Pillar Legal, P.C.

🎥 Highlights from the 2024 Video Game Law Summit in Shanghai!

🌏 Entering the China market? Here’s what not to do 🔍 We’ve spent decades helping hundreds of tech companies expand into China, and some mistakes pop up more often than others. To help you avoid those same costly pitfalls, we’ve identified and unpacked the top five legal mistakes that foreign businesses make when entering the China market. We’ve also provided insights and best practices on what you can do instead to ensure you’re on the right legal track in China from the start. If you get these points right, you’ll already be ahead of the curve. 📝 Download our free article here ➡️ https://lnkd.in/gzv72pk5 #ChinaMarket #LegalMistakes #ChinaExpansion #LegalAdvice

🚀 CAC Releases Draft Measures on Labeling AI-Generated Content for Public Comment 🚀 On September 14, 2024, the Cyberspace Administration of China (CAC) proposed the Measures for Labeling Content Generated or Synthesized by Artificial Intelligence for public feedback. Key highlights of the draft measures: 🏷️ Two types of labels: Explicit labeling (显式标识) for content that may confuse or mislead the public, and implicit labeling (隐式标识) as a default for all AI-generated content. 📌 Clear guidelines on labeling placement: For text, audio, images, videos, and virtual scenes, labels must be added at key points, such as the beginning, middle, or end, and prominently displayed within the content or interface. Downloaded or exported content must also retain these labels. 🔐 Platforms and app stores as gatekeepers: They will be responsible for enforcing labeling requirements. 📜 Service providers must disclose labeling practices in their terms of service. These draft measures build on earlier regulations released by China to govern the AI sector, including the Interim Administrative Measures of Generative AI Services and the Administrative Provisions on Deep Synthesis in Internet-Based Information Services from 2023. Both regulations require service providers to label AI-generated content, while the draft measures offer more detailed guidance for implementation and increase platform accountability to ensure compliance. 🔍 📚 For more information on China generative AI regulations, check out our China Regulation Watch: China’s Approach to Regulating Artificial Intelligence. https://lnkd.in/gaZ3bfHf #China #AIGC #CAC

Tech Startup? Avoid these five legal mistakes. At Pillar Legal, P.C., we have worked with hundreds of tech startups and collaborated with incubators and accelerators that have supported thousands more. Drawing on our own experience and that of our partners, we have identified the top five legal mistakes that tech startups make. If you as a founder can get these points right, investor due diligence during your first financing will be much smoother. 📝 Download our free article to ensure you’re on the right track from the start: https://lnkd.in/gypXieMN #TechStartups #StartupMistakes #LegalAdvice 

🤖 On September 28, 2024, Chao Yu, Partner of Pillar Legal, P.C. Shanghai Office, presented “The Copyrightability of AI Generated Content in the U.S.” at the AIGC Conference of the World Design Cities Conference 2024 (WDCC2024) organized by the United Nations Educational, Scientific and Cultural Organization (UNESCO) and the Shanghai Municipal People's Government. 🙏 We extend our thanks to the organizers for a successful conference! #AIGC #CopyrightLaw #LegalTech #WDCC2024

🎉 Pillar Legal, P.C.’s new website just went live! 🌐 With a sleek new design and an intuitive interface, our updated website makes it easier than ever to explore who we are, learn how we work, dive into our legal insights, and navigate our four core practice areas to see how we can support you. ✨ If you’re new to our firm: in 2008 our founder Greg Pilarowski established Pillar Legal, P.C. in Shanghai, and we now also have offices in San Francisco and San Diego. From our locations in both the U.S. and China we help tech leaders protect their companies, so they can focus on innovation and growth. 🌟 🕹️We serve as outside general counsel to many startups and growth-stage companies from a wide variety of industry verticals, but we really “shine” in the video game space, and when advising international companies seeking to enter the U.S. or China markets. 🔍Check out our new website at: https://lnkd.in/gNDmKTbe. If you would like to learn more, please schedule a free consultation at our website. Subscribe to our newsletter and follow us on LinkedIn or WeChat for legal insights and to stay in touch! 📢 🙏Thank you so much to the Tiny Frog Technologies team and to Sandy (Suiwen) Huang for all your hard work in creating and launching this new website! #lawfirm #techlaw #videogamelaw #crossbordertransaction

🚀China’s new ‘negative list’ for foreign investment eliminates all restrictions on access to the manufacturing sector. On September 8, 2024, the National Development and Reform Commission (NDRC) and the Ministry of Commerce issued the latest version of the foreign investment negative list, set to take effect on November 1, 2024. (For reference, China’s negative list outlines the industries that are prohibited or restricted for foreign investment.) This new list removes the two foreign investment restrictions in the manufacturing sector related to 📰 print production and 🇨🇳💊Chinese traditional medicine production – which were the only two remaining manufacturing sector restrictions. In other words, once effective, there will be equal national treatment of domestic and foreign investments in manufacturing. For some background: 📉 ✂️ From 2017 to 2021, the negative list was revised annually, which reduced the number of restrictions from 93 to 31. However, this latest adjustment marks China’s first change since 2021. 📈🌱 In other words, while the two industries impacted may not be the most sought-after areas for foreign investment, the complete removal of manufacturing restrictions is an encouraging development. Meanwhile, efforts toward opening foreign investment in the service sector have been more measured: 🌐📡 Earlier this year, the Ministry of Industry and Information Technology (MIIT) announced pilot programs expanding foreign access to value-added telecom services in select cities: Beijing, Shanghai, Hainan, and Shenzhen. 📞👀Many had hoped this would signal further nationwide liberalization in the telecom sector, yet the new negative list does not include such adjustments. 💻🎓During a recent press conference, a spokesperson confirmed that further opening in sectors like telecommunications, internet, education, and healthcare will proceed cautiously. China relaxing restrictions in the foreign investment negative list is a step towards boosting foreign investment confidence, and hopefully precedes further progress for tech and communications industries. For more information, please see the latest foreign investment negative list here: https://lnkd.in/gY8uGyvn #ChinaBusiness #ForeignInvestment #Telecom #OpeningUp 

