MAKING THE CUT FACE OFF This year’s Offshore Miners versus the Client Choice list Indonesian government
ANOTHER WAY BUILDING TIME ALSPs make inroads The Philippine in Asia real estate boom
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42 A worker walks in an underground mine, part of the Grasberg copper and gold mine operated by an Indonesian subsidiary of Freeport-McMoRan Inc, near Timika, Papua province February 14, 2015 in this photo taken by Antara Foto.
COVER STORY FEATURES BRIEFS 12 28 conflict seems to have flourishing in the 3 IP Rankings 2017 Offshore Client Choice rocked not just the last two years, and The Briefing IP filings and dispute List 2017 industry, but also how this unprecedented settlements in Asia Despite a rough 2016, business is done in the boom has opened new 6 hit record highs in offshore lawyers country avenues for law firms Top Jobs This Month 2016, with China in Asia surpassed in the country sparking most of client expectations, 48 7 this hot streak. This provide sound advice An alternative way 54 Asia Deals year’s list showcases and displaying a Alternative legal ALB Japan Law a mix of major players commitment to service providers Awards 2017 8 and rising stars, client service. ALB are providing cost- Top Japanese law Appointments including India’s chooses the 10 most effective solutions to firm Nagashima Anand and Anand, outstanding names for companies, but Asia Ohno & Tsunematsu Japan’s Anderson this annual list, now appears reluctant to and international Mori & Tomotsune, on its second year embrace them – at heavyweight Baker the Philippines’ Cruz least, not as much as McKenzie (Gaikokuho Marcelo & Tenefrancia 42 Europe and the U.S. Joint Enterprise) and Romulo Mabanta Bruising battle have. How can ALSPs lead the private Buenaventura Sayoc Recently introduced work in this region, practice firms in & de los Angeles rules on mining where reliance on terms of numbers Singapore’s Dentons permits in Indonesia the old ways is still of nominations for Rodyk & Davidson and have set off a much- strong? the ALB Japan Law Drew & Napier, and publicised and costly Awards 2017. The Taiwan’s Deep & Far dispute between 52 firms are tied at 13 Attorneys-at-Law the government and Building rush nominations each, RANKINGS BY ALB, U.S. miner Freeport- The Philippines’ real covering firm and TEXT BY MARICEL ESTAVILLO McMoRan. The estate sector has been individual categories.
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 1 It’s time to celebrate the value of ideas. Asia today is leading the global rush towards an increased emphasis on intellectual property. This has resulted in applications hitting record levels at the world’s main patent offices, according to a report in the Financial HEAD OF LEGAL MEDIA BUSINESS, ASEAN AND NORTH ASIA Times. Patent filings by Chinese companies outside Amantha Chia their home country have risen 30-fold so far this century, [email protected] and overall, Asia more than doubled its share of patent MANAGING EDITOR applications since 2005. While China is the big story, the Ranajit Dam fact remains that Japan, South Korea and Taiwan remain [email protected] powerhouses as well. In terms of trademarks, there has NORTH ASIA JOURNALIST also been a great deal of activity in the past year. As Asia John Kang gets more creative and the region’s companies get more [email protected] assertive, this trend is set to continue. ASSOCIATE EDITORS IP protection and enforcement are two sides of the Eileen Ang same coin, and the number of IP litigation cases have [email protected] also increased, as have the complexity of disputes. Raj Gunashekar Consequently, IP lawyers in the region have been kept [email protected] quite busy, so our annual ALB IP Rankings – our survey of SENIOR DESIGNER the best law firms in Asia for IP – comes at an ideal time. John Agra We spent months of research compiling this list, [email protected] and the rankings have yielded an interesting mix of RANAJIT DAM the usual suspects and up-and-coming contenders. TRAFFIC / CIRCULATION MANAGER Managing Editor, Rozidah Jambari Congratulations to all the firms that made the list, and [email protected] Asian Legal Business Thomson Reuters we hope that it serves as a useful guide to our in-house readers whenever they are on the lookout for IP lawyers. SALES MANAGERS Amy Sim Additionally, we have recently launched ALB Sales Manager (Japan, Singapore, Taiwan) Insights, a weekly, ad-free premium newsletter that (65) 6870 3348 [email protected] provides analysis and opinions related to the important news and trends in Asia’s fast-growing legal markets. Henry Cheng Sales Manager (Hong Kong, Korea) With a great mix of features, Q&As with key figures, and (852) 2847 2016 profiles of some of the hottest firms and service providers, [email protected] it is a must-read for those who want to understand Asia’s Sardor Yangibayev legal industry. To claim your subscription, please email Sales Executive (Philippines, Singapore, Thailand, Vietnam) Taranjit Kaur at [email protected] or (65) 6870 3190 call +65 6870 3909. [email protected] Shahid Mohammed-Salim Sales Manager (Hong Kong) (852) 2841 5844 [email protected]
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2 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM THE BRIEFING: YOUR MONTHLY NEED-TO-KNOW NRF LEADS 2017 Linklaters has shaken up its compensation structure, according to LAW FIRM MERGERS media reports, reportedly moving away from measuring individual partner According to legal profession consulting performance to focus on teams. The firm Altman Weil, there were 28 mergers move was apparently initiated by global among U.S. law firms in the first quarter of 66% - Proportion of BigLaw lawyers managing partner Gideon Moore. belonging to the “millennial generation” 2017, with the combination of Norton Rose who say that work-life balance is the Fulbright and Chadbourne & Parke as the most important factor in accepting a job, largest deal. Other major deals included according to a recent poll by recruiter DLA Piper’s mergers with Danish firm LETT Major, Lindsey & Africa. Compensation and Portugal’s ABBC. Some 85.7 percent of was a factor for 50 percent of respondents. mergers in the first three months of 2017, however, involved firms with fewer than 20 lawyers in total. U.S. FIRMS DOMINATING GLOBAL DEALMAKING THIS YEAR “We want to lead, not Large American law firms dominated the global mergers and acquisitions landscape in the first quarter of the year, according just to be the largest. to Thomson Reuters. Worldwide, the value of M&A deals reached $777.7 billion, up 12 Number of staff from the collapsed percent year-on-year, while deal volume We will have people join European arm of King Wood & was 10,433, down 9 percent. Cleary Mallesons who are pursuing an Gottlieb, Skadden Arps and Kirkland & Ellis led the table in terms of announced and people will inevitably employment claim, alleging that deals. Meanwhile, Sullivan & Cromwell, there was no formal consultation White & Case and Wachtell Lipton Rosen & ahead of redundancies. Katz led the table in completed deals. ask to move on.” Joseph Andrew, chair of Dentons, in an interview with Bloomberg. Media reports Australian NewLaw firm claim the firm has “forced out” 20 partners Lexvoco has launched a since the start of the year. Japanese-focused business, led by Graham Anderson. He previously had stints at BP as well as Japanese law firms Nishimura & Asahi and Blakemore & Mitsuki.
Number of IPOs globally in the first quarter of 2017, the most active quarter since 2007.
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 3 BRIEFS Hong Kong’s banking of the banks involved told Reuters watchdog is questioning lenders that the HKMA had asked banks for over a $200 million loan raised information on the due diligence by China Huishan Dairy Holdings, and credit-checking processes sources involved in the matter told undertaken when making the loan Reuters, as regulators try to unpick in 2015. the group’s tangled finances. A third source at the loans team The Hong Kong Monetary of a second bank involved said the HONG KONG Authority (HKMA) has been HKMA had requested information increasing its scrutiny of Hong Kong regarding the Huishan loan– bank lending to mainland Chinese taken out with Bank of Shanghai REGULATOR companies, fretting that the city’s Hong Kong, China CITIC Bank lenders are growing increasingly International, China Merchants exposed to worsening credit Bank, Chong Hing Bank, Hang Seng ‘QUERIES BANKS’ conditions there. Bank and HSBC. Huishan, one of China’s Regulators frequently biggest dairy companies, embraced request information from licensed ‘innovative financing’ and investors institutions as part of their OVER $200 MLN flocked to a $1.3 billionHong Kong supervisory work and such inquiries listing. But it has now missed debt do not indicate wrongdoing. payments, breached loan covenants, Reuters was not able to ascertain HUISHAN DAIRY all but two directors have quit its if the HKMA had launched a formal board and a key executive is missing. investigation. Two individuals working on However, if the banking LOAN the corporate lending team at one regulator finds compliance lapses in
4 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM BRIEFS relation to the loan the banks could In March, Huishan met creditors be at risk of a formal sanction such and local authorities in a bid to avert as a fine, one of the sources said. lenders calling in loans or filing suits. MALAYSIA: KLRCA sees surge “As part of the HKMA’s day- The local China Banking Regulatory in ADR cases to-day supervision of banks, we Commission (CBRC) bureau, China’s maintain regular dialogues with regulator, was also involved in The Kuala Lumpur Regional Centre for the industry on different supervisory the discussions, according to one Arbitration (KLRCA) recorded 618 alternate dispute resolution (ADR) cases between 2010 issues. We do not comment on individual familiar with the matter. and 2016, showing a remarkable growth from details of any such dialogues,” a The principal of the $200 just 22 cases from 1978 to 2010, according to spokeswoman for the HKMA said in million loan is outstanding in two the KLRCA’s 2016 annual report. an email. tranches, $180 million and HK$156 The number of arbitration cases translate From June to December 2016, million ($20.07 million). Under the to claims amounting to $295 million for Hong Kong banks’ mainland related loan agreement, Huishan Chairman international cases and over $105 million for loans rose 3.5 percent to HK$3.6 Yang Kai and missing executive Ge domestic cases. Further claims amounting to $347 million were adjudicated. trillion ($458 billion), or 16 percent Kun must remain in their posts, “This is an all-time high for the centre of total assets, according to HKMA and together must own at least 30 since its resurgence in 2010,” said the centre’s data. percent of Huishan’s issued share official media statement. Huishan made headlines last capital. “The cultural and geo-political alignment year when it sold and leased back Huishan’s controlling of Malaysia makes it evident that global and part of its herd. But risks linked to shareholder Champ Harvest Ltd regional trade partners rely on KLRCA and its debt-fuelled growth took center owns over 70 percent of its stock, Malaysia to become the hub of ADR,” added Datuk Professor Sundra Rajoo, KLRCA’s stage after a report from U.S.- and is majority held by Yang. Champ director. based short-seller Muddy Waters Harvest has pledged nearly all of the The revised KLRCA Rules will be launched questioned its accounting and debt shares it owns as collateral to secure in May at the KLRCA International ADR Week burden. loans. 2017.
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 5 BRIEFS
REGIONAL UPDATE: SINGAPORE
Job Code: AON6343 PROPOSED FRAMEWORK FOR SINGAPORE VARIABLE Location: Hong Kong CAPITAL COMPANIES HEAD Experience: 10-14 PQE Position: In-house Counsel Recruiter: Lewis Sanders On 23 March 2017, the Monetary Authority of OF LEGAL Singapore (MAS) issued a Consultation Paper on Job Description: A listed conglomerate the Proposed Framework for the Singapore Variable is seeking a Head of Legal for its real Capital Companies (S-VACC) to introduce a new estate arm. Reporting directly to the corporate structure tailored for collective investment Executive Director, the candidate will schemes (CIS), both closed and open-ended. The advise senior management on legal proposed framework provides an additional option for and risk matters as well as managing CIS to be structured, other than by way of unit trusts the Group’s property development and and investment companies. M&A projects in HK and China. Prior in- house experience and substantial PRC The S-VACC is a specialised corporate structure intended to address the restrictions which arise when exposure are essential. Strong business a company structure is used for CIS. Unlike a typical acumen and fluent English, Cantonese company structure, a S-VACC is a single legal entity and Mandarin are required. with a cellular structure such that its sub-funds will operate as separate cells (each without legal personality) and with segregated assets and liability. Each sub-fund Job Code: WS192 will be registered with the Accounting and Corporate Regulatory Location: Hong Kong Authority (ACRA). HEAD OF HK Experience: 8-14 PQE Position: In-house Counsel The key features are as follows: Recruiter: Winchester Search • Incorporation of S-VACCs will be governed by a new S-VACC Act, COMPLIANCE to be administered by the ACRA; Job Description: Our client is a well • Segregation of assets and liabilities will apply during insolvency; established global banking group each sub-fund may be wound up as if it were a separate legal with over 25,000 employees world person; wide. They require an experienced • S-VACCs will be allowed to freely redeem shares and pay dividends compliance/legal professional to using its capital, provided that valuation and redemption is manage their HK compliance function. carried out at Net Asset Value; It requires management of a medium • Directors must be fit and proper, with at least one director of the sized team as well as being hands on S-VACC being a director of the fund manager; when required. HKD 1.5 to 2 million base • S-VACCs that are Authorised Schemes must have at least three directors, with at least one independent director; plus bonus and benefits. • Directors may elect to dispense with annual general meetings by giving at least 60 days’ written notice to the shareholders; • The register of shareholders need not be public but must be Job Code: HZ17051 available to the ACRA, MAS and other public authorities for Location: Hong Kong/Singapore regulatory, supervisory and law enforcement purposes; U.S. Experience: 1-6 PQE • Only a permissible fund manager may be appointed and is subject Position: Associate to the oversight of the S-VACC’s board of directors; ASSOCIATE Recruiter: Horizon Recruitment • An approved custodian, who is an Approved Trustee under the Job Description: Leading capital Securities and Futures Act, must be appointed; and • Debentures relating to specific sub-funds may be issued. markets practice requires junior to mid/senior US qualified cap markets Certain features of the proposed S-VACC structure will be similar to attorneys both in Singapore and Hong other corporate structures under the Companies Act, such as those Kong for this tier 1 practice. Market relating to inward re-domiciliation, directors’ duties and qualifications, leading remuneration + COLA. JD and winding up proceedings. The MAS is also studying the tax regime essential, plus experience with debt and for S-VACCs and exploring the feasibility of extending the current fund equity cap markets. vehicle tax schemes to S-VACCs.
