E-commerce corporations such as Alibaba and Pinduoduo would lose their business licenses if they continued to fling high-level asset regulations, a legal amendment that was lent to Chinese lawmakers. Companies will also face additional restrictions if they forget about serious intellectual asset (IP) infringements through their platform providers, according to a revised draft of China’s e-commerce law, which went into effect in 2019. 14. Existing law requires platforms to act as intermediaries between concessionaires and intellectual asset rights owners in the event of a conflict. Platforms shall remove, protect or disconnect links to product pages or cancel orders after becoming aware of or reporting imaginable violations of intellectual assets. But the maximum serious punishment is a fine of between 50,000 and 2 million yuan ($7,740 – $309. 00). “The revocation of the license is the culmination of this revised draft,” said Zhan Yi, a senior asset lawyer at Tahota Law Firm. “It extends the obligations of e-commerce platforms . . . [and] shows the government’s determination to intellectual economic rights. “ Rights holders would also have more powers under the revised law. They would have 20 calendar days, out of 15, to respond to the sellers’ arguments. As a result, investors would possibly have to close their trades longer, unless they pay a Guarantee Payment to the platform. Chinese e-commerce is no stranger to disputes over high-level assets. Taobao, owned by Alibaba Group Holding, was added to the U. S. government’s annual list of “notorious markets. “USA In 2016 and has remained there for five consecutive years. removal requests” and “lack of transparency regarding filters and other proactive anti-counterfeiting measures,” according to the most recent U. S. government statement. USA Pinduoduo, which is listed on Nasdaq, has been on the list since 2019. The launch of La 2020 revealed that Pinduoduo’s withdrawal formula “is sometimes insensitive and slow to remove known products,” and said that rights holders have discovered that counterfeit products will be sold through the same merchants under other accounts. Alibaba and Pinduoduo responded to requests for comment. The Chinese government has paid more attention to covering high-level asset rights in recent years. In the era of industry negotiations in 2019, China said it will impose sanctions for intellectual asset rights violations and target common intellectual asset violations until 2022. On June 1, the national one for the coverage and control of high-level assets for e-commerce platforms came into force. – Read the original story. Caixinglobal. com is the English-based online news portal of China’s Caixin Financial and Business Information Group. Nikkei and Caixin have an agreement to exchange pieces in English. Subscribe to our newsletters to get our stories right in your inbox. You want a subscription to . . .