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"The truth is rarely pure and never simple"

-Oscar Wilde

The Wi-Fi Debate

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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China Law 0 Comment February 25, 2010, 2:33 pm

Game On

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
...

China News 0 Comment February 25, 2010, 2:33 pm

China¡¯s Elite Kindergartens

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¡± ...

China Law 0 Comment February 25, 2010, 2:32 pm

Audit Law Regulations Prove to be New Weapon Against Corruption

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.¡±...

China Law 0 Comment February 25, 2010, 2:31 pm

Webinar Panel Discussion on Patent Protection in China and India, 2010

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....

China Culture 0 Comment February 25, 2010, 2:28 pm

Application Of Laws Against Electronic Information Crimes Clarified

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
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China Law 0 Comment 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

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).
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China Business 0 Comment February 25, 2010, 2:27 pm

Notice Concerning The Enforcement Of The Amended Patent Law

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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China Law 0 Comment February 25, 2010, 2:26 pm

MIIT Takes Measures To Improve Internet Domain Name System Safety And Security

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....

China Law 0 Comment 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

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. ...

China Law 0 Comment February 25, 2010, 2:24 pm

Communications Network Security Measures To Be Effective Next Month

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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China Business 0 Comment February 25, 2010, 2:18 pm

Going Green by Growing Green

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
...

China Business 0 Comment February 23, 2010, 11:11 am

Boom and Bust for China¡¯s Wind Power Industry

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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China Business 1 Comment February 23, 2010, 11:11 am

IPR Update: Counterfeiting arrests

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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China Law 0 Comment February 11, 2010, 3:52 pm

Civil Liability Proves to be New Weapon Against the Export of Trademarks Infringing Goods

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
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China Law 0 Comment February 11, 2010, 3:07 pm

Government crackdown on ¡°phony¡± commercials

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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China News 0 Comment February 11, 2010, 2:57 pm

Chinese luxury good consumption

China is Worlds #2 Consumer of Luxury Goods

Now consuming 27.5% of the world¡¯s luxury goods, China has overtaken the United States in luxury good consumption, and is now second only to Japan. Well-educated Chinese between the ages of 20 and 40 whose salaries range from 5000 to 50,000 yuan a month are the drivers behind this ever-increasing demand. China is predicted to become the world¡¯s largest luxury consumer by 2015, indicating outstanding economic growth, yet many believe that too large of a demand also suggests a widening income gap within the country.

Edward Lehman, Managing Director of Lehman, Lee, and Xu noted, ¡°With the increase in demand for luxury goods, Chinese consumers and businesses alike have become more and more concerned about the legitimacy and quality of their goods. Our offices throughout China have experience working with some of the largest luxury brands in the world to prevent the production of counterfeit goods. Our team of specialized attorneys has assisted businesses in all of their patent, trademark, and copyright needs.¡±

Morgan Crank
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China Business 0 Comment February 11, 2010, 2:51 pm

Internationalizing Chinese Domain Names

The Internet Corporation for Assigned Names and Numbers (ICANN) recently introduced technology that will allow non-English reading Internet users to have access to Internet addresses completely in their own language. Known as Internationalized Domain Names (IDNs), this breakthrough was announced at the ICANN's 36th Annual Meeting on October 30, 2009.

After China receives application approval from ICANN, the state-run China Internet Network Information Center ( "CNNIC" ) will introduce Chinese domain names with ".ÖЇø" (.CN). By registering a .CN Chinese domain name, the registrant automatically obtains the equivalent Chinese domain name with a .CN extension (in characters). This has received support from many large internet companies like Microsoft, Baidu, Alibaba, Firefox, and Tencent. The approval is expected to take place in the first half of 2010.

Soon, Chinese domain names will become standard browsing hosts and enjoy the same status as the existing English/Latin based domain names. An Internet user need only type the Chinese IDN into the browser and have direct access to that website anywhere in the world.

