China NNN Agreements and How to Give Them Real Teeth
As I noted in my previous post on China NNN agreements, for enforcement purposes you must make sure your China NNN agreement has teeth. To understand how enforcement works under Chinese law, we need to do a little work. The first point to realize is that the standard approach for enforcing an IP contract under the common law (this is the law in the United States and the UK and most of the British world) has no application under Chinese law. In the common law system, lawyers are mostly concerned with two issues. First, the rule that disfavors liquidated damage provisions. Second, the law/equity distinction that allows only for injunctive relief when a law (damages) remedy is not available.
