W&B Legal Newsletter

2017 Feb. Vol.1

Spotlight Latest on Watson & Band

● Best Wishes for the Spring of 2017 from Watson & Band

● W&B’s IP Litigation Services Rank near the Top of the 2017 Chambers and Partners

Corporate and Commercial Services

● The Latest State Council Document Relaxes Restrictions on Permission for Foreign Capital

Compliance Management

● Blocking or Fast-Forwarding Opening Advertisements Ruled Unfair Competition

Monopolies and Competition ● SAIC Announces Centralized Control Measures to Tackle Outstanding Issues on Restriction

of Competition and Monopolistic Behavior by Utility Enterprises

Chinese Entertainment Law

● The Copyright Owner of Opera2 Blamed HNTV for Copyright Infringement

Dispute Resolution

● Supreme People’s Court and Hong Kong Sign Agreement between the Courts of Mainland

China and Hong Kong for Mutually Entrusted Evidence Collection in Civil and Commercial

Cases

Watson & Band has flourished into a full-service law firm with more than 250 pro-

fessionals around China. We provide the highest quality services for our clients and enjoy a

nationwide reputation as one of the most prominent law firms in China. This excellence and

breadth has made us the firm of choice for many world's leading companies and fi-nancial

institutions as they seek sophisticated legal service. Based on its commitment of quality ser-

vice, Watson & Band has retained a team of professionals to provide diversified service to

its clients, which has won it the honor of China’s Best Law Firm and Top-tier IPR Team.

In t ro d uc t i o n

Established in 1995, Watson & Band Law Offices is one of the oldest part-

nership law offices in China. Headquartered in Shanghai, our firm maintains

multiple branch offices in Beijing, Harbin, Wuxi and Hong Kong. Our coopera-

tive firms spread over all major cities in China and abroad.

For over decades our team members have collaborated to stay on top of IP

and corporate issues, helping clients improve operations, reduce costs, limit

risks, enforce rights and achieve common business goals. For these reasons, the

firm and its professionals are consistently recognized in client and peer-

reviewed industry awards and rankings as being among the best.

These superb services derive from a spirit of dedication that has brought

Watson & Band the honor of being listed among “China’s Best Law Firms”. In

past years our firm has received numerous awards from third-party ranking

agencies such as “Top 10 IP Law Firm”, “Recommended Law Firm”. “China’s

Most Dynamic Law Firm” and “Premier IP Law Firm”. Watson & Band Law

Offices has also been named a “Key Shanghai Enterprise in Special Services

Trades (Legal Services)” by the Shanghai Municipal Commission of Commerce

and the Shanghai Judicial Bureau.

Wa tso n & B an d L aw Of f i c e s Shanghai Office

Address: 26th Floor, The

Center, No.989 Changle

Road, Shanghai 200031

P.R.C.

Tel:(86-21) 5292-1111;

(86-21) 6350-0777

Fax: (86-21)5292-1001;

(86-21) 6272-6366

E-mail: mail@watson-

band.com.cn ; mail-

ip@watson-band.com.cn

C o n ta c t U s

Wa t so n & B a n d I n t e l l e c t ua l Pro p e rt y Ag e n t L td .

Headquartered in Shanghai, W&B Agent Ltd. operates a branch office in

Beijing. Our patent agency services cover various technical fields such as chem-

istry, biology, medicine, mechanics, electronics, communication, optics and

physics, as well as design patent, IP searches, patent validity analysis, infringe-

ment analysis, requests for patent invalidation declaration, litigation and patent

consultation, etc. We have established a patent agency service department re-

sponsible for special clients. Agents from various technical divisions all have rich

experience and are able to work with several languages.

Beijing Office

Address: 5C, D Block,

Fuhua Mansion, No. 8

North Chaoyangmen

Street, Dongcheng Dis-

trict, Beijing 100027

P.R.C.