Ms. Jasselyn Seet Ms. Choo Song Ping Legal Associate (Corporate Practice) Legal Associate (Corporate Practice) To see more, visit www.legalbusinessonline.com/jobs T: (65) 6322 2207 T: (65) 6322 2207 Contact Amantha at [email protected] to place F: (65) 6534 0833 F: (65) 6534 0833 E: [email protected] E: [email protected] your recruitment ads.
Loo & Partners LLP 143 Cecil Street, Level Ten, GB Building, Singapore 069542 www.loopartners.com.sg
6 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM SPONSORED ARTICLE
Spurring private investment in Indonesian railways provision
Railways are known as one of the most important Another important development with the issuance fo infrastructures in Indonesian infrastructure GR 06/2017 is a change of scope of Special Railways. development initiatives. In reference to the National Basically these railways are provided to serve Grand Plan of Railway Development from 2010 – certain entities and not to serve public interests. The 2030 (“RIPNAS 2010-2030”), the target until year issuance of this GR allows Special Railways operator of 2030 is to have developed 12,100 km in the islands in certain circumstances to serve public interests in of Java, Bali, Sumatera, Borneo, Celebes and Papua. ad hoc basis and whenever deemed necessary the In the first stage or until year of 2019, the target shall operator may request change of the status from be 3,258 Km should be developed and it is estimated Special Railways to Public Railways operator. that this short term target would consume USD 20 Billion. In light of the above, with the issuance of GR 06/2017 selection of private entities in this sector The issue is how would the Government of Indonesia DONKE RIDHON RADITYA DANARKHI may have strong legal basis and there will be huge (“GoI”) fund this initiative? While the government KAHFI DHAKSA impact in terms of legal certainty and accelerating would allocate its state budget to fund this initiative, Partner Senior Counsel railways provisions. At any rate, structuring private it is found that the state budget alone would not be [email protected] [email protected] participation in this sector especially in legal aspect sufficient. There would be a need to obtain another requires huge effort. DKNS Lawyers has hands-on source of funding to realize this initiative. Financing experience in assisting clients in railways provision from private entities participation is a case in point. projects. Hence, DKNS Lawyers will be please in taking up your queries. For more information about Financing infrastructure through private participation GR 06/2017 has set up important foundation our line of services, kindly visit our website on www. are exposed to various challenges such as regulatory, governing that inviting private investment in railways dknslawyers.com human capacity, bueraucracy and so on. Yet, there provision may refer to the prevailing regulations have been a number of positive movements from which GR 56/2009 did not regulate this. The current the GoI to improve the investment climate in this regulation specifically governing private investment DK & Situmorang Lawyers regards. Improving legal certainty is a case in point. in public infrastructure provision or Public Private Wisma Bakrie 2, 12th Floor, Jl. HR. Rasuna Said Kav. Currently, the GoI has launched the Government Partnership is Presidential Regulation No.38 of 2015 B-2, Jakarta 12940 - Indonesia Regulation No 6 of 2017 (“GR 06/2017”) amending (“PR 38/2015”). In the past, there was a grey area on T: (62) 21 2513401, 2513402 the previous Government Regulation No 56 of 2009 how to determine the private entities to be the investor. F: (62) 21 2513403 (“GR 56/2009”) concerning Railways Operation. As a result a number of projects were stranded. E: [email protected]
ASIA DEALS $23 BLN $7 BLN $3.4 BLN $2.1 BLN Merger between Vodafone’s Saudi Aramco’s investment in China Petrochemical Guotai Junan’s HKEx debut India unit and Idea Cellular Petronas’ RAPID project (Sinopec) Corp’s issuance of Deal Type: IPO Deal Type: M&A Deal Type: Project Finance international bonds Firms: Freshfields Bruckhaus Firms: Slaughter and May; S&R Firms: Shearman & Sterling; Deal Type: DCM Deringer; Clifford Chance Associates; AZB & Partners; White & Case Firm: Skadden, Arps, Slate, Jurisdictions: China, Hong Vaish Associates Advocates; Jurisdictions: Malaysia, Meagher & Flom Kong Bharucha & Partners Singapore, Japan, UK, UAE, Jurisdictions: China, Hong Jurisdictions: India, UK U.S. Kong
$1.8 BLN $1 BLN $960 MLN $615 MLN Post Holdings’ buyout of UK HNA Holding’s acquisition of Shandong Gold’s stake buy in Sushiro’s Tokyo IPO cereal maker Weetabix SG logistics firm CWT Barrick’s Argentina gold mine Deal Type: IPO Deal Type: M&A Deal Type: M&A Deal Type: M&A Firms: Davis Polk & Wardwell; Firms: Baker McKenzie; Firms: Baker McKenzie; Firms: Norton Rose Fulbright; Nagashima Ohno & Linklaters; Ropes & Gray; Mills Kirkland & Ellis; TSMP Law Davies Ward Phillips & Tsunematsu; Simpson Thacher & Reeve; Lewis Rice Corporation; WongPartnership Vineberg; Zhong Lun; Appleby; & Bartlett; Anderson Mori & Jurisdictions: China, U.S., UK, Jurisdictions: Singapore, China, Brons & Salas Tomotsune Hong Kong Hong Kong Jurisdictions: China, Canada, Jurisdictions: Japan, U.S. Hong Kong, Argentina
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 7 BRIEFS
APPOINTMENTS
PALLAVI BEDI MARK D’ALELIO SAM KHAIRUL FAZLI AILEEN LAU YOON SOO LIM Leaving: J. Sagar Leaving: Duane Leaving: Han & Leaving: Presidential Associates Morris & Selvam FARRANDS ABDUL KADIR Partners Secretariat Joining: Luthra & (Myanmar) Leaving: Leaving: Shukor & Joining: Donovan Joining: Yulchon Luthra Joining: Apisith & MinterEllison Associates & Ho Practice: Corporate Practice: Corporate Alliance Joining: King & Wood Joining: Azmi & Practice: Finance Investigation Location: New Delhi Practice: Corporate Mallesons Associates Location: Kuala Location: Seoul and Commercial Practice: Practice: Intellectual Lumpur Location: Bangkok Construction Property Location: Hong Kong Location: Kuala Lumpur
8 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM SPONSORED ARTICLE
Increasing india seated international arbitration clauses
A few years back non- Indian Companies awards than court orders in the matters of were not ready to accept to the choice of interim protection because the emergency incorporating dispute resolution clauses arbitration award being an arbitration award with International Arbitration seated in India, gets the support of New York Convention on even if the other party is from India and the Recognition and Enforcement of International subject matter of the contract is situated in Arbitration awards. The Court judgments do India. The main reason for such a hesitation not get the support of the said New York was the expected delays, unpredictable convention and hence enforceability is an court interventions, un-amended law and issue. But in India Emergency arbitration the necessity to go to the local court for awards are not expressly recognized by law, enforcement of a foreign award, which took even though interim awards are recognized long time to end the process etc., But after and enforceable. But the Indian courts are the new amending law which came into very fast in granting interim orders and force from 23rd October 2015 the scenario Indian law is same as English law. Hence has completely changed and now India is against a party from India Court interim becoming a desirable seat of International orders will work better and against foreign Arbitration. The following are the main parties, emergency arbitration provision can reasons for the change. S RAVI SHANKAR be used. Since India is a New York Convention Managing Partner member, the emergency arbitrator awards The recent Amendment to Arbitration and [email protected] passed in India are enforceable in many Conciliation Act,1996, which is the procedural countries. law for all arbitrations seated in India and enforcement of foreign arbitration awards The other major reason for the attraction of in India, has made the said act very efficient. and hence the court interference is also Indian seat is the removal of automatic stay The first important change is the mandate to reduced considerably. of arbitration awards, in case a party chooses complete all India seated arbitrations within to challenge the award passed in India. As 12 months from the date of formation of the The other important amendment is relating to per the un amended Act, after completion arbitral tribunal. The said amendment allows the exclusion of the jurisdiction of the District of 90 days from the date of receipt of the parties jointly to extend the time by another Courts from dealing with litigations relating arbitration award, the arbitration award 6 months and beyond that only the courts to international commercial arbitration. becomes an enforceable Court Decree. But in have the power to extend the deadline. After Earlier all the arbitrations including the the meantime, if a party chooses to challenge this amendment, each arbitrator and the international commercial arbitrations seated the award, the award cannot be enforced till arbitral institution is keen in completing the in India, were treated as domestic arbitrations the final disposal of the challenge. But the arbitrations within 12 months. India allows and hence the District Courts in the seat of amendment has changed this and has made international arbitral institutions like ICC to arbitration were the supervising courts. There the parties to approach the court to get a administer arbitrations in India. The said rule are 1200 District courts and 26 High Courts stay. In such a situation, Courts can impose will apply to all the international arbitrations in India. High courts in India are situated conditions to stay the award and make the administered by International arbitration in the State Capitals of India. Each State of challenging party to make certain deposits institutions like International Chamber of India has only one High Court and the High before considering the challenge. Commerce (ICC), Singapore International Court Judges are better informed about the Arbitration Centre (SIAC) etc., Hence India international Arbitration procedures. Hence Hence India has become a seat of seated ICC & SIAC arbitrations will end much the amendment has chosen to shift the International Arbitration favored by Foreign faster than the other popular international jurisdiction for handling litigations relating to parties after the new Act. arbitration seats. international arbitrations from District Courts to High Courts. This shift helps the parties The other major attraction arising out of the to get a better approach to the arbitration present Indian seat is the changes made in related litigation and to cut one stage of Law Senate Indian law relating to the definition of Public appeal. B3/73, Safdarjung Enclave, LGF, New Delhi Policy. One of the major challenge for any 110029 India arbitration seat is the interference by the The other major advantage with Indian 403, Tardeo AC Market, Tardeo Road, supervising courts in an arbitration award. seat is, the availability of option to get the Mumbai 400034 India Mostly the interferences are done on the interim orders from the courts in a faster T: (91) 11 2610-2873 ground of Public Policy and the amendment way. Globally, parties to international E: [email protected] has restricted the scope of “Public Policy” arbitrations, choose emergency arbitrator W: www.lawsenate.com
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 9 SPONSORED CASE STUDY MINTZ LEVIN Firm Optimizes Critical Contact Relationship Data with Business Development Premier
SEAMLESSLY INTEGRATING CONTACT COLLABORATING WITH A RELATIONSHIP MANAGEMENT “We have been very SUPPORTIVE TEAM Mintz Levin is a general practice, full- satisfied with the Fowler and her team decided to participate service firm with over 500 attorneys. in the Business Development Premier Beta Headquartered in Boston, the firm also support we have program after deploying a system that did has offices in Los Angeles, New York, received from the not meet the firm’s needs or requirements. San Diego, San Francisco, Stamford, CT, They were impressed with the solution, Washington, D.C., and a liaison office in Business Development as well as the implementation team, and Israel. Premier team. They are decided to move forward with the full deployment of Business Development. The firm has made it a priority to there for us when we strengthen the way contact relationship need help.” “As they were developing the product, the data is accessed and maintained in order support team would ask us to test and Amy Fowler, Chief Marketing Officer to enhance its business development offer ideas about improving functionality efforts. and intuitiveness,” describes Fowler. “They not only delivered on everything we In the past, the firm’s business had been promised, but also incorporated development team had been utilizing “After investing a great deal of time, the vast majority of our suggestions into several different databases and money, and energy into a home-grown the final product.” spreadsheets to maintain contact system that did not provide the kind of information, experience, new business seamless integration or comprehensive Working with such a reliable team was opportunities, referral sources and view of our client relationships we needed, an essential component of a successful company profile information. Wanting we were thrilled to learn about Business implementation. Fowler anticipated that to improve efficiency, the firm’s Chief Development Premier,” states Fowler. “It the deployment would be a considerable Marketing Officer, Amy Fowler, identified offers what I had always envisioned a CRM undertaking, and it was important that a significant advantage to be gained system should be able to do.” it was completed both on time and on from Thomson Reuters new customer budget. With the support of a seasoned relationship management (CRM) Business Development Premier project manager that the firm retained, technology. seamlessly integrates with other Elite Mintz Levin was able to collaborate with solutions, including 3E® which the the BDP implementation team to keep the Business Development Premier is a existing Enterprise™ client is planning to project on track and resolve issues as they business development solution designed transition to in the future. This was another emerged. specifically for law firms. Built on the driving force behind Fowler’s decision to best-of-breed Microsoft™ Dynamics® participate in the solution’s Beta program. “We have been very satisfied with the platform, Business Development Premier “We were confident that BDP would be a support we have received from the is a CRM solution coupled with enterprise reliable investment because Thomson Business Development Premier team,” relationship management (ERM) Reuters owned all of the core products states Fowler. “They are there for us when technology, enhanced with marketing (ContactNet, TR Company Profile, and we need help.” automation, experience management Elite) that would be combined into the tools, company profiles powered by BDP platform” Fowler explains. “We ONE-STOP SHOP FOR RELATIONSHIP Thomson Reuters and competitive trusted Elite’s ability to integrate the INTELLIGENCE intelligence through integration with solutions so they would work together as For Mintz Levin, the beauty of BDP is that Monitor Suite. seamlessly as possible.” it provides a centralized location for the
