Introduction regarding PRC Regulation over Extended Warranty Service

Authored by Dr. Zhan Hao (zhanhao@anjielaw.com) and Xu Chunying (xuchunying@anjielaw.com) at AnJie Law Frim

Recently, more and more home appliance retailers, wireless carriers and automobile retailers recommend and promote Extended Warranty Service (“EWS”) to their customers in Chinese market. Some foreign insurers also want to take advantage of their experience in oversea markets and develop EWS in Chinese market. EWS, as a service plan or in the name of a service plan at least, provides supplemental repair or replacement service to customers in addition to the Quality Warranty rendered by product manufacturers requested by PRC mandatory provisions. With the popularity of EWS, it also incurs some concerns from regulation perspective.

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Huawei vs. ZTE - The Advocate General Has Spoken

 Authored by Dr. Zhan Hao (zhanhao@anjielaw.com) and Wan Jia (wanjia@anjielaw.com) at AnJie Law Frim

Background

On April 5, 2013, the Landgericht Düsseldorf (a German regional court) referred a set of questions relating to injunctive relief over standard-essential patents (“SEPs”) to the European Court of Justice (“ECJ”) in connection with a patent dispute between Huawei Technologies Co. Ltd (“Huawei”) and ZTE Corp. and ZTE Deutschland GmbH (collectively “ZTE”). This lawsuit was originally brought by Huawei in 2011, relating to an alleged infringement by ZTE of a patent owned by Huawei and declared to be essential in the LTE standard developed by the European Telecommunications Standards Institute (“ETSI”).

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Private AML Enforcement is Catching up its Public Counterpart

Authored by Dr. Zhan Hao (zhanhao@anjielaw.com) & Dr. Song Ying (songying@anjielaw.com) at Anjie Law Firm

Public enforcement and private enforcement of competition law should be complementary mechanisms each other. It is witnessed a situation of “leaning to one side” in China previously, namely the public antitrust enforcement progressed more rapidly than the private enforcement system. While from 2012, a leap-forward development of China’s private AML enforcement has impressed people. This article mainly introduces the tendency and evolvement in China’s private AML enforcement, with the hope to give readers some enlightenment.

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The 3rd Judicial Interpretation of Insurance Law on Life Insurance has issued to Solicit Advice from Public

Authored by Dr. Zhan Hao (zhanhao@anjielaw.com) & Xia Yibin (xiayibin@anjielaw.com) at Anjie Law Firm

Recently, the Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the Insurance Law of the People’s Republic of China (III) (hereinafter referred to as “the 3rd Judicial Interpretation of Insurance Law” or the “Draft”) has promulgated to solicit advice from public. The Draft regulates in detail several commonly occurring issues in judicial practice with respect to life insurance contract, which would be helpful to adjudicate disputes in this regard and have important significance on protecting the parties’ legitimate rights and interests.

The Insurance Law has been amended twice since being enacted in 1995. In 2002, in order to fulfil our country’s commitment for joining the World Trade Organization, the standing committee of the National People’s Congress revised part of the Insurance Law. In 2009, the standing committee of the National People’s Congress revised the Insurance Law again, and significantly altered the provisions relating to insurance industry and insurance contract, especially the part of insurance contract.

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China Loosens Outbound Investment Control

Authored by REN Gulong(rengulong@anjielaw.com) at AnJie Law Firm 

The State Council, China’s cabinet, released on 18 November 2014 a List of Investments That Requires Governmental Approval (2014 version) dated 31 October 2014 (“2014 List”).  The 2014 List provides a much shorter list of investments projects needing government approval.