Tel: (86-10) 6625-6025

Fax:(86-10) 6445-2797

E-mail: beijing@watson-

band.com.cn ; mail-

ip@watson-band.com.cn

Hong Kong Office

Address: Room 2004,

Kinwick Center, 32 Holly-

wood Road, Central Dis-

trict, Hong Kong

Tel: (86-21) 5292-

1111*123; 852-3197-0091

Harbin Office

Address: Room A2, Madi-

eer Shopping Center No.37

West Badao Street, Daoli

District, Harbin 150010

P.R.C.

Tel: (86-451) 8457-3032;

(86-451) 8457-3032

E-mail: harbin@watson-

band.com.cn

Dear reader,

Thank you for your interest in Watson & Band. We will release our IP newsletter on a monthly

basis and legal newsletter on a bi-month basis. There will also be from-time-to-time delivery of

Risk and Rules for China’s compliance guidance and notice of China Law Salon sessions.

Please send us any suggestion, interested legal topics, confusions in your business operation

and legal problems to be resolved. We will arrange legal professionals to contact you as soon as

possible.

Thank you for your attention and support for us for the past 21 years and we look to a more won-

derful 22nd year for Watson & Band in 2017.

MuLe Li Partner CMO

m.le.li@watson-band.com.cn

Best Wishes for the Spring of 2017 from Watson & Band 6

Official Delegation Visits Watson & Band 7

Watson & Band Recognized as the 2016 Outstanding IP Services Team in China 7

W&B’s IP Litigation Services Rank near the Top of the 2017 Chambers and Partners

Asia

7

Catalogue

Seminar on Analysis of Problems and Dispute Resolution Concerning Enterprise Labor

Management

8

Seminar on Marriage and Wealth Planning for High-Net-Worth Individuals 8

Seminars and Events

Latest on Watson & Band

Supreme People’s Court Reviews and Approves in Principle the Regulations on Compa-

ny Law IV and Two Important Decisions

9

Third amendment of the General Rules of Civil Law (Draft) Sent to NPC Standing

Committee for Review

9

Litigation Report

Catalogue

Corporate and Commercial Services

The Latest State Council Document Relaxes Restrictions on Permission for Foreign

Capital

10

Enterprises May Apply for Summary Cancellation as of March 1, 2017 10

Supreme People’s Court Promulgates Opinions on Providing Judicial Protection for the

Construction of the Pilot Free Trade Zone

10

Compliance Management

Blocking or Fast-Forwarding Opening Advertisements Ruled Unfair Competition 11

Qualcomm and Meizu Sign 3G/4G Global Patent Licensing Agreement 11

Monopolies and Competition

Number of Docketed and Concluded Anti-Monopoly Cases Hit New Highs in 2016 12

SAIC Announces Centralized Control Measures to Tackle Outstanding Issues on Re-

striction of Competition and Monopolistic Behavior by Utility Enterprises

12

National Development and Reform Council Issues Assesses Antitrust Penalty Against

Medtronic

12

Chinese Entertainment Law

The State Administration of Press, Publications, Radio, Film and Television Releases

2016 Annual Report on China’s Gaming Industry

13

Release of the 2016 We-Media Industry Copyright Report 13

The Copyright Owner of Opera2 Blamed HNTV for Copyright Infringement 13

Disclaimer ◆ This Newsletter provides case brief only instead of formal legal opinion regarding any specific

case.

◆ This Newsletter selects and summarizes official announcements, news and other public docu-

ments released by State Intellectual Property Office, China Trademark Office, National Copy-

right Administration of China and other official institutions.

◆ This Newsletter has cited the source of the aforementioned official announcements, news and

other public documents.

Catalogue

Dispute Resolution

Supreme People’s Court and Hong Kong Sign Agreement between the Courts of Main-

land China and Hong Kong for Mutually Entrusted Evidence Collection in Civil and

Commercial Cases

14

First Legal Document Served via Electronic Recording Admitted into Evidence in Court 14

BEST WISHES FOR THE SPRING OF 2017 FROM WATSON & BAND

As spring approaches, we would like to send our warmest holiday and Chinese New Year greetings to all of

our friends and clients!

