Think China Litigation is Hopeless? Think Again

Think China Litigation is Hopeless? Think Again

A recent article in the Wall Street Journal presented an argument that some may find surprising. China litigation works, and some cases, China is the preferred venue for foreign companies in legal disputes. The Journal article uses the example of a Canadian tech company that chose to litigate against a Japanese company in China.

There are several factors at work. First, Chinese lawsuits, when guided by an experienced China Lawyer, move more quickly overall than litigation in the USA for example, and attorneys fees in China are generally lower.

The article suggests that China’s court system has made great progress in recent years, and we wholeheartedly agree. A well written China contract is almost always enforceable in China, even against a China company. In contrast, a foreign judgment, particularly a USA judgment, is nearly impossible to enforce.

In intellectual property cases, one advantage to the China system is its dedicated intellectual property courts, presided over by experienced intellectual property judges who are free to consult with independent experts. This is in contrast to the USA system where complex intellectual property matters may be decided by a jury of laymen.

A final benefit of litigation in China is that in many cases, a win in China can equate to a global win. Particularly in trademark and patents infringement matters. A court finding of infringement or an injunction in China can be used to stop production and sale of infringing goods in China, as well as to stop export to other countries. Talk about shutting down the competition!

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