Category Archives: Litigation

How Should Chinese Businesses Pay Remuneration for Inventions Created by Their Employees?

Posted on by

(By Albert Chen) Statistics have shown that since 2007, the invention made for hire have comprised over half of China’s patent applications, and the number is still increasing. According to Article 16 of the Patent Law: “The unit that is granted the patent right shall reward the inventor or designer of an employee invention. After such patent is utilized, the inventor or designer shall be given a reasonable amount of remuneration according to the scope of application and the economic results.”

READ MORE

The Judicial Jurisdiction of Network Infringement in China

Posted on by

By Albert Chen

In the post Could Apple Use Objection to Jurisdiction to Prolong the Litigation Period?, we introduced the objection to jurisdiction Apple submitted to the Beijing Second Intermediate Court after it was sued by the China Writers Alliance over downloads in Apple’s App Store. In China, the infringement or tort cases shall be brought to the court of infringement place or the domicile of the defendant, and the infringement place may include the place where the infringement takes place or the place where the consequences of the infringement are felt. With regard to network infringement, could the place where the consequence of infringement is felt include any computer terminal? Today, we will introduce the relevant system.

READ MORE

Supreme Court Loosened Procedural Standards of Evidences Collected Outside China

Posted on by

By Luo Yanjie

The so-called overseas evidences refer to those evidences developed outside China. In IPR cases, for most right holders are admitted in foreign countries, we have seen a high chance of overseas evidences’ showing up. By Article 11 of Rules on Civil Evidences (the “Rules”):

“If the evidence submitted by the party is developed outside P. R. China, they shall be notarized by the authority where it is collected, and be witnessed by Chinese Embassy or Consulate there; or to be verified through the procedures agreed in the convention between the country and China”.

READ MORE

Key Points to Foreign Company’s IPR Litigation Preparation in China

Posted on by

By Luo Yanjie

With the development of economy, China pays more and more attention to the protection of intellectual property. But whether the patent, trademark or copyright, a lot of high value intellectual property rights belong to foreign companies. Facing the still serious infringing situation, the civil lawsuit is still the most common and reliable means to strike infringement. As for foreign investors, what deserves the attention when preparing lawsuit materials? Today we would like to share the topic with readers as follows:

READ MORE

Could Apple Use Objection to Jurisdiction to Prolong the Litigation Period?

Posted on by

By Albert Chen

The most watched copyright battle between Chinese Writer Alliance (the “Alliance”) and Apple was heard in Beijing No.2 Intermediate People’s Court on the 11th of this month. You may have read our previous essay on the private hearing of the case, and in fact, Apple has also filed an objection to the jurisdiction in the case. Nonetheless, the application was refused by the intermediate court and upheld by the high court after appeal. The lawsuit has been delayed by procedure for nearly half a year, as favored by Apple. Today, we are going to introduce the regulation on the objection to civil jurisdiction in China.

READ MORE

Has Apple Lost Opportunity of In-Camera Hearing on Its Case?

Posted on by

By Albert Chen

The most watched dispute between Baidu (NASDAQ: BIDU) and Chinese Writers Alliance (the “Alliance”) is heard on 11th of October in Beijing No.2 Intermediate People’s Court. That lawsuit is filed following the battle against Baidu by the Alliance. Before the hearing on 11th, Apple applied to the court for the hearing in camera with the claim that the case is with trade secret related. After the consideration by the court, such an application was refused by the judge, yet it still decided the procedure may switch into be in private when one the interrogation involves the business secret. In today’s post, you may see our analysis on the “lawsuit in camera” in China.

READ MORE

How to Apply for Evidence Preservation for IPR Trials in China

Posted on by

By Luo Yanjie

In an earlier Microsoft’s case of right protection (Note: the link is in Chinese), the company applied for the evidence preservation to the court after they found the piracy using by others, demanding the perpetuation covering the pirated Microsoft software installed in the computers in the defendant’s business place. The application was accepted by the court, who thereafter sealed and checked the computers claimed and found each apparatus has been installed at least 5 types of software of Microsoft. Whereby, Microsoft gains the compensation of more than 1 million yuan in the following trials.