Lehman, Lee, & Xu attorney Scott Garner commented, ¡°The move to ¡°.CN¡± domain names is an incredible stride forward in Internet accessibility, especially for millions of Chinese non-English readers all over the world. It attests to the growing influence China has on the share of information and technologies world-wide. At the same time, we at Lehman, Lee, and Xu encourage rights-owners to take active steps to safeguard their trade marks, trade names, and other intellectual property rights. During this technology-transition, we suggest our clients take advantage of our extensive intellectual property law experience for consultation on any questions they may have.¡±

Morgan Crank
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China Law 0 Comment February 11, 2010, 2:49 pm

IPR Update: February 2010

New interpretations issued relating to obscene and offensive content
The Supreme People¡¯s Court and the Supreme People¡¯s Procuratorate have jointly issued a 13 articled document pertaining to the application of cases concerning obscene information via the internet and mobile devices.

The new Interpretation outlines that where telecom and internet service provides were aware and had knowledge of certain obscene and offensive content being distributed, then they themselves can face conviction.

New Measures issued in respect of communication networking protection
The ¡°Administrative Measures for Communications Network Security Protection¡± (¡°the Measures¡±) recently promulgated by the Ministry of Industry and Information Technology (¡°MIIT¡±) will become effective as from March 01, 2010.

The Measures outline that communication networks units shall be responsible for their own network security. Additionally, these units are required to divide their own units into 1 of 5 classes subject to the possible threat to national security, economic operation, social order, and public interest. Violation of such Measures shall require effective remedy, and in the most serious of cases a fine between 5000 RMB and 30,000 RMB shall be imposed.

New Notice issued in respect of domain name security
The ¡°Notice on Improving the Safety and Security of the Internet Domain Name System¡± (¡°the Notice¡±) was recently promulgated by the Ministry of Industry and Information Technology (¡°MIIT¡±). The Notice address concerns relating to threats against domain name security.

The Notice outlines numerous companies at different levels who are required to be aware of improving protection and security methods.

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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China Law 0 Comment February 10, 2010, 5:13 pm

China Job Update

Please see the following link for recruitment within the Asia Pacific region.

http://practicesource.com/joblogs.html
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China News 0 Comment February 10, 2010, 10:05 am

SAWS Strengthens Non-Coal Mine Safety Licensing

The General Office of the State Administration of Work Safety (SAWS) released the "Notice on Further Strengthening the Administration of Issuing Non-coal Mine Safety Licenses." It states that the approval procedures for the "three simultaneous" requirements for construction projects for newly developed non-coal mines must be strictly followed. If such procedures are not successfully completed, the authorities concerned will not issue the work safety license. ¡°As China¡¯s economy continues to grow,¡± senior attorney Edward Lehman of Lehman, Lee, and Xu notes, ¡°it is important that its investors at home and abroad have confidence in the safety of Chinese industry, which is now enforced in Chinese law. Emphasizing safety in construction projects not only increases the output of the industries, but makes them more competitive internationally.¡±


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 Law 0 Comment February 9, 2010, 4:30 pm

Guangzhou Undeveloped Land Rules Revised

The amended ¡°Measures on Administering Undeveloped Land in Guangzhou¡± has been officially released by the Guangzhou government. Undeveloped land fees will no longer be levied on a monthly basis, but will be levied at a fixed rate of 20%of the value in the transfer or assignment of the land. Late charges amounting to 1%of the undeveloped land fees will be charged on a daily basis thereafter. The Measures state that the competent land authority has the power to adjust the value added to a plot of undeveloped land by reaching a supplementary agreement on the paid use of the state-owned land. Scott Garner, director of the Lehman, Lee, and Xu Shanghai Office, asserted that ¡°Clear and accurate prescriptions for the usage of land are essential to the smooth flow and operation of business not only in Guangzhou and other major cities, but all throughout China. This is indicative of the special attention that the government is paying to one of China¡¯s most precious commodities, undeveloped land. We welcome the opportunity to consult with any of our clients at our Guangzhou office with questions they may have.¡±

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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China Law 0 Comment February 9, 2010, 4:20 pm

International Food Fight

China announced on Friday, February 5th that it will impose anti-dumping duties on broiler chicken imports from the United States. China is the largest importer of chicken products from the US, imports of which reached 584,300 tons in 2008 and accounted for 20 percent of US exports and 75 percent of Chinese imports during the same period. Expected to come into effect on February 13th, duties of 43.1 and 80.5 percent will be placed on US exporting companies Tyson Foods and Pilgrim¡¯s Pride Corp., respectively.

