an overdue tax bill if the amount deducted and withheld by the securities institution is less than the actual tax payment. Furthermore, it states that ITT on the transfer of restricted shares shall be deducted and withheld by securities institutions or declared for payment by taxpayers themselves. An application may be filed for settlement if there is a difference between the tax payable calculated on the basis of actual income and cost, and the amount deducted by the securities institution. Authorities shall repay a tax payable if it is less than the amount deducted and withheld by the securities institutions. If the tax payable is higher than the deducted and withheld amount, then the taxpayer shall pay an overdue tax bill.

Morgan Crank
Lehman, Le, and Xu...

China Law 0 Comment January 28, 2010, 11:12 am

Tax update: Rebate on R&B purchases of homemade equipment

The ¡°Measures for the Administration of Tax Refunds for Purchasing Homemade Equipment by R&D institutions¡± (¡°the Measures¡±), issued by the State Administration of Taxation (¡°SAT¡±), and effective for a period from July 4, 2009, until December 31, 2010, addresses tax refunds R&D institutions are entitled to after making purchases of homemade equipment.

As outlined within the Measures, before the R & D institution can make an application for a tax rebate on the purchases of homemade equipment, a series of documentation is required in order to determine the amount due back. Firstly, the copies of the business licence copy is required, as well as the original and photocopies of the tax registration certificate, and also, evidence of the account for the tax rebate.

SAT¡¯s Measures can be located at the following location: http://www.chinatax.gov.cn/n8136506/n8136593/n8137537/n8138502/9457640.html
...

China Law 0 Comment January 28, 2010, 10:49 am

Tax update: Rebate on R&B purchases of homemade equipment

The ¡°Measures for the Administration of Tax Refunds for Purchasing Homemade Equipment by R&D institutions¡± (¡°the Measures¡±), issued by the State Administration of Taxation (¡°SAT¡±), and effective for a period from July 4, 2009, until December 31, 2010, addresses tax refunds R&D institutions are entitled to after making purchases of homemade equipment.

As outlined within the Measures, before the R & D institution can make an application for a tax rebate on the purchases of homemade equipment, a series of documentation is required in order to determine the amount due back. Firstly, the copies of the business licence copy is required, as well as the original and photocopies of the tax registration certificate, and also, evidence of the account for the tax rebate.

SAT¡¯s Measures can be located at the following location: http://www.chinatax.gov.cn/n8136506/n8136593/n8137537/n8138502/9457640.html
...

China Law 0 Comment January 28, 2010, 10:49 am

New Regulations Regarding Customs Enforcement of IPR

In an attempt to streamline the customs enforcement process regarding intellectual property rights, the General Administration of Customs passed several new regulations that aim to strike a balance between IPR holders and those who import and export goods.
Under old regulations, customs officials were allowed to ¡°dispose¡± of confiscated counterfeit goods by removing unlawfully affixed trademarks, and auctioning off the goods. These goods commonly reappeared in the market and thus caused monetary harm to the rights owner.
The new regulations now require customs officials to seek the opinion of the relevant IPR owners before it may dispose of any confiscated counterfeit goods. This regulation is a direct attempt to bring China up to the WTO TRIPS agreement standard, which specifically states that sized goods should be disposed of ¡°outside the channels of commerce in such manner as to avoid any harm caused to the right holder, or destroyed" and "the simple removal of the trade mark unlawfully affixed shall not be sufficient.¡±
While this move is undoubtedly a step in the right direction, it is important to note that the regulation requires customs officials to seek the ¡°opinion¡± rather than the ¡°consent¡± of the relevant IPR owner. It thus does not give IPR owners the right to demand the destruction of counterfeit goods rather than the auctioning off of such products.
Another salient feature of these new regulations is that IPR owners will now be able to seek settlements with the infringing party without undergoing a formal customs investigation. It is hoped that this will allow IPR owners to gain valuable information regarding the supply and distribution chains of such counterfeit items while also substantially reducing the resources required of the Customs Department to investigate each and every claim.
The new regulations also contained several smaller modifications such as changes to the notification protocol, the processing of renewal applications, and the cancellation of recordals. All of these modifications are designed to streamline and expedite the customs enforcement process.
Mr. Edward Lehman, managing director at LEHMAN, LEE & XU, said that these regulations ¡° Demonstrate China¡¯s commitment to bringing itself up to the global standard of intellectual property rights enforcements.¡± Mr. Lehman also expressed that he is ¡° excited to see how these new regulations will unfold in practice.¡±
LEHMAN, LEE & XU is the third largest corporate commercial law firm in China, established in 1992 by a group of Chinese lawyers devoted to developing excellence in the practice of law and to the founding of modern law practices in China, providing a full range of China IP services including prosecution, licensing and dispute resolution. LEHMAN, LEE & XU's IP lawyers have a wealth of experience in the IP law of China and in the international laws and conventions which govern the procurement and enforcement of IP worldwide. The Firm is recognized as a leading Law Firm providing the best and most diversified legal services and solutions to its clients. Today, LEHMAN, LEE & XU has extended its affiliate offices across China employing more than 250 licensed lawyers, patent and trademark attorneys and legal assistants.
To learn more about the Lehman, Lee & Xu, please visit to website: www.lehmanlaw.com


