Filling Process of WFOE, PPH and NNN Agreement in China

Many people have tried to sell their WFOEs in China and also thought that it would be simple and straight. But, unfortunately, it is not true. However, the problems faced by different people vary. Terminating the approval and the license of WFOE in China is difficult and time-consuming you have to get it done through a long list of government agencies. Moreover, the fees for closing down a WFOE are too much. You could actually leave everything in the hands of the government but if you are shifting to another city within China, then that would be a problem.

 

The Filing Process of PPH–

China currently has 20 PPH programs with almost all the major patent offices in the world, including the most often used IP5 PPH program among China, the United States, Europe, Japan, and Korea. It also accepts a PPH request based on the positive Written Opinion or International Preliminary Examination Report made by an International Search Authority or Preliminary Examination Authority. Applicants can file a request under the SIPO-Office of First Filing (“OFF”) PPH agreement based on an OFF application if the SIPO application is (a) a direct entry under the Paris Convention or a PCT national phase application, and also (b) has at least one or more claims found to be allowable by the OFF. The SIPO application must have been published, the request for examination must have been made and the SIPO must not yet have begun examination at the time of the PPH request.

 

NNN agreement could prove to be a vital element if you wish to produce your proprietary products in China. NNN agreement should be written to be enforceable in a Chinese court with jurisdiction over the Chinese defendant. This means that Chinese law is the governing law, Chinese is the governing language, and exclusive jurisdiction is in a Chinese court with jurisdiction over the defendant. the China-specific Non-Disclosure, Non-Use, and Non-Circumvention Agreement (NNN) and accompanying Original Equipment/Design (OEM/ODM) Manufacturer Agreements. These agreements are used to protect your confidential information and to prevent your Chinese manufacturer from competing with you or going around you to your customers or vendors. In other words, they make sense for almost every company doing business with China.

 

Cultivating a robust compliance culture and a strong compliance tone from the top is paramount. Your most important first step to preventing China’s corruption compliance problems is to establish a strong anti-corruption policy that addresses both China’s anti-corruption laws and those of your home country. Under Chinese President Xi Jing Ping’s anti-corruption campaign, the enforcement has expanded to focus not only on governmental officials but also on the business communities. Now Chinese procurators and judges now put more weight on penalizing the crime of bribery.

 

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