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.


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 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’s Intellectual Property Group

China’s State Intellectual Property Office (SIPO) is able to issue compulsory patent licenses where an entity or individual who is otherwise qualified to exploit a patent does not succeed in obtaining a license on  reasonable terms and within a reasonable period from the patent holder. The new Patent Law of the PRC (the “Patent Law”) and the Implementing Rules of the Patent Law of the PRC (the “Implementing Rules”) both contain provisions regarding the compulsory licensing of patents. On October 12, 2011, the SIPO issued a circular to solicit public comments on the Amendments to the Measures on Compulsory Patent Licensing (Draft for Comments) (the “Draft Amendments”). The SIPO will be taking comments until November 13, 2011.Continue Reading SIPO Issues Amendments to Compulsory Patent Licensing Measures


在中国,具备实施条件的单位或个人不能以合理条件或在合理期限内取得专利权人许可的情况下,国家知识产权局可以对该专利实施强制许可。中国专利法和专利法实施细则都规定了专利强制许可。国家知识产权局于20111012发布通知,就《专利实施强制许可办法修订草案(征求意见稿)》(办法草案)于1113日前向社会各界征求反馈。Continue Reading 国家知识产权局对专利实施强制许可办法修订草案征求反馈

By Susan Ning, Huang Jing and Angie Ng, King & Wood’s Competition Group

On 14 October 2010, the PRC National Copyright Administration (NCAC) published two pieces of regulations (the regulations) which govern the collection of copyright royalties for movies provided on the Internet, on flights and on public transport.(1)   Recently there have been concerns from internet cafes that these royalties are unreasonably high.(2)   There has also been some discussion in the press that these alleged “high” royalties could constitute an abuse of intellectual property rights, in breach of Article 55 of the Anti-Monopoly Law (AML).(3)Continue Reading Domestic Movie Royalties – Too High?