Ladies and Gentlemen,
I'd love to take your questions regarding China's business law. Free of charge. But before raising your questions, pls consider the following:
1:My practice primarily focuses on investment, corporate affairs and intellectual property rights, also do trade law, though not as extensively as the foregoing. I'll try to answer your questions in, but not neccessarilly limited to, these areas.
2:Given my daily routines, please forgive me if I could not be able to take ALL your questions and reply soon. But I'll try my utmost.
3:If you think your question is business-sensitive or too complex to sum up in a couple of lines, you may wish to contact me via the Trademanager or leave me a message containing your contact info, or find me at my blog site of http://prcbusinesslaw.blogspot.com/ , so that  we can further discuss in private.
4:Before you ask someone fo/r legal advice, please first make sure he or she is a licensed lawyer and is legally competent to practise the law concerning your dispute. As a Chinese lawyer, my advice is primarily focused on disputes relating to China.
5:Last but not the least, given the nature of this forum and the cyberspace, any of my replies is based on the truthfulness and accuracy of your representations and is not intended to be or to substitute any formal legal opinions. Ladies and gentlemen, here we go!

Replying to [lawyer_He]:

We have been cooperating with a China manufacture (in Shenzhen) to produce our products. We paid for ALL the moulds. However, this manufacture had breached the agreement by selling our product designs by using our moulds to produce and sell to our competitors. We have actual proof that products were sold without our consent. We decided to discontinue the partnership due to integrity and bad business practice. This manufacture admitted they're at fault but refused to return our moulds and claimed the price for all moulds charged were under market price. Now they demanding us to continue business to compensate the loss of mould fees. I have proof of payments for all the moulds we made. We also have a signed contract term all the moulds. We can not continue because we simply do not trust the company.

We also a licensee for General Motor Corporation which authorized to reproduce certain registered trademarks. And this China manufacture is the Third Party Manufacture. Nevertheless, we have proof that they are also infringing the Intellectual Property of General Motor Corporation products. More details can be discuss.

I also have an U.S licensed attorney to assist me since this manufacture also has an office in the U.S. However, my lawyer sent letters to China and U.S office. Both offices ignored the letters, and now, the U.S office is now gone but factory in China is still exist.

My attorney said this is a strong case for us if it is in the U.S, but he doesn't know the Chinese law, and of course he has no jurisdiction to represent me in China.

If possible, I do not want to file a lawsuit, I just need a good Chinese lawyer to help me negotiate with knowledge of the law, just want to get my moulds back and go on with my normal business as soon as possible. We are fighting against time. I can send a copy of all the documents for your review. And I am willing to fly down to China at anytime.

1) What should we do? Will this be a strong case in term of China Law?
2) What is the firm retaining fee for representing?

Please advise, we are serious about the case. Hope you can help.

Quoting from [Silver7]:


Replying to [lawyer_He]:


We have been cooperating with a China manufacture (in Shenzhen) to produce our products. We paid for ALL the moulds. However, this manufacture had breached the agreement by selling our product designs by using our moulds to produce and sell to our competitors. We have actual proof that products were sold without our consent. We decided to discontinue the partnership due to integrity and bad business practice. This manufacture admitted they're at fault but refused to return our moulds and claimed the price for all moulds charged were under market price. Now they demanding us to continue business to compensate the loss of mould fees. I have proof of payments for all the moulds we made. We also have a signed contract term all the moulds. We can not continue because we simply do not trust the company.


We also a licensee for General Motor Corporation which authorized to reproduce certain registered trademarks. And this China manufacture is the Third Party Manufacture. Nevertheless, we have proof that they are also infringing the Intellectual Property of General Motor Corporation products. More details can be discuss.


I also have an U.S licensed attorney to assist me since this manufacture also has an office in the U.S. However, my lawyer sent letters to China and U.S office. Both offices ignored the letters, and now, the U.S office is now gone but factory in China is still exist.


My attorney said this is a strong case for us if it is in the U.S, but he doesn't know the Chinese law, and of course he has no jurisdiction to represent me in China.


If possible, I do not want to file a lawsuit, I just need a good Chinese lawyer to help me negotiate with knowledge of the law, just want to get my moulds back and go on with my normal business as soon as possible. We are fighting against time. I can send a copy of all the documents for your review. And I am willing to fly down to China at anytime.


1) What should we do? Will this be a strong case in term of China Law?

2) What is the firm retaining fee for representing?


Please advise, we are serious about the case. Hope you can help.

Dear Silver7,

It appears to me that you have a prima facie good case against the China manufacturer, but it does not necessarily mean that you'll automatically get back your money. As you mentioned, the manufacturer has its own counter arguments, however weak they are. And there are the evidential and procedural issues, which may all determine whether and how much you can recover your losses. I think your any move from now on against the China manufacturer will affect the outcome of this dispute. I was presented with a similar case earlier last year by an Alibaba member, whose case was even worse in terms of his post-dispute dealing with his China supplier.  I myself have successfully  helped some Alibaba traders recover their loss against their China suppliers. My experience suggests that in most, if not all, cases, the China supplier's attitude softens immediately after they learned that the opposite party  has a competent  lawyer in China and is serious about the matter. You may contact me by finding my email address at my blog at www.prcbusinesslaw.net under the category of "About the author". We may further discuss the matter in detail.

Best

Lawyer_He

Replying to [lawyer_He]:

Hi, how's it going these days?

You would have thought of this, but (and depending of course on background material) it may be that the Moulds are the legal property of the victim here - perhaps (only perhaps) warranting a criminal complaint as well as civil.

