外国投资者并购境内企业规定.pptx

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1、外国投资者并购境内企业规定Chinese courts handle 52,437 IPR cases during five yearsChinesecourtsatalllevelsheard54,321andconcluded52,437casesofcivillawsuitsconcerningIPRatfirstinstancefrom2002to2006.ContInlinewiththeprinciplesofcomprehensiveIPRinfringementcompensation,courtsatalllevelshavebeengraduallyincreasingt

2、heamountofcompensation.Foreign-relatedcasesDuringtheyearsfrom2002to2006,Chinascourtshavesettled931foreign-relatedIPRcases,withanaverageannualincreaseof48.29%.ContContProvisionsforForeignInvestorstoMergeandAcquireDomesticEnterprises(M&ARules)外国投资者并购境内企业规定8August,2006promulgatedbysixministriesThenewM&

3、ARules,whichtakeseffectonSeptember8,2006,replacetheoldM&ArulesinChinathatwerepromulgatedin12,2003(InterimProvisionsforForeignInvestorstoMergeandAcquireDomesticEnterprises)Article12(IP)Whereaforeigninvestorintendstoobtaintheactualcontrollingpowerofadomesticenterpriseitplanstotakeover,andifanyimportan

4、tindustryisconcerned,orifithasanimpactonormayhaveanimpactonthenational economic security,oritwillleadtothetransferoftheactualcontrollingpowerofadomesticenterprisewhichholdswell-knowntrademarkorahistoricChinesebrandname,thepartiesconcernedshallfileanapplicationwiththeMinistryofCommerce.Ifthepartiesco

5、ncernedfailtodoso,whileitstakeoverhashadormayhaveaseriousimpactonthenationaleconomicsecurity,theMinistryofCommercemay,jointlywiththerelevantdepartments,demandthepartiesconcernedtoterminatethetransactionortransfertherelevantequities/assetsortakeothereffectivemeasurestoeliminatethetakeoversimpactonthe

6、nationaleconomicsecurity.QuestionsImportantIndustry:sensitiveindustry?(List?Orcatalogueofindustries)Nationaleconomicsecurity:appreciationMOFCOM/Local government:poweroflastsayWell-knowntrademark:morethan800(2006)AhistoricChinesebrandname(中华老字号企业):morethan2,000:procedureofqualification?TrademarkLaw(r

7、evisedin2001)Article14Accountshallbetakenofthefollowingfactorsinestablishmentofawell-knowntrademark:(l)reputationofthemarktotherelevantpublic;(2)timeforcontinuoususeofthemark;(3)consecutivetime,extentandgeographicalareaofadvertisementofthemark;(4)recordsofprotectionofthemarkasawell-knownmark;(5)anyo

8、therfactorsrelevanttothereputationofthemark.JudicialinterpretationsSince2001,theSupremeCourthasreviewedandamended18judicialinterpretations,whichinvolvepatents,trademarks,copyrights,newplantvarieties,integratedcircuitdesign,technicalcontracts,unfaircompetition,computernetworkdomainnames,intellectualp

9、ropertycrime,pre-trialprovisionalmeasures,IPRpropertypreservationmeasures,casejurisdictionandtrialdivision.Interpretation on Some Issues Concerning the Application of Law in the Trial of Civil Cases Involving Unfair Competition(2007)最高人民法院关于审理不正当竞争民事案最高人民法院关于审理不正当竞争民事案件应用法律若干问题的解释件应用法律若干问题的解释Theinte

10、rpretationonSomeIssuesConcerningtheApplicationofLawintheTrialofCivilCasesInvolvingUnfairCompetitionhasbeenpromulgatedbytheSupremePeoplesCourtonJanuary12,2007andcomeintoforceasofFebruary1,2007.“well-known commodities”Commoditiesshallnotbeaffirmedas“well-known”,providedthattheyareonlyfamousoutsidethet

11、erritorybutnotwithintheterritoryofChina.enterprise name or personal nameThenameofenterpriseorpersonalnamewhichshallbeprotectedaccordingtolawhasbeenextendedtothebusinessnameofanenterpriseorthepennameorstagenameofanynaturalperson.Trade secretsInterpretationprovidesthatthenamelistofcustomersamongtrades

