Archive for July, 2013

How a FIE inject More Money into China

After a foreign investor set up a foreign invested enterprise(“FIE”) in China, the FIE might have problem with its working capital. Then the foreign investor need to consider injecting more money into the FIE.
However, China put many off-limits on a foreign investor injecting money into China. Based on our experience in FDI sector, we [...]

Published by jyin on July 30th, 2013 tagged China News | 39 Comments »

What Requirements of PRC laws on the determination of Purchase Consideration in a M&A Transaction

PRC laws do not leave door open for a foreign investor when determining the purchase consideration in a M&A transaction. When foreign investors acquire a purely domestic company in China, they should comply with the requirement of Rules on Acquisition of Domestic Company by Foreign Investors(“M&A Rules”) on purchase consideration.
Article 14 of M&A [...]

Published by jyin on July 29th, 2013 tagged China News | Comment now »

Technology Transfer, and Import of Intellectual Property Rights

Today this entry is dedicated to Technology Transfer, and Import of Intellectual Property Rights. This theme is of paramount importance especially today if a foreign enterprise decide to make use of its intangible assets like IPR to do business in China.
The transfer of technology or intellectual and industrial property rights (e.g., trademarks, patents, know-how) represent [...]

Published by admin on July 19th, 2013 tagged China News | 40 Comments »

Whether a Company is entitled to terminate An Employee during his Probation Period without any Cause?

A company normally prefers an employment contract specifying the probation period for an employee because they would think they can terminate an employee during the probation period without any cause. We have to point out that is misunderstanding about PRC laws.

According to Article 21 of PRC Employment Contract Law, an employer may not terminate an [...]

Published by admin on July 19th, 2013 tagged China News | 40 Comments »

Is a Candidate allowed to Count On an Offer to Claim his/her Rights under Employment Contract Law?

A foreign invested company usually issues an offer to a to-be-hired candidate before entering into a labor contract. However, due to some reasons, the company might not want this suitable candidate to join the company after he/she accept an offer. If the candidate does not accept the company’s decision, the dispute will arise.
If the dispute [...]

Published by admin on July 17th, 2013 tagged China News | 1 Comment »

Other Regulations Having an Impact on IPRs

This entry in intended to complete this series about IPRs protection, therefore I am going to briefly examine the other pieces of legislation having an impact on this subject. (A very useful web-site to help the foreign investor understanding IPR in China is the following: http://www.chinaipr.gov.cn/).
The legislative framework that somehow affect the field of intellectual [...]

Published by admin on July 17th, 2013 tagged China News | 1 Comment »

Trade secrets in China

This entry is dedicated to “trade secrets, in fact these can be considered part or a sort of Intellectual Property Rights and thus are to be protected.
(A very useful web-site to help the foreign investor understanding IPR in China is the following: http://www.chinaipr.gov.cn/).
Keep access to what is secret limited to those who truly need to [...]

Published by admin on July 17th, 2013 tagged China News | 1 Comment »

Introduction to Non-compete Restriction under PRC Employment Contract Law

In practice, a company might request its employees to sign a non-compete agreement with the aim of protecting the company’s interest. PRC Employment Contract Law(“ECL”) allow a company to enter into a non-compete agreement with its employee provided that the company comply with the requirements in respect of non-compete obligation as set forth by the [...]

Published by admin on July 16th, 2013 tagged China News | 1 Comment »

Brief Discussion on Drag-along Rights in the context of PRC Laws

When a PE/VC acquires a company, they would like to have the drag-along clause in place to ensure them to have a good exit mechanism. In practice, the typical description on drag-along rights should be as follows:

Drag-Along Right: Prior to a Qualified Public Offering, if a majority of the holders of Series A Preferred [...]

Published by admin on July 12th, 2013 tagged China News | Comment now »

Copyright and Software

Today this article is dedicated to “copyright” and some reference will be also done to software, in fact protection of software originates from this category.
(A very useful web-site to help the foreign investor understanding IPR in China is the following: http://www.chinaipr.gov.cn/).
With respect to Copyright China has adopted the Copyright Law (http://www.chinaipr.gov.cn/lawsarticle/laws/lawsar/copyright/200608/232720_1.html) and the following pieces [...]

Published by admin on July 11th, 2013 tagged China News | 1 Comment »