The duties attempt to correct the disadvantage local producers experience as a result of US chicken product dumping. As a result of the ruling, it is estimated that China's monthly chicken imports will fall by 63,000 tons while increasing the cost of US products by about 0.05 yuan more per pound than Chinese chicken products.

Many believe these increased import duties are a reaction to recent Sino-American political tensions, including the U.S. arms sales to Chinese Taiwan, American pressure on China to appreciate its currency, as well as the recent U.S. tire ruling issue. It is not believed, however, that it will escalate into a trade war between the two nations.

Expressing the importance of these issues for the U.S. and China, Managing Director of Lehman, Lee, and Xu Edward Lehman commented, ¡°We at Lehman, Lee, and Xu understand the legal and economic effects these issues can have on Chinese companies invested in international trade. We encourage Chinese companies to consult with us with any corporate, investment, or international legal concerns they may have.¡±
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China Law 0 Comment February 9, 2010, 12:37 pm

Milk Matters

The Chinese Central Government has sent eight inspection teams to 16 provincial areas to investigate and prevent melamine-tainted milk powder from being reclaimed illegally to produce milk products. Melamine, a milk adulterant added to poor quality milk to make it appear protein rich by increasing its nitrogen content. It can cause renal failure especially in children and infants.

Milk powder contaminated by melamine was sealed in 2008 after the death of six infants, yet due to difficulty of disposal and destruction, some may have been used as raw materials for dairy products illegally in certain areas. Especially endemic to difficult-to-monitor small dairy farmers as a way to cut costs, melamine is considered absolutely unacceptable to the Chinese Government.

On February 1st, ten-day checks for melamine-tainted milk products were launched across the country to locate any manufacturers still using the illegal powder. These measures in conjunction with arrests made in provinces such as Jilin, Shaanxi, and Heibi are examples of the government¡¯s efforts to restore confidence in the Chinese diary industry. Simultaneous scientific investigations of efficient ways to dispose of the powder are underway.

Scott Garner, director of the Lehman, Lee, and Xu Shanghai Office, commented, ¡°This is an excellent example of increased standards for Chinese consumers and the simultaneous spread of the rule of law throughout the country. Consumer confidence is vitally important for Chinese companies at home and abroad.¡±
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China News 0 Comment February 9, 2010, 12:35 pm

Regulation Increase on Pre-Paid Cards

The pre-paid money card industry in China has flourished in recent years, especially in major cities such as Shanghai and Beijing. They are more convenient than cash and can hold anywhere from 100 to 200,000 yuan. With the exponential increase in the number of companies registered to distribute such cards, there has been a similar increase in the number of complaints especially in regard to their date of expiration.

Often, money left on the cards is absorbed by the companies after they expire. For example, it is estimated that 100 million yuan is left over on expired cards in Shanghai alone. Many people have voiced their opinion that pre-paid cards are an investment and their money should be at zero risk, especially if the company they purchased their card from goes bankrupt or their cards expire.

In lieu of this, the government is looking at ways to protect consumer rights and develop common standards. This relatively new industry experiences little to no supervision, so the PBOC is encouraging customers to purchase their cards from reputable institutions such as China UnionPay while it begins to launch a series of supervisory regulations to oversee the operation of pre-paid card companies.

