Intellectual Property

Troy Rice of SIPS Hong Kong discusses the implications for foreign IP owners of the recent changes to foreign investment, cross-border tech transfer, and trade secrets laws, as well as cross-border agreement drafting considerations in light of these developments. March and April 2019 were whirlwinds for foreign IP owners with respect to the legal and regulatory framework in China governing foreign investment, cross-border technology transfer, and trade secret protection.

Government officials may not require technology transfers in granting administrative permissions

Trademark Law is revised adding bad faith registration provisions

Ericsson faces investigation over its intellectual property licensing practices; investors in CDRs of innovative enterprises will enjoy a three-year tax break on profits; and China issues a new rule to improve the supervision of elderly care services.

The revised Regulations remove provisions on restrictive clauses of technology import contracts

Mandatory infringement liability of the licensor is removed in technology transfer

China’s IP protection regime has been steadily improving, driven more by the needs to serve domestic innovation, than foreign concerns.

The National People’s Congress approves a new comprehensive Foreign Investment Law; China plans to streamline trademark registrations; IP lawsuits soar in China for a second year, and Macao comes under pressure to improve its gaming regulations.

Mainland China and Hong Kong/Macao make progress in reciprocal enforcement of judgments

China adopts new rules for patent agencies; new CSRC boss Yi Huiman warns of market risks; and the government is urged to relax rules on ride-hailing driver services.