10 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM firm’s contacts and relationships that exist across those contacts. In addition, it MINTZ, LEVIN, COHN, FERRIS, “Now that we are houses all of the firm’s experience records, GLOVSKY, AND POPEO P.C. centrally storing the sales opportunities (pitches and rfps), Mintz Levin is a full-service, general inbound and outbound referral sources, practice law firm with more than 500 entirety of the firm’s and company profile information for lawyers, eight offices in the United experience, pitches, and clients and prospects. “Now that we are States and the United Kingdom, and centrally storing the entirety of the firm’s a liaison office in Israel. referrals in the database, experience, pitches, and referrals in the we can easily create database, we can easily create meaningful BUSINESS CHALLENGES reports for management.” states Fowler. The firm needed a reliable solution meaningful reports for to collect, store, and update crucial management.” Business Development Premier client relationship data, which also Amy Fowler automatically uncovers client data from integrated into its core technology address books, email traffic patterns, platforms. calendars, and CRM data, with no manual entry required. The solution sorts and WHY BUSINESS DEVELOPMENT merges aggregated data, so it is ready PREMIER? associated with the company, and much to use and report on without changing Business Development Premier is a more. In addition, it enables notes and lawyers’ personally stored contacts in powerful new integrated platform activities to be added to each contact Microsoft Outlook®. designed to transform client entry, making it easy for the firm to relationship management and maintain an up-to-date log of the history Fowler explains, “As Business business development for firms. with that company or clients. “We can Development Premier centralizes the more accurately update the information entirety of our firm’s CRM data, it is BENEFITS that is important for identifying our crucial to our lawyers that the solution • Seamlessly integrates with core clients and prospects, expanding existing doesn’t compromise the integrity of their Elite technology relationships, and following up on new individual contact lists. Our team is thrilled • Centrally stores and consolidates opportunities,” Fowler explains. customer relationship data without compromising lawyers’ personal “Business Development Premier enables contact lists our business development team to have • Compatible with Microsoft™ all of the relevant information about “Business Development Outlook® and mobile devices our clients and prospects in one place. Premier enables our • Access to broad and narrow Everything we need to know is right company information and there. It is a big time saver and, more business development relationship history importantly, a far more comprehensive team to have all of the and holistic view of our full relationship with clients,” Fowler explains. relevant information about this unique capability because most about our clients and other CRM solutions force contact updates In the future, Fowler looks forward to to be reflected universally.” rolling out the mobile functionality of prospects in one place. Business Development Premier, which Everything we need to DETAILED CONTACT INFORMATION will provide a significant advantage by AT ANY LEVEL equipping users with quick access to the know is right there. It Business Development Premier equips information they need while on the go. is a big time saver and, the firm’s business development team with general and detailed data about more importantly, a far its existing relationships, ranging from more comprehensive a company’s financial information and recent press coverage, to a full log and holistic view of our of history with a specific contact. For For more information on Business full relationship with example, in an instant, Fowler and her Development Premier and how it can team can see if a particular company has work for you, contact Amantha Chia at clients.” been a client of the firm, the person who [email protected] Amy Fowler established the relationship, the matters or call +65 6870 3917 today.
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 11 COVER STORY
12 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM COVER STORY
Asia seems to be on a hot CHINA DOMESTIC CHINA INTERNATIONAL streak when it comes to PATENTS PATENTS TIER 1 TIER 1 intellectual property • CCPIT Patent & Trademark Law • Allen & Overy Office • Baker McKenzie/Baker • China Patent Agent (H.K.) Ltd. McKenzie FenXun (FTZ) Joint (IP) filings and dispute • Fangda Partners Operation Office • JunHe LLP • Bird & Bird • King & Wood Mallesons • Deacons settlements, as 2016 • Jones Day TIER 2 • Hogan Lovells proved to be yet another • AnJie Law Firm • Mayer Brown JSM • Morrison & Foerster • Chang Tsi & Partners • Norton Rose Fulbright • Co-effort Law Firm record year in in most • Orrick, Herrington & Sutcliffe • DeHeng Law Offices • Ropes & Gray • Lifang & Partners • Rouse of the region. Despite • Zhong Lun Law Firm TIER 2 its relatively slower TIER 3 • CMS • AllBright Law Offices • DLA Piper • An, Tian, Zhang & Partners • Finnegan, Henderson, Farabow, economic growth, China • Beijing Dentons Law Offices Garrett & Dunner • Global Law Office • Morgan, Lewis & Bockius • Hiways Law Firm • Quinn Emanuel Urquhart & Sullivan maintained its fast-paced • Wan Hui Da - Peksung • Skadden, Arps, Slate, Meagher Intellectual Property Group & Flom growth in IP filings and • Watson & Band Law Offices • Spruson & Ferguson • Vivien Chan & Co TIER 4 cases, outpacing oTher • Beijing East IP Ltd. & Beijing TIER 3 East IP Law Firm • Clifford Chance • Han Kun Law Offices • Dechert countries in north and • Hengdu Law Firm • Freshfields Bruckhaus Deringer • Long An Law Firm • Marks & Clerk southeast Asia in setting • Tahota Law Firm • Oldham, Lie & Nie • Tian Yuan Law Firm • Perkins Coie • Simmons & Simmons new global IP records. COPYRIGHT/TRADEMARK • Squire Patton Boggs • Wilkinson & Grist TIER 1 COPYRIGHT/TRADEMARK For 2016, United Nations agency World Intellectual • CCPIT Patent & Trademark Law Office Property Organization (WIPO) reported new record highs • China Patent Agent (H.K.) Ltd TIER 1 • Fangda Partners • Baker McKenzie/Baker McKenzie FenXun (FTZ) Joint in international applications for patents, trademarks, and • King & Wood Mallesons Operation Office industrial designs as well as cybersquatting cases. According • Bird & Bird to WIPO, last year marked the seventh consecutive year of TIER 2 • Deacons • AnJie Law Firm • Hogan Lovells continuous growth for its managed systems for patent, • Chang Tsi & Partners • Mayer Brown JSM trademark, and industrial design. • Co-effort Law Firm • Orrick, Herrington & Sutcliffe • Global Law Office • Rouse WIPO’s Patent Cooperation Treaty (PCT), which entities • Hylands Law Firm • Wilkinson & Grist • Jincheng Tongda & Neal use to file simultaneous patent applications in multiple • JunHe LLP TIER 2 foreign jurisdictions, logged 233,000 applications in 2016. • Lifang & Partners • Allen & Overy • Wan Hui Da - Peksung • CMS This was a record 7.3 percent year-on-year increase. Most of Intellectual Property Group • DLA Piper the patent applications filed during this period were in the • Watson & Band Law Offices • Finnegan, Henderson, Farabow, • Zhong Lun Law Firm Garrett & Dunner areas of digital communications and computer technology. • Jones Day TIER 3 • Norton Rose Fulbright Japan and China came second and third, respectively, • AllBright Law Offices • Spruson & Ferguson after frontrunner U.S. in terms of the number of PCT • Beijing Dentons Law Offices • Quinn Emanuel Urquhart & Sullivan • Beijing Tiantai Law Firm • Skadden, Arps, Slate, Meagher applications filed. However, WIPO noted that it was China • Boss & Young Patent and & Flom that drove the overall growth in global demand. Chinese Trademark Law Office • Simmons & Simmons • DeHeng Law Offices • Squire Patton Boggs telecommunications and equipment giant ZTE Corp was • Guantao Law Firm • Vivien Chan & Co the biggest filer of international patent applications via the • Han Kun Law Offices • Hengdu Law Firm TIER 3 PCT in 2016, overtaking another Chinese technology brand, • Jingtian & Gongcheng • Clifford Chance • Dechert Huawei Technologies. • Tahota Law Firm • Tian Yuan Law Firm • Freshfields Bruckhaus Deringer “In an interlinked, knowledge-based global • Marks & Clerk • Morgan, Lewis & Bockius economy, creators and innovators are increasingly relying • Oldham, Lie & Nie on intellectual property to promote and protect their • Ropes & Gray competitive edge around the world,” said Francis Gurry, WIPO’s director general, in a statement.
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 13 COVER STORY
“China-based filers are behind much of the growth in international patent and trademark filings, making great HONG KONG INDIA strides in internationalizing their businesses as the country PATENTS PATENTS countinues its journey from ‘Made in China’ to ‘Created in TIER 1 TIER 1 China’,” he added. • Baker McKenzie • Anand and Anand • Bird & Bird • Chadha & Chadha In 2016, U.S.-based applicants filed 56,595 PCT • Deacons • K&S Partners applications, followed by Japan with 45,239 and China with • Hogan Lovells • Lakshmikumaran & Sridharan • Luthra & Luthra 43,168. South Korea, another Asian giant in patents, ranked TIER 2 • Remfry & Sagar fifth with 15,560 applications. • Barron & Young • DLA Piper TIER 2 As a whole, Asia accounted for 47.4 percent of the total • Jones Day • Cyril Amarchand Mangaldas • Marks & Clerk • Fox Mandal & Associates PCT applications last year – almost matching the combined • Mayer Brown JSM • IndusLaw shares of Europe at 25.6 percent and North America at 25.3 • Morrison & Foerster • Khaitan & Co • Oldham, Lie & Nie • Khurana & Khurana percent. • Quinn Emanuel Urquhart & • Lall Lahiri & Salhotra China PCT applications grew by 44.7 percent in 2016. Sullivan • Majmudar & Partners • Spruson & Ferguson • R.K. Dewan & Co Still considered as a middle-income economy, China • Wilkinson & Grist • Singh & Singh Lall & Sethi had been posting double-digit growth each year in PCT • Vivien Chan & Co • Subramaniam, Nataraj & Associates applications since 2002. “If this current trend continues, TIER 3 China will overtake the U.S. within two years as the largest • Dechert TIER 3 • Eagle IP • ALMT Legal user of the PCT system,” according to WIPO. • Freshfields Bruckhaus Deringer • AZB & Partners China and India, with its 1,529 PCT applications in 2016, • Norton Rose Fulbright • DePenning & DePenning • Oldham, Lie & Nie • Fidus Law Chambers were the only two middle-income countries among the top • Robin Bridge & John Liu • Mason & Associates • Stephenson Harwood • Perfexio Legal 15 origins of PCT applications for this period. • Squire Patton Boggs • RNA IP Attorneys The establishment of the Shanghai Free Trade Zone • Samvād: Partners, Advocates COPYRIGHT/TRADEMARK • Saikrishna & Associates (FTZ) is likely to further boost IP activities in China and • ZeusIP consequently, the workload of China-based IP law firms TIER 1 • Baker McKenzie COPYRIGHT/TRADEMARK in the near term. The Shanghai FTZ is touted as the first • Bird & Bird Hong Kong-like free trade area in mainland China, and it is • Deacons TIER 1 • Hogan Lovells • Anand and Anand expected to encompass the city’s entire Pudong district. To • Mayer Brown JSM • Chadha & Chadha support the anticipated increase in trade and IP activities, • Wilkinson & Grist • IndusLaw • K Law/Krishnamurthy & Co Chinese authorities have allowed local and foreign law firms TIER 2 • Lall Lahiri & Salhotra to set up associations in the Shanghai FTZ. • AWA Asia • Remfry & Sagar • Dechert • Saikrishna & Associates Tier 1 international law firm Hogan Lovells was among • DLA Piper • Norton Rose Fulbright TIER 2 the first to seize this opportunity. “This new association • Oldham, Lie & Nie • AZB & Partners with Fujian Fidelity allows us – in contrast to most other • Quinn Emanuel Urquhart & • Cyril Amarchand Mangaldas Sullivan • Fidus Law Chambers international law firms – to offer direct domestic Chinese • Robin Bridge & John Liu • Fox Mandal & Associates legal advice and litigation services in the Chinese courts on • Stephenson Harwood • Khaitan & Co • Simmons & Simmons • Khurana & Khurana top of our integrated international legal services,” the firm • Vivien Chan & Co • Lakshmikumaran & Sridharan said. • Luthra & Luthra TIER 3 • Majmudar & Partners IP litigation in China has never been busier and • Barron & Young • R.K. Dewan & Co rewarding for the litigation winners, at least in terms of • Clifford Chance • RNA IP Attorneys • Freshfields Bruckhaus Deringer • Singh & Singh Lall & Sethi the amount of damages awarded by the courts. In 2016, • Jones Day • Subramaniam, Nataraj & • Morrison & Foerster Associates courts nationwide concluded 147,000 IPR cases in the • Spruson & Ferguson • ZeusIP first instance alone, based on the latest figures from the • Squire Patton Boggs TIER 3 Supreme People’s Court (SPC), China’s top court. • DePenning & DePenning Last year, the Beijing IP Court – one of China’s newly • K&S Partners • Krishna & Saurastri Associates established IP Courts – ordered a USB keys manufacturer • Mason & Associates to pay a total of 50 million yuan or about $7.2 million in • Phoenix Legal • Samvād:Partners, Advocates damages to another manufacturer. According to the SPC, this was the highest amount awarded since the court was founded in November 2014. To add to the IP Courts of Beijing, Shanghai, and Guangzhou, the SPC has announced that Nanjing, Suzhou, Wuhan and Chengdu have set up their own IPR adjudication divisions. The latest additions could help speed up litigation in China amid growing IP activities.
