Comments on: The Law and New Tech in China http://www.chinahearsay.com/the-law-and-new-tech-in-china/ China law, business and economics commentary Wed, 08 Feb 2012 20:24:36 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Chris Devonshire-Ellis http://www.chinahearsay.com/the-law-and-new-tech-in-china/comment-page-1/#comment-32937 Chris Devonshire-Ellis Tue, 22 Apr 2008 10:22:06 +0000 http://www.chinahearsay.com/?p=594#comment-32937 I would agree, but in reality I don't see much of it. PR is considered a 'marketing' thing only worth attention from corporate counsel if the PR girl has big tits. The PR function at corporate level needs, uh, more PR about it's true function in crisis management and at board inhouse counsel level. I would agree, but in reality I don’t see much of it. PR is considered a ‘marketing’ thing only worth attention from corporate counsel if the PR girl has big tits. The PR function at corporate level needs, uh, more PR about it’s true function in crisis management and at board inhouse counsel level.

]]> By: Stan http://www.chinahearsay.com/the-law-and-new-tech-in-china/comment-page-1/#comment-32927 Stan Tue, 22 Apr 2008 09:35:41 +0000 http://www.chinahearsay.com/?p=594#comment-32927 I'm a big supporter of that. Corporate communications and crisis management should always have a seat at the table for a lawyer, now more than ever in China for MNCs. I’m a big supporter of that. Corporate communications and crisis management should always have a seat at the table for a lawyer, now more than ever in China for MNCs.

]]> By: Chris Devonshire-Ellis http://www.chinahearsay.com/the-law-and-new-tech-in-china/comment-page-1/#comment-32926 Chris Devonshire-Ellis Tue, 22 Apr 2008 09:29:00 +0000 http://www.chinahearsay.com/?p=594#comment-32926 So we're saying that legal counsel should work closely with their PR departments. Not something I am generally used to seeing... So we’re saying that legal counsel should work closely with their PR departments. Not something I am generally used to seeing…

]]> By: Stan http://www.chinahearsay.com/the-law-and-new-tech-in-china/comment-page-1/#comment-32682 Stan Mon, 21 Apr 2008 08:17:06 +0000 http://www.chinahearsay.com/?p=594#comment-32682 Two important points above by Chris that should be highlighted. First, this analysis is fairly straightforward with most products. Absolutely true (most of the real-life examples I deal with involve services - I fudged on the fact pattern to make it easier to write). I can't get away with anything these days! Second, also true that 99.99% of the discussion is not about risk of criminal prosecution - that doesn't come up that often in the work I do. Everything else can be called financial risk, but it's worth pointing out that financial risk includes a lot in addition to the threat of a civil fine by an administrative agency. For many MNCs these days, one big financial risk is the PR disaster than will ensue when the news gets out that the company was in violation of a PRC policy/rule/law. And when the news gets out, it is immediately all over the world, thanks to our friend the Internet. Two important points above by Chris that should be highlighted. First, this analysis is fairly straightforward with most products. Absolutely true (most of the real-life examples I deal with involve services – I fudged on the fact pattern to make it easier to write). I can’t get away with anything these days!

Second, also true that 99.99% of the discussion is not about risk of criminal prosecution – that doesn’t come up that often in the work I do. Everything else can be called financial risk, but it’s worth pointing out that financial risk includes a lot in addition to the threat of a civil fine by an administrative agency. For many MNCs these days, one big financial risk is the PR disaster than will ensue when the news gets out that the company was in violation of a PRC policy/rule/law. And when the news gets out, it is immediately all over the world, thanks to our friend the Internet.

]]> By: Chris Devonshire-Ellis http://www.chinahearsay.com/the-law-and-new-tech-in-china/comment-page-1/#comment-32676 Chris Devonshire-Ellis Mon, 21 Apr 2008 08:04:36 +0000 http://www.chinahearsay.com/?p=594#comment-32676 It's an issue also of linguistics. Usually, for specific product categories, it is relatively straightforward to define whether or not - or under which regulatory circumtances - a particular product can be sold. You'd need to overlay that on top of the new product and assess how much appears out of compliance. If not, then you'd probably be OK. Risk assessment and compliance also can deal with the likely extent of any fines levied in the event of the company being out of compliance. That also can be part of a strategy. "Just do it" and clean up the pieces later. "Just doing it" and then facing a fine later may be an acceptable strategy to some businesses. The onus is then of corporate counsel to discuss the merits or otherwise with his board and let them decide. That's why you have inhouse counsel, and that's why you have boards of directors. Most risks in China business involve financial risks, and not criminal. Counsel should also appreciate the difference. It’s an issue also of linguistics. Usually, for specific product categories, it is relatively straightforward to define whether or not – or under which regulatory circumtances – a particular product can be sold. You’d need to overlay that on top of the new product and assess how much appears out of compliance. If not, then you’d probably be OK. Risk assessment and compliance also can deal with the likely extent of any fines levied in the event of the company being out of compliance. That also can be part of a strategy. “Just do it” and clean up the pieces later. “Just doing it” and then facing a fine later may be an acceptable strategy to some businesses. The onus is then of corporate counsel to discuss the merits or otherwise with his board and let them decide. That’s why you have inhouse counsel, and that’s why you have boards of directors. Most risks in China business involve financial risks, and not criminal. Counsel should also appreciate the difference.

]]> By: Jim http://www.chinahearsay.com/the-law-and-new-tech-in-china/comment-page-1/#comment-32426 Jim Sat, 19 Apr 2008 23:01:25 +0000 http://www.chinahearsay.com/?p=594#comment-32426 Great post. This is a template that can be applied in so many situations. Certainly aren't any absolutes here. Great post. This is a template that can be applied in so many situations. Certainly aren’t any absolutes here.

]]> By: Brad Luo http://www.chinahearsay.com/the-law-and-new-tech-in-china/comment-page-1/#comment-32211 Brad Luo Fri, 18 Apr 2008 13:00:44 +0000 http://www.chinahearsay.com/?p=594#comment-32211 As a lawyer, the best thing that you can do under this circumstance, I guess, is to explain where the potential pitfalls are. Finding out and knowing the risks are probably the most difficult part of doing the deal. As a lawyer, the best thing that you can do under this circumstance, I guess, is to explain where the potential pitfalls are. Finding out and knowing the risks are probably the most difficult part of doing the deal.

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