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Understanding the Unseen Challenges in China’s Secondary IP Licensing Market: A Legal Guide for International Brand Owners

As a law firm specializing in intellectual property enforcement across China, we frequently encounter a critical oversight in how international brand owners manage their licensing chains. Many assume that securing a well-drafted master license agreement with a primary distributor is sufficient to control risks in the Chinese market. However, in a commercial ecosystem as layered and dynamic as China’s, trademark infringement often occurs at the secondary distribution level—a segment frequently overlooked yet holding substantial legal liability. Secondary distributors—entities that obtain sub-licenses from primary licensees and authorize downstream manufacturers—often operate under the misconception that they are mere intermediaries, insulated from infringement liability. Judicial practice across China tells a different story. These actors can be held directly and jointly liable for trademark infringement under Chinese law, creating both a vulnerability and an opportunity for rights holders. This article examines the legal exposure of secondary distributors under China’s trademark regime and offers strategic

October 12, 2026 No Comments

Cross-Border Legal Support

Selling Your Property in China from Australia: A Comprehensive Legal Guide for Australian Citizens — Including Power of Attorney, Identity Verification, Contracts, and Repatriating Your Funds

You purchased your Beijing apartment several years ago, and now, as an Australian citizen, with the Chinese property market cooling, you’re looking to transfer your funds back to Sydney. Here’s a clear overview of what you need to know to navigate this process smoothly. Every few months, my office receives inquiries from Australian citizens—often individuals who emigrated from China years or even decades ago—starting with a seemingly straightforward question: “I own an apartment in Beijing. I want to sell it and bring the money back to Australia. How difficult is that?” Based on my experience, my honest response is: it’s more complex than you might expect, but manageable with the right guidance. Successfully completing this process requires someone on the ground who understands the intricate bureaucratic requirements. The timing of these inquiries is no coincidence. After nearly 40 years of steady growth, China’s residential property market in major cities has

October 10, 2026 No Comments

Crossboarder Inheritance

Your Parent Has Left You the Beijing Apartment: A Practical Guide for Overseas Chinese on Navigating Relatives, Notaries, and Complex Paperwork When Inheriting Property in China

Each year, I receive a particular type of phone call that begins similarly. The caller, often speaking Mandarin with a softened accent from years abroad and occasionally mixing in English, explains that their parent in China has passed away, leaving behind property—an apartment in Beijing, Shanghai, Guangzhou, or sometimes a village house that has gained significant value. They mention that their parent left a will or had made it clear for decades that the property belongs to them, the child living overseas. Then comes the crucial concern: “But I now hold a foreign passport, and my cousins are disputing the will’s authenticity.” If you are an overseas Chinese citizen—whether from the United States, Canada, Australia, or elsewhere—expecting to inherit property in China, I encourage you to read this before attempting to resolve matters during a brief visit. The gap between “the property is obviously mine” and “the property is officially

October 10, 2026 No Comments

Acquiring Chinese and English Trademarks in China — Strategic Guidance and Action Plan

INTRODUCTION China stands as the world’s second-largest consumer market and is increasingly essential for international brands. Its e-commerce platforms operate on an unparalleled scale, with cross-border trade, manufacturing partnerships, and distribution networks deeply intertwined with or competing within China. Despite these vast opportunities, China remains a challenging environment for brand owners who delay securing their rights. This challenge stems from China’s first-to-file trademark system. Generally, the first individual or entity to file a trademark application in China gains priority—even if a later filer is the original, globally recognized brand owner. Having established goodwill in Europe or North America does not automatically confer trademark rights in China. For foreign companies, this creates a dual reality: filing early secures strong, enforceable, and commercially valuable rights; delaying risks squatters, distributors, joint-venture partners, former agents, or competitors registering your brand or its Chinese equivalent first. Many foreign companies are also surprised to learn that

September 24, 2026 No Comments

Software Copyright

Before You Leave: How China’s Courts Have Changed the Definition of Trade Secret Theft — And What This Means for Foreign Companies

For many years, the common belief about protecting trade secrets—both in China and internationally—was straightforward: if an employee copies confidential information but neither shares it with a competitor nor uses it, at worst they have broken company rules but not committed a legal offense. The logic was that without sharing, no information leaks; without use, no competitive harm occurs; and without harm, the law has no grounds to act. As a result, many employers who found that a departing engineer had copied source code onto a personal device often dismissed it, retrieved the device, and moved on. Likewise, many employees thought that as long as the copied files stayed on their private drives, they were operating in a legal gray area at most. That intuitive approach has now officially ended. In 2024, China’s Supreme People’s Court Intellectual Property Tribunal issued a landmark appellate ruling (case number (2023) Zui Gao Fa