💻Making Remote Work, Work 💻 Remote work is no longer just a stopgap—it's become a fundamental part of how some companies operate, ours included. For reference, according to Pew Research: 🏠Roughly 14% of all employed adults in the US work from home all the time. 🏠35% of workers in the US who can work remotely do so all the time — while 41% are at least part-time remote on a hybrid setup. Further, about a third (34%) of those who are currently working from home most of the time say, if they had the choice, they’d like to work from home all the time. 🏠71% of those who work from home all, most or some of the time say doing so helps them balance their work and personal lives – including 52% who say it helps them a lot. However, according to the same data, many remote workers say working from home makes connecting with co-workers more challenging: 🔊53% of those who work from home at least some of the time say working from home hurts their ability to feel connected with co-workers. 🔉37% say remote work neither helps nor hurts their ability to feel connected with their team. 🔇Only 10% say it helps them feel connected. Since working from home may be here to stay for many of us, making the most of remote work requires thoughtful strategies and an eagerness to learn and adapt. Below, we’ve listed a few of the approaches we’ve taken to coordinate our team remotely: 📱Variety of Communication Channels. We maintain a variety of communication channels, including quarterly check-ins, weekly team meetings, regular calls, instant messaging, and email to keep everyone connected and aligned. 🔎Clarity and Flexibility. We aim to set clear expectations and deliverables, working closely together on projects and adjusting our workflows or approaches to tasks as necessary to foster productivity and accountability. ☕️In-Person Opportunities. Where possible, we take advantage of opportunities to meet and connect in person. For example, we aim to gather the entire team from across Shanghai, San Diego, and San Francisco together at least once each year, and we additionally meet in person either one-on-one or with multiple team members where schedules and locations allow for events, meals, and coffee. 💡Tech Considerations. Remote work is made easier with the right set-up – our team members each customize their own work-from-home spaces, but we’re also always reviewing our processes for improvement, including by testing tools ranging from virtual reality office spaces to project management software. We’re still learning every day, and we’re curious to know how others are managing to stay connected in this era of remote and hybrid work. Let us know in the comments! #RemoteWork #WFH #RemoteTeams #LegalIndustry

🚨 FTC Issues Final Rule Banning Fake Reviews 🚨   The FTC’s final Trade Regulation Rule on the Use of Consumer Reviews and Testimonials, effective October 21, 2024, introduces stringent regulations to address abuses in consumer reviews and testimonials. Key provisions include:   🚫 Prohibiting the sale or purchase of fake reviews; 🚫 Banning the manipulation of review content through incentives; 🚫 Banning undisclosed insider reviews; 🚫 Forbidding the creation of company-controlled review sites that falsely claim independence; 🚫 Preventing the suppression of negative feedback; and 🚫 Banning the trading of fake social media metrics. These measures aim to foster a fairer and more transparent marketplace by ensuring that consumer feedback reflects genuine experiences. Key Takeaways for companies: 🔍 Reviews must come from genuine users with real product or service experiences. AI-generated reviews are also considered fake reviews. 🔍 Offering discounts, cashback, or freebies to influence reviews is prohibited. 🔍 Reviews from company insiders (executives, managers, employees, agents) must clearly disclose their connection to the company. 🔍 The connection between any company-controlled review websites and the company must be explicitly disclosed. 🔍 Companies must disclose all reviews, whether positive or negative, unless they contain illegal, offensive, harassing, or confidential information. #FTC #ConsumerReviews #MarketTransparency #BusinessEthics #Compliance #Regulations

🚀 China and the EU Launch New Cross-Border Data Flow Communication Mechanism On August 27, 2024, the Cyberspace Administration of China (CAC) and the EU Commission’s Directorate-General for Trade announced the establishment of the China-EU Cross-Border Data Flow Communication Mechanism. They held their inaugural video conference meeting under this new framework. 🎥 Instead of striving to deepen cooperation or create a more robust reciprocal framework for all types of data flows between the EU and China, this mechanism focuses on practical solutions to specific challenges faced by European companies in China, particularly in the area of cross-border flows of non-personal data. The facilitation of data flow from the EU to China did not seem to appear on the agenda, according to the press releases from both sides. Since the implementation of China’s Personal Information Protection Law on November 1, 2021, the stringent cross-border data transfer requirements have caused increasing uncertainty and difficulties for global companies doing business in China. However, since March 2024, we’ve seen a noticeable shift of China government towards foreign investment, with efforts to optimize the business environment. The data sector, especially in cross-border transfers, has also seen notable changes: 📜 On March 22, 2024, CAC released the “Provisions on Promoting and Regulating Cross-border Data Flow”, easing compliance burdens for data transfers. You can find more information about this new data rule in our prior post. https://lnkd.in/eX-ViU3D 📜 Updated guidelines were also introduced afterwards to simplify the processes of CAC’s security assessment and standard contract filing for transferring personal information outside of China. 💼 This latest development is another step towards facilitating cross-border data flow. China seems to be adopting a more open and communicative stance, aiming to address the economic challenges and enhancing its appeal to foreign investors and businesses this year. 🌍 #DataProtection #CrossBorderDataFlow #CrossBorderData