Lehman, Lee, and Xu attorney Scott Garner of the Shanghai office, stated ¡°We at Lehman, Lee, and Xu are very conscious of consumer protection in China, and will monitor all developments regarding the increased supervision of the pre-paid card industry both in Beijing and Shanghai.¡± For updates, please visit http://www.lehmanlaw.com/press-room.html
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China Law 0 Comment February 9, 2010, 12:31 pm

Police Chief Under Investigation for Corruption

As a testament to both the level of corruption present throughout China, and the governments dedication to rooting out such corruption; Chinese prosecutors continue to present startling evidence against Wen Qiang the former police chief of Chongqing Province. Wen is charged with accepting bribes, possessing suspicious assets, protecting gangs, and the repeated rape of a college girl.

As the evidence amounts, a portrait of rampant and extensive corruption begins to appear. Investigators found that Wen¡¯s total assets and spending reached 30.94 million yuan. Of this Wen and his family could only account for 4.08 million yuan in legal income. 16.25 million yuan were confirmed to be gained illegally, while 10.62 million remains unaccounted for.

A total of just over 15. million yuan was gained through bribes from 19 organizations or individuals given to Wen on 119 separate occasions from 1996 to 2009, when Wen was deputy director of the municipal's police bureau or director of its justice bureau.

In addition over 700,000 yuan was accepted between 2000 and 2008 from six bosses of mafia-style organizations, who have been convicted or are under prosecution.

The investigation also found that Wen¡¯s spending accounts are equally as ¡°dirty¡± with over 120,000 yuan being spent on prostitution.

Locals told China Daily they were "shocked by the immense sum of dirty money" that had been amassed.¡± One local taxi driver said that ¡°He must receive a heavy punishment. Nothing else can pacify people's anger,"

While the extent of this type of corruption is widespread throughout China, the government should be commended for cracking down on corrupt officials like Wen. This investigation shows that China recognizes the problem posed by corruption and is dedicated to reducing its presence in government.

Edward Lehman managing director of Lehman, Lee and Xu, said that ¡°This move is one of the many signals indicating that China is committed to eliminating corruption and expanding the rule of law throughout all aspects of the nation.¡±

-Alexander Pan
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China Law 0 Comment February 9, 2010, 12:30 pm

China¡¯s ¡°Green¡± sector predicted to reach 10% of GDP

In a report issued by China Business news, Chinas energy conservation, and environmental protection industries may contribute up to 5.3 trillion yuan or 776 billion USD by the year 2015. This would account for nearly 10% of predicted gross domestic product.

According to the secretary of the China Environment Service Industry Association, Luo Jianhua, China¡¯s ¡°Green¡± sector could grow at up to 20 percent every year between 2011 and 2015. This sector of the economy already makes up a significant 4.9% of GDP thus this predicted growth would indeed be impressive.

These figures come in the wake of recent announcements regarding the details of the PRC¡¯s latest five year plan which places heavy emphasis on the development of the ¡°green¡± sector and the reduction of China¡¯s carbon emissions. Please see our blog at http://blawg.lehmanlaw.com/english/ for more information

These figures indicate that China is committed to becoming a world leader in green technology and is dedicated to a so called green growth plan in which high levels of economic growth will be accompanied by high levels of carbon reduction.

Scott Garner the director of Lehman Lee and Xu¡¯s Shanghai office said that he is ¡°excited to see China stepping up its efforts to develop a thriving green technology sector and increase its environmental regulations. We are all excited to help firms operating in the PRC to navigate China¡¯s expanding system of environmental regulations in order to help create a sustainable future for us all.¡±


-Alexander Pan
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China Business 0 Comment February 9, 2010, 12:10 pm

The Cockroach in the Coke Bottle

A Beijing man surnamed Gao is suing the Beijing Coca-Cola beverage company after he found a three centimeter long cockroach like incest inside a bottle of sprite that he purchased from a supermarket.

Mr. Gao took the company to court in 2008 requesting that the company apologize for the incident, pay him 2.05 yuan in compensation, 2.05 yuan as a penalty and 1 yuan for psychological damage.

