International Law

Pierre Cardin China IP Deal Sounds Fishy To Me

By Stan

A Shanghai-based company said yesterday that it is buying the Chinese licenses of French fashion giant Pierre Cardin, but other media reports indicate the deal may be clouded by prior agreements with other potential purchasers.

Shanghai Century Star Imp & Exp Corp, a unit of state-owned China National Garments Group Corp, reached an initial agreement with Pierre Cardin for the deal in June, and final talks are still under way, according to a company statement released yesterday.

It was in June, in fact, that the fashion giant’s founder, 87-year-old Pierre Cardin, announced plans to sell the company’s textile and accessories licenses in China for 200 million euros (US$285 million). The Chinese licenses cover men’s suits and casual wear and women’s clothing and accessories.

In June, China’s Xinhua and French news agency AFP identified the two potential buyers as private shoe makers Jiansheng Trading Ltd and Cardanro, from Guangzhou in Guangdong Province. Jiansheng, however, later denied the reports to Reuters.

A Hong Kong newspaper reported last week that Cardin is scheduled to fly to China next month to sign an ownership transfer agreement with a consortium of four Wenzhou businessmen, including Sun Xiaofei, chairman of Cardanro. (Shanghai Daily)

OK, first off, you don’t sell licenses. You either license IP or you transfer/sell IP. Legal terminology. Muy importante.

With that out of the way, why do I think that something here smells funny? Take a close look at the players.
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Full post as published by China Hearsay on August 26, 2009 (boomark / email).