Over the past year, Watson & Band has marched steadily forward. We have continued to provide our clients

with high-quality legal and IP services, while once again we were honored as a National Excellence Law

Firm. Our firm remains on the list of the top IP service teams in the nation.

＊ A number of our litigation cases involving trademarks, copyrights, patents and unfair competition were

recognized as guiding precedents by the Beijing High Court, the Shanghai High Court and various legal

research institutes;

＊ Managing Partner Jean Yang was named one of the Top 15 IP Lawyers in China by Asian Legal Busi-

ness;

＊ Our IP application services flourished in various industries, from high-tech to traditional agriculture;

＊ We continued to provide a multitude of renowned enterprises with legal services in IP-related adminis-

trative and/or criminal enforcement actions with impressive results;

＊ We continued to provide a multitude of enterprises with IP capitalization services. We also received

lecture invitations and recognition from various prominent enterprises and institutions.

In addition to the IP services that we provide, we have continued piling up extraordinary achievements in

corporate and commercial law.

＊ We continued serving as legal counsel for a number of renowned groups and institutions. Our clients,

some of which are state-owned enterprises or luxurious product and brand management enterprises, en-

gage in industries such as entertainment, mass media, the Internet and consumer products.

＊ We completed two major legal research topics for the Shanghai Futures Exchange.

＊ We provided a number of multi-national corporations with legal compliance services that involved is-

sues such as anti-monopoly law, advertising, cross-border e-commerce, environmental protection and

anti-commercial bribery.

＊ As a Tier 1 bankruptcy administrator appointed by the Shanghai High Court, we concluded a number of

major bankruptcy and liquidation cases.

All the while, Watson & Band has continued its focus on the protection of public interests and personal

rights. In 2016 judges ruled in favor of the clients represented by Watson & Band in the cases “Shenhua

Football Fan v. NetEase (dispute over the infringement of reputation rights) and China’s first case involving

the guardianship of a surrogate pigeon pair. We are proud of Watson & Band’s achievements in 2016. We

firmly believe that the year 2017 will see the fulfillment of a multitude of aspirations and will be known as a

year of prosperity and development for us. Since we relocated to The Center at No.989 Changle Road in

2016, we now enjoy office space of approximately 5,000 sqm on the 26th and 27th floors. As we continue

expanding our practice, we cordially invite lawyers and professionals from far and near to join us.

More importantly, in 2016 we established close partnerships and maintained strong friendships with all of

our clients and associates. Above all else, we value these opportunities for cooperation, and we sincerely

thank you for your continued trust in us. We hope that you as well as your family, friends and colleagues are

doing well, and we wish you a 2017 filled with happiness, harmony, and good fortune!

Our best wishes for a happy Chinese New Year!

Latest on Watson & Band P a g e 6

Official Delegation Visits Watson & Band

Latest on Watson & Band

P a g e 7

On the afternoon of January 20th, 2017 Secretary Zhong Xiaoyong of the

Politics and Law Committee and Member of the Xuhi District Standing

Committee; and Director Xu Wen Quan of the Xuhui District Judicial Bu-

reau visited Watson & Band with other governmental officials to offer

guidance. Vice President Xu Shenmin of the W&B Group received the del-

egation together with W&B executive partners Qian Junliang, Yang Jun

and Kong Fengting and held discussions.

Qian Junliang started the discussion by extending Chinese New Year’s

greetings to the delegation, flowed by a recap of the firm’s development in

2016. Secretary Zhong Xiaoyong and Director Xu Wenquan praised W&B

for its advanced management concepts and brand culture, while expressing

the hope that W&B, as a Xuhui District law firm, will join forces with

emerging industries and meet its social responsibilities.

