Disposal of Intellectual Property Assets in China under Investment Strategy Change
October 31, 2023 | BY
Susan MokWhen foreign investment strategy changes, many important issues can arise, not least in the area of intellectual property rights. David Lin and Shen Yang of DOCVIT Law Firm explore these issues, and underline the importance of arranging appropriate methods to dispose of relevant rights
Summary
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- When a foreign investor changes their approach to their Chinese investments, attention must be made to intellectual property rights
- The nature and structuring of the exit will affect the issues which arise and so care must be taken to assign appropriate expertise and resources to the project team
- Payment of appropriate fees is an easily overlooked point which can have a major impact
- Maintenance of ongoing rights should also be noted in order to avoid unnecessary future losses
In recent years, the international economic and trade landscape has been constantly changing. In the wake of this change, China's strategy towards attracting foreign investment has also undergone a transformation, with more efforts to absorb investment in high-tech industries on the one hand, and less targeting of foreign investment in labor-intensive industries on the other. Correspondingly, investors' strategies for investment in China will need to change accordingly.
Regardless of the scenario, when investment strategies change, the disposal of related assets in China will become the most important issue
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