Showcase for arbitrating cross-border IP disputes

By Zhang Weiyu and Li Tingwei, SHIAC
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In 2012, Japanese Company A and Chinese Company B signed four contracts, on the transference of technology, trademark, patent and the right to business operation, respectively. Under the four contracts, Company A agreed to transfer to Company B certain technology for anti-rolling tanks, typically fitted to ships. In return, Company B would pay fees to Company A in four instalments.

Disputes arose between the two companies. On the one hand, Company A asserts that it met all its obligations under the four contracts, including the transference of the technological documents, providing training on the use of the technology and assigning the trademark and patent registered in mainland China to Company B. However, Company B only paid three instalments.

Company A alleges that Company B has breached the contracts. Company B claims that both parties fully performed the contract on transference of trademark, the contract on transference of patent and the contract on transference of right to business operation. However, Company A had only partially transferred the technology contracted for and, moreover, the transferred technology was flawed regarding the completeness, correctness or validity of it.

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