Negotiating Licensing Agreements in China - IIPLA

Negotiating Licensing Agreements in China

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About the Course:

Unlocking China’s Technology Licensing Potential: Key Considerations for Licensing Professionals

Meta Description: Explore the booming technology licensing landscape in China with expert insights from Foley & Lardner LLP. Learn about crucial laws, regulations, and strategies for successful technology licensing ventures in this dynamic market.


Did you know that China has emerged as one of the most vibrant hubs for technology licensing? With a staggering number of patent filings and exponential economic growth, it’s no wonder that licensing professionals are eyeing China as a prime destination for technology transfer. In this comprehensive guide, we delve into the intricate landscape of technology licensing in China, offering invaluable insights and strategies for navigating this burgeoning market.

Understanding the Landscape: China’s rapid economic expansion has propelled it to the forefront of global innovation, with Chinese inventors ranking among the world’s most prolific filers of patents. In 2010 alone, patent filings in China soared by 56.2%, solidifying its position as the world’s fourth most active filer of patents. As such, China presents a lucrative opportunity for licensors and licensees alike, but navigating the complexities of the Chinese market requires a nuanced understanding of its laws, regulations, and currency control features.

Key Considerations for Licensing Professionals:

  • Technology Restrictions: Delve into the nuances of technology licensing in China, including which technologies are prohibited, restricted, or permitted for licensing.
  • Confidentiality Management: Learn effective strategies for safeguarding your inventions and maintaining confidentiality during negotiations with Chinese counterparts.
  • Warranties and Indemnifications: Explore best practices for structuring warranties and indemnifications to mitigate risks associated with technology licensing agreements.
  • Joint-Development Agreements: Gain insights into managing joint-development agreements with Chinese companies, including navigating cultural differences and ensuring equitable partnerships.
  • Recordation of License Agreements: Understand the imperative requirements for recording license agreements with the appropriate Chinese authorities to ensure legal compliance.
  • Withholding Taxes: Assess the extent of withholding taxes on royalty payments and develop tax-efficient strategies to optimize your licensing arrangements.
  • Transfer of Improvements: Navigate restrictions on the transfer of improvements and explore strategies for maximizing the value of your technology assets.
  • Competitive Technology Restrictions: Learn about restrictions on the transferee acquiring competitive or similar technology from third parties and develop strategies to overcome potential challenges.

Meet Our Experts:

  • Steven Rizzi, Partner, Foley & Lardner LLP: With extensive experience in patent litigation and counseling, Steven Rizzi is a trusted authority on technology licensing, particularly in the Chinese market.
  • Catherine Sun, Partner, Foley & Lardner LLP: As the managing partner of Foley & Lardner LLP’s Shanghai Office, Catherine Sun brings a wealth of expertise in IP strategy, counseling, and litigation, with a focus on cross-border technology transfer and licensing.

Unlock the full potential of technology licensing in China with expert guidance from Foley & Lardner LLP. Contact us today to learn more about our comprehensive range of services tailored to your needs.

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