How Small and Medium Enterprises Can Operate Legally - Learn How to Interact with the Administration for Industry and Commerce

Author: Liu Baining
Publisher:
Publish Date: 2006-05-01
Features:
7. Patent and Trademark Registration Rights: Small and medium-sized enterprises (SMEs) can apply for patents for their inventions, utility models, and designs in the course of their operations. After the application is approved, they obtain patent rights and enjoy exclusive use within the legally prescribed period. Unauthorized use by others without permission must bear corresponding legal responsibilities. Similarly, after registering a trademark with the Trademark Bureau, SMEs gain exclusive use rights to that trademark. Unauthorized use of the trademark on identical or similar products by others without the permission of the trademark owner shall be held legally responsible.
8. Joint Venture and Cooperation Rights: In accordance with national laws and regulations, non-publicly-owned SMEs can establish joint ventures or cooperative enterprises with foreign companies, enterprises, or other economic organizations or individuals. They can also undertake processing with materials supplied, processing with samples provided, or assembly with parts supplied, as well as engage in compensation trade.
9. Right to Refuse Unlawful Demands: Demands are illegal acts. The state prohibits any national organ, people's organization, military unit, enterprise, public institution, or other social organization from imposing demands on enterprises. Except as stipulated by national laws and regulations, broad SMEs have the right to refuse any unit's demands for human resources, materials, and financial resources in any form.
10. Legal Ownership of Property: The fifth amendment to the Constitution adopted by the second session of the 10th National People's Congress in March 2004 includes a six-character policy for non-publicly-owned economy, with "encouragement" and "support" placed in the first two positions and "guidance" in the third. Clause six of the draft explicitly states: The state protects the legitimate private property of all citizens, including both means of livelihood and means of production. Additionally, "property rights" replaced "ownership" for greater accuracy in terms of rights. Therefore, investors of SMEs in various non-publicly-owned forms legally own their property, and this property can also be legally inherited. P34