The S&F law blog

China’s Internet sector getting overcrowded
April 29, 2011, 11:48 am
Filed under: Baidu, Technology, Uncategorized | Tags: , , , , , , ,

The immense success and potential of China’s internet sector has reached a point of attracting too many contenders. Parallels are being drawn between the US’s bursting tech bubble in the 90’s although industry executives and venture capitalists almost unanimously said that the paring down of competitive companies will  be more productive than devastating.

The key difference lies in China’s immense population; there are enough users and business models to support internet sector growth and justify speculative spending. Sock from standout companies Baidu Inc., and Youku have surpassed 50% growth and Sina Corp is trading at 77 times its 2011 earnings.

More companies have been raising billions in funds to invest in logistics and support an initial public offering, making start-up companies difficult to evaluate.

The severity of internet sector over-competition will likely be determined by how fast China can connect greater numbers of its population. Even though China has the biggest internet population in the world, the penetration rate is still a small 35 percent.

Source: Reuters


High-speed rail construction to connect Kunming to Singapore

Construction of the Kunming-Singapore High-Speed Railway began on Monday. Once it is completed, the new track will shorted travel time by train between Kunming and Singapore to approximately 10 hours.

The expanded rail network is meant to facilitate greater and more efficient trade with South-Asian countries.

China to punish websites for illegal music downloads

China’s Ministry of Culture will penalize 14 popular websites that have provided illegal music downloading software. The most notable amongst this group is Baidu Inc., whose “BiaduMP3” service was found to be in violation of the law.

Gaming companies will also face harsh punishment. 20, including Shenzen Xunlei Network Technology Ltd., have drawn the Ministry’s ire for using allegedly “vulgar” promotional methods to promote their games. No elaboration has been provided in regards to the specific definition of “vulgar.”

Source: Business Weekly

China has world’s most registered trademarks

Reporting from Beijing on Thursday, Intellectual Property Rights official Tian Lipu announced that China has the world’s highest number of registered trademarks. Tian was speaking at a press conference at the State Council Information Office.

China received over a million new trademark applications in the last year alone and more than 1.22 patent applications. In addition to domestic patent applications submitted, Chinese applicants were said to have submitted 12,337 overseas under the Patent Operation Treaty. In terms of the Patent Operation Treaty, China represented the fourth largest group of applicants in the world.

Source: Asia News International

China Court Hears More Intellectual Property Cases
April 19, 2011, 5:19 pm
Filed under: Rulings | Tags: , , ,

Building on a massive crackdown on counterfeit goods this month, Chinese courts have accepted 40 percent more intellectual property cases over the last year. The number was a robust 42, 931 with verdicts rendered in 14,718.

The total value of disputed intellectual property was set at 1.2 billion dollars. Trade groups have long protested that China’s piracy consumer culture and production of counterfeit goods costs producers a massive, billions of dollars a year in lost potential sales.

The changing trend is highlighting the power and necessity of the Chinese courts. For example, more than half of the copyright cases involve content posted online, forcing the court to set new copyright precedents and standards.

The growing wave of litigation appears to be mainly between entities within China; of the 24, 724 copyright disputes heard in court, only 1,647 involved overseas plaintiffs, a declining number.

Source: NPR

China to boost integrated circuit sector as “state strategy”
April 18, 2011, 4:19 pm
Filed under: Uncategorized

Yang Xueshan, vice minister of industry and information technology, has said that China will intensify it’s integrated circuit (IC) sector as a part of the state’s five year plan. Yang said the relevant government bodies would support and coordinate research, manufacturing, and marketing of IC systems.

IC technology is growing prevalent among China’s domestic population; total IC sales for 2015 are projected to surpass 330 billion Yuan, and that will only meet 27.5% of domestic demand.

Perhaps the most important shift will be the production of chips with independent intellectual property rights produced in China for the Chinese people instead of for exportation. Although China is heavily dependent on imports for its IC systems and struggles with outdated equipment, China’s IC sales reached 144.02 billion Yuan in 2010, or roughly 8.6 of the total global market.

Source: Xinhua Net

Counterfeit products hit by raids
April 14, 2011, 11:11 am
Filed under: Uncategorized

Chinese police have driven thousands of counterfeit producers out of business through the colorfully-named Operation ‘Bright Sword.’ They seized 14,185 suspected individuals and shut down 7,000 production outlets in the last five months in a long-term mission to halt the production and sale of counterfeit goods.

Eight fields–including fake international brands, fake food and drugs, and pirated films–served as primary targets. Officials have cited the raids as not only meant to deter unfair economic practices but to improve the health of the Chinese people and to ensure that products can be trusted.

Perhaps the most significant victory was the confiscation of counterfeit food additives, and fake, poorly-made pharmaceuticals. The mass confiscation of clenbuterol, a substance banned after it was found to be a key player in a tainted pork scandal last month, was a definite triumph.

Source: China Daily