In the news: IP infringement database, angry Nokia workers and carbon trading in Shanghai
November 22, 2013 | BY
clpstaff &clp articles &The State Council will launch a database exposing IP rights violations. Nokia's deal with Microsoft has angered workers in Dongguan and details have been released of Shanghai's carbon trading market
IPR violations go public
China Daily ran a story on a statement from the State Council that the country will expose IP rights violations to the public and build a system of real estate registration. According to the statement, manufacture and sale of counterfeit or substandard products and IP rights infringement will be released to the public after legal proceedings. Premier Li Keqiang presided over the executive meeting of the State Council. The central government has ordered law enforcement authorities to disclose case details, penalties and evidence after a decision has been made.
The move is in line with the government's plan to increase transparency. At the same time, it is looking to boost product quality, consumer confidence and, by protecting IP, encourage innovation. For real estate, integrating the responsibilities for registration will improve administration and may ease some of the burdens on companies and the public. The information regarding IP infringement will be stored in a social credit system and local governments at all levels will be responsible for supervision. This is a positive development and greater access to information will be valuable to stopping IP infringement, especially the repeat infringers.
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Nokia workers disgruntled by Microsoft deal
Reuters has reported that hundreds of workers gathered outside a Nokia factory this week in Dongguan, Southern China, to protest against alleged unfair treatment after the sale of the company's mobile phone business to Microsoft. Workers told Reuters that there were fighting against changes to new contracts that offered worse employment terms that they had been forced to sign. A source close to the dispute commented that the workers were demanding severance packages despite retaining their positions under Microsoft.
Factory worker protests are common in China but the situation here shows the importance of integration and strategic planning during deals. The merging of different corporate cultures can be challenging. Communication is key and not just with senior management, but also with lower-level employees. Messages are often lost in translation, leaving lower-level employees fearing for their jobs and unsure of what is actually happening. This serves as a great example for all companies engaging in M&A in China.
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Shanghai releases detailed rules for carbon trading
Cutting carbon emissions has long been on the central government's agenda and also forms party of the country's 12th Five-year Plan. This week, Shanghai released a detailed scheme for carbon emission trading. The move follows similar policies issued in Shenzhen. Shanghai will record emissions and cut quotas, which will take into account historical emission levels, industrial characteristics and efforts by enterprises to go green. Under the trading platform, companies who use up their quota will be able to purchase unused quotes from companies that do not emit as much carbon.
This forms part of a National Development and Reform Commission (NDRC) plan released in 2012 for seven cities across China to launch carbon trading platforms in an effort to curb emissions. Few details were released last year when Shanghai announced that it would start carbon trading. From the latest policy release, sanctions will be set up and violators will face fines starting from Rmb10,000 ($1,683). The market will be located in the Shanghai Environmental and Energy Exchange (SEEE). China is committed to curbing carbon emissions and given the heightened awareness of air quality this trading market has to work.
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