W&B’s IP Litigation Services Rank near the Top of the

2017 Chambers and Partners Asia-Pacific Guide

Recently, the prominent legal ranking institution Chambers and Partners pub-

lished its 2017 Asia-Pacific Guide. W&B was listed among the top firms in IP

litigation services, and was also named a “Recognized Law Firm” for corporate

and commercial services.

Watson & Band Recognized as the 2016 Outstanding IP Services Team in China

The 7th China IP International Annual Forum & 2017 Annual Confer-

ence of In-house IP Managers in China (the “Forum”) was held in Bei-

jing recently, where the Watson & Band IP services team was named the

2016 Outstanding IP Services Team in China. Watson & Band Execu-

tive Partner Frank Qian attended the Forum and accepted the honor on

behalf of the firm.

The annual appraisal and selection of the Outstanding IP Service

Team in China is jointly hosted by China Intellectual Property magazine

and the China Daily newspaper. In order to comprehensively and impar-

tially evaluate the overall capacities of the candidate teams, this year’s

appraisal started with the practices and expertise advantages of candi-

date IP services teams and applied a method combining special index

rankings and comprehensive interviews and reports. With its outstanding

professional competency, strong expertise, superior research ability and

strong team spirit, Watson & Band stood out from the other candidates

and took home the award.

P a g e 8

W&B will host its first China Law Salon for 2017 in February entitled “Analysis of Problems and

Dispute Resolution Concerning Enterprise Labor Management” and the participants of the session will

include representatives from famous domestic and international enterprises and institutions.

How should an enterprise deal with the complicated issues relating to the Labor Law in practice in

a diversified environment of labor management? Are there any legal risks involved and how to avoid

and prevent them? Answers to these questions will have an influence over the cost of labor as well as

labor relations in the enterprise. The speaker of the session is Mr.Li Huaping, a partner lawyer of W&B

who will provide analysis from multiple perspectives of legal provisions, judicial practice and enter-

prise operations and propose countermeasures and strategies for dispute resolution.

Notice: Seminar on Marriage and Wealth Planning for

High-Net-Worth Individuals

Seminars and Events

Notice: Seminar on Analysis of Problems and Dispute Resolution Concerning

Enterprise Labor Management

Time: 2017.2.24 (Friday) 14:00 – 16:30

Address: 26th Floor, The Center, No.989 Changle Road, Shanghai 200031 P.R.C.

Presenter: Watson & Band Mr. Li Huaping

Language: Chinese

The high-net-worth-individual (HNWI) refers to individuals with a high

net asset value, generally including individuals in mainland China with an

amount of investable assets over 6 million RMB. In China, women account

for a large proportion of those individuals. Marriage is an important factor

that can impact wealth. For the HNWIs, it is essential to learn how to man-

age wealth before and after marriage, to financially support their parents, to

isolate family property from business assets, to plan for raising and educat-

ing their children and to plan for wealth inheritance. This session, by way of

case study, will probe into legal issues related to planning of marriage

wealth and provide pragmatic legal tips to HNWIs based on experience

gained through years of practice. Knowledge of law will protect marriage

and retain & increase wealth.

Time: 2017.3.1 (Wednesday) 14:00 – 16:30

Address: 26th Floor, The Center, No.989 Changle Road, Shanghai 200031 P.R.C.

Presenter: Watson & Band Ms. Gui Fangfang

Language: Chinese Registration: Grace Feng

Marketing Manager

lei.feng@watsonband.com

Tel: (86-21) 5292-1111 * 121

On December 5th, 2016 Zhou Qiang, the Chief Grand Justice and Chief Justice of the Supreme People’s Court,

presided over a plenary session of the Supreme People’s Court Judicial Committee, in which the committee re-

viewed and approved in principle the Provisions of the Supreme People’s Court on Several Issues Concerning the

Application of the Company Law of the People’s Republic of China (IV).

