Traps for the unwary
IP licensing and technology transfer is subject to complex legislation, which foreign practitioners must understand if they want to avoid pitfalls, say Benjamin Bai, Anthony Chen, and Marcus Woo of Jones Day
Because applicable Chinese laws can differ from foreign law in important ways, IP licensing in China is fraught with traps for the unwary. Approaching technology agreements in China with the boilerplate language common in foreign legal documents is likely to breed problems down the road. But there are ways to avoid the pitfalls.
Legal and regulatory framework
IP licensing and other technology transfer agreements in China are governed by a plethora of Chinese laws, including but not limited to the Contract Law, Patent Law, Unfair Competition Law, Foreign Trade Law, and Antitrust Law (China promulgated its Antitrust Law on August 30 2007, which becomes effective on August 1 2008). The principal regulations covering technology transfer are the 2002 Regulations on Administration of Technology Imports and Exports promulgated by the State Council. In addition, the Chinese Supreme Court promulgated a Judicial Interpretation on Litigation Issues Relating to Technology Contract Disputes, which...
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