14 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM JAPAN DOMESTIC PATENTS COVER STORY TIER 1 • Abe, Ikubo & Katayama • Anderson Mori & Tomotsune • Mori Hamada & Matsumoto INDONESIA • Nagashima Ohno & Tsunematsu MALAYSIA SINGAPORE • Oh-Ebashi LPC & Partners PATENTS PATENTS PATENTS TIER 2 • Abe & Partners TIER 1 TIER 1 TIER 1 • Atsumi & Sakai • Marks & Clerk • Am Badar & Partners • Fukami Patent Office • Allen & Gledhill • Hadiputranto, Hadinoto & • Shearn Delamore & Co • Bird & Bird ATMD • Itoh International Patent Office • Skrine Partners • Dentons Rodyk & Davidson • Nakamura & Partners • Wong & Partners • Rouse/Suryomurcito & Co • Nishimura & Asahi • Drew & Napier • SKC Law • Ohno & Partners • Lee & Lee • Tilleke & Gibbins TIER 2 • Onda Techno Int. Patent Attys. • Christopher & Lee Ong • Marks & Clerk Singapore • Ryuka IP Law Firm • Rahmat Lim & Partners TIER 2 • Seiwa Patent & Law TIER 2 • Acemark IP • Raja Darryl & Loh • Shiga International Patent Office • Shook Lin & Bok • Amica Law • AMR Partnership • Soei Intellectual Property Law • Tay & Partners • Baker & McKenzie Wong & • Barumun International Patent • Sugimura International Patent Leow • Biro Oktroi Roosseno & Trademark Attorneys TIER 3 • Davies Collison Cave • George Widjojo & Partners • TMI Associates • Lee Hishammuddin Allen & • Donaldson & Burkinshaw • Hadromi Adnan IP Group Gledhill • Inter Patent Office COPYRIGHT/TRADEMARK • Joyce A. Tan & Partners • Wong Jin Nee & Teo • Rajah & Tann • Januar Jahja & Partners • Zaid Ibrahim & Co • K&K Advocates TIER 1 • Ravindran Associates • RHTLaw Taylor Wessing • Pacific Patent Multiglobal • Mori Hamada & Matsumoto COPYRIGHT/TRADEMARK • Roosdiono & Partners • Nagashima Ohno & Tsunematsu • Spruson & Ferguson • Nakamura & Partners TIER 1 • Viering, Jentschura & Partner TIER 3 • TMI Associates • Lee Hishammuddin Allen & • Assegaf Hamzah & Partners Gledhill TIER 3 • Budidjaja & Associates Lawyers TIER 2 • Marks & Clerk • Cantab IP • Citius Intellectual Property • Anderson Mori & Tomotsune • Shearn Delamore & Co • Colin Ng & Partners • Lumenta, Sitorus & Partners • Atsumi & Sakai • Skrine • Gateway Law Corporation • Makarim & Taira S. • Fukami Patent Office • Tay & Partners • Mirandah Asia • Pulungan, Wiston & Partners • Nishimura & Asahi • Wong & Partners • Morgan Lewis • Prawiranegara International • Oh-Ebashi LPC & Partners • Samuel Seow Law • Seiwa Patent & Law Patent & Trademark TIER 2 • WongPartnership • Shiga International Patent Office • SS&R Legal Consultants • Christopher & Lee Ong • Sugimura International Patent • Wong Jin Nee & Teo &Trademark Attorneys COPYRIGHT/TRADEMARK COPYRIGHT/TRADEMARK • Zaid Ibrahim & Co TIER 1 TIER 3 TIER 3 TIER 1 • Abe, Ikubo & Katayama • Allen & Gledhill • Hadiputranto, Hadinoto & • Rahmat Lim & Partners • Itoh International Patent Office • Raja Darryl & Loh • Amica Law Partners • Ohno & Partners • Baker & McKenzie Wong & • Inter Patent Office • Onda Techno Int. Patent Attys. Leow • Januar Jahja & Partners • Ryuka IP Law Firm • Bird & Bird ATMD • K&K Advocates • Soei Intellectual Property Law • Dentons Rodyk & Davidson • Roosdiono & Partners PHILIPPINES • Donaldson & Burkinshaw • Rouse /Suryomurcito & Co • Drew & Napier • SKC Law PATENTS/COPYRIGHT/ • Lee & Lee • Tilleke & Gibbins TRADEMARK • WongPartnership JAPAN INTERNATIONAL TIER 2 TIER 1 TIER 2 • Acemark IP PATENTS • ACCRALAW • Am Badar & Partners • Colin Ng & Partners • Castillo Laman Tan Pantaleon & • Gateway Law Corporation • Barumun International Patent TIER 1 San Jose • Joyce A. Tan & Partners • Biro Oktroi Roosseno • Finnegan, Henderson, Farabow, • Cruz Marcelo and Tenefrancia • Budidjaja & Associates Lawyers Garrett & Dunner • Rajah & Tann • Quisumbing Torres • Ravindran Associates • George Widjojo & Partners • Hogan Lovells • Romulo Mabanta Buenaventura • RHTLaw Taylor Wessing • Hadromi Adnan IP Group • Morgan, Lewis & Bockius Sayoc & De Los Angeles • Pacific Patent Multiglobal • Morrison & Foerster • SyCip Salazar, Hernandez & • Samuel Seow Law • Orrick, Herrington & Sutcliffe Gatmaitan TIER 3 • Quinn Emanuel Urquhart & Sullivan • Villaraza & Angangco TIER 3 • Assegaf Hamzah & Partners • Ropes & Gray • Davies Collison Cave • Citius Intellectual Property TIER 2 • Ella Cheong • HeruLukito & Partners TIER 2 • Baranda & Associates • Robinson LLC • Lumenta, Sitorus & Partners • Baker McKenzie • Bengzon Negre Untalan • Mirandah Asia • Makarim & Taira S. • Foley & Lardner • Betita Cabilao Casuela • Morgan Lewis • Pulungan, Wiston & Partners • Squire Patton Boggs Sarmiento • Spruson & Ferguson • Prawiranegara International • Carag Caballes Jamora & Patent & Trademark COPYRIGHT/TRADEMARK Somera • SS&R Legal Consultants • MarksPro TIER 1 • Puyat Jacinto & Santos • Baker McKenzie • Hogan Lovells • Morrison & Foerster
TIER 2 • Finnegan, Henderson, Farabow, Garrett & Dunner • Foley & Lardner • Morgan, Lewis & Bockius • Orrick, Herrington & Sutcliffe • Squire Patton Boggs
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 15 In South Korea, another patent-heavy jurisdiction in the COVER STORY region, one law firm has observed an increasing number of local pharmaceutical companies developing new drugs – an alternative to producing generic versions of originator drugs. “Recently, more Korean pharmaceutical companies SOUTH KOREA TAIWAN are investing in the development of new drugs, moving away PATENTS PATENTS from their previous focus on generic drugs. As a result, the TIER 1 TIER 1 number of patent applications for newly invented drugs has • Bae, Kim & Lee • Baker McKenzie been continously increasing.” • Kim & Chang • Finnegan, Henderson, Farabow, • Lee & Ko Garrett & Dunner; Fei Han Interestingly, this observation came two years after • Shin & Kim Foreign Legal Affairs Law Firm the full implementation of amendments to South Korea’s • Yoon & Yang • Jones Day • Yulchon • Lee and Li Pharmaceutical Affairs Act. Among these changes is the • Saint Island International patent-product approval linkage system, which is similar TIER 2 Patent & Law • Dr. Ahn International Patent • Tai E International Patent & to the Hatch-Waxman Act of the U.S. This system allows Law Office Law • Finnegan, Henderson, Farabow, • TIPLO originator drug companies to obtain sales stay of generic Garrett & Dunner drugs, pending the resolution of an infringement case • Lee International IP & Law TIER 2 Group • Chen & Lin between two drug companies. • Ropes & Gray • Formosan Brothers This delays the entry of generic drugs into the market, • Formosa Transnational TIER 3 • Tsar & Tsai pushing some generic-drug manufacturers to raise the ante. • AIP Patent & Law Firm “With the implementation of the patent-approval linkage • AJU Kim Chang & Lee TIER 3 • Central Intellectual Property & • Deep & Far system in March 2015 in Korea, many global innovator Law • Eiger pharmaceutical companies have been subject to countless • Cho & Partners • Tsai, Lee & Chen • Kasan IP & Law Firm • Winkler Partners invalidation and scope confirmation challenges by domestic • Kim, Choi & Lim generic pharmaceutical companies seeking to market and • Koreana Patent Firm COPYRIGHT/TRADEMARK sell generic versions of brand name drugs,” commented TIER 4 TIER 1 • 5T International Patent Law • Baker McKenzie another law firm. Firm • Chen & Lin In 2016, most of the big patent cases handled by the top • Barun IP & Law • Lee and Li • Muhann Patent & Law Firm • Saint Island International law firms in South Korea were related to pharmaceuticals, • Yangjae Law Firm Patent & Law Offices based on the submissions received by ALB. • You Me Patent & Law Firm • Tai E International Patent & • Y.P. Lee Mock & Partners Law The same holds true in Japan, which also counts • Tsar & Tsai pharmaceuticals as an important component in its patent COPYRIGHT/TRADEMARK • TIPLO portfolio, along with technology. In 2016, two of the top 10 TIER 1 TIER 2 PCT filers were Japanese companies – Mitsubishi Electric • Bae, Kim & Lee • Deep & Far • Kim & Chang • Eiger and Sony. • Lee & Ko • Formosa Transnational • Shin & Kim • Formosan Brothers • Yulchon • Finnegan, Henderson, Farabow, TRADEMARK AND INDUSTRIAL DESIGN Garrett & Dunner, LLP; Fei Han TIER 2 Foreign Legal Affairs Law Firm The Madrid System, WIPO’s international trademark • AJU Kim Chang & Lee • Jones Day filing service, works like the PCT and similarly posted a • Finnegan, Henderson, Farabow, • Tsai, Lee & Chen Garrett & Dunner • Winkler Partners year-on-year growth of 7.2 percent, translating to 52,550 • Lee International IP & Law applications. Group • Ropes & Gray In particular, China recorded the fastest growth at • Yoon & Yang 68.6 percent and was the most designated jurisdiction TIER 3 for international trademark applications in 2016. This • Barun IP & Law reflects the common strategy of global brands to prioritise • Central International Law Firm • Cho & Partners securing trademark protection within China. Computer and • Jipyong • Kim, Choi & Lim electronics was the top class for the Madrid applications • Muhann Patent & Law Firm in 2016. • You Me Patent & Law Firm • YP Lee Mock & Partners One of the most followed trademark disputes in China last year involved the name of American basketball star Michael Jordan. China’s SPC reported that it concluded 2016 with several IPR cases with social impact, the Jordan trademark dispute among them. “The closure of the cases have shown that China is determined to protect IPR and fight against infringement,” the top court said in a release. In its decision, SPC ruled that Jordan has rights extending to the Chinese translation of his surname, and ordered the cancellation of several trademarks that a local sports company had registered
16 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM under the sports star’s name for a variety of products, including swimsuits and soy milk. COVER STORY Meanwhile, the Hague System, WIPO’s system for international industrial design application, also posted a year-on-year growth of 13.9 percent or 18,716 in design applications. THAILAND VIETNAM PATENTS PATENTS
CYBERSQUATTING DISPUTES TIER 1 TIER 1 One platform in IP that has received more attention and • Baker McKenzie • Baker McKenzie • Domnern Somgiat & Boonma • Pham & Associates shown increased activity, particularly in the areas of IP • Rouse • Tilleke & Gibbins settlement and litigation, is the internet. • Tilleke & Gibbins • Vision & Associates
According to WIPO, the number of cybersquatting TIER 2 TIER 2 disputes forwarded by trademark owners for settlement • Apisith & Alliance • Hogan Lovells • Chavalit & Associates • Indochine Counsel to its Uniform Domain Name Dispute Resolution Policy • Satyapon & Partners • InvestConsult Group (UDRP) in 2016 also hit an all-time high of 3,036 cases. This • Siam Premier International • Rouse • Vidon & Partners • SB Law was 10 percent higher than the number of cases lodged the • ZICO IP • ZICO Law previous year. Another popular venue for the resolution of TIER 3 TIER 3 • Bross & Partners IP disputes is the International Court of Arbitration of the • Ananda IP • IPMAX Law • Dej – Udom & Associates International Chamber of Commerce (ICC). Founded in 1923, • Phuoc & Partners • Dharmniti Law Office The ICC’s International Court of Arbitration is still widely COPYRIGHT/TRADEMARK regarded as a leading forum for resolving international COPYRIGHT/TRADEMARK commercial disputes. TIER 1 TIER 1 • Baker McKenzie The growing number of cybersquatting cases forwarded • Baker McKenzie • Hogan Lovells • Domnern Somgiat & Boonma to the WIPO Center was especially driven by disputes • IPMAX Law • Tilleke & Gibbins • Tilleke & Gibbins stemming from the introduction of new generic Top-Level • ZICO IP • Vision & Associates
Domains (gTLDs). Said to be one of the biggest changes TIER 2 TIER 2 to the internet since its inception, gTLDs expand the list of • Apisith & Alliance • Bross & Partners • Chavalit & Associates • Indochine Counsel domain extensions available for use by businesses. • Rouse • InvestConsult Group According to WIPO, cybersquatting disputes tied to • Satyapon & Partners • Pham & Associates • Siam Premier International • Rouse new gTLDs accounted for 16 percent of the 2016 caseload • Vidon & Partners • SB Law of 5,374 domain names. Topping the common new gTLDs • ZICO Law TIER 3 in dispute were the domain names of .XYZ, .TOP and .CLUB. • Ananda IP TIER 3 “The continuing growth in cybersquatting cases • Dej – Udom & Associates • LNT & Partners • Dharmniti Law Office • Phuoc & Partners worldwide shows the need for continued vigilance by trademark owners and consumers alike. This is even more important as a considerable number of these disputes involve incidents of online counterfeiting,” said WIPO’s OUR METHODOLOGY Gurry. Most of the cases were from the banking and finance, — ALB drew information from firm submissions, interviews, editorial fashion, heavy industry and machinery, internet and IT, resources and market suggestions to identify and rank the top firms for intellectual property in Asia. biotechnology and pharmaceuticals, and retail. — The research covered the period spanning from January 2016 One of the biggest domain cases forwarded to UDRP to February 2017. This includes both ongoing work (contentious and non-contentious) and matters that were closed during this for resolution in China last year involved weixin.com. Weixin timeframe. is the Mandarin translation of WeChat, the messaging app — The IP rankings are separated into two tables: Patent and of Tencent, China’s largest internet service portal. Trademark/Copyright. The rankings are also divided into tiers, with the first tier identifying the strongest IP firms in each jurisdiction. Apart from the IP heavyweight trio of China, South — The rankings cover the following jurisdictions: China, Hong Kong, Korea, and China, Singapore and Hong Kong have also India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. worked extra hard to make a name in the global IP scene. — The rankings feature both domestic and international firms. The Singapore is positioning itself to become an Asian IP hub, following jurisdictions have separate tables for domestic firms and starting off with its IP commercialisation programme. international firms: China, Japan and South Korea. — Our research did not cover Australia and New Zealand. Law firms in India and Taiwan as well as in Southeast Asia also witnessed another record year in IP filings, OUR METRICS: registrations, and dispute settlement – a testament to — The volume, complexity and size of work undertaken growing trade in the region. As a result, the number and — Presence across Asia and in individual jurisdictions — Key personnel hires and growth of the practice group the complexity of IP cases have also increased, to the delight — Key clients and new client wins of IP law firms and practitioners. Talk about biosimilar, — Firm’s visibility and profile in the region three-dimensional mark, parallel importation, and plain — Year-on-Year development and momentum packaging, to name a few, are among the emerging issues from this region.