September 4, 2026 No Comments

Property Tax

Selling Chinese Real Estate from Overseas: A Practical Guide to Title, Tax, Foreign Exchange and Remittance Compliance

Introduction: The sale is not finalized upon signing the contract For overseas Chinese descendants or foreign nationals owning property in China, selling real estate might seem straightforward. The seller finds a buyer, signs a sales contract, receives payment in renminbi, pays applicable taxes, and requests a Chinese bank to convert the remaining funds into foreign currency and transfer them abroad. However, the real challenge often lies not in whether the property can be sold, but in proving to the real estate authorities, tax bureau, and bank that the seller is the rightful owner who acquired the property legitimately, is entitled to the proceeds, that the transaction is genuine, taxes have been settled, and the amount requested for remittance does not exceed the seller’s lawful after-tax share. This distinction is especially important for those who have lived outside China for many years, changed nationality, obtained Hong Kong, Macao, or Taiwan identification,

August 24, 2026 No Comments

A Strategic and Procedural Guide for Foreign Nationals and Companies to Retain Criminal Defense Lawyers in China

For foreign executives, expatriates, and multinational companies operating in China, becoming involved in the Chinese criminal justice system is one of the most serious and challenging legal crises they can face. When a foreign individual is detained on suspicion of a crime—whether related to corporate embezzlement, commercial bribery, customs fraud, intellectual property violations, or accidental regulatory breaches—the top priority is to secure qualified legal representation. However, China’s legal system enforces strict, detailed, and complex procedures for foreign nationals to retain defense lawyers. Understanding these procedural requirements is not just a formality; it is essential to mounting an effective defense. Failure to comply with the exact documentation, authentication, and procedural rules set by Chinese law can lead to extended detention without legal counsel, prejudgment of the case, and serious harm to the individual’s freedom and the company’s operations. Foreign parties must first accept a key fact about China’s legal system: foreign

August 24, 2026 No Comments

China Sourcing

Protecting Fashion, Art, and Brand Value in China: A Practical IP and Licensing Guide for Foreign Companies

Introduction: Understanding the Unique Value of Fashion Products For foreign fashion houses, designer labels, sports organizations, museums, artists, or lifestyle brands entering the Chinese market, the commercial value of a product extends far beyond the physical item itself. A dress, for example, may represent an original design concept, a distinctive pattern, a trademark, a celebrity collaboration, a licensed character, a meticulously developed production process, and years of brand-building efforts. Commercially, these elements are intertwined; legally, however, they are safeguarded by different rights, governed by various rules, and often require distinct types of evidence. This distinction becomes especially important when a product is copied. Companies might mistakenly believe that a garment resembling theirs automatically infringes copyright or that registering a design drawing with a copyright agency will prevent others from producing similar items. Such assumptions are risky under Chinese law. Conversely, companies may undervalue the protection offered by registered trademarks, the

August 17, 2026 No Comments

China Trademark Infringement Damages

Legal Doctrines and Practical Takeaways from Louis Vuitton Malletier v. Molly Tea

This is the second analytical article regarding the LV and Jasmine Milk Tea case. Recently, under significant public pressure, the Suzhou Intermediate People’s Court released the full text of the judgment. A Chinese translation of the judgment can be found at the following link. Additionally, the industry has engaged in extensive commentary following the publication of the judgment. The 2025 trademark infringement decision in Louis Vuitton Malletier (LV) v. Molly Tea, rendered by the Suzhou Intermediate People’s Court, has generated extensive international public discourse, much of which is predicated on misleading interpretations. These include assertions that the ruling confers monopolistic rights upon foreign brands over traditional Chinese decorative motifs dating back millennia, that consumer confusion between mass-market tea products and luxury leather goods is implausible, and that foreign rights holders encounter systemic prejudice within Chinese intellectual property (IP) adjudications. A significant portion of public commentary reaches conclusions without a thorough

July 30, 2026 No Comments

AUCL

A Playbook for International Brands Tackling Trade Dress Copycats in China

If you are a foreign company operating or planning to operate in China, there is a strong possibility that one day you might discover your flagship product has been replicated. Not only the product itself but also its packaging—the color, shape, distinctive pink ribbon on the label, and the overall carefully crafted design—may appear on a Chinese e-commerce platform, sold at a significantly lower price under an unfamiliar brand name. Welcome to the dynamic, complex, and intriguing landscape of intellectual property enforcement in China. If you encounter this challenge, remain calm. You are not alone, and importantly, there are legal avenues available to you. However, successfully navigating the Chinese legal system requires a deep understanding of how local courts interpret unfair competition, trade dress protection, and the complex network of supply chain participants who facilitate counterfeiting. To shed light on this process—and to emphasize the importance of experienced legal counsel—let

July 20, 2026 No Comments

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