The Daxing court recently ruled that the Beijing Coca-Cola Beverage Company must pay Mr. Gao 2.05 Yuan in compensation, and said that ¡°The Beijing Coca-Cola Beverage Company, as an influential drink producer, should improve its supervision of food safety. All of its products should meet the quality standard and avoid endangering their customers' health.¡± The court however dismissed Mr. Gao¡¯s other requests. Mr. Gao said that ¡° I don¡¯t want the money.¡± However he was still dissatisfied with the results and is currently seeking appeal.

The 2.05 Yuan compensation is undoubtedly inconsequential to the Beijing Coca-Cola Beverage Company¡¯s overall financial health, however; the negative media and damage to the Coca-Cola brand could be irreparable.

This ruling takes place on the heels of recent reports that sprite from the same company had been found to be tainted with mercury. This tainted Sprite was allegedly the cause of two cases of mercury poisoning in nearby Tianjin.

If Coca-Cola wishes to maintain its reputation of being the producer of a world class beverage, it must take significant measures to ensure that all of its products adhere to the highest levels of health and safety standards.

Edward Lehman managing director of Lehman, Lee and Xu said that ¡° the mere fact that an individual was able to bring a suit against a major company like this demonstrates how far China¡¯s legal system has come. While there is still much work to be done, we are all excited to be a part of China¡¯s expanding legal system and help to establish the rule of law in China.¡±
.

-Alexander Pan
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China Law 0 Comment February 9, 2010, 12:07 pm

Edward Lehman invited to speak at the Asia Pacific 2010 Conference

Edward Lehman, Managing Director of top three Chinese law firm, Lehman, Lee & Xu has been invited to speak at the Asia Pacific 2010 Conference, to be held in Kuala Lumpur, Malaysia on April 28, and 29 2010. The event will be looking at the current issues affecting the oil and gas industry within the Asia-Pacific region.

Others who have been invited to speak at the conference include international law firm¡¯s Latham & Watkins and Baker & Mckenzie, and large multinational corporations, such as Shell.

From having numerous years of experience offering legal advice within this industry, Mr Lehman was more than happy to accept the invitation to speak at the Asia Pacific 2010 Conference, ¡°China¡¯s surge in economic growth has seen a hike in demand for oil. The country exhausted more than 5.1 % more oil in 2008, than it did in 2007. More recent figures from China National Petroleum Corp expect crude oil imports to go up to 9.1 % in 2010¡± He continues by adding that ¡°the Tenth Five-Year Plan of Oil & Gas Exploration (2001 ¨C 2005) was one of the first steps taken to reorganise the once restrictive industry in China.¡±...

China Law 0 Comment February 8, 2010, 4:14 pm

Edward Lehman selected as leading Corporate Immigration lawyer

Who¡¯s Who Legal has selected Edward Lehman, Managing Director of Lehman, Lee & Xu as one of the world¡¯s leading Corporate Immigration lawyers.

The award, which makes a selection of 410 lawyers internationally, only makes one selection from China, that of Mr Edward Lehman of Lehman, Lee & Xu.

Already this year, Mr Lehman has been awarded and acknowledge for his contributions and commitment within the fields of trademark and franchising law in China.

Mr Lehman commented that ¡°I am very honoured to be selected as the leading corporate immigration lawyer in China. This award which collates together the world¡¯s top 410 lawyers within this field, highlights the dedication and distance Lehman, Lee & Xu will go to in addressing and satisfying our client¡¯s needs.¡± He continues by adding ¡°having practiced within the legal field in China for over twenty years now, my firm and I have coordinated with numerous international corporations in providing solid legal advice to their immigration concerns. This award demonstrates Lehman, Lee & Xu¡¯s ability in successfully doing this.¡±

Who¡¯s Who is an independent research firm that was named the Strategic Research Partner of the ABA Section of International Law, in addition to its position as Official Research Partner of the International Bar Association. The firm compiles thousands of nominations from clients and private professionals to determine the leading individuals in their respected practice areas.
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China Law 0 Comment February 8, 2010, 11:31 am

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