Quoting from [Aussie]:


Replying to [lawyer_He]:


Hi, how's it going these days?


You would have thought of this, but (and depending of course on background material) it may be that the Moulds are the legal property of the victim here - perhaps (only perhaps) warranting a criminal complaint as well as civil.

Hi, Aussie,

Long time no see.  How are you doing?

I'm fine.  I've Looked at his case. You are right to note that the moulds are the legal property of the victim while still in possession of the opposite party.  But his top priority is to make sure the existence and location of the moulds, which may appear not so easy  a thing to do. Without proper, well calculated steps,  he may well end up finding no such moulds before going to court. Another issue is his case may involve three jurisdictions, i.e. mainland China, Hong Kong and US. The choosing of the proper forum and proper cause of action may significantly affect the outcome of his case. I've reminded him of these, but wonder whether he would get things sorted out the right way. I just could wish him good luck.

Stay in touch and thank you for your compliments.

Take care.

..

Quoting from [Vetto Promotions Ltd]:

Hello there.

We recently placed a sample order  worth $2000, with a company calledEagle Science & Technology Co., Ltd , whose sales director is Jain Yu ( also known as Jarod Yu (email: jarod_est@hotmail.com) , and is located in Shenzhen. The order was placed in April this year, and the goods have still not arrived. Jarod Yu claims that the goods have been sent, however, he has NO TRACKING NUMBER TO BACK IT US. We are looking at filling in an international case against him, and the company. He has stopped replying our emails, and things he can get away with it.

 Hello, as this case is in Shenzhen, why not contact me as I am here working as a licensed lawyer.

Hi there,


I really need to speak with a lawyer to sue a company (Shenzhen Shidaiyinxiang Designs Ltd.) from which i bought some goods (for the amount of 750 pounds plus 15 pounds fees), on date 22nd of August 2008. I just realised days after my order was placed (and supposelly dispatched) that the company is a scam, although appearing to be a Gold Member. My money will probably be stolen. Fake tracking number, nobody answers the phone or on the mails and msn anymore. So now, I have all the receipts of the payment sent to the benificiary customer (Guozhong Lai, Putian Branch) by T/T bank transfer and all the messages i exchanged with the seller(s) plus the links of the company on alibaba and the msn contacts. Is there anything i can do to open a lawsuit and have my money back? Is there any drastic action the International Police Department can do against these frauds? It's unacceptable that something like that happened.


Please let me know. My email address is: the_trancemaster@yahoo.co.uk


Thank You

Mr. Domenico Pandolfo

Dear Sir,

We made an agreement with a company that we will pay them money by l/c at sight and later they will return us back our money which we paid them extra once they receive full payment. For this confirmation Supplier also gave us a guarantee letter on there letter head and chop on it. Now this company in Keqiao, boss is very powerful with police and other means.

 The shipment has gone, Supplier receieve payment and Now they stop answering our calls. This company A was introduced to us by 1 another supplier (B) whom we made 1 order with them.  This A Supplier is Cousin of B supplier. and Supplier A told B that he will not pay us money, we can do what ever we want to do. B supplier already talk to him many times and now told me they can't help us any more.

So please tell me is there any way to get our money back & Now how to deal with this Chinese company?

I've there written guarantee letter with company chop on it. Please help. If file a law suit agains them how much it will cost, because we contact 1 lawyer he said no use it's a small amount and forget about it.

Thanks

Ammeet

I have a question that I just posted:

I'm trying to close a deal between a Chinese refinery and a Russian refinery of Oil products.  These are direct refineries, not re-sellers.  We have done everything the Chinese have asked for in regards to the contract and getting them their quantities changed, etc.  Now, after 2 months, even though this has been on the contracts all along, they're saying that commissions can't be disclosed on the contracts, but the Russian refinery is saying that it's against the law not to disclose commissions. This is the only request that the Russian refinery is not bending to.  Do you know where it says that it's a law to disclose commissions on a contract?  I'm trying to show it to the Chinese in writing so that I'm protected and I can show the refinery that it's an actual law.

Your immediate response is greatly appreciated,

Thank you,

Quoting from [Ammeet]:

Dear Sir,

We made an agreement with a company that we will pay them money by l/c at sight and later they will return us back our money which we paid them extra once they receive full payment. For this confirmation Supplier also gave us a guarantee letter on there letter head and chop on it. Now this company in Keqiao, boss is very powerful with police and other means.

 The shipment has gone, Supplier receieve payment and Now they stop answering our calls. This company A was introduced to us by 1 another supplier (B) whom we made 1 order with them.  This A Supplier is Cousin of B supplier. and Supplier A told B that he will not pay us money, we can do what ever we want to do. B supplier already talk to him many times and now told me they can't help us any more.

So please tell me is there any way to get our money back & Now how to deal with this Chinese company?

I've there written guarantee letter with company chop on it. Please help. If file a law suit agains them how much it will cost, because we contact 1 lawyer he said no use it's a small amount and forget about it.

Thanks

Ammeet

Ammeet,

Please read my post about dealing with online scammers in China. If the amount is small, I would agree with the lawyer you've contacted for advice. By the way, the letter of guarantee is of no use if it is issued by the supplier itself.

Take it as a lesson and always remember:

1) you lose control when the money is sent out.

2)Have a man you trust in China either before or after the dispute arises. It may exert enormous pressure on the Chinese supplier you deal with.

Kind regards,

Lawyer_He