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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.