How a Foreign Partner Secures its IPR Transfer in China

Jun 5, 2018
Fang Qi, partner at Fangda Partners, discusses the impact of the newly issued Measures on Work Relevant to the Assignment of Intellectual Property Rights to Foreign Parties (Trial Implementation) (知识产权对外转让有关工作办法 (试行)) (the Measures), the legal reforms it brings and mechanisms for its enforcement.
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CURRENT AND FUTURE LAWS

The Measures aim to bring about strengthened IPR protection in China. Fang agrees that the new Measures bring clarity for businesses at a time when the Chinese government is bringing about initiatives to step up efforts for protection of intellectual property rights (IPRs), and that the Measures will be properly enforced in China. The new Measures cover the assignment of intellectual property, as well as change of control of the owner. Examinations under the new Measures will focus on whether or not the intellectual property transferred to foreign entities will have any influence on China’s national security interests, and whether or not the IPR transferred to foreign countries will have a negative or positive influence on China’s key technology areas of innovation and development. This is a clear indication that China seeks to enhance the protection of national security as well as create a better environment for technology development in China.

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