Page 49 - The South China Business Journal
P. 49
ernment Incentive. APP, Website, Marketing &
Distribution Agreements.
If the enterprise is founded in free trade
zones or technology zones, it may benefit An APP or website developer shall sign a non-
from relevant incentives. It is recommended to disclosure agreement with the company before
work closely with experts for determining the any information is exchanged or disclosed
incentive conditions, tax exemptions, choosing and a development agreement detailing the
the right incentive program and keeping ownership of the contents of the APP and
duly the relevant records. For investors of website is necessary as well. The conditions on
technology investments who opt for the tax exclusivity, distribution or marketing territory
deferral treatment, it is recommended that and termination events should be considered
the companies being invested in complete the carefully to avoid future restrictions on startup
record-filing with the in-charge tax bureaus and to avoid legal consequences like goodwill
before concluding the investment agreement. compensation claims.
It should also be noted that this tax deferral
treatment only applies to investments with Trademark, Utility Patent &
ownership of technological achievements, Invention Patent Applications.
such as patented technology, computer
software copyright, and exclusive right to Another vital issue for a startup is to protect the
integrated circuit layout design. Since multiple project and the idea against illegal reproduction,
types of corporate income tax preferential counterfeit and unfair competition. If the
treatments may be applicable to technology outcome of the project is a product which may
investments, startups should evaluate the benefit from intellectual and industrial property
impact of different scenarios and opt for the protection, required registrations and protection
fittest one. mechanisms should be completed. In terms
of products and know-how which do not fall
Staff Handbook & under the scope of intellectual and industrial
Employment Agreements. property protection the protection against illegal
reproduction and counterfeit should be adopted
The China Labor Law and the China Labor with alternative methods.
Contract Law provide a legal framework
relating to the rights and obligations between Trademark, utility patent and invention patent
employer and employee in general only. A staff shall be applied before relevant intellectual
handbook as an internal policy of a company property offices during the developments stage
is necessary for all corporations regardless of and before putting the product on market. No
its size, such as summary dismissal of a staff matter where the products to be sold or service to
for certain misconducts not set forth under be rendered, intellectual property protection in
written labor law. China is necessary to prevent others from copying
your idea and concept or even the actual product
The employment agreements between the to be launched. In this way prior applications
corporation and the employees should be of malicious third parties and related market
in writing and signed within 30 days after penetration problems or difficulties should be
the employment starts. In order to protect prevented. Advice of an experienced trademark and
the startup and its product or service, these patent attorney should be adopted to determine
agreements should especially include the the correct product or service classes, countries and
clauses related to trade secrets, copyright, to avoid unnecessary squatting.
intellectual property rights of product or
service, overtime work and working hours, non- About the Author: Professor Simon Choi, solicitor and linguist, is an
competition and confidentiality limitations and
remuneration of staff inventors. Thus it is for international lawyer, qualified to practice law in England & Wales and
the benefit of startups to draft carefully their
employee, product or service development and in Hong Kong, China. Simon graduated from law schools of the Peking
collaboration agreements.
University, the University of London and the University of Hong Kong
respectively, with an in-depth knowledge of Chinese
laws and common laws and with more than 20 years
experience in China practice and international trade,
investment, finance, merger & acquisition.
Email: simonsays@simonsays.legal
WeChat: ProfSimonSays
South China Business Journal 47
Distribution Agreements.
If the enterprise is founded in free trade
zones or technology zones, it may benefit An APP or website developer shall sign a non-
from relevant incentives. It is recommended to disclosure agreement with the company before
work closely with experts for determining the any information is exchanged or disclosed
incentive conditions, tax exemptions, choosing and a development agreement detailing the
the right incentive program and keeping ownership of the contents of the APP and
duly the relevant records. For investors of website is necessary as well. The conditions on
technology investments who opt for the tax exclusivity, distribution or marketing territory
deferral treatment, it is recommended that and termination events should be considered
the companies being invested in complete the carefully to avoid future restrictions on startup
record-filing with the in-charge tax bureaus and to avoid legal consequences like goodwill
before concluding the investment agreement. compensation claims.
It should also be noted that this tax deferral
treatment only applies to investments with Trademark, Utility Patent &
ownership of technological achievements, Invention Patent Applications.
such as patented technology, computer
software copyright, and exclusive right to Another vital issue for a startup is to protect the
integrated circuit layout design. Since multiple project and the idea against illegal reproduction,
types of corporate income tax preferential counterfeit and unfair competition. If the
treatments may be applicable to technology outcome of the project is a product which may
investments, startups should evaluate the benefit from intellectual and industrial property
impact of different scenarios and opt for the protection, required registrations and protection
fittest one. mechanisms should be completed. In terms
of products and know-how which do not fall
Staff Handbook & under the scope of intellectual and industrial
Employment Agreements. property protection the protection against illegal
reproduction and counterfeit should be adopted
The China Labor Law and the China Labor with alternative methods.
Contract Law provide a legal framework
relating to the rights and obligations between Trademark, utility patent and invention patent
employer and employee in general only. A staff shall be applied before relevant intellectual
handbook as an internal policy of a company property offices during the developments stage
is necessary for all corporations regardless of and before putting the product on market. No
its size, such as summary dismissal of a staff matter where the products to be sold or service to
for certain misconducts not set forth under be rendered, intellectual property protection in
written labor law. China is necessary to prevent others from copying
your idea and concept or even the actual product
The employment agreements between the to be launched. In this way prior applications
corporation and the employees should be of malicious third parties and related market
in writing and signed within 30 days after penetration problems or difficulties should be
the employment starts. In order to protect prevented. Advice of an experienced trademark and
the startup and its product or service, these patent attorney should be adopted to determine
agreements should especially include the the correct product or service classes, countries and
clauses related to trade secrets, copyright, to avoid unnecessary squatting.
intellectual property rights of product or
service, overtime work and working hours, non- About the Author: Professor Simon Choi, solicitor and linguist, is an
competition and confidentiality limitations and
remuneration of staff inventors. Thus it is for international lawyer, qualified to practice law in England & Wales and
the benefit of startups to draft carefully their
employee, product or service development and in Hong Kong, China. Simon graduated from law schools of the Peking
collaboration agreements.
University, the University of London and the University of Hong Kong
respectively, with an in-depth knowledge of Chinese
laws and common laws and with more than 20 years
experience in China practice and international trade,
investment, finance, merger & acquisition.
Email: simonsays@simonsays.legal
WeChat: ProfSimonSays
South China Business Journal 47