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 17 Fellow Tier 1 firm Orrick, Herrington & copyright, the Tier 1 firms are Baker COVER STORY Sutcliffe worked on a design enforcement McKenzie/Baker McKenzie FenXun action for Hamilton Beach Brands against (FTZ) Joint Operation Office, Bird & Bird, copycats of its breakfast sandwich makers. Deacons, Hogan Lovells, Mayer Brown JSM, It sought custom seizure and followed Orrick, Herrington & Sutcliffe, Rouse, and through with a civil action. “. This precedent- Wilkinson & Grist. setting case has become a model that From battling trolls and imitators of domestic companies and other foreign full product lines, mitigating trade- companies doing business in China can secret exposure, and dealing with multi- follow,” explained Orrick. jurisdictional IP disputes, China almost For one client, Baker McKenzie FenXun saw it all in 2016. In particular, most of the (FTZ) Joint Operation Office turned to Hong Kong is poised to become a regional cross-border disputes stemmed from the Article 149 in the PRC Criminal Law, on IP trading centre in Asia, and it is counting aggressive expansion of Chinese companies manufacturing and selling inferior and on its closer ties with mainland China to to Europe, the U.S., and elsewhere. shoddy goods, to get a “heavier punishment make this happen, among others. In one patent troll-related case, than normal crime of trademark In an IP forum last December, Tier 1 international firm Hogan Lovells infringement,” said the firm. former Hong Kong Chief Executive Leung represented Daimler’s Chinese subsidiary The Tier 1 firms for international patent Chun-ying noted that the city has “great and joint venture in a patent infringement are Allen & Overy, Baker McKenzie/Baker opportunities as the Chinese mainland and invalidation dispute with an alleged McKenzie FenXun (FTZ) Joint Operation is a growing IP market.” He added, “The non-practicing entity. “We successfully Office, Bird & Bird, Jones Day, Hogan Chinese mainland has surpassed the U.S. defended Daimler against infringement Lovells, Mayer Brown JSM, and Rouse. to top the world in many categories of IP, lawsuits in the Beijing court, causing the Joining them at the top this year are with rapid growth.” cases to be dismissed after trial. This is Deacons, Morrison & Foerster, Norton Rose Under the “One Country, Two Systems” significant because it’s the first real abusive Fulbright, Orrick, Herrington & Sutcliffe, policy, Leung noted that Hong Kong can patent case involving a patent troll in and Ropes & Gray. “become a bridge that links the IP markets China,” said Hogan Lovells. In international trademark and of the Chinese mainland and the rest of
18 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM
industry to prepare a counterposition. “It is does not sufficiently clarify some issues, COVER STORY our contention that the policy would nullify particularly those concerning patents on the effect of trademarks, and consumers drugs. In particular, the U.S. takes note of would be left with no means to readily Section 3(d) in the Indian Patent Act which the Asia and the world.” The MIT Hong distinguish different cigar products,” said requires patents to be granted only for true Kong Innovation Node is one programme RBJL. innovations, denying patents for modified, that supports this direction. Launched in improved medicines. 2016, it aims to connect the Massachusetts The newly released policy did not Institute of Technology community in the open the particular controversial section U.S.to resources and opportunities in Hong in the Indian Patent Act. Jurisprudence, Kong and China. along with new developments such as the Already, Hong Kong’s IP trading In 2016, the Indian government released the rise of biosimilars, is likely to still be the agenda has involved some law firms. Tier long-awaited National Intellectual Property predominant factor in shaping the direction 1 trademark and copyright firm Wilkinson Rights Policy. It has been described by of India in this area. & Grist was appointed by the Intellectual the government as compliant with the Tier 1 firm Remfry and Sagar was Property Department of Hong Kong’s Agreement on Trade Related Aspects of among those tapped to draft the National Special Administrative Region (SAR) Intellectual Property Rights (TRIPS). TRIPS IP Policy. In 2016, most leading law firms government to provide training to SMEs is the World Trade Organization’s (WTO) in India worked on drug-related patent participating in its IP Managers Scheme. agreement on IP. prosecution and infringement cases. The said programme was launched to The new IRP Policy tackled the In patent, Chadha & Chadha and build the city’s IP manpower capacity and controversial isssues of IP flexibilities Luthra & Luthra join the cluster of Tier to support the IP trading agenda. and compulsory licensing, which is a 1 firms. The other firms are Anand and With the government’s proposal to tool provided to governments to allow Anand, K&S Partners, Lakshmikumaran & increase the warning size on cigarette packs the manufacture of a patented product Sridharan, and Remfry & Sagar. for a health warning cover from the current without consent of the patent owner in the In copyright and trademark, Chadha 50 percent to 85 percent, Robin Bridge & name of public interest. However, some & Chadha, IndusLaw, and K Law/ John Liu (RBJL) was tapped by the tobacco observers commented that the policy Krishnamurthy & Co move up to Tier 1. The
PRACTICE AREAS Patents Copyrights Litigation and Dispute Resolution IT law and Domain name disputes Trademarks Sports law Designs Fashion and Luxury law Art and Antiquities Media and Entertainment law Competition / Antitrust Licensing and Franchising Compliance / Regulatory Advertising law Plant Variety Anti-Counterfeiting Biodiversity Criminal law Contractual and Commercial IP Customs and Border Enforcement
AWARDS AND ACCOLADES
TELLECTUA India Business Law Journal IN L M PR IR The O F P 1 E R R T E I Y T WINNER TM LEGAL 500 Indian Law Firm Awards 2015 - 2016 Chambers Asia Pacific Band 1 Firm (India) 2017 2 0 1 6 Intellectual Property MIP - Firm of the Year 2015, 2016 & 2017 WTR 1000 - Gold Band 2015, 2016 & 2017 India - Contentious Chambers Asia Pacific Band 1 Firm (India) 2017 IAM Patent 1000 - Gold band 2015 & 2016 Asia IP – Firm of the Year IBLJ - Law Firm of the Year Life Sciences Patents 2016 Intellectual Property 2015 & 2016
20 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM other leading firms are Anand and Anand, production facilities. This has involved using Lall Lahiri & Salhotra, Remfry & Sagar, and intelligence gathered through investigation COVER STORY Saikrishna & Associates. and surveillance to coordinate criminal raids on footwear and garment factories. We also targeted retail facilities with the Patent accounted for the bulk of total aim of disrupting the market for counterfeit filings and registrations last year. According product,” noted SKC Law. to the Japan Patent Office (JPO), there In patent, SKC Law moved up to join were 324,861 patent and utility model Indonesia’s parliament passed a new the Tier 1 firms of Am Badar & Partners, applications in 2016 – down by 0.2 percent Patent law in July 2016. Hadiputranto, Hadinoto & Partners, Rouse/ from the previous year; 30,879 design Among other key changes, it introduced Suryomurcito & Co, and Tilleke & Gibbins. applications – higher by 3.3 percent; and the patentability of computer programmes In trademark and copyright, Inter 161,859 trademark applications – up by 9.9 with technical effects, employee-invention Patent Office, Roosdiono & Partners, and percent. National applications for design ownership, simple patents for processes, SKC Law are the newest additions to the went down by 2.2 percent to 28,796, but and post-grant amendment. It also Tier 1 list. Others include Hadiputranto, national applications for trademark shot up includes provisions on compulsory license Hadinoto & Partners, K&K Advocates, and by 12.7 percent to 148,024. and calls for the actual use of the patent Rouse /Suryomurcito & Co. The total number of registered patents in Indonesia. It also sets higher criminal in 2016 soared by 7.3 percent to 203,087; sanctions for patent infringements.. utility models dropped by 5.9 percent In addition to routine IP searches, to 6,297; design was fell by 3.6 percent prosecutions, and oppositions for domestic to 25,344; and trademarks grew by 7.3 and foreign clients, enforcement remained percent to 105,207. big in Indonesia. In Japan, most of the disputes handled by Anderson Mori & Tomotsune and Oh- Tier 1 firm SKC Law, as an example, law firms involved patents, specifically in Ebashi LPC & Partners moved up to join assisted sports brand Nike in going after the areas of pharmaceuticals, technology Tier 1 domestic patent firms Abe, Ikubo & the source of the counterfeit products. “In devices, and gaming. This was expected Katayama, Mori Hamada & Matsumoto, the three years of running this campaign, as Japan remains a technology and and Nagashima Ohno & Tsunematsu. In we have successfully targeted domestic manufacturing-driven economy. domestic trademark and copyright, the
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 21 According to a recent report from the 14,496 total trademark applications in COVER STORY digital platform security provider Irdeto, 2006, exactly a decade ago. Malaysia recorded the second largest share The Philippines’ IP numbers are still of content piracy in Southeast Asia, next to relatively small compared to filings in Tier 1 firms are Mori Hamada & Matsumoto, the Philippines, in the first quarter of 2016. other jurisdictions in the region. But law Nagashima Ohno & Tsunematsu, Pirated content comes in DVD (digital video firms engaged in IP have never been busier, Nakamura & Partners, and TMI Associates. disc) format and uses VPN networks (virtual particularly in the areas of IP prosecution as Morgan, Lewis & Bockius and Orrick, private networks) and P2P (peer-to-peer) well as enforcement and litigation. Herrington & Sutcliffe join this year’s list of networks. Tier 1 firms include ACCRALAW; Tier 1 firms in international patent. In 2016, some law firms in Malaysia Castillo Laman Tan Pantaleon & San Jose; experienced first hand the further expansion Cruz Marcelo and Tenefrancia; Romulo of the breadth of the IP practice, with the Mabanta Buenaventura Sayoc & De Los emergence of new cases. Angeles; SyCip Salazar, Hernandez & Tier 1 firms in patent are Marks & Clerk, Gatmaitan; and Villaraza & Angangco. Shearn Delamore & Co, Skrine and Wong Similar to its next-door neighbour & Partners. In copyright and trademark, Singapore, Malaysia is also looking at IP Marks & Clerk and Tay & Partners move up financing to allow IP right owners get more to Tier 1, joining Lee Hishammuddin Allen value from their intangible assets. This may & Gledhill and others. come in the form of enabling an IP to be In Singapore, the government’s regional used as a collateral for a loan or for other IP hub and IP commercialisation plan types of financing. is starting to take shape, with some law Already, the government has firms starting to work on related cases and the IPR Marketplace initiative which assignments. seeks to bring in one forum IP owners, According to government figures, the The city-state’s rapidly evolving IP investors, and businesses to facilitate Philippine economy grew by 6.9 percent in scene also saw unconventional cases and the commercialisation of IP rights. It also Q1 of 2016, the highest quarterly growth in breakthrough court decisions. recently established a funding programme almost three years, and among the fastest Morgan, Lewis & Bockius was involved to assist local creators and innovators. in the whole of Asia. in Singsung vs. LS Electronics, a case which However, IP infringement, and in It is expected that the booming resulted in landmark ruling from Singapore’s particular piracy, continued to be a nagging economy could further increase the volume Court of Appeal. The decision established problem in the country – a sitation that of IP filings and related activities of both two novel points: first, in an action for most of its Southeast Asian neighbours local and foreign IP rightholders. passing-off, the defendant’s intention to also face. “Online content piracy remains In 2016, the Intellectual Property Office copy may be used as a basis for the court a growing concern in Malaysia,” noted one of the Philippines recorded a total of 27,120 to establish goodwill and deception; and law firm in its submission. trademark applications, almost doubling second, a court may choose to award no
