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Morrison & Foerster partner Gordon A. Milner explained the recently issued “Measures on Work Related to Transfers of Intellectual Property Rights to Foreigners (Trial)” by China’s State Council in the April edition of GC Agenda China.

State Council imposes security review on outbound transfers of intellectual property rights

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Morrison & Foerster partner Gordon A. Milner explained the recently issued “Measures on Work Related to Transfers of Intellectual Property Rights to Foreigners (Trial)” by China’s State Council in the <a target="_blank" href="https://uk.practicallaw.thomsonreuters.com/w-014-4823?transitionType=Default&contextData=(sc.Default)#co_anchor_a837908">April edition of GC Agenda China</a>.According to Mr. Milner: “The measures have attracted media attention but may not represent a huge leap from the current regime. The export of restricted technologies has been subject to review since 2002 and it would be naive to assume that protecting national security and China’s key industries did not previously factor into those reviews. Similarly, foreign acquisitions of Chinese companies are already subject to examination and approval by the Ministry of Commerce, and in many respects, the measures merely add more detail to processes that would already have considered issues of national security and key industry protection. The involvement of specialist government departments in these reviews may lengthen the timetables for receiving approvals but is unsurprising given the increasing sophistication and volume of home-grown Chinese IP.”

State Council imposes security review on outbound transfers of intellectual property rights