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A typical PE/VC term sheet normally contains a clause regarding information rights. A PE/VC expects such clause to allow them to have access to the financial statements or information of the target company and therefore ensure their investment return. A PE/VC term sheet addresses the information rights issue normally in the following way: A holder …

How to Address Information Rights Issue in a PE/VC Term Sheet in the Context of PRC Laws Read More »

This entry is dedicated to Patents, Utility models and Design rights. Patents are the primary vehicle for protecting technology in most technology-based businesses. The basic idea behind the patent system in China is the same as that in the EU: in exchange for publishing details of an invention, the State grants the inventor a monopoly …

Patents, Utility Models and Design Rights Read More »

In order to ensure the investment return, a PE/VC normally requests to insert a clause in respect of fixed return into a PE/VC term sheet. Such clause has been commonly adopted in western jurisdiction; however, such clause would be challenged by PRC laws. In a typical PE/VC term sheet, the clause regarding fixed return should …

Would a Fixed Return Arrangement in a PE/VC Term Sheet be workable under the PRC Legal Scheme Read More »

With this entry today I am introducing a new theme, namely protection of Intellectual Property Right, in fact when doing business in China the first concern should be protecting your IPRs. Despite the fact that China has made some significant progress on Intellectual Property Rights enforcement, concerns about infringement and counterfeiting, which have a broad …

Protection of Intellectual Property Rights in China When Doing Business Read More »

This entry is dedicated to trademarks. The legal panorama on the protection of Intellectual Property Rights is vast in China, and it is composed by several different laws and regulations. It is necessary to start with this subject, in fact all the businesses wishing to enter the Chinese market and to do business in China …

Trademarks in China an overview Read More »

After a foreign investor set up a foreign invested enterprise(“FIE”) in China, they would have problem with working capital. Then they need to consider injecting more money into FIE. China put many off-limits on a foreign investor injecting money into China. However, a foreign investor has the following potions to inject money into FIE to …

How a FIE inject More Money into China Read More »

Given the favorable momentum for the Chinese yuan, it is understandable that Chinese companies are expanding abroad. Chinese companies operating in the EU in particular are growing in number (report by the EU Chamber of Commerce available at: http://www.europeanchamber.com.cn/en/publications-chinese-outbound-investment-eu-european-union ) and what is more they plan to increase their investments and further engage in M&A …

Chinese investments in EU to sustain the European Union recovery and to expand Chinese influence Read More »

“Who’s Who Legal” has recognized Edward E. Lehman , managing director of the law firm LEHMAN, LEE & XU, as one of the world’s leading practitioners in his field. Since 1996 “Who’s Who Legal” has identified the foremost legal practitioners in 32 areas of business law. “Who’s Who Legal” features over 16,000 of the world’s …

Edward E. Lehman nominated as one of the world’s leading Corporate Immigration Lawyers 2013 Read More »

When foreign investors acquire a purely domestic Chinese company, a foreign investor might consider taking buy-back arrangement in order to avoid hidden or contingent liabilities. That is common practice in M&A transaction with western jurisdiction. However, such arrangement would not be workable under PRC legal scheme. Buy-back arrangement means the buyer can request that the …

Whether the Buy-back Arrangement in M&A transaction can work under PRC Legal Scheme Read More »

When a foreign investor acquires a purely domestic Chinese company, they are usually concerned that the hidden or contingent liabilities might arise after they acquired the target company. For example, those Chinese companies usually have two or more sets of account books in order to understate tax exposure, which would violate PRC transfer pricing laws …

How Does A Foreign Investor Avoid the Hidden or Contingent Liabilities when Acquiring a Chinese Company Read More »