On December 12th, Zhou Qian also presided over a plenary session of the Supreme People’s Court Judicial Com-

mittee that reviewed and approved in principle the Decision of the Supreme People’s Court on Several Issues Con-

cerning the Examination of Administrative Cases Involving the Licensing and Formulation of Trademark Rights

and the Decision of the Supreme People’s Court on the Interpretation of Several Issues Concerning the Specific

Application of the Law in Criminal Prosecutions for the Illegal Practice of Medicine.

Via the Supreme People’s Court

P a g e 9

Litigation Report

Supreme People’s Court Reviews and Approves in Principle the Regulations on Company Law IV

and Two Important Decisions

Third amendment of the General Rules of Civil Law (Draft) Sent to NPC Standing Committee for

Review

The General Rules of Civil Law (Draft), which has received great attention from every sector of the Chinese le-

gal industry, has been submitted to the NPC Standing Committee for a third review. The compilation of China’s

Civil Code has been delayed through years of stagnation. The latest draft, if approved and published through leg-

islative procedures, will represent “another fundamental body of legislation under the Constitution.” The third

draft features the following major differences from the second draft:

1. “Good Samaritan” protection

Addition of an exemption clause for emergency rescues: Absent gross negligence, a rescuer can be exempted

from civil liability for harm suffered by the rescued party that arises from emergency rescue measures.

2. Enhanced protection of juveniles and the vulnerable elderly

The Civil Administration Department prioritizes guardianship duties: In the absence of a qualified guardian, the

guardianship duty may be assumed by the Civil Administration Department or by an eligible local neighborhood

committee/villager’s committee at the place of residence of the ward.

3. Regulations for reinstatement of guardianship

A guardian who is disqualified for committing an intentional crime against a juvenile cannot be reinstated. If the

guardian parents or children of the ward have their guardianship revoked by the People’s Court show true repent-

ance, the guardian may file a reinstatement application with the People’s Court, which may choose to reinstate

the guardian as long as the intentions of the ward are respected. The opportunity for reinstatement is not available

to a former guardian who committed an intentional offense against the ward.

4. Protection of the rights and interests of owners of real or personal property that has been expropriated or ac-

quired

The owner of real or personal property that is legally expropriated or acquired for public benefit must be com-

pensated in a reasonable and fair manner.

5. Facilitation of grassroots governance and economic development

Village Committees and Neighborhood Committees are categorized as “special legal persons”. Likewise, govern-

ment agency legal persons, organizational legal persons of rural collectives, cooperative economic organization

legal persons and autonomous grassroots legal persons are all designated special legal persons.

Via the Supreme People’s Court

Original article: The Third Review of the Draft General Rules of Civil Law: How Our Daily Life is Impacted

Corporate and Commercial Services

P a g e 1 0

The Latest State Council Document Relaxes Restrictions on Permission for Foreign Capital

On January 17th, the State Council released the Circular on Several Measures Concerning the Active Use of For-

eign Capital in Opening Up to the Outside World (the “Circular”), which specifies:

1. Liberalizing access by foreign investment organizations

(1) Service sectors: Liberalization will be focused on banking and financial institutions, securities companies,

securities investment and fund management companies, futures companies, insurance institutions and insurance

intermediary organizations. Restrictions on the admission of foreign investment will be relaxed for auditing and

accounting, construction design and ratings services. Industries such as telecommunications, the Internet, culture

entertainment, education and transportation will be gradually liberalized.

(2) Manufacturing sector: Restrictions on foreign investment access will be removed in equipment manufactur-

ing for rail transportation, motorcycle manufacturing, the production of fuel ethyl alcohol and lipid processing.

Restrictions on foreign investment in the mining industry will be eased for oil shale, oil sand, shale gas and other

unconventional oil, gas and mineral resources. The approval system will be replaced by the filing system for in-

ternational cooperation projects in oil and natural gas projects.

2. Encouragement of foreign investment in high-end manufacturing, intelligent manufacturing and green manu-

facturing.

Supporting the participation of foreign investment in infrastructure construction (including energy, transporta-

tion, water conservation, environmental protection and municipal utilities engineering) through franchising.

