Law Firm Changchun represented the transferee of a business and successfully resolved a non-competition injunction case against a counterparty who, having transferred a studio business through a comprehensive business transfer, went on to operate the same studio business nearby in breach of article 41(1) of the Commercial Act.
A person who transfers a business they have been operating to another may not carry on the same or a similar business in the vicinity. Even so, a considerable number of transferors do operate the same kind of business right nearby immediately after a transfer. In such cases a non-competition injunction is needed to respond swiftly and precisely, if only to prevent further loss from a subsequent transfer of the business.
In this case Law Firm Changchun, drawing on expertise in the field, acted for the transferee from the earliest stage and emphasized the need for preservation in a non-competition injunction, obtaining an order from the court granting the application and bringing the counterparty's business to a halt.