READ MORE

MOC: Data of IP Infringement Law Enforcement of this 1st Quarter in China

Posted on by

By You Yunting

The Ministry of Commerce (MOC) reported on 12th the latest progress of the combat against the IPR infringement and knockoff production in 2012 in China. And today’s post is mainly about part of the data released on the conference.

By the preliminary statistics, during this January to April, the commerce law enforcement departments nationwide have investigated and punished those involved in 78,773 cases of intellectual property rights (IPR) infringement and counterfeits, with the money involved of 1, 810 million yuan, 44,371 settled , 1, 016 transferred to the judicial organ and 4,065 dens for counterfeit manufacture are smashed. Also during the period, the public security department investigated 7, 140 cases of infringement and counterfeits, with 9, 305 suspects were arrested and 161. 1 million yuan is involved. During January to April, the procuratorate approved the arrestment in 1, 743 infringement or counterfeits cases and on 3, 289 individuals, and prosecuted 2, 516 cases and 4, 870 individuals. And also in the same period, 2, 586 criminal cases relating to the IPR infringement and counterfeits are filed in the courts throughout the nation, 2, 021 were settled and 3, 170 individuals are covered by the effective sentences.

READ MORE

Data on IPR Development in China, 2011

Posted on by

In recent, the News Office of the State Council held a news conference (note: the link is in Chinese), releasing the data on China IPR development in 2011, and the details are as follows:

Under the unified deployment of special acts by the State Council in combating the IPR infringement and the production and selling of the fake and substandard products, the filed cases in the administration of each level are 155, 900 with the involved amount of CNY 3.43 billion, 1, 702 cases were transferred to judicial organs and 9, 135 shelters were shut down.

READ MORE

Why Apple Store’s Design Patent Application is Not Necessary? II

The post will be published on our website for two days, and today is the second half of it. (the image is the picture of Apple Store in Lujiazui from the www.apple.com.cn)

III. The legal risk in the lawsuit filed against design infringement

Furthermore, once Apple initiate the lawsuit basing on the design, it may be trapped in the patent validity and serial lawsuits, and it’s also a common challenge of patent lawsuits in China.

1. The poor stability of design patent

Despite the design patent is granted by the administration after approval, the organ will not examine the novelty and creativity of the patent applied for it being instable at all. For example, in the design dispute between SECO and HONDA (note: the link is in Chinese), when HONDA sued against SECO for the claimed plagiarism of SECO’s S-RV to its CR-V, the defendant filed the application of patent validity, and present the evidence including the previous design patent applied by HONDA.

READ MORE

Why Apple Store’s Design Patent Application is Not Necessary? I

The post will be published on our website for two days, and today is the first half of it. (the image is the picture of Apple Store in Lujiazui from the www.apple.com.cn)

By the report of Shanghai Daily, Apple Inc filed an application to the United State Patent and Trademark Office (USPTO) for the appearance design of its store in Lujiazui, Pudong New Area. In consideration of the fake Apple Store in Kuning, Yunan Province in south and west China, the application made this time may be the international application, and will enter into China soon to stem the flooding knock off stores. More interesting is that the journalist of the Daily interviewed our attorneys before the report, and we reserved our opinion on the application. To complete our comments on it, here’s our analysis on the issue:

READ MORE

Beijing Files Most IPR Lawsuits in China

As reported by Mr. Chi Qiang, the chief justice of Beijing Higher People’s Court,on the 5th Session of the 13th People’s Congress of Beijing, there have judged 12, 269 IPR cases in Beijing courts of each level, which is a year by year increase of 16.3% and occupies 22.3% of all around China. For these cases, both total amount and new type case are rank first in all the courts nationwide.

Other recommended posts on our website:
1. The Actual Term of Trademark Registration in China
2. How to Apply for the Trademark Record in China Custom
3. How to improve the success