22 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM COVER STORY also marks the first time that the High COVER STORY Court considered the question of whether end-users should be included as part of the relevant public in the likelihood of confusion The patent-heavy IP scene of South Korea damages in a claim for groundless threats analysis for trademark infringement where witnessed many firsts in 2016. of copyright infringement, even if such the subject mark is used in respect of a Among them was a case handled threats are proven. “This was a landmark pharmaceutical product.” by Tier 1 firm Kim & Chang, in which it decision in Singapore intellectual property Baker McKenzie.Wong & Leow successfully blocked the launch of a generic law,” said Morgan Lewis. began work on a case for Sanrio involving drug by obtaining a sales stay under the Tier 1 firm Drew & Napier represented intermediary liability for the transhipment patent linkage system. It was also able to Singapore-listed Petra Foods – which has of infringing products through Singapore. obtain favourable decisions for its client in since been renamed as Delfi Limited – in As the firm said, “This case is ongoing both patent infringement and invalidation a closely followed and much-publicised before the High Court of Singapore. In actions. “In the course of these proceedings, case against Nestlé that evoked the biblical the meantime, we have expanded the various important issues concerning tale of David and Goliath. In a judgment relationship with the client and are now patent linkage litigations in Korea have delivered by the Singapore’s Court of actively assisting the client to coordinate been clarified, such as by establishing that Appeal in November, it junked Nestlé’s anti-counterfeiting actions in Singapore, initiating a patent infringement action appeal against Delfi’s rectangular-shaped Malaysia and Indonesia..” without direct evidence of infringement is chocolate wafer product. In patent, the Tier 1 firms are Allen & not frivolous, and that injunctive relief can Bird & Bird represented Allergan in Gledhill, Bird & Bird ATMD, Dentons Rodyk be granted for infringement even if the a successful trademark infringement and & Davidson, Drew & Napier, Lee & Lee, and generic product has not yet been launched passing-off claim against a local company Marks & Clerk Singapore. In trademark in the market,” explained Kim & Chang. before the Singapore High Court. The and copyright, the Tier 1 firms are Allen & Shin & Kim, another Tier 1 firm, took on decision was important on two grounds, said Gledhill, Amica Law, Baker McKenzie.Wong a case for Hanmi Pharmaceutical against Eli the firm. As it explained, “It is the first local & Leow, Bird & Bird ATMD, Dentons Rodyk Lilly, which posed the question of whether decision on the comparative advertising & Davidson, Drew & Napier, Lee & Lee, and the price reduction of an original drug defence to trademark infringement and WongPartnership. resulting from the entry of a generic drug
Dentons Rodyk has once again been ranked:
• Tier 1 in Patents • Tier 1 in Trademarks/Copyright
We thank our clients for their support.
dentons.rodyk.com ©2017 Dentons.
24 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM into the market could constitute damages For utility models, it was 20,161 while for caused by patent infringement. In October design applications it was 8,445. The top COVER STORY last year, Eli Lilly’s appeal was dismissed, countries of origin for foreign applications thus rejecting the notion it raised. were Japan, the U.S., China, South Korea The Tier 1 patent firms are Bae, Kim & and Germany. In Vertex Pharmaceuticals Inc. vs. Lee, Kim & Chang, Lee & Ko, Shin & Kim, In trademark, TIPO received 79,300 TIPO, Tier 1 firm Saint Island International Yoon & Yang, and Yulchon. In trademark applications – a 99 percent increase from Patent & Law Offices represented U.S. and copyright, Bae, Kim & Lee and Shin & the previous year – and registered a total of pharma company Vertex in challenging Kim, join the Tier 1 firms of Kim & Chang, 68,177 trademarks. Of the total applications, the procedure of not allowing the electronic Lee & Ko, and Yulchon. 57,548 were resident applications and copy of priority document. “After months 21,752 were non-resident applications. Of of negotiation and appeal, we were happy the total number of registered trademarks, to see that TIPO eventually adopted our 48,828 were resident applications and suggestion and amended the Enforcement 19,349 were non-resident applications. It Rules of Patent Act in July 2016, adding received a total number of 658 applications to it a new clause that permits patent In 2016, the Taiwans Intellectual Property for opposition and 157 applications for applicant to submit a photocopy of priority Office (TIPO) received 72,442 patent invalidation. The top sources of foreign document followed by an electronic version applications, marking a drop of 1.61 percent applications were China, Japan, the U.S., downloaded from the foreign patent office’s from the previous year. The number of Hong Kong, and South Korea. website,” it said. patents granted in 2016 was 76,406 – 2.16 The IP workload of law firms in Taiwan Joining the list of Tier 1 firms in patent percent lower than in 2015. Some 16,317 last year consisted mostly of trade-secret are Finnegan, Henderson, Farabow, Garrett applications were rejected and 548 patents disputes involving former employees, & Dunner; Fei Han Foreign Legal Affairs Law were invalidated. patent prosecution and litigation, Firm; and Saint Island International Patent Of the total patent applications in 2016, especially involving drugs, trademark filing, & Law. The other Tier 1 firms in patent are 40,433 were resident applications while opposition, invalidation, and also seizure Baker McKenzie, Jones Day, Lee and Li, Tai 31,999 were non-resident applications. The of counterfeit replicas and fighting against E International Patent & Law, and Taiwan number of invention patents was 43,836. trademark squatting. International Patent & Law Office.
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 25 cross-border trademark dispute for Safe-T- Bross & Partners, a Tier 2 firm in COVER STORY Cut Thailand and Safe-T-Cut Manufacturing trademark and copyright, worked with Co., a manufacturer and distributor of Germany’s confectionary giant Haribo automatic circuit breakers, against a Lao Group and its subsidiary Rigo Trading in In trademark and copyright, Chen & company over the the company’s “SAFE-T- securing exclusive rights for certain non- Lin, Saint Island International Patent & Law CUT” house mark. traditional marks. “These are currently Offices and Tai E International Patent & Law Baker McKenzie introduced what deemed too difficult to succeed in Vietnam move up to Tier 1. The other Tier 1 firms are it described as a new approach to IP on behalf of the client. In early 2017, non- Baker McKenzie, Lee and Li, Tsar & Tsai, and protection in the ASEAN. Called the traditional marks are almost not accepted Taiwan International Patent & Law Office. “ASEAN Trademark Package”, the initiative for protection by NOIP (National Office of allows for the coordinated search and Intellectual Property of Vietnam),” said prosecution of trademarks across ASEAN. the firm. In patent, the Tier 1 firms were Baker Tier 1 firm Tilleke and Gibbins was McKenzie, Domnern Somgiat & Boonma, able to register a 3D mark for Cartier’s Rouse, and Tilleke & Gibbins. In copyright iconic “red box.” The closely integrating economies of and trademark, ZICO IP moved up to join Tilleke also noted that this Southeast Asia, boosted by the 10-nation the Tier 1 firms of Baker McKenzie, Domnern development may pave the way for more regional grouping of Association of Somgiat & Boonma, and Tilleke & Gibbins. 3D trademarks to secure registration Southeast Asian Nations (ASEAN), present in Vietnam, and raise further the new opportunities as well as challenges for government’s understanding of 3D marks. Thai-based IP firms. In patent, the Tier 1 firms are Baker Regional patent and trademark McKenzie, Pham & Associates, Tilleke portfolio management assigments were & Gibbins, and Vision & Associates. In on the rise, and so were the IP cross-border In addition to routine proceedings such as trademark and copyright, IPMAX Law disputes within the region. filing, opposition, and seizures, law firms moved up to join the Tier 1 group of For example, ZICO IP, a Tier 1 firm in in Vietnam also found themselves tackling Baker McKenzie, Hogan Lovells, Tilleke & copyright and trademark, worked on a new areas in IP. Gibbins, and Vision & Associates.
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Despite a challenging business environment, multiple legal professionals who specialise in offshore law are not only meeting but exceeding client expectations. Asian Legal Business surveyed clients to pick 10 outstanding lawyers for its second Offshore Client Choice list, and what these names have in common is the ability to provide sound advice and a commitment to client service. For this year’s list, the lawyers shared significant developments in their firms amid today’s complex offshore transactions in Asia. The names below are in alphabetical order.
BY HAKY MOON | SURVEY BY ALB
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transactions in Bermuda, Guernsey, Jersey, and CHRISTOPHER BICKLEY other offshore jurisdictions. CONYERS DILL & PEARMAN “We have seen more offshore-related mandates in a number of areas, such as the use of LLC,” says The head of the Hong Kong office of Conyers Dill & Chan. “Appleby is already advising Pearman, Christopher Bickley, is an offshore lawyer on a number of LLC structures, be it that is frequently mentioned by clients as a top new establishment or continuations choice. of foreign entities into the offshore Bickley is a partner at Conyers Dill & Pearman, jurisdictions.” a firm he joined in 1994, just four years after She adds, “Chinese investors who he graduated with an LLB from Southampton used to play a passive role as limited University. partners are becoming sophisticated Bickley focuses on all aspects of corporate and thereby demanding greater roles law with specialist expertise in corporate finance, in the management and operation of expertise that extends to debt financings, schemes investment funds.” of arrangements, restructuring exercises, fund Her recent cases include raising exercises and private equity investment. advising as Caymans counsel to “Deal activity in this sector has increased a Beijing private equity fund in significantly across China and the wider Asia-Pacific relation to its $300 million acquisition of a U.S.- region,” Bickley told ALB in 2015. listed semiconductor wafer processing equipment That trend has kept the 23- provider. year Conyers veteran busy. He is For the offshore sector in Asia, Chan says a member of the Bar in the British measures on outbound direct investment introduced Virgin Islands since 2000 and a by the Chinese government to curb outflows of barrister and attorney in Bermuda capital has put many M&A and acquisition finance since 1994 as well as a Hong Kong matters involving offshore vehicles at a standstill. solicitor since 1997, although he is no “The situation is not entirely pessimistic. We currently practicing there. expect to see a corresponding growth in financing He is particularly experienced in and re-financing transactions falling within the initial public offerings and listings ambit of strategic energy acquisitions and those of shares of companies on the Main foreign investments which are in line with the One Board and the Growth Enterprise Belt, One Road policy,” notes Chan. Market in Hong Kong as well as stock Chan is “amazingly helpful and willing to exchanges in other jurisdictions answer questions 24 hours a day,” says a client. “I including Australia, the United Kingdome, Singapore have met many offshore lawyers in my field of work, and, in the NASDAQ in the U.S. and her response time is second to none.” Bickley is also the author of Bermuda, British Virgin Islands and Cayman Islands Company Law, which is now in its fourth edition as was published by Thomson Reuters and Sweet & Maxwell Asia. JONATHAN CULSHAW “[Bickley] is extremely attentive to clients and HARNEYS other professional parties,” says one of his clients. Jonathan Culshaw is the Asia Managing Partner and Global Head of Investment Funds and Regulatory. Culshaw holds an LLB from the University of Bristol. FIONA CHAN Culshaw’s practices focuses on the APPLEBY establishment and maintenance of Cayman Islands hedge funds, venture capital funds and private A corporate partner in Appleby’s Hong Kong office, equity funds as well as the structuring of private Chan advises clients on various offshore jurisdictions. equity portfolio acquisitions and disposals. While much of her most recent work involves the For Culshaw, who is one of the top choices for British Virgin Islands (BVI) and Cayman Islands, clients surveyed by ALB, the offshore legal field is she has also acted for clients on issues related to increasingly competitive.