Alexander N. Pan
Lehman, Lee, and Xu...

China Business 0 Comment January 27, 2010, 2:46 pm

4G Technology tests and conferences

Four important 4G Technology tests and conferences took place in December of 2009. First, the Ministry of Industry and Information Technology (MIIT) announced the beginning of next-stage TD-LTE tests for 4G internet network on the 28th of December 2009. ZTE, Huawei, Datang, and Motorola will be the first group of manufacturers to execute these tests and will be evaluated by the MIIT. According to both the MIIT and these leading manufacturers, LTE is premier in extending the mobile communication industry to the mobile Internet. Base stations with a similar preexisting platform in TD-SCDMA mode will only need to upgrade their software to TD-LTE mode or TD/TD-LTE dual mode, minimizing costs. The stages of testing include the concept testing stage, technology research, development and experiment stage, and scale experiment stage expected to be completed in the latter half of 2010.

Secondly, the first 4G technology selection conference in China was held in Beijing this past December. Various assessment boards have tested 4G standards and proposals, headed by Wen Kun, head of the Division of Technology of the MIIT. Although the assessment boards are all from different countries and will produce different results based on their home wireless communications environment, China will base its 4G assessment on its own environment. The results of one country may not necessarily be applied to other countries, so further discussions are necessary before deciding final results. The International Telecommunications Union (ITU) will assist in determining frequency and introducing other important 4G technologies. China¡¯s share of involvement in 4G technologies and standards will be at least 40%.

Thirdly, a joint seminar on new network, future internet, home networking, IPTV, CDN and environmental standards took place between the China Communications Standards Association (CCSA) and the European Telecommunications Standards Institute (ETSI) on the 17th of December 2009 in Beijing. The key point of this seminar was the mutual understanding that if different sectors want to realize the sharing of information globally, sensor network technology will be the key. The ETSI also emphasized the direction of home networking as the future direction of internet development.

Finally, after the world¡¯s first 4G LTE network was introduced in Norway and Sweden, the Chinese telecommunications company Huawei won a bid to provide the network with base stations, operation support systems, and network planning and implementation. This amazingly fast network can offer users a download rate of up to 100Mbs/s, realizing its success thanks to Huawei¡¯s assistance and support.

Morgan Crank
Lehman, Lee, and Xu
...