Supporting foreign investment enterprises in the construction of R&D centers and corporate technical centers,

and applying for the establishment of post-doctoral research centers.

The Circular also permits local governments to develop their own preferential policies to attract foreign business

and investment within the scope of their legal authority.

Via LexisNexis

Enterprises May Apply for Summary

Cancellation as of March 1, 2017

Recently the State Administration for Industry and

Commerce promulgated the Guiding Opinions on

Comprehensively Promoting the Reform of Sum-

mary Cancellations of Enterprise Registration

(hereinafter the “Opinions”). The Opinions provide

that as of March 1, 2017, enterprises in conformity

with the relevant conditions may apply for sum-

mary cancellation of their registration. Such a pro-

cedure will promote the efficiency of the market

exit mechanism, increase the efficiency of social

resource utilization, and reduce exit costs for mar-

ket participants.

According to the Opinions, the following two main

types of enterprises can apply for summary cancel-

lation:

For the full text of the Opinions, please click on the

following URL:

http://qyj.saic.gov.cn/wjfb/gszjfb/201612/t2016122

7_173756.html

Via www.saic.gov.cn

Supreme People’s Court Promulgates Opinions

on Providing Judicial Protection for the

Construction of the Pilot Free Trade Zone

The Supreme People’s Court (the “SPC”) promulgated

the Opinions on Providing Judicial Protection for the

Construction of the Pilot Free Trade Zone (the

“Opinions”). The Opinions were drafted by the SPC

based on a special research study entitled, A Study on

Judicial Protection and Related Legal Issues Concern-

ing the China (Shanghai) Free Trade Zone, after field

surveys and solicitation of opinions from experts and

various local courts.

For the full text of the Opinions, please click on the fol-

lowing URL:

http://www.chinacourt.org/law/detail/2016/12/id/14905

5.shtml

Via www.court.gov.cn

Compliance Management

页 1 1 P a g e 1 1

Blocking or Fast-Forwarding Opening Advertisements Ruled

Unfair Competition

In April 2016, iQIYI filed a lawsuit with the Haidian Court against LeTV

and ifacetv browser, both owned by LeTV Company, for the alleged un-

fair competition acts of “blocking” or “fast-forwarding” advertisements

featuring iQIYI content. On December 14th, the Beijing People’s Court

of Haidian District issued a first instance ruling for the two cases, both of

which were resolved in favor of iQIYI.

The court held that since it is legal for video websites to offer users a

business model of “advertisement + free video” streaming services, LeTV

Company had compromised an operational model of great importance to

iQIYI and had thereby damaged iQIYI’s interests. “These acts have vio-

lated generally accepted business ethics and the principle of integrity,

thereby constituting unfair competition.” The court ordered LeTV Com-

pany to stop its unfair acts of blocking and fast-forwarding iQIYI adver-

tisements, issue an apology for its acts of unfair competition on its offi-

cial website for 24 hours and compensate the plaintiff, iQIYI, for its eco-

nomic losses and reasonable expenses in the amount of 900,000 RMB.

Via Banhua

Qualcomm and Meizu Sign 3G/4G Global Patent Licensing

Agreement

On December 30th, 2016, Qualcomm Incorporated and Zhuhai Meizu

Technology Co., Ltd. declared that they have reached a patent licensing

agreement based on equal negotiations. Under the agreement, Qualcomm

will grant Meizu a paid license to use the patents necessary for develop-

ing, manufacturing and selling CDMA 2000, WCDMA and 4G LTE ter-

minals (including the “tri-mode” -- GSM, TD-SCDMA and LTE-TDD)

around the world.

Meizu’s China patent royalty liability will be consistent with the terms of

the remedial measures that Qualcomm submitted to the P.R.C. National

Development and Reform Commission. This agreement comprehensively

settled all patent disputes between Qualcomm and Meizu in China, Ger-

many, France and the United States. Qualcomm and Meizu have agreed to

take appropriate steps to terminate or withdraw the relevant patent in-

fringement lawsuits, patent invalidation petitions and related lawsuits.

