Sub Assembly Mapping Strategies under PRC Patent Law
Mapping sub-assemblies against PRC patent claims separates component scope from combined assembly limitations to manage indirect liability and customs hold risks.
Article 1191
Meaning
Statutory rules governing employer liability in Chinese tort law hold business entities responsible for damages caused by their personnel during the execution of work tasks. Under the framework of article 1191 of the civil code of the People’s Republic of China, a company bears the civil liability for any tortious acts committed by its employee while performing duties. This responsibility arises automatically once an employment relationship and a duty-related injury are established, leaving no room for the employer to claim absence of fault.
It constitutes a non-delegable duty that shields injured third parties from having to seek compensation from underfunded individual workers.
Statutory Assignment
Corporate responsibility under this provision covers both direct employees and labor dispatch staff. The receiving employer bears the liability for dispatched workers. The dispatching agency remains liable only for faulty selection.
Operational Risk
Operational exposure increases when a manufacturer engages independent contractors who are subsequently misclassified as employees. If a court determines that the company exercised direct managerial control over the worker at the time of the incident, article 1191 applies to any third-party losses. Factory managers must ensure that subcontracted providers operate independently and utilize their own equipment.
Neglecting this operational separation exposes the buyer of services to unexpected compensation claims.
Recourse Right
Financial recovery after a liability claim remains possible but requires proof of intentional misconduct or gross negligence by the employee. Under the final clause of article 1191, an employer who has paid compensation has the right to demand indemnification from the culpable worker. This statutory recovery mechanism provides a method for companies to salvage capital after an incident.
However, executing this remedy requires clear employment policies and evidence of the employee’s misconduct.