12、ecretsshallgenerallyrefertothename,address,contactinformation,tradinghabits,tradingintent,andtradingcontentsofcustomersthatconsistofthespecificclientinformationdifferentfromrelevantpublicinformation.TradeSecretUnavailabilitytothePublic-CommercialValueandPracticalApplicability-ConfidentialityMeasures

13、Reverse engineeringInaccordancewithInterpretation,itislegitimateformanagerstoobtainbusinesssecretsbywayofreverseengineering.Nevertheless,itstressesthatreverseengineeringwillnotbeagooddefenseforatradesecretinfringementclaimwherethetradesecrethasbeenobtainedinanirregularwaybefore.Civil liabilities Rem

14、edies for Infringement of Trade Secret TheremediesforinfringementoftradesecretundertheInterpretationincludeinjunctivereliefanddamages.InjunctiveReliefDamages(i)lostprofitsincurredbythetradesecretownerduetosuchinfringement;or(ii)unjustbenefitobtainedbythedefendantduringsuchinfringement;or(iii)reasona

15、bleroyaltywhereneitherlostprofitsnorunjustbenefitorsomecombinationofthetworemediesareapplicable;or(iv)commercialvalueofsuchtradesecretwherethetradesecrethasbeenknowntothepublicduetosuchinfringement.JurisdictionAccordingtotheInterpretation,ingeneraltheintermediatecourtshavejurisdictionoveranyunfairco

16、mpetitionclaims.LaborContractLawof2007Thislawcontainsprovisionstoregulatebothemployersandemployeesontradesecretsandintellectualpropertyconfidentialityrelatedissues.LaborContractLawArticle 23Employersandemployeesmayincludetermsintheirlaborcontractrelatingtotheconfidentialityofbusinesssecretsandintell

17、ectualproperty.Inlaborcontractswhichcontainconfidentialityobligations,employerandemployeemayagreeonthecompetitionrestriction.Aftercancellationorterminationofthelaborcontractandduringtheperiodofrestrictedcompetition,compensationshallbepaidonamonthlybasis.Employeeswhobreachtheclausesrestrictingcompeti

18、tionshallpayliquidateddamagestotheemployerinaccordancewiththeagreementthereof.ContArticle 24Personnelsubjecttorestrictionsincompetitionshallbelimitedtoseniormanagement,seniortechniciansandotherindividualswithobligationsofconfidentiality.Thescope,areaandtermoftherestrictionshallbeagreeduponbetweenthe

19、employerandtheemployeeandshallnotbeinviolationoflaws,rulesandregulations.Theterm,inwhichtheemployeeswhoaresubjecttorestrictionsoncompetitioninworkingforacompetingbusinesswhichproducesthesameproductsorservices,orstartsabusinessforthesameproductsorservices,shallnotexceedtwoyears.ContArticle 90Ifaworke

20、rterminateshisemploymentcontractinviolationofthislaworbreachesobligationsofconfidentialityorrestrictionsoncompetitionstipulatedinhis/heremploymentcontract,andifsuchviolationorbreachcauseslossestohisemployer,hewillbeheldliablefordamages.CHINT v.Schneider(2007)ThejudgmentoftheChineseIPinfringementcase

21、inthefirstinstancewithhighestdamageclaimwasrenderedinWenzhou,ZhejiangprovinceonSeptember,292007.SchneiderElectricS.A,theworldleaderinthelowervoltageelectricproductsbusiness,wasorderedbyWenzhouIntermediatePeoplesCourttoceasepatentinfringementandpay3.33billionRMBasdamagestoaChineseprivate-ownedenterpriseCHINTGroup.ContSchneiderinsistedthatthepatentclaimedbyCHINTshouldbeinvalidandalsofiledaninvalidationrequestagainstCHINTspatentwiththePatentReexaminationBoardofSIPOduringthelitigationprocess,which,however,wasrefusedbytheBoard.

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