Legislation roundup: Free Trade Zone negative list, patent infringement Guidelines and strategic investments

October 17, 2013 | BY

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Shanghai has released the list of areas where investment is prohibited in the Free Trade Zone. SIPO has published draft Guidelines for patent infringement and MOFCOM has issued measures for strategic investment in listed companies

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Shanghai Free Trade Zone

Shanghai Municipality, Special Administrative Measures for Foreign Investment Access in the China (Shanghai) Pilot Free Trade Zone (Negative List)

On the negative list, approximately 90% is already in the current 2011 version of the Foreign Investment Industrial Guidance Catalogue. Certain items not included in the prohibited category in the Catalogue are listed as prohibited items on the negative list, e.g. wholesale of salt, direct or indirect engagement or participation in online game operation services, investment in and operation of internet data centre services, and investment in educational institutions such as pre-school educational institutions, secondary vocational education institutions, general senior high educational institutions and higher educational institutions for profit are prohibited.

Further reading


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Intellectual property

Department of Patent Administration of the State Intellectual Property Office, Guidelines on the Criteria for Determining Patent Infringement and Criteria for Determining the Passing off of Patents (Draft for Comments)

The Draft proposes, in the determination of the scope of protection of invention and utility model patents, to divide claims into two types, namely product claims and method claims, based on the subject of protection.

See the digest for more details.

Further reading

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Mergers and acquisitions

Ministry of Commerce, Measures for the Administration of Strategic Investments in Listed Companies by Foreign Investors (Revised) (Draft for Comments)

The Draft specifies that the amended Measures apply to the act whereby a foreign investor secures A shares of a listed company by making a medium to long-term strategic acquisition investment of a certain size in the company. However, it specifies that the Measures do not apply where an investor secures A shares by way of the initial public offering and listing of shares of a company limited by shares invested in by it.

See the digest for more details.

Further reading

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