China News 0 Comment January 27, 2010, 2:43 pm

Notice Concerning the Enforcement of the Amended Patent Law

The State Intellectual Property Office issued a notice concerning the Enforcement of the Amended Patent Law on the 29th of September 2009 in order to clarify the submission of patent applications and rules governing patent issues. When an applicant applies for both a patent of utility model and a patent of invention on the same day and in respect of the same invention, the statements must be filed separately to indicate that both patents in respect of the same invention have been submitted. Organizations or individuals who apply for a patent in a foreign country in respect of an invention or utility model created in China must apply in advance for a confidentiality assessment to be conducted by the SIPO and complete the required request form. An invention that is created based on genetic resources must complete the Source Disclosure Registration Form when applying for a patent in respect to the invention in order to explain the direct and original sources of its genetic resources. Where the applicant is unable to explain the original source, reasons must be given. New patent applications related to the above events as well as all request and registration forms filed after the application date must be delivered by the applicants in person or by post to the Patent Office under the SIPO. An applicant applying for a design must submit a description of the proposed design in writing, referencing the ¡°Brief Description Design¡± (October 2009 version) or else the application will be rejected. Evaluation reports on patents of utility models and design will be conducted by the SIPO on any whose date of application is after 1 October 2009.


Morgan Crank
Lehman, Lee & Xu
...

China Law 0 Comment January 27, 2010, 2:42 pm

Tax updates: January 2010

Government benefits offered for new car purchases

Looking to buy a new passenger car with an engine capacity of 1.6L or less? Well as from January 1, 2010, such customers are eligible to benefit under the Notice on Simultaneous Entitlement of Subsidies for Car Replacement and Vehicle Purchase Tax Reductions, jointly issued by the Ministry of Finance and the Ministry of Commerce. The Notice allows purchasers to receive a subsidy when replacing their old vehicles. Additionally, the purchaser will be able to benefit from tax reduction also.


Administration of Accounting Firms

As from July 1, 2010, the Ministry of Finance¡¯s new measures titled ¡°Interim Measures on the Administration of the Office of Accounting Firms¡± (¡°the Measures¡±) shall become effective. The Measures differentiates between an office of an accounting firm, and an actual accounting firm. Additionally, the Measures also address issues regarding firm¡¯s liabilities.


CICPA looks to the future

The Chinese Institute of Certified Public Accountants (¡°CIPCA¡±) are corresponding with local CPA institutions on the proposal of expanding the scope of services to include dealings with tax consultations, and judicial procedures. Comments are invited to be given by February 5, 2010.

Founded in 1988, the CICPA derives its statutory rights from the Law of the People¡¯s Republic of China on Certified Public Accountants, the Charter of the Chinese Institute of Certified Public Accountants and other supplementary laws and regulations. CICPA¡¯s responsibilities include; the review and approval of CICPA membership, the organisation of training activities; the organisation of annual reviews of the CPA qualification, and the monitoring and implementation of rules CPAs should adhere to.

The CICPA¡¯s website can be located at the following location: http://www.cicpa.org.cn/english/
...

China Law 0 Comment January 26, 2010, 10:42 am

Trademark dispute case: Volkswagen

Case Name:
Volkswagen v Trademark Review and Appraisal Board of the State Administration for Industry and Commerce of the People¡¯s Republic of China (¡°TRAB¡±)

Facts:
- Volkswagen sought to registered the trademark ¡°Tuan¡±, and submitted an application with the TRAB. Volkswagen applied on June 8, 2004;
- Their trademark application was in respect numerous items surrounding the auto trade;
- Zhejiang Shaoxing Kesiweiteli Electromechanical Co., Ltd (¡°Zhejiang¡±) registered the trademark ¡°Antu¡± on October 10, 1986, and sort to extend this until January 29, 2017.
- In light of Zhejiang¡¯s extension, the TRAB rejected Volkswagen¡¯s application for registration;
- Volkswagen appealed to Beijing No.1 Intermediate People¡¯s Court

Argument:
Volkswagen claimed the following:
- There were no similarities between the two names;
- There were distinct differences between the two trademarks;¡¯
- Proposed use of trademark was on different products to the trademark already in use;
- Volkswagen claimed In light of these factors that registration of the ¡°Tuan¡± mark would not cause any confusion amongst the public.