Via IPR Dairy

Frank Qian

Frank.qian@watsonband.com

Cathy Wu

Cathy.wu@watsonband.com

W&B is committed

to providing legal

services in patent

licensing, anti-unfair

competition and

compliance.

Monopolies and Competition

页 1 2 P a g e 1 2

Number of Docketed and Concluded Anti-Monopoly Cases Hit

New Highs in 2016

On January 5, the Ministry of Commerce (the “Ministry”) held its regular

press conference, where it reported on the results of the anti-monopoly re-

views it conducted in 2016.

In 2016 the Ministry received 378 complaints, docketed 360 cases and con-

cluded 395 cases, representing year-on-year annual increases of 7.4%, 6.5%

and 19%, respectively. All of these numbers represented all-time highs since

the implementation of the Anti-Monopoly Law. The manufacturing industry

accounted for the largest proportion with 53% of all concluded cases, with

rapid increases in semiconductors, communications and high-end manufac-

turing. In terms of types of monopolies, horizontal mergers and acquisitions

accounted for the largest proportion with 40% of all concluded cases. In

2016, 324 cases were concluded during the 30-day preliminary review peri-

od, accounting for 82% of all cases and representing an increase of 8% over

2015. Complaints applying the summary procedure accounted for 76% of all

complaints; and about 98.6% of the cases docketed in accordance with the

summary procedure were concluded during the preliminary review period.

Via www.mofcom.gov.cn

SAIC Announces Centralized Control Measures to Tackle Outstanding Issues on Restriction of

Competition and Monopolistic Behavior by Utility Enterprises

In 2016, the SAIC organized national industrial, commercial and market supervision systems to execute central-

ized control actions in a specialized enforcement campaign against the restriction of competition and monopolis-

tic behavior by utility enterprises. During the campaign the SAIC focused on the water, power and gas supplies,

public transportation and funeral and interment industries. It investigated and punished utility enterprises for acts

such as fee abuse, compulsory transactions, compulsory services, unfair transaction conditions, establishment of

industry barriers and the elimination or restriction of competition. 1,267 cases were reported and accepted (585 of

which were closed), and the amount of penalties and confiscated properties totaled 167 million RMB. The com-

pensation paid for excessive fees and losses suffered by consumers and operators amounted to 470 million RMB.

Meanwhile, the SAIC issued proposals to local and related departments concerning the cancelation of policies

and regulations that potentially impede fair competition in the provision of public transportation, power, water

and gas supplies.

Via Compliance

National Development and Reform Council Issues Assesses Antitrust Penalty Against Medtronic

On December 8th it was reported that the National Development and Reform Council (NDRC) issued an antitrust

penalty against Medtronic, a world-famous medical equipment manufacturer. Medtronic (Shanghai) Management

Co., Ltd was assessed a penalty of 118 million RMB for its limitation on resale prices, amounting to about 4% of

its 2015 sales volume of the product involved. Recent years have seen an increasing number of antitrust actions

in the medical industry. This case was China’s first antitrust case involving medical equipment. The NDRC An-

titrust Division notes that medicine is of vital importance to people’s livelihoods, and that illegal monopolies ren-

der market mechanisms useless and price competition insufficient, since every dime added to costs is likely to be

passed on to the consumer. Antitrust investigations in the medical industry are expected to be strengthened.

Via the NDRC

Xiaosu Zhu

Xiaosu.zhu@watsonband.com

Chinese Entertainment Law

页 1 3 P a g e 1 3

As the legal service

provider for

Shanghai

International Film

Festival, Shanghai

International Arts

Festival, MPA and

SMG, W&B boosts

extensive and

intensive

professional

experience in

China’s culture and

entertainment

industry. Please

contact us for any

legal need for your

cultural or

performance

activities in China.