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BERMUDA BRITISH VIRGIN ISLANDS CAYMAN ISLANDS DUBAI HONG KONG LONDON MAURITIUS SINGAPORE
2017_03_GLB_SNG_ALB.indd 1 4/21/2017 11:02:49 AM OFFSHORE
“Competition between the He is a member of the Nova Scotia Barristers’ offshore law firms in Hong Kong Society in Canada and a member of the Bar in remains fierce with local offices Bermuda, British Virgin Islands (BVI) as well as being well-managed and fielding England and Wales, where he no longer practices. strong benches of lawyers,” he says. He has been recognized for his work in Asia and With that said, business has Latin America multiple times, in both offshore and been good for Harneys, a firm that is mid-shore jurisdictions. well-known in the space. “As complex transactions with offshore “We have enjoyed a particularly connections continue in ASEAN, we continue to successful run over the past few see room for growth in demand for offshore legal years involving growing our office, services in the region,” Dickson told ALB at the end increasing market share and opening of 2015. in new markets,” Culshaw says. Much of that work, it turns out, goes to him. “However, we remain committed to continually “Alan never misses a deadline. His legal skills improving and are aware that offering a client- are extraordinary,” says a client. centric service has been the key to our success.” Before joining Harneys, Culshaw worked for seven years at international firm Freshfields Bruckhaus Deringer in London and Hong Kong NICK HARROLD before moving to the Cayman Islands to work for MAPLES AND CALDER Walkers. Culshaw is lauded as “very responsive and Nick Harrold is a partner at Maples and Calder. Based knowledgeable,” and having “great attention to in Hong Kong, he advises a diversified international detail,” according to a client. client base with a particular focus on clients who wish to target the Japanese market. He has been recognized before as a funds specialist who can ALAN DICKSON apply legal principles to complex CONYERS DILL & PEARMAN commercial issues and has a wealth of knowledge on the Japanese Frequently mentioned by clients as one of the most market. knowledgeable and responsive offshore lawyers in “We are continuing to see very the region is Alan Dickson, a 30-year veteran who strong demand for offshore products has spent most of his career with Conyers Dill & across Asia. My particular area of Pearman. expertise is the Japanese market As in previous years, Dickson made a prominent where I advise on the establishment showing in the 2017 Offshore Client Choice List. of Cayman Islands funds for Japanese Dickson is the director and head investors,” says Harrold. of Conyers’ Singapore office, where Since the beginning of 2016, Harrold has he is based. His practice currently advised over 50 new investment funds for the largest focuses on corporate and commercial wealth manager in China. law, with a particular emphasis on In the same year, Harrold’s team was at the securities, private equity, investment forefront of developing some of the first private funds and M&A. equity type unit trust structures brought to market He first joined the firm in 2000 and advised on transactions worth more than US$10 and has spent 17 years – out of more billion using this structure. than three decades as a lawyer – Maples and Calder has been recognized before with the firm. as a winner of ALB’s various law awards but, for He studied in Canada and holds Harrold, it is also “particularly pleasing” to be a B.A. from Mount Allison University, recognized based directly on client feedback. from where he graduated with a “I would say Nick’s deep knowledge and degree in economics in 1980. In 1983 he graduated experience are attributes that set him apart from with an LLB from Dalhousie University. peers,” says a client.
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jurisdictions of the BVI, the Cayman LINDA LEE Islands and Bermuda came together CAREY OLSEN to participate in a joint seminar on cross border restructuring,” says Linda Lee is the managing partner of Carey Olsen’s Mann. Singapore office and lead partner in Asia. Much of the focus of that Lee has more than 20 years of experience in cross- conference was the recent decisions border M&A, corporate finance and restructurings in Bermuda and Hong Kong in the throughout Asia, Europe and the U.S. Experience common case of Z-Obee, which both in-house at several large multinationals as well “will allow the Hong Kong Court as a partner based in Singapore and Hong Kong at and Offshore Courts to cooperate Carey Olsen has given her a depth of insight into through an innovative interpretation client needs, insight recognized by clients. of the common law to recognize an Lee’s early training was in Singapore as both offshore restructure as being utilized across both an advocate and solicitor. She then specialized in jurisdictions.” litigation before joining Pidemco, which is now part “This is a ground-breaking legal decision which of the well-known CapitalLand Group, a real estate is likely to drive immense offshore litigation business firm. She also worked as an in-house lawyer for the at a time when there is a debt bubble in the PRC, Government of Singapore Investment Corporation. which is very likely untenable,” adds Mann. In was in the year 2000 that she moved back into Mann is a barrister by training and he is a leading private practice, when she joined the international offshore litigator, senior tactician and thought leader firm Allen & Overy, where she became a partner in at Harneys, where he specializes in restructuring, Singapore in 2006 and worked also as a partner in insolvency, shareholders’ disputes and contentious Hong Kong. She joined Carey Olsen in 2015, when trusts. the firm set up its Singapore office. He studied at the University of Southampton Lee works regularly with and holds an LLM from Churchill College University strategic investors and private equity of Cambridge. and fund investors. Her private equity Asian Legal Business recognized Mann one of and investment funds experience the top ten offshore lawyers last year. was gained both in private practice A client says Mann is “approachable, good to and working in-house with a leading talk to, and always provides a prompt. Asian sovereign wealth fund in Singapore. “Linda is able to consider the client’s position such as commercial ANN NG and internal concerns instead MAPLES AND CALDER of merely focusing on the legal aspects,” says a client. Ann Ng is a financial services and corporate lawyer that focuses on the international investment fund market. Her expertise is in the formation, structure and restructuring of all types of IAN MANN open and closed end funds including HARNEYS hedge funds, private equity and venture capital, real estate and Harneys’ Hong Kong-based head of offshore infrastructure funds. litigation and restructuring, Ian Mann, says one of the In 2016, globally, Maples and most significant recent offshore legal development Calder’s funds team acted for seven in cross border restructuring took place in March, of the top 10 private equity managers, when the Hong Kong Law Society’s Academy of ranked by five year fund raising total, Law held its inaugural conference on Cross-Border and nine of the top 10 hedge fund Insolvency. managers globally, ranked by assets “For the first time ever, four judges from under management. The team has Hong Kong and each of the three major offshore also established approximately 35
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percent of all newly registered Cayman Islands you have had some success in understanding and Monetary Authority (CIMA) funds and 44 percent of meeting those expectations and I am very grateful all new Exempted Limited Partnerships (ELP), the for that acknowledgement.” most popular vehicle for private equity funds. A client lauds Oakes as “efficient and practical”, “2016 has brought significant macroeconomic a lawyer who is gifted “with business acumen and events, global market volatility and regulatory and lots of industry knowledge.” political pressures that have contributed to the difficult industry dynamics currently felt worldwide,” Ng says. “Client retention has remained high and we have on-boarded a number of new clients across NICHOLAS PLOWMAN multiple offshore structures.” OGIER This is the second time that Ng is listed in the ALB client choice list and said she is “grateful for the Plowman is a partner at Ogier, where continuous support my clients have given me. I will he has been primary focused on continue to try to exceed expectations and deliver developing the firm’s now-significant only the highest level of service and legal advice to Cayman Islands and BCI investment my clients – they only deserve the best!” said Ng. funds and venture capital practice in She is “a breath of fresh air,” says a client. “We Asia. moved from an existing offshore law firm to Maples “We have seen the growth of purely because of the service level provided by Ann.” outbound China work continuing, especially in the M&A, asset management, banking and finance and consequently the disputes ANTHONY OAKES space,” he says. OGIER “The offshore law firms in Hong Kong are well positioned to continue to service this Anthony Oakes is the head of Ogier’s finance work,” he adds. practice in Asia and specialises in banking, capital Ogier has made a point of building a team markets, corporate and commercial transactions – a “really strong bench” of lawyers who speak and structured finance. Mandarin – to cater to this type of work, building. Since joining Ogier, Oakes has advised in a This approach may have helped drive the firm number of landmark transactions including an and Plowman’s practice at a time when markets innovative $1 billion perpetual securities issue by outside Asia seem in upheaval. Chinese multinational Lenovo earlier this year, as Ogier’s headcount for the Hong Kong office well as the recent Garuda Indonesia US$500 million increased by 40 percent in the last year due to sukuk. growth in the city as well as mainland China. “In Asia, the stream of offshore mandates As he explains, “Asia has been somewhat remains strong. In my 18 years in insulated from the turmoil of the U.S. and European Hong Kong, one of the major trends markets, and the domestic Asian economies has been the increase in China seemingly continues to develop and evolve.” mandates,” he says. Plowman, who acts for a wide variety of Asian “I think that increase has been fund managers in the private equity, long-only and true for most practice areas across hedge fund space, was named one of the top 10 most firms in Hong Kong. Being offshore lawyers in Asia by ALB in last year’s list. able to read and write Chinese Joining Ogier in January 2006 from Slaughter has assisted me in understanding and May in London, where he practiced as a and servicing the requirements of corporate M&A lawyer, Plowman subsequently Chinese clients,” explains Oakes. founded Ogier’s Hong Kong office in February 2007. He continues, “My goal is to His primary focus has since been on building have a strong understanding of Ogier’s Cayman Islands and British Virgin Islands clients’ businesses and their legal investment funds and venture capital practice in Asia. requirements and expectations. Receiving any form A client praises Plowman as “sincere, competent, of acknowledgement from clients is a sign that responsible, and enjoyable to work with.”
36 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM ogier.com
8 locations 5 laws 1 firm
Multi-jurisdictional. Multi-disciplinary. We provide BVI, Cayman, Guernsey, Jersey and Luxembourg legal services to clients in the Asian time zone working together with our Shanghai and Tokyo client services offices.
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J000190-ALB-AD-APRIL2017 ASIA.indd 1 19/04/2017 09:28 OFFSHORE and the Singapore Institute of billion). In 2015, she led the corporate Directors. Adams also acts as non- team in completing over 30 IPOs. executive director for a number of She was awarded the ´Woman prominent hedge funds. Lawyer of the Year Award´ in 2016 at A client says: “Stephen can tailor the ALB Hong Kong Law Awards. the work to suit clients’ needs, and A client says: “Judy has been responds very quickly.” exceptionally brilliant. I have nothing but good things to say about her. In the STEPHEN ADAMS region her team provides coverage that COLLAS CRILL JUDY LEE you don’t get from other firms.” Over almost two decades practicing APPLEBY BVI law, Stephen Adams has advised on a range of commercial cross border Judy Lee is a partner and the corporate ANTHONY MCKENZIE matters including joint ventures, group head at the Hong Kong office of CAREY OLSEN mergers, acquisition finance, asset Appleby, where she practices a wide and project finance, investment funds, range of Bermuda, Cayman and BVI Anthony McKenzie is a partner at Carey alternative investments, private equity corporate law with a focus on corporate Olsen’s Singapore office. and capital market transactions. finance and investment funds. McKenzie has range of experience Adams also has a wealth of experience With more than 20 years of experience, in corporate, commercial and finance in trust and private client matters. Lee’s most recent work includes transactions across multiple jurisdictions Adams is a member of STEP, acting as Cayman and BVI counsel to in areas such as M&A, joint ventures, a professional association for Everbright Securities in its listing in secured and unsecured financing practitioners who specialize in Hong Kong, which generated proceeds arrangements, preference share issues inheritance and succession planning, of approximately HK$8.6 billion (US$1.1 and capital markets transactions.
“An excellent firm.”
Legal 500, Asia-Pacific
HARNEYS | Bermuda
harneys.com | harneysfid.com Experienced offshore legal specialists in investment funds, litigation, insolvency, trusts and corporate transactions and an unrivalled full-service offering throughout Asia.
Anguilla Cyprus Montevideo Tokyo Bermuda Hong Kong Sao Paulo Vancouver British Virgin Islands London Shanghai Cayman Islands Mauritius Singapore
38 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM He also has significant experience in advising clients on the structuring, formation and maintenance of regulated and unregulated investment funds in the Cayman Islands. McKenzie was admitted as a barrister and solicitor of the Supreme Court of Western Australia and the High Court of Australia in 2002. A client says: “He has a positive can-do attitude.”
