China Law Blog – 2020

Check Your International Registrations: Like Now

Every few months, one of my law firm’s international lawyers has to tell a client that the company or the IP the client thought it had somewhere in the world does not exist.

About a decade ago — before China got so much better at spotting such things — we were retained to help a U.S. company whose China general manager had stolen funds from its China subsidiary. Our investigation quickly revealed there was no China subsidiary. No China entity had ever been formed even though the China operations were manufacturing hundreds of millions of dollars of product a year, with around 100 “employees.” The general manager had lied about having formed a WFOE, no China taxes had ever been paid, and every “employee” had been working illegally.

A U.S. company once contacted us because its China joint venture company had started selling its product in the United States in direct competition with the U.S. company. We were tasked with determining whether this company’s China joint venture agreement gave the U.S. company the power to stop U.S. sales. The problem was that the Chinese language “joint venture agreement” was actually a consulting agreement and no joint venture had ever been formed.

A Norwegian company once came to us looking to sue its former China distributor for manufacturing and selling the Norwegian company’s product in China, “in violation of our China trademark.” The Norwegian company told us how its former distributor had registered the its brand name for it in China, and the Norwegian company even had a trademark certificate to prove this. The trademark certificate turned out to be fake and the trademark had actually been registered in the name of a Chinese citizen (probably a relative of the distributor) who was now licensing it to the former distributor.

In the above examples, the companies were fooled by people they knew. Equally common is the situation where a foreign company pays someone it does not know to register a company or IP in China (or elsewhere) but nothing ever gets filed.

There are even fake law firms that collect money from foreign companies to  register their IP or their company and then pocket the money and do nothing. These companies use the internet to thrive by taking advantage of companies not well-versed in operating internationally.

These are the service company equivalents of the manufacturing companies that take money and never provide any product.

In addition to the above cases involving dishonesty, we also often deal with clients who for whatever reason — oftentimes rapid growth — have failed to stay current with necessary international registrations.

It is fast, easy and cheap to make sure your company’s entity and IP (trademarks, copyrights and patents) registrations are in good order internationally. So if you have any reason to doubt your company’s registrations, you should have them checked out. Like now.

Why not make this your end of year/New Year’s Resolution.?

What do you think?

We will be discussing the practical aspects of Chinese law and how it impacts business there. We will be telling you what works and what does not and what you as a businessperson can do to use the law to your advantage. Our aim is to assist businesses already in China or planning to go into China, not to break new ground in legal theory or policy.

CONT’D

Source: https://www.chinalawblog.com/2020/12/check-your-international-registrations-like-now.html

RECENT POSTINGS

Check Your International Registrations: Like Now

So You Want to Take Your Business Global?

International Litigation: The Questions We Ask

Roses Are Red, Publishers Without Contracts Are Blue

China Business: A First Person Account

Product Liability When Manufacturing Overseas — December 15 Webinar

Manufacturing in Asia: Let’s Talk United States and Canada and Mexico and EU Trademarks

How to Protect Your IP When Selling on Chinese E-Commerce Platforms

The First Thing To Do When Someone Has Your China Trademark

How to Whip Your China Employee Handbook into Shape

International Product Development Agreements: The Basics

How to Avoid China Employment Law Problems: Employer Audits

Who Should Own Your China IP?

Global Law and Business Podcast – Uday Garg (Private Equity in India and Southeast Asia)

“Made in China” Is a Warning Label, But …

Five Keys to International Consulting Contracts

What Is This RCEP You Talk About? (Part 2)

What Is This RCEP You Talk About?

SMEs and China: Much Opportunity but Little Room for Error

China Hostage Situations: What You Need to Know

Global Law and Business Podcast – Adam Bathgate and Korin Knights (Bermuda)

Investing and Doing Business in Spain: The Webinar Video Replay

U.S. China Policy Under Biden: New Ground or Back to the Past?

Don’t Sleep on Your China Trademark

Ten Keys to Preventing Product Counterfeiting

Problem Free China Outsourcing in These Tough Times

The Six Keys to Protecting Your IP Internationally

Global Law and Business Podcast – Joel Gallo (Global Capital Markets)

Why Court Corruption Does Not Mean Lights Out

Asia-Pacific RCEPonds to Trump’s Snub

Product Exclusivity Term Sheets

China Employment Contracts: Do Them in Chinese

China Employment Contracts Should be in Chinese

China Expat Pay: Splitting with Hong Kong is Illegal and Dangerous

Getting Counterfeit Products Removed from China Websites

International Acquisitions and the Political and Regulatory Risks That Derail Them

Global Law and Business Podcast – Doug Brush (Cybersecurity)

China Expat Employment Contracts: Red Flags

International OEM Agreements: You Are Naked Without a Good Bill of Materials

Best Practices for Emerging Market Countries: The Two Minute Version

What Stanley Black & Decker’s Shenzhen Departure Tells Us

How to Hang Onto Your Molds in China

Global Law and Business Podcast – Sonia Gumpert (Spain)

Is That A Real Chinese Company Chop/Stamp/Seal?

International Dispute Resolution Clauses: Context is Everything

China Contracts, But with Whom?

China Trademarks: Do You Want it Right or on the Cheap?

International Manufacturing Contracts: Perfection Should Cost Less

Free Webinar! November 19th – Investing and Doing Business in Spain: A Legal Perspective

Global Law and Business Podcast – Alberto Predieri (Italy)

Beware of China Lawyers

Drafting International Contracts That Work

China Employer Year End Reviews

China Contracts: Worth Every Dollar You’d Rather Not Pay

International Product Sourcing Consultants and the Liabilities THEY Face

International Trade in the 2020 Elections – Meh

China Unreliable Entity Regulations

Proprietary Product Purchases

China Commercial Leases: Watching the Sausage Get Made

Global Law and Business Podcast – Sonu Ratra (International Impact of Women)

What to do When U.S. Customs is Coming After You

Beware of China Lawyers

CONT’D

CHINAL LAW BLOG POSTING AT BEFOREITSNEWS.COM

CHINA LAW BLOG .COM