The State Administration of Press, Publications, Radio, Film and

Television Releases 2016 Annual Report on China’s Gaming

On December 15th, Sun Shoushan, Deputy Director of the State Admin-

istration of Press, Publication, Radio, Film and Television, delivered the

2016 Annual Report on China’s Gaming Industry at the opening ceremo-

ny of the annual conference of China’s gaming industry. The report

showed that the revenue for mobile games amounted to 81.92 billion

RMB in 2016, a year-on-year growth of 59.2%. The revenue from client

games was 58.25 billion RMB, a year-on-year decrease of 4.8%. In 2016,

the actual income of China’s gaming industry was 165.57 billion RMB,

among which the electronic sports game generated 50.46 billion RMB.

There were 158 listed Chinese gaming companies and around 3,800 do-

mestic games approved by the State Administration. About 260 were im-

ported, and the number of users of live-streaming games exceeded 100

million.

Via Banhua

Release of the 2016 We-Media Industry Copyright Report

The copyright service website http://rightknights.com released its 2016

We-Media Industry Copyright Report after a survey showed that we-

media continues to serve as a favorite investment target despite its sky-

rocketing growth rate. As media players gain a stronger sense of protec-

tion their own rights, the number of infringement lawsuits is steadily

increasing. Currently, the main form of enforcement action is to entrust

a third party with copyright enforcement services. While relevant state

agencies are strengthening measures to administer copyright work, we-

media platforms are also enhancing their own copyright protections by

issuing a number of technical and institutional measures for the protec-

tion of original content.

Via China Copyright Service

The Copyright Owner of Opera2 Blamed

HNTV for Copyright Infringement

Sergey Pudovkin, a Russian producer, published

an announcement on Weibo on behalf of Vitas

who believed that Dimash, a Kazakhstani singer,

has been infringing his copyright of the song

Opera2 by repeatedly adapting and singing it

without authorization. Mr. Pudovkin expressed

hope that Hunan TV could stop the infringement

as soon as possible. He also attached a lawyer’s

letter to the announcement in the hope of taking

up the law as weapon. Vitas has forwarded this

posting.

Via Sina Entertainment

Dispute Resolution

页 1 4 P a g e 1 4

Your Reliable Disputes Specialist — Watson & Band Law Offices

Supreme People’s Court and Hong Kong Sign Agreement between the Courts of Mainland China

and Hong Kong for Mutually Entrusted Evidence Collection in Civil and Commercial Cases

On the morning of December 29th, 2016, Supreme People’s Court Executive Vice President Mr. Deyong Shen

and Hong Kong Secretary of Justice Mr. Guoqiang Yuan signed the Arrangement between Courts in Mainland

China and the Hong Kong Special Administrative Region for Mutually Entrusted Evidence Collection in Civil

and Commercial Cases (hereinafter the “Arrangement”) in Shenzhen.

The Arrangement deals with procedural matters, the establishment of a liaison office, and the scope of its own

application. Its purpose is to provide clear guidance and institutional arrangements for mutually entrusted evi-

dence collection between Mainland China and Hong Kong. After the Arrangement comes into effect, parties in

civil and commercial cases can utilize their respective local liaison offices to petition a competent court in the

other region for inquiries concerning witnesses, the acquisition of documents, the detention of property, and the

collection of appraisal samples. This reform is expected to greatly reduce the current obstacles that courts in the

two regions face when handling civil and commercial cases with issues that intersect both regions.

Via the Supreme People’s Court

First Legal Document Served via Electronic Recording Admitted into Evidence in Court

On December 30th, 2016, the first default judgment in Chinese history concerning a loan proven by Internet elec-

tronic financial data was issued by the Zhejiang Hangzhou Yuhang District People’s Court. This judgment means

that Internet electronic financial data can be admitted as evidence of the existence of a loan between parties, and

it can also be used as a unilateral basis for issuing a default judgment.

Via www.lawsvalue.com