The main regulations regarding trademark equity investment are the "Company Law". Shareholders can contribute capital in the form of intellectual property rights, land use rights and other non-monetary properties that can be valued in currency and transferred in accordance with the law. Trademarks are a type of intellectual property rights, but the transfer procedures for trademark rights need to be completed in accordance with the law.

Legal Basis

Article 27 of the "Company Law"

Shareholders can contribute capital in currency, or in kind, intellectual property, land use rights, etc. Non-monetary properties that can be valued in currency and can be transferred in accordance with the law are used as capital contributions; however, properties that are not allowed to be used as capital contributions according to laws and administrative regulations are excepted. Non-monetary properties used as capital contributions must be appraised and valued, and the properties must be verified and must not be overvalued or undervalued. If laws and administrative regulations have provisions on valuation and valuation, those provisions shall prevail.

Article 28

Shareholders shall pay the capital contribution amount stipulated in the company's articles of association in full and on time. If a shareholder contributes capital in currency, the full amount of the monetary contribution shall be deposited into the limited liability company's bank account; if the shareholder contributes capital in non-monetary property, the transfer procedures for its property rights shall be completed in accordance with the law. If a shareholder fails to pay capital contributions in accordance with the provisions of the preceding paragraph, in addition to paying the company in full, he shall also bear liability for breach of contract to shareholders who have paid capital contributions in full and on time.