JENNY NIP WALKERS
Jenny Nip is a partner in the corporate and investment funds group of Walkers’ Hong Kong office, where she specializes in corporate transactions such as capital market transactions, M&A and downstream private equity financing and investment deals. A graduate of City University of Hong Kong and Tsing Hua University, Nip has extensive experience representing issuers, arrangers and investors in connection with pre-IPO financings and listings of BVI and OFFSHORE Cayman Islands companies on stock exchanges, including Hong Kong and PRESENCE the US. A client says: “Jenny is good at considering and solving problems from the client’s side. She is very creative on Intelligent and insightful offshore dealing with complicated legal issues.” legal advice and services. Offshore is our domain.
KRISTIAN WILSON applebyglobal.com BEDELL CRISTIN
Kristian Wilson is a partner at Bedell Cristin’s Singapore office. An experienced commercial lawyer, Wilson worked in London and Paris before practicing offshore law in Jersey and the BVI. Wilson advises on BVI law and his practice includes corporate and financial matters, with a focus on joint ventures, private equity and cross- border transactions. A client says: “We have had a very good experience with him.”
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 39 SPONSORED ARTICLE
THE LAW ON YOUR SIDE Financial Health for Insurance and Reinsurance Companies Under OJK Regulation No. 71 of 2016
BACKGROUND Solvency Rating (i.e. the 120% RBMC) must On 28 December 2016, Indonesia’s Financial submit to the OJK a financial restructuring Services Authority (Otoritas Jasa Keuangan/ (penyehatan keuangan) plan and is the ”OJK”) enacted Regulation No. 71/ prohibited from paying dividends or other POJK.05/2016 on the Financial Health rewards to the shareholders (or shareholder of Insurance and Reinsurance Business equivalent). Companies (“Regulation 71/2016” or the “Regulation”). The Regulation is issued to The plan must specify the plan to restructure further detail the requirements regarding the Company’s finances and the timeframe financial health of insurance and reinsurance the Company needs to reach the internal business companies, as mandated under Solvency Rating. Restructuring steps Law No. 40 of 2014 on Insurance Law (“Law may include: (a) asset and/or liability 40/2014”). restructuring; (b) increase of paid up capital; (c) taking out subordinated loans; The Regulation applies to conventional (d) increasing premium rates; (e) partial or insurance and reinsurance business total assignment of insurance coverage; (f) companies, and the financial health of AHMAD JAMAL ASSEGAF merger; and/or (g) such other measures. sharia insurance and reinsurance business Partner companies is regulated separately under [email protected] ASSETS PERMITTED FOR CALCULATING OJK Regulation No. 72/POJK.05/2016 of SOLVENCY RATING 2016 (“OJK Regulation No. 72/2016”) The Regulation limits what constitutes assets that count towards the Solvency Provisions and requirements set under Levels, entailing that an object or a right Regulation will come into force on 1 July owned by the Company that is not defined 2017. in the Regulation not being counted as an allowable asset. SCOPE OF REGULATION 71/2016 The Regulation sets out a broad framework. The Regulation classifies assets calculable This article will focus key provisions of the for Solvency Rating into two categories: Regulation, namely solvency rating, assets (i) Assets in the form of investments and liabilities factored in to determine (“Investment”) and (ii) assets not in the form the solvency rating, minimum equity, and of investments (“Non-Investment”). guarantee funds. Investment assets allowed for calculating SOLVENCY RATING Solvency Rating are limited to (see Art. 5(2) Solvency Rating is defined as the Company’s Regulation): net assets minus all its liabilities. The INDRA ADITYA PAMBUDY a. Bank term deposit; Regulations further restricts what assets Associate b. Bank deposit certificate; and liabilities are to be factored into in [email protected] c. listed shares in stock exchange; calculating Solvency Rating. d. listed corporation bond in stock exchange; e. Medium Term Notes; Art. 3 of Regulation 71/2016 provides that f. securities issued by the Republic of all conventional insurance and reinsurance Additionally, a Company must set an Indonesia; companies operating in Indonesia internal target for solvency level of no lesser g. securities issued by a country other than (“Company(s)”) must at any time meet a than 120% of its RBMC, taking into account Republic of Indonesia; Solvency Rating of no lesser than 100% of its risk profile and stress test. A Company is h. securities issued by Bank Indonesia; their risk-based minimum capital (modal prohibited to pay dividend or reward in any i. securities issued by multinational minimum berbasis risiko –“RBMC”). In form to its shareholder or a person equal to institution in which Republic of Indonesia calculating its RBMC, the Company has to shareholder if such payment leads to the is a member or shareholder; consider at least the following types of risk: 120% solvency level not being met. j. mutual fund; (1) credit risk; (2) liquidity risk; (3) market k. asset-backed securities risk; (4) insurance risk; and (5) operational Under Article 51 of the Regulation, A l. real estate investment fund in the form of risk (see Art. 4 of the Regulation). Company not meeting its own internal collective investment contract;
40 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM SPONSORED ARTICLE
m. securities transaction through repurchase agreement (REPO); Company Type Guarantee-Funds Calculation n. direct inclusion in a limited liability company not listed in the stock exchange; o. land, building with strata title, or land 2% of the PAYDI reserve funds with building, for investment; + p. financing through corporation Conventional life-insurance 5% of reserve funds for insurance premiums mechanism with other Party in the from companies for non-PAYDI insurance products and reserve of credit extension; funds for insurance premiums which are not q. pure gold; yet classified as revenue r. loan with security rights; s. policy loan. 1% of the net insurance premiums + Conventional general insurance Non-Investment Assets allowed for 0.25% of the reinsurance premiums and reinsurance companies calculating Solvency Rating Company’s are + limited to (see Art. 17 (1) Regulation): 2% of the PAYDI reserve funds a. cash and bank; b. premium, including co-insurance premium receivable; c. reinsurance premium claim; A subordinate loan is not considered as a to the equity level, it must hold 25 billion d. reinsurance assets; liability in determining the Solvency Rating and 50 billion for its sharia insurance e. co-insurance claim receivables; if (see Art. 23 Regulation): or sharia reinsurance business (see also f. re-insurance claim receivables; a. it is used to meet the Solvency Rating; Art. 37 (2) OJK Regulation No. 72/2016, g. investment receivables; and which regulates financial health for sharia h. investment returns; b. it is in the form of public notary deed that insurance and reinsurance companies). i. buildings with strata title or land with provides at least: buildings, for own use; and/or 1. that payment towards the loan’s The Regulation prohibits a Company from j. deferred acquisition cost. principal is payable only if it does not paying out dividends or rewards in any form cause the Company to fall below its to their shareholders (or equivalent) if it In addition to the above categories of internal Solvency Rating; results to the Company’s equity levels falling permissible assets, Article 18 the Regulation 2. the term of the loan is not limited; and below the above thresholds. requires all of these assets must: 3. the payable interests is no higher than a. be owned and controlled by the Company, 1/5 of Bank Indonesia rate on the date The Regulation does not define equity, evidenced by title issued by authorized of the agreement execution. however, based on other OJK regulations as institutions; well as our various consultations, the OJK b. not be in dispute; On a further note, Art. 42 of Regulation defines equity as assets minus liabilities. c. not currently collateralized; and 71/2016 provides that assets and liability d. not be blocked by the authorized Party. in relation to the rights of insurance-policy GUARANTEE FUNDS holders or insured parties (“Insurance Article 36 of Regulation 71/2016 requires LIABILITIES THAT MUST BE FACTORED Funds”) should be separated from other Companies to establish a guarantee fund IN CALCULATING SOLVENCY RATING assets and liability of the Company. This amounting to no less than 20% of the Under Art. 19 (1) of the Regulation liabilities separation should be disclosed in the minimum amount for the mandated equity to factor into the Solvency Rating comprises Company’s financial statement. discussed above. The Under Art. 37 and 38 of of all of the Company’s liabilities, including Regulation 17/2016, guarantee funds should technical reserve funds, the latter comprise Moreover, under Art. 43 of the Regulation, be provided in the form of time deposits of: Companies should maintain Insurance- and commercial papers. These funds 1. Reserve funds for a Company’s renewable Fund asset levels with amount at least must be administered by non-affiliated or non-renewable insurance-product equal to the Insurance Fund Liability. custodian banks which are not affiliated premiums with maturity periods of This Insurance Fund Liability consist of to the Companies in question, unless such greater than one year; technical reserves funds, claim debts, co- affiliation occurs as a result of ownership or 2. Reserve funds for renewable insurance- insurance debts, reinsurance debts, and participation by Indonesian parties. product premiums which are not yet other liabilities of insurance policy holders acknowledged as income and with or insured parties. maturity period of one year or longer; 3. Reserve funds for insurance products MANDATORY MINIMUM EQUITY Lubis Ganie Surowidjojo combined with investments (produk Under Article 33 the Regulation, an Menara Imperium 30th Floor asuransi yang dikaitkan dengan investasi insurance business company and Jl. H. R. Rasuna Said Kav. 1 – “PAYDI”); reinsurance business company must Kuningan Jakarta 12980, Indonesia 4. Reserve funds for insurance and/or respectively hold no less than IDR 100 T: (62) 21 831-5005, 831-5025 reinsurance claims; and billion and IDR 200 billion in equity. Where T: (62) 21 831-5015, 831-5018 5. Catastrophic reserve funds. the Company owns a sharia unit, in addition W: www.lgsonline.com
LEGALBUSINESSONLINE.COM ASIAN LEGAL BUSINESS – MAY 2017 41 INDONESIA
Trucks are seen on a road in the Grasberg copper and gold mine operated by an Indonesian subsidiary of Freeport-McMoRan Inc, near Timika, Papua province, February 15, 2015 in this photo taken by Antara Foto.
Last month, a truce was finally reached on a very public dispute between the Indonesian government and U.S. copper mining giant Freeport McMoRan. The dispute had begun in January, when Indonesia introduced new rules for miners that covered contracts and permits, exports, taxes, divestment obligations and domestic processing requirements, among other issues. Among its various provisions, the rules required BRUISING BATTLE Freeport and other miners to shift from their current “contracts of work” to so-called “special mining In January, Indonesia introduced a set of rules permits,” before being allowed to resume exports of semi-processed ores and concentrates, according to requiring miners to shift from their current Reuters. The new permit required Freeport to pay taxes ‘contracts of work’ to so-called ‘special mining and royalties it was previously exempt from and divest permits’ before being allowed to resume exports up to 51 percent of its Indonesian unit, an increase from the previous 30 percent. of semi-processed ores and concentrates. This The Phoenix, Arizona-based Freeport said it would move has led to a very public, increasingly costly only agree to a new mining permit with the same fiscal dispute with miner Freeport-McMoRan, which and legal protection in its current contract. With Indonesia banning all copper concentrate appears to have ramifications not just on the exports until the miner adopted its new set standards, industry, but also doing business in Indonesia. all work came to halt at the Freeport-owned Grasberg, the second-largest copper mine in the world, and brought them to a brink of arbitration. Finally, with BY REUTERS, WITH ADDITIONAL REPORTING BY RAJ GUNASHEKAR Freeport losing an estimated $1 billion in revenue and
42 ASIAN LEGAL BUSINESS – MAY 2017 LEGALBUSINESSONLINE.COM the government losing millions of dollars in royalties, next step of the reform in mining law in Indonesia under apart from fears of a slowing economy and layoffs, the Mineral and Coal Mining Law which began in 2009.” INDONESIA two sides finally called a truce. Last month, Indonesia’s trade ministry issued NEGATIVE IMPACT the miner with a permit to export 1.1 million tonnes of This isn’t Freeport’s only skirmish with the Indonesian copper concentrate till February 2018. But even though government. In 2014, the miner’s exports from Indonesia the government has promised to allow Freeport to were held up for more than six months in a fractious export its copper concentrate once again, negotiations export tax dispute connected to the country’s mining will continue over the next six months on contentious rules, costing Southeast Asia’s top economy more than issues, including on divestment, economic and legal $1 billion and putting thousands of jobs at risk. protection and smelting investment. The new rules stem from a ban announced by Indonesia in 2014 on ore shipments to push miners to “It should be very challenging for the foreign build smelters to process ore locally, which, however, investors to understand the policy of the Indonesian gave some concessions to concentrate producers after protests from the industry. As part of this push, a ban government and to have business certainty. Hence, on the export of mineral concentrates from Indonesia this may harm the reputation of Indonesia in the kicked off in January. eyes of foreign investors. On the other hand, the Rules now being drafted will allow concentrate shipments to continue beyond that deadline in certain change would probably be appreciated by mining cases. “The prohibition on the exportation of mineral companies as the policy showed that the country’s concentrates was actually introduced in 2014 by the government intends to find solution for the issuance of Government Regulation as the Second Amendment to Government Regulation on the problems facing by mining companies.” Implementation of Coal and Mineral Mining Business — Defrizal Djamaris, Kudri & Djamaris Activities,” says Defrizal Djamaris, co-founder of Jakarta law firm Kudri & Djamaris. “This prohibition was the
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Contact : Mayapada Tower I, 5th Floor, Jl. Jend. Sudirman Kav. 28, Jakarta 12920 - Indonesia Phone: +62 21 522 5453 | FAX: +62 21 522 5452 | Email : [email protected] Contact Persons : Fadriyadi Kudri : f.kudri@kndlawyers | Defrizal Djamaris : [email protected]