How To Make A Jurisdiction Clause In A Contract Unshakeable Before A Judge

It is common practice in China that the parties to an international IP-related contract can choose a foreign dispute resolution forum. However, such clauses are not always unshakeable before the Chinese courts. This article explores two cases where the jurisdiction clause in an international IP contract was held invalid, and sheds some light on avoiding such scenarios.

Requirement on actual connection

According to the statutory provisions and the judicial interpretations of the Supreme People's Court (SPC), the dispute resolution forum chosen by the parties must have actual connections with the dispute, such as one of the following localities:

• The domicile of the plaintiff or the defendant