Choice of Law in IP Contracts with China: A Sleeper Issue?

July 26, 2014

Mark Cohen’s ChinaIPR blog points to a very interesting Practical Law (Thomson Reuters) analysis of its survey (free sign in required) on the use of governing law for China-related agreements which reveals trends in choice of law for foreign-related IT and IP contracts in China.

China IPR - Intellectual Property Developments in China

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Practical Law (Thomson Reuters) has recently made available its analysis of a survey  (free sign in required) on the use of governing law for China-related agreements which reveals trends in choice of law for foreign-related IT and IP contracts in China.

In my own experience, if you require enforcement in China, choosing a foreign court (other than arbitration) to resolve a dispute, or a non-Chinese law for a dispute in China, is often a mistake.  The survey data generally agrees: it shows that if local enforcement is going to be an issue for an IP or IT contract, the majority of respondents will choose Chinese law.

The Chinalawblog put the general proposition it this way: “China’s laws do technically allow for contracting parties [in transnational transactions] to make their own decisions regarding a contract’s governing language and law, but in the practical world of Chinese litigation, having an English language…

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