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By Cecilia Lou and Vincent Yu King&WoodMallesons’ Corporate Group

Merchandizing the image of TV or movie character has become a common practice since long ago. Right owners not only use merchandizing as a way of publicity but also benefit from the sales of merchandise. In China, laws are silent on right to merchandize. Nevertheless, right owners can still harness the existing IP and civil rights regime to establish merchandise agreements for purposes of collecting royalty and enhance publicity. This article provides some of the key pointers in crafting the merchandise agreements.

LICENSOR

Licensors need to double confirm whether they have right to enter into the merchandise agreements. Licensors can be copyright owner, trademark owner, design patent owner, or a licensee of the right owners. In the last scenario, it is advised for licensor to obtain a license to sublicense and enforce the right. For example, a movie studio may need to get a license from the actor to explore actor’s image in the movie. Also, overseas right owners may need to grant a merchandise right to the distributor or agent in China. In all, licensors should avoid situation where their right to dispose or license is limited.
Continue Reading Key pointers in drafting a merchandizing agreement in China

By Mark Schaub and David Hong King&WoodMallesons’ Foreign Direct Investment Group

As we explored in our February 2014 article, “Free Trade Zone has Silver Lining for Gaming Companies,” China has loosened its ban on the sale of video game consoles and games to domestic consumers. Under new policies of the Shanghai Free Trade Zone, video game manufacturers will be allowed to produce both consoles and games for sale to Chinese consumers for the first time since 2000.

This relaxation of the ban does not mean that controversial games like Grand Theft Auto will be released in China anytime soon. New regulations were released on April 21, 2014 which describe the approval process for video game manufacturers and also the categories of video game content that remains off limits.
Continue Reading Updated Forecast for the Chinese Games Industry: Mostly Sunny with a High Chance of Clouds

By GUO Guiying Tang lingxiao Elaine Wang King&WoodMallesons’ Antitrust & International Trade Group

On June 19, 2014, seven departments including the Ministry of Finance, National Development and Reform Committee, People’s bank of China, State Administration of Radio Film and Television jointly announced “The Notice of Economic Policies Supporting the Development of Film Industry” (“Notice”). Comparing with earlier policies, the recent policies have provided support in taxation, financing, and land use with full consideration of each step along the movie production chain. The main points of the “Notice” include:
Continue Reading Policies Supporting Chinese Film Industry have been Announced

By Denning Jin    King & Wood Mallesons’ IP Litigation Group

Introduction

With the China (Shanghai) Pilot Free Trade Zone Arbitration Rules that came into effect on May 1, 2014 (“FTZ Arbitration Rules”), the Shanghai International Arbitration Center (“SHIAC”) adopts practices of the most renowned international arbitration institutions, and follows trends and developments in international commercial arbitration. The FTZ Arbitration Rules do not only apply to cases related to the China (Shanghai) Free Trade Zone (“FTZ”), they may also apply to cases where parties have agreed to apply the FTZ Arbitration Rules, regardless of the nature of the dispute.
Continue Reading What Will the New Developments in the FTZ Arbitration Rules on Interim Measures and Evidence Rules Mean for Multinational Companies?

By Sidney Qin King & Wood Mallesons’ FDI Group

Deloitte predicts the private education sector will reach a market size of RMB640bn (US$102bn) by 2015. This growth is likely a response to rising income levels, which fosters the demand for high-quality private education. In 2013, China relaxed its decades-long one-child policy, allowing couples to have two children if one of the parents is an only child, which greatly bolsters the potential demand for private education like pre-school education and after-school tutoring. Up to now, education has been a valuable hot land of investment, but it is not easy for private investors to enter into the market, particularly foreign investors, because of legislation that treats education as a form of public welfare. But recent legislative developments look set to change this. Although no new national laws or regulations have yet been promulgated, recently-released draft legislation and newly promulgated local regulations suggest that the dawn of private educational institutions is approaching.
Continue Reading The Dawn of Private Educational & Training Institutions

By Ding Xianjie King & Wood Mallesons’ Trademark Group

The State Council promulgated the revised Implementing Regulations of the Trademark Law of the People’s Republic of China (Revised in 2014) (the “New Regulations”) on April 29, 2014 to better coordinate the implementation of the third revision of the Trade Law of the People’s Republic of China (the “Trademark Law”).The New Regulations, containing 98 Articles in ten Chapters, mainly supplements and details related systems according to the modified content in the Trademark Law, adds the established practices that already existed in the works of trademark review, adjudication and management based on the practical requirement, and further clarifies issues concerning protection of the exclusive right to registered trademarks and trademark agency, etc. The New Regulations and the Trademark Law will take effect from May 1, 2014.
Continue Reading Specific Guidance on Protection of the Exclusive Right to Registered Trademarks Offered by the Revised Implementing Regulations of the Trademark Law

By king & Wood Mallesons’ Compliance Group

After public consultation, the China Food and Drug Administration recently promulgated the Provisions on the Food and Drug Administrative Penalty Procedure (the “Provisions”), which came into effect on June 1, 2014. The Provisions concern food, drugs, cosmetics, and medical devices. The Provisions cover all procedures of administrative law enforcement, and specify the requirements for entrusting and delegating law enforcement power. In addition, the Provisions also further specify the procedures of trans-regional cooperative investigations, the effectiveness of evidence obtained before the case being formally filed, the connection between administrative procedures and criminal procedures, and overseas evidence collection.
Continue Reading A New Food and Drug Administrative Penalty Procedure

By kingandwood Mallesons’ Healthcare Group

On 31 March 2014, Chinese government released the revised Regulations on the Supervision and Administration of Medical Devices (“Revised Regulations”). The Revised Regulations will come into effective on 1 June 2014, presenting following major changes:

 Classification and Supervision System Adjustment

According to the Revised Regulations, medical devices are still supervised and managed under a Class I, Class II and Class III system based on the risk to the users. However, the supervisory system has been changed with below highlights.
Continue Reading China’s Revised Regulations on the Supervision and Administration of Medical Devices: New Supervisory System and Increased Penalties

By Heather Corben and Tony Dong     King & Wood Mallesons’ Taxation Group

The UK government has made clear its ambition to improve economic links with China and to make it easier for business to be done between the two countries. Recent initiatives have included the relaxation of visa requirements for Chinese visitors to the UK, George Osborne’s trade trip to China in October 2013, and David Cameron’s visit in December with a 100-strong trade delegation. According to China’s ambassador to Britain, trade between the two countries surpassed £42.5 billion in 2013. A further sign of the UK government’s enthusiasm is the new comprehensive double taxation agreement (DTA) between the UK and China.
Continue Reading Enter the Dragon

By King & Wood Mallesons’ Energy& Resources Group

The Management Measures of Natural Gas Infrastructure Construction and Operation (National Development and Reform Commission Decree No. 8) (《天然气基础设施建设与运营管理办法》(国家发展改革委员会令第8号)) (the “Measures”) were published by the National Development and Reform Commission (“NDRC”) on February 28, 2014 and took effect as of April 1, 2014. The purpose of the Measures is to regulate the construction and operation of natural gas infrastructure, encourage different types of investment into the natural gas infrastructure market and to further liberalize the market by promoting fair competition. The key features of the Measures are set out below:
Continue Reading China Further Liberalizes the Natural Gas Infrastructure Market—The Management Measures of Natural Gas Infrastructure Construction and Operation took effect as of April 1, 2014