White Paper: Acquisitios by Chinese companies in US

By Andrew M. Ross: 0 Comment(s)Print E-mail China.org.cn, February 20, 2012

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Special Technology and Media Company Considerations

Due to the prominence of activities in these fields it is worth noting some special considerations pertaining to them. Both terms are very broad, and there is a growing convergence between certain aspects of technology and media. For companies looking to make deals in these fields in the U.S., knowledge of certain points is critical.For instance, in any technology deal it is necessary to know whether the seller owns the technology it claims it does.But, in addition, it is alsovital to seek to determine whether the technology violates or infringes on the patent, copyright, trademark or other intellectual property rights of a third party. Sometimes this latter determination can be difficult..In addition, with many technologies it is important to consider whether, although the technology was not designed for a purpose which could harm national security, nevertheless as it exists or could be further developed, whether it could have such an application. Also, assuming that there is still a need to further develop the technology or new versions thereof, the ability to retain the developers may be very imporant.

In the media field this paper will limit itself to the internet and mobile sectors. Most of the same issues just mentioned regarding technology apply to such media companies. An additional complication arises though in the case of media companies which not only create content but also take portions of content from others and repurpose and/or use it. In such cases it becomes necessary to determine whether the original content is owned by a third party, and thus requires their consent or a payment, or whether it is in the public domain. This is especially complicated in the case of internet technology and content since issues can potentially arise not just in the home country but everywhere it is accessible.

Closing

Many Chinese companies are going global. There are many strategic reasons for this and beneficial opportunities to be gained by this. It is generally perceived that the Chinese government itself is supportive of this globalization. With respect to the United States, going global provides unique benefits, and one must bear in mind that it is still the world's largest economy and its businesses can offer Chinese businesses many attractive opportunities.