Beijing No.1 Intermediate People¡¯s Court decision:
- The court found in favour of Volkswagen, in that the two trademarks would not cause confusion amongst the public;
- TRAB¡¯s decision was overruled and a review is required.
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China Culture 0 Comment January 25, 2010, 5:11 pm

IPR Updates January 2010

Patent Law Enforcement Rules amended

The State Council have issued amendment rules pertaining to the enforcement of the PRC¡¯s Patent Law. The release, titled ¡°"Decisions of the State Council on Amending the 'Rules on Enforcing the Patent Law of the People's Republic of China¡¯¡± shall be effective as of February 1, 2010.
¡®
One such amendment made to the enforcement rules, deals with Article 20 of the Patent Law. China made its third amendments to the PRC Patent Law in 2008 which became effective on October 1, 2009. Previous amendments took place in 1984, and 2000. The 2008 amendment came around through a voluntary need for change, in accordance with the State Council¡¯s National Intellectual Property Strategy, rather than international pressure.

The State Council¡¯s new release can be located at the following location: http://www.gov.cn/zwgk/2010-01/18/content_1513398.htm


Push for stronger copyright laws

IPR protection is a continual concern and a number one priority for China. It¡¯s importance is evident by State releases, such as the National IP Strategy. Director General of the General Administration of Press and Publication (¡°GATT¡±) and the National Copyright Administration (¡°NCA¡±), Liu Binjie, expressed the need to push the need for reforms of copyright law in China. Currently, the PRC¡¯s Copyright Law is lagging behind, with revisions having already been made in 2008 to the Patent Law, and the Trademark Law currently undergoing revisions.

GATT is the administrative agency in China responsible for the distribution of news, and internet publications. The two agencies are very active in the promotion of copyright issues. In October 2009, Liu Binjie met with Director General Francis Gurry of WIPO in Geneva, exchanging views on joint cooperation within the field of copyright.

China is a binding signatory to international conventions concerning the protection of copyright, including the Universal Copyright Convention (1952), and the Berne Convention (1979).


Outsourcing & data protection

The protection of private and confidential data should be an immediate priority when outsourcing to a third party. As from February 1, 2010 Chinese domestic companies shall be subject to a Ministry of Commerce and Ministry of Industry and Information Technology release which addresses the need to protect such data. The release outlines what is meant by confidential data, and steps required to be taken to ensure there are no breaches, or to limit the number of potential breaches by unauthorised personnel. ...

China Law 0 Comment January 25, 2010, 4:50 pm

MICROSOFT SUED BEIJING STRONG WELL ON THE GROUND OF COPYRIGHT INFRINGEMENT

Microsoft filed the lawsuit against Beijing Strong Well at the Beijing No. 1 Intermediate People¡¯s Court on the ground of copyright infringement.

Microsoft claimed that Strong Well installed the Microsoft Windows XP and Microsoft Office 2003 on computers without their permission which Strong Well sold. Microsoft also proved that Strong Well had been continuously infringing their copyright by way of pirated software installation on computers, which caused huge amount of loss to Microsoft.

Strong Well argued that it had never manufactured or sold any assembled computers. Therefore, Strong Well prohibited its staff showing assistances to customers with installation of any software and advised to customers not to install any pirated software.

Later, It was proved that Microsoft own the Microsoft Windows XP and Microsoft Office 2003, released in the USA, which was also protected in China under the "Computer Software Protection Regulations". The court also found that the warranty cards issued by Strong Well included a word ¡°Strong Well DIY-assembled computer (with computer case) guaranteed¡± even Strong Well argued in the court they sold only computer accessories.

After the Court held the case, Strong Well was found at fault and ordered to compensate for damages caused to Microsoft with the amount of RMB350000.
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China Law 0 Comment January 25, 2010, 4:32 pm

Mongolia Will Hold The Inaugural Mongolia Economic Forum 2010

Tsolmon Shar

On February 8th and 9th of 2010, the Inaugural Mongolia Economic Forum of 2010 will be held in Ulaanbaatar under the auspices of the Prime Minister of Mongolia with active support of the President of Mongolia and Parliament (State Great Hural) of the Country. The main purpose of the Forum is to consulate and discuss with policy-makers, scientists and domestic and international investors on development issues. Holding this Economic Forum is significantly important for Mongolian and international business community.

