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China’s rapid economic development and its emerging middle class allow franchises to operate in China under the following model:

The franchisor
• owns a well-known brand with a global reputation;
• has a strong desire to expand its brand in China;
• currently lacks sufficient capital and the traditional franchising model is no longer suitable to support such expansion.

The franchisee:
• has a well-developed distribution network;
• already owns second-line brands for the same or similar products which have already established certain market share in China;
• has ready capital and other operational resources.

By Cecilia Lou, Partner at King & Wood’s Intellectual Property Group

Continue Reading Franchising Challenges in China Part II

Once a friend of mine visited Shanghai and asked me to recommend some quick restaurants. After listing a few options, I realized that he was not interested in them as he just wanted to find a simple restaurant providing real Shanghai cuisine. It dawned on me that, we were surrounded by national and international franchised stores with standardized products and services which often provide little local flavor. Franchising is ubiquitous in China, and not just the fast food chains.

 By Cecilia Lou, Partner at King & Wood’s Intellectual Property Group

Continue Reading Franchising Challenges in China

With the increased popularity of the Internet, web-based information is frequently used as evidence in judicial proceedings in China. In most cases, the web-based information is stored inside a web server in the form of electronic data. When submitted to a Chinese court as evidence, the web-based information must be downloaded in the presence of a notary public in order to verify its authenticity.
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Continue Reading PRC Web Page Notarization for Evidence

Not only the marketing affairs, the Chinese Basketball Association also effectively controls all other critical aspects of the CBA under the CBA AOA. The following three issues illustrate how the Chinese Basketball Association’s greatly influences the operations of the CBA clubs.
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Continue Reading Measuring the Need for Reform in Chinese Basketball Pt. II: The Structural Organization of the CBA

In 2004, when acting as Director of the Chinese Basketball Management Center (“CBMC”) and the Chinese Basketball Association, Yuanwei Li launched the “Polaris Program”, in which the CBA was to be transformed through assuming the NBA operational model with the hope that the implementation of this program could promote reforms for Chinese professional basketball.
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Continue Reading Measuring the Need for Reform in Chinese Basketball: Cues from the NBA

On June 9, 2009, the State Administration for Foreign Exchange (“SAFE”) issued the Notice on Certain Issues Relating to Foreign Exchange Administration on Offshore Lending by Domestic Enterprises (the “Notice”) effective as of August 1, 2009, in an effort to deal with the difficulties faced by offshore Chinese-funded enterprises that have “gone abroad” in obtaining financing offshore and increasing working capital, to encourage more domestic enterprises with strong capital strength to “go abroad”, and to enhance the use of funds by domestic enterprises.
 

King & Wood’s Finance Group

 Continue Reading SAFE Circular to Improve Forex Administration on Offshore Lending

From 2003-2007, over US$100 billion poured into China via offshore structures in tax havens like the Cayman Islands. Much came from global institutional investors who tasked alternative investment managers with allocating a percentage of their portfolios to high-yield opportunity funds, emerging markets and real estate.

Everyone wanted a piece of the “China Dream,” but in recent months they have woken up to deteriorating economic conditions. Institutional investors are forcing redemptions of their investments from high-yield, high-risk markets.

Jack Rodman, Senior Advisor to King & Wood\‘s International Debt/Restructuring Practice

Summarized from Mr. Rodman’s article for China Economic Review, May 2009.Continue Reading The Best of a Bad Deal

The Supreme People’s Court promulgated the “Interpretation on the Application of the Law Concerning Several Issues Regarding the Trials of Civil Disputes Relating to the Protection of Famous Trademarks” on April 23, 2009. This Interpretation clarifies what constitutes “famous” trademarks in China.

Xu Jing, Partner, IP Litigation

 Continue Reading Rise of “Famous” trademarks in China

On April 21, 2009, China’s Supreme People’s Court promulgated its “Opinion on Several Issues Concerning Trials of IP Cases to Serve the Public Interest under the Current Economic Environment” In this Opinion, the Supreme People’s Court first clarifies that injunctive relief should not necessarily be granted in all intellectual property infringement cases. Under certain circumstances, the Court stated that an award of reasonable or sufficient damages can be an effective substitute for claims of injunctive relief.

Xu Jing, Partner, Intellectual Property

Continue Reading Injunctive Relief Alternatives in IP Related Cases in China