Intellectual property and e-commerce

摘要

Under China's regulations on technology imports, foreign companies with patents, trademarks or other intellectual property are free to enter into licensing agreements with local partners. Used mainly for technology or trademark-related products, licensing has the advantage of limiting a foreign company's exposure, since the company does not need to set up an office or a joint venture. However, the trade-off is that the licenser has less control over how the product is priced, marketed and distributed. Uncertainty over China's protection of intellectual property and shifting policies can also undermine deals with Chinese enterprises. Problems frequently arise between foreign licensers and potential Chinese licensees over different understandings about the boundaries of technology transfer. Although Western companies tend to view a licensing agreement as an ongoing relationship between licenser and licensee, the Chinese often see technology as a commodity to be purchased and then used freely. For further information, companies should consult the Regulations for the Administration of Import and Export of Technology of 2002.