[vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” padding_top=”50″ css_animation=””][vc_column][vc_column_text]<\/p>\n
[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”center” background_image_as_pattern=”without_pattern” padding_top=”50″ padding_bottom=”50″ css_animation=””][vc_column css=”.vc_custom_1517373139965{background-image: url(http:\/\/asiallians.com\/wp-content\/uploads\/2018\/01\/Picture1.png?id=18554) !important;}”][vc_empty_space][vc_column_text]\u201cZERO VAT\u201d Policy for Certain Small-Scale Taxpayers<\/span><\/strong>[\/vc_column_text][vc_empty_space height=”70px”][\/vc_column][\/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=””][vc_column][vc_column_text]In China, VAT taxpayers are divided into general taxpayers and small-scale taxpayers1<\/a><\/sup>, and small-scale taxpayers are mainly small and micro enterprises. To support small and micro enterprises during the Covid-19 pandemic, Chinese Premier Li Keqiang stated in the Government Work Report on March 5, 2021 that PRC government will further issue tax relief measures on small and micro enterprises.<\/p>\n Further official steps were recently taken to respond the Government Work Report. On March 31, 2021, the Ministry of Finance and the State Tax Authorities jointly issued a tax exemption policy (the \u201cPolicy\u201d) and the main points of the Policy are as follows:<\/p>\n \u2022<\/strong>\u00a0Which tax can be exempted under the Policy?<\/strong> \u2022<\/strong>\u00a0Who is entitled to enjoy the Policy?\u00a0<\/strong> \u2022<\/strong>\u00a0When to apply the Policy?\u00a0<\/strong> (http:\/\/www.chinatax.gov.cn\/chinatax\/n359\/c5162930\/content.html<\/a>)[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” padding_top=”50″ css_animation=””][vc_column][vc_column_text]<\/p>\n [\/vc_column_text][\/vc_column][\/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”center” background_image_as_pattern=”without_pattern” padding_top=”50″ padding_bottom=”50″ css_animation=””][vc_column css=”.vc_custom_1517373139965{background-image: url(http:\/\/asiallians.com\/wp-content\/uploads\/2018\/01\/Picture1.png?id=18554) !important;}”][vc_empty_space][vc_column_text]Trademark Infringement: LEGO Wins in Appeal A Compensation Amounting to Ten Times the Initial Awarded Amount<\/span><\/strong>[\/vc_column_text][vc_empty_space height=”70px”][\/vc_column][\/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=””][vc_column][vc_column_text]Recently, Guangdong Higher People\u2019s Court made a judgement of second instance in which the compensation to be paid by the Chinese infringer was increased from RMB 3 million yuan (judgement of first instance) to RMB 30 million yuan for its infringement of several \u201cLEGO\u201d trademarks owned by a famous Danish toy company.<\/p>\n For the compensation amount, the court of first instance previously imposed a compensation amounting to RMB 3 million yuan based on article 63 (3) of PRC Trademark Law applicable during the litigation, in which if\u00a0it is hard to determine<\/strong>\u00a0the right owner\u2019s actual losses or the\u00a0infringer\u2019s illegal revenue<\/strong>obtained due to the infringement, the Court shall, based on the actual circumstance of infringement, bring in a verdict of amount up to\u00a0RMB 3 million<\/strong>2<\/a><\/sup>.<\/p>\n The Court of second instance disagreed with such compensation as evidence collected is sufficient to fix the infringer\u2019s illegal revenue. Accordingly, 63 (3) shall not be applied in this case.<\/p>\n When determining the compensation amount, the court of second instance also considered the following factors:<\/p>\n (1) The defendant\u2019s illegal revenue is huge, and RMB 30 million claimed by LEGO is a reasonable amount. (2) The malicious intention of the infringer is obvious. The infringer has been keeping infringing LEGO\u2019s trademarks for years.<\/p>\n (3) \u201cLEGO\u201d is a well-known trademark, and the infringer violates LEGO\u2019s exclusive right to use its well-known trademark.<\/p>\n It is reported to be a typical case of continuously better protecting well-known trademark as well as improving IP sanction system in China.<\/p>\n (https:\/\/www.chinacourt.org\/index.php\/article\/detail\/2021\/04\/id\/5941992.shtml<\/a>)<\/p>\n <\/p>\n Should you have any inquiry about the above, please contact us at\u00a0asiallians@asiallians.com<\/a>.<\/p>\n As always, Asiallians remains at your service and our teams are currently mobilized in all our offices in Mainland China, in Hong Kong and in Taipei.<\/p>\n <\/p>\n 1.<\/a>\u00a0Two taxpayers are previously divided based on specific industry\/respective annual taxable revenue, etc. For a general taxpayer, it is not freely to change back to a small-scale taxpayer.<\/p>\n 2.<\/a>\u00a0Currently PRC Trademark Law amended.
\nOnly VAT, not including other taxes like corporate income tax.<\/p>\n
\nOnly (1) small-scale taxpayers with (2) monthly sales \u2264 RMB 150,000 yuan<\/p>\n
\nFrom April 1, 2021 to December 31, 2022<\/p>\nII. Case:<\/h3>\n
\nBased on evidence collected, the illegal revenue of the Chinese infringer is more than RMB 160 million yuan. RMB 30 million claimed by LEGO only accounts for less than 19% of such illegal revenue.3<\/a><\/sup><\/p>\n
\nAccording to the Revision of PRC Trademark Law 2019 which came into force as of November 1, 2019, if it is indeed hard to determine the right owner\u2019s actual losses or the infringer\u2019s illegal revenue obtained due to the serious malicious infringement, the People\u2019s Court may decide a compensation of an amount up to RMB 5 million (to replace the prior criteria of RMB 3 million).<\/p>\n