No.158

The Beijing Internet Court recently closed a case concerning the right to transmit information on the internet, deciding that the defendant Shenzhen Shushu Technology Co., Ltd. infringed the right to transmit proprietary information on the internet of the plaintiff Youku Network Technology (Beijing) Co., Ltd. by transmitting a series of pictures from the TV series Three Lives and Three Worlds Woven by Secrets by using the method of “explaining a movie with pictures”. The court’s decision is kind of being distinct for its deciding the infringing person and exclusion of reasonable use . However, the type of works in question and the plaintiff’s eligibility decided by the court are questionable and worth discussion. Lawyer Ni Tinggang who has long-time experience in providing Copyright Law related services comments on the court’s decision.
2019-09-04 11:18:53

IP.png

Comments on the Decided Case of “Explaining Pictures” from Three Lives and Three Worlds Woven Together by Secrets 

 By Ni Tinggang

Beijing Internet Court recently closed a case arising from the right to transmit information on the internet, deciding that the defendant infringed the plaintiff’s right to transmit its proprietary information on the internet by transmitting a series of pictures from the TV series by using the method of “explaining a movie with pictures”. The court’s decision explained the identity of the infringing person and the exclusion of reasonable use with admirable clarity. However, I have noticed that the type of works in question and the plaintiff’s eligibility decided by the court is questionable and worth discussion...........More


COMPANY.png

Announcement of VAM Clauses and Protection of Creditors' Interests

By Qiu Ruyu

On 3 April 2019 the High People’s Court of Jiangsu Province delivered the (2019) S.M.Z.No.62 judgement to close the “YF Shares Case” which had lasted for a long time, in which the court accepted that the repurchase clauses agreed by the investor and the targeted company was valid. Another issue arose from the second trial of the “YF Shares Case”. What are limitations on protection of the interests of the targeted company’s creditors arising from execution and performance of an investment agreement containing VAM clauses, or what are the targeted company’s responsibilities that should be included in VAM clauses in order to avoid affecting the creditors’ interests?..............More


新法.png

1.Circular Notice on Issuing the Overall Plan for the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone 

Promulgated by the State Council

Document Number: G.F.(2019) No.15

Promulgation date: 27 July 2019

To follow the principles of the Notice, there will be a well-designed set of rules to facilitate free trade and investment in the new area, including allowing well-known overseas arbitration and dispute resolution organizations to do arbitration activities as businesses; creating the Yangshan Special Comprehensive Bonded Area to cancel unnecessary trade regulation, permit and process requirements on the basis of full implementation of comprehensive bonded area policies; studying and using free trade accounts that combine RMB and foreign currency payment functions on experimental basis, exploring free capital flow into and out of and free capital exchange in the new area; treating international transport by ships manufactured in the country and registered in “Yangshan Port, China” as exports entitled to tax rebate; implementing globally competitive tax rules and policies, reducing enterprise income tax and other tax rates applying to eligible businesses doing manufacturing and research activities in most important parts of key areas such as integrated circuits, artificial intelligence, bio-medicine and civil aviation in the new area to 15% within five years after the business establishment date. (Source: Website of the State Council)

http://www.gov.cn/zhengce/content/2019-08/06/content_5419154.htm 


2.Notice on Implementation of the Catalog of Industries in Which Foreign Investment is Encouraged (2019 Edition)

Promulgated by the General Administration of Customs

Document Number: No.125 GAC Notice 2019 

Promulgation date: 24 July 2019

Implementation date: 30 July 2019

According to the Notice, from 30 July 2019, in foreign investment projects (including capital increase projects, as below) included in the Catalog of Industries in Which Foreign Investment is Encouraged (2019 Edition), equipment imported for personal use and covered by the total investment and technology and auxiliary and spare items imported together with such equipment by contract, except products included in the Catalog of Imported Products Excluded from Duty-Free Foreign Investment Projects and the Catalog of Important Technology Equipment and Products Excluded from Duty-Free Imports, are exempt from duties under the Circular Notice of the State Council on Alteration of the Tax Policy on Imported Equipment (G.F.[1997] No.37), the No.103 Announcement of the General Administration of Customs and other regulations, not including value-added tax on imports required by relevant rules. (Source: Website of the General Administration of Customs)

http://www.customs.gov.cn/customs/302249/302266/2480148/2550959/index.html                    


3.Notice on Publishing the Customs Notice on the China International Import Expo 2019 and the Customs Measures for Convenience of the China International Import Expo 2019 

Promulgated by the General Administration of Customs

Document Number No.26 GAC Notice 2019

Promulgation date: 9 July 2019

Implementation date: 9 July 2019 

The contents of the Customs Notice include exhibit approval and admission, overseas material declaration, inspection and release of exhibits, in-process supervision of exhibitions, disposal of exhibits. The Measures for Convenience include tax guarantee given by exhibition organizers, extension of the limited period of time for which exhibits under the ATA license are allowed in our country, simplified exhibit export formalities, allowing customs registered businesses in the special customs-regulated area or the bonded logistic center (type B) (“Regional Center”) to transport guaranteed bonded goods to the permanent venue of the import expo for exhibition, sales and other businesses outside Regional Center. (Source: Website of the General Administration of Customs)

http://www.customs.gov.cn/customs/302249/302266/302267/2536947/index.html                    


4.Rules on Administering China-Based Representative Offices of Overseas Securities and Future Exchanges

Promulgated by CSRC

Document number: No.157 CSRC Order

Promulgation date: 25 July 2019

Implementation date: 25 July 2019

The Rules, which consists of eighteen articles, states that the scope of activities of representative offices is “not-for-profit activities such as communication and researches”; for market agency activities, replaces the pre-approval system with the post-reporting system and adds a negative list containing business related information that are prohibited such as product details, account opening and transaction methods and transaction prices; further clarifies prohibited matters, mainly including agreements or contracts between a representative office or its personnel and a legal or natural person, which could increase income of the representative office or its overseas office, direct transaction related services for domestic entities and people and other activities prohibited by law or rule. (Source: Website of CSRC)

http://www.csrc.gov.cn/pub/zjhpublic/zjh/201907/t20190726_359859.htm   

                  

5.Decision on Amending the Detailed Rules on Implementation of the International Sea Transport Rules of the People’s Republic of China

Promulgated by the Ministry of Transport

Document number: No.21 MOT Order 2019

Promulgation date: 21 June 2019

Implementation date: 21 June 2019                            

The amendments this time include removal of provisions of “international ship management permit” and “approval for foreign funded international sea transport and allied businesses” and revision of provisions that do not accord with current open-up policy. (Source: Website of the Ministry of Transport) 

http://xxgk.mot.gov.cn/jigou/fgs/201907/t20190708_3222405.html                       


6.Circular Notice on Issuing the Reform Plan for Further Improving the Withdrawal System for Entities in the Market

Promulgated by thirteen departments including the Development and Reform Commission, the Supreme People’s Court and the Ministry of Finance

Document number: F.G.C.J.(2019) No.1104

Promulgation date: 22 June 2019                            

The Notice states that a study of individual insolvency rules will be done to address the issue of natural person’s joint liability for secured obligations arising from business bankruptcy and that natural people can be legally exempt from obligations connected with production and business activities arising from warranty, etc. and will be legally exempt from some of consumer obligations in order to establish a complete set of individual insolvency rules. (Source: Website of the Development and Reform Commission) 

http://www.ndrc.gov.cn/zcfb/zcfbtz/201907/t20190716_941615.html   


Picture of the month:

158.png

Photographer: Sun Feiran, lawyer

Caption: Ussutyadan, Qinghai, March 2019