Advertising
China has the second largest advertising market in the world after the US. With the rapid development of technology, myriad opportunities and challenges have occurred. With the emergence of new media such as the mobile internet, social networks, we-media and video portals, and mature and diversified e-commerce models, communication, advertising and advertising business models have become increasingly diversified. With the implementation of the revised Advertising Law in April, 2021 and the promulgation of the Measures for the Administration of Internet Advertising, the Guidelines for Law Enforcement of Absolute Terms in Advertising, the Guiding Opinions on Further Regulating Celebrity Endorsements in Advertising and other laws and regulations by the State Administration for Market Regulations and other authorities introduced in 2022 and 2023, the regulation of advertising and other new forms of marketing has been strengthened. These changes pose new challenges for compliance in advertising for enterprises.
JunHe’s advertising law team consists of more than 20 partners and lawyers from different offices. Our areas of practice cover legal services that are most needed in the advertising industry, including contract services, compliance investigation, intellectual property rights, investment and financing, tax law and dispute resolution. Authorities have strengthened regulations in the advertising industry, and our team is able to provide practical support for internal compliance investigations and respond to emergency administrative inspections. Our clients include well-known brands and international and Chinese advertising companies in the areas of design, media, advertising, public relations and social media, as well as various online and offline integrated marketing companies.
Core Areas of Practice
The establishment and deregistration of advertising companies
Drafting and reviewing contracts, such as advertising business contracts (including advertisement design/production contracts, advertising release contracts, marketing contracts, advertising endorsement contracts and advertising agency agreements), purchase contracts, sales contracts, cooperation agreements, service agreements, confidentiality agreements and other legal documents
Rendering legal advice regarding intellectual property rights, labor, tax, and environmental protection issues encountered by clients in their daily business operations
Corporate compliance and governance, including formulation and training in respect to advertising law, anti-commercial bribery, anti-unfair competition, anti-trust and enterprise data security and privacy
Assisting clients in internal investigations on compliance matters
Assisting clients in investigations, inspections or punishment by government authorities, including representing them to formulate a defense, and assisting clients to communicate with government authorities, and formulate and implement emergency plans
Application, registration, transfer and license of intellectual property, assistance in the establishment of intellectual property rights protection systems, investigation of IP infringement and remedies, and IP-related litigation
Merger, acquisition and reorganization of advertising companies, including the design of transaction structures and process, due diligence investigations, drafting and reviewing transaction documents, and assistance in negotiation and closing
Private equity investment, including the establishment of private equity funds and fund raising, investment in private equity funds, investment by private equity funds in advertising companies, and exit from investments.
Recent Representative Cases
Investments, M&A and general corporate law services for a world renowned advertising group in China
JunHe represents an advertising group ranked top five in the world and provides legal support in respect to all its investments and M&A projects in China. JunHe has also provided general corporate services to many creative, media and PR companies under the group. Our services include the design of transaction structures, due diligence investigations, contract services, compliance investigations, intellectual property rights, investment and financing, tax law advice and dispute resolution.
Business reorganization of a large overseas advertising group in China
JunHe assisted a globally renowned advertising group with the management buy-out of its 4A subsidiary in China. JunHe designed the transaction structure, drafted and assisted with the negotiation of the transaction documents, provided employment and human resource solutions and advised on the relevant approval registration process.
Responding to a government investigation
JunHe represented a well-known advertising company in respect to an allegation by a government authority regarding the language in a TV commercial. JunHe provided legal analysis, designed counter measures and assisted the client to negotiate and communicate with the authority.
The reorganization, private financing and equity incentives of a large advertising transaction platform
JunHe represented a well-known advertising transaction platform and provided legal support for its domestic and overseas structuring and reorganization, as well as equity A financing, and was fully responsible for the structuring and documentation of its equity incentive plan.