During the Forum 2010, efficient utilization of the nation¡¯s human and natural resources to improve the competitiveness of the country will be key agenda issues. Other key issues which will be discussed in the Forum include budget reforms, mining development and related infrastructure, improvement of financial and stock markets, green economy and land rehabilitation, preparing educated labor force for development and improving overall business environment of Mongolia.

The Forum will be annually organized in February by Mongolian Economic Forum NGO involving many participants from different backgrounds such as government officials, local governors, scientists, NGOs, media and business leaders.

Edward Lehman, Managing Director at Lehman, Lee & Xu Law Firm, commented that ¡°it is great opportunity for business leaders to share their business operations with officials and find a way for further business environment improvement in Mongolia during the Forum¡±.

Lehman, Lee & Xu is the first international law firm opened its branch office in Ulaanbaatar, the capital city of Mongolia. The lawyers at Lehman, Lee & Xu provides a wide range of legal advices and best solutions to their clients. ...

China Business 0 Comment January 22, 2010, 5:55 pm

CHINA SENDS RIO TRADE SECRET INFRINGEMENT AND BRIBERY CASE TO PROSECUTORS

TSOLMON SHAR
Chinese police have concluded an investigation into a detained Australian Rio Tinto Ltd executive and three colleagues arrested on charges of infringing trade secrets and bribery and sent the case to prosecutors, the Australian government and Chinese state media said last Monday. Four Rio staff, including Australian citizen Stern Hu, has been in Chinese custody since July over accusations of illegally obtaining commercial secrets.

Rio Tinto and the Australian government have urged China to allow the four, including Stern Hu, an Australian citizen who headed Rio Tinto's iron ore business in China, legal representation and to handle the case in a transparent way.

Hu and the three other employees were detained last July on charges of bribery and commercial espionage during iron ore price talks. They were charged in August with paying bribes to obtain confidential information about China's steel industry.

A brief statement by Shanghai's public security bureau, carried by state news agency Xinhua late on Monday, did not specify on what charges the four might be tried. It noted they were investigated for infringing trade secrets and bribery.

"The case is now in the hands of the Shanghai People's Procuratorate (prosecutor) who will decide whether it should be brought to trial," said Australia's Department of Foreign Affairs & Trade (DFAT), after being notified by Chinese authorities.

¡°We are not in a position to say how long this phase of the case will take, and are not prepared to speculate about the outcome. Details of the actual charges are not likely to be known until the prosecutors have made their decision on whether the case should proceed to trial," DFAT said in a statement.
China is Australia's biggest trade partner, with trade worth $53 billion last year. Australia exported $15 billion worth of iron ore to China in 2008, or 41 percent of China's iron ore imports.
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China Law 0 Comment January 22, 2010, 5:46 pm

STOCK INDEX FUTURES APPROVED IN CHINA

Tsolmon Shar
China approved stock index futures, giving investors a tool to protect against losses and profit from any declines. Until now, Chinese investors could only profit from gains in equities.

Chinese government also approved margin trading and short selling, the China Securities Regulatory Commission said. According to Commission¡¯s statement it may take three months to complete preparations for index futures.

Index futures are essentially agreements to buy or sell an index at a preset value on an agreed date. Investors can also borrow money to buy securities or borrow securities to sell under the business of margin trading and short selling.

¡°China has opened great opportunities for future investors in the stock market¡± said Mr. Edward Lehman, managing director of Lehman, Lee & Xu law firm, which is one of the largest commercial law firms in China maintaining offices in Beijing, Shanghai, Shenzhen and Hong Kong.

Analysts expect the new tools to improve liquidity by attracting more capital into the equity market as the government plans to cut back bank lending to 7.5 trillion yuan ($1.1 trillion) in 2010 from last year¡¯s 9.21 trillion yuan.

Index futures are part of China¡¯s push to make more investment options available in the world¡¯s third-biggest stock market by value. China restricts overseas investors to buying B shares that trade in U.S. dollars in Shanghai and Hong Kong dollars in Shenzhen. China¡¯s A shares are mostly limited to local investors. Foreign ownership of fund management companies is restricted to 49 percent.
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China Law 0 Comment January 22, 2010, 5:46 pm

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