 

In the 2014 List, except for investments in sensitive countries or regions or investments in sensitive industries, which are still subject to approval by National Development and Reform Commission (“NDRC”), no governmental approval will be required for any outbound investment (“ODI”) by Chinese investors. Filing with NDRC will be required for any outbound investment above US$ 300 million

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FAW-Volkswagen, Chrysler and Related Dealers Fined Nearly RMB280 Million for Monopolistic Conduct

Authored by  Michael Gu (michaelgu@anjielaw.com) at AnJie Law Firm

Background

The automotive industry has undergone a new round of “antitrust crackdowns”. On 11 September 2014, Hubei Price Bureau released its decisions to impose penalties arising from a price monopoly on FAW-Volkswagen Sales Co., Ltd (“FAW-Volkswagen”) of RMB248.58 million (USD40.52) and eight Audi dealers in Hubei Province amounting to RMB29.96 million [1]. Two Audi dealers, i.e. Hubei Aoze and Wuhan Aojia, were exempted from the penalty. On the same day, Shanghai’s municipal price authority imposed a fine of RMB31.68 million (USD5.16 million) on Chrysler (China) Automotive Sales Co., Ltd (“Chrysler”) and a combined RMB2.14 million fine on its three dealers in Shanghai for price monopoly [2]. It is worth noting that this is the first time that both horizontal and vertical monopolies were found in the same case. Both FAW-Volkswagen and Chrysler reached vertical agreements with their respective dealers to restrict the resale price of the car and after-sale services. Furthermore, their respective dealers reached and implemented horizontal agreements to fix the relevant price.

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The Draft Supreme Court Patent Trial Judicial Interpretation Expected to Streamline the Patent Litigation Procedures

Authored by He Jing (hejing@anjielaw.com) at AnJie Law Firm

In August 2014, China Supreme People’s Court (“SPC”) released its proposal for public comments titled “Interpretations of the Supreme People's Court on Certain Issues Concerning the Application of Law in the Trial of Patent Infringement Cases II” (“Part II”).  It is a further development of SPC’s judicial interpretation on the trial of patent infringement cases. The first part of the interpretation has been implemented since January 1st 2010, and has been an important source of authority for lower courts to deal with patent infringement cases.  This second part covers more aspects of the patent litigations and would likely produce significant impacts on patent litigation practice. 

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A Significant Step Made by the Supreme People's Court Through the Draft Trademark Law Judicial Interpretation

Authored by He Jing (hejing@anjielaw.com) at AnJie Law Firm

On October 14th, the Supreme People’s Court (SPC) issued a draft judicial interpretation (JI) for public comment regarding judiciary review of decisions related to trademark examination and invalidation procedures.  The deadline for submitting comments is November 15th.

The draft JI will be a fundamental piece to the new China trademark system as the new trademark law has been in effect as of May 2014.  The draft JI intends to provide consistent standards of conducting judiciary reviews of decisions made by the China Trademark Office (CTMO) and the Trademark Review and Adjudication Board (TRAB) on trademark examination, invalidation, cancellation and other review procedures.  The Beijing courts and CTMO/TRAB often have different opinions on some key trademark issues, such as how to deal with bad faith trademarks.  Even the courts themselves are often seen to come up self-contradicting decisions.

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The Launch of Specialized IP Court Indicates Significant Progress in IPR Enforcement

Authored by He Jing (hejing@anjielaw.com) at AnJie Law Firm

The Beijing court authorities published 18 judge candidates for the newly established Beijing IP Court.  This indicates a significant step towards the official launch of the new court.  A week ago, the names of the president and two vice presidents of the new court were also published.  People widely believe a strong judge leadership is in place for the Beijing specialized IP court.

After an expedited legislative process over the last nine months, China’s legislature passed a bill on August 31 announcing that three specialised IP courts are to open in Beijing, Shanghai and Guangzhou.  The new courts are scheduled to open by the end of 2014.  Now with the appointment of the new judges, Beijing IP Court will officially take cases as early as November 6, 2014.

 

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Reforms of Foreign Exchange Rules on Cross-border Security

Authored by Ren Gulong (rengulong@anjielaw.com) at AnJie Law Firm

After several months’ consultation, State Administration of Foreign Exchange (SAFE) released a Foreign Exchange Rules On Administration Of Cross-border Security (the “Cross-border Security Rules”) on 19 May, which will become effective on 1 June 2014.  The Cross-border Security Rules will dramatically relax regulations on Cross-border Security by removing all up-front approvals to the effect that FX/RMB will be fully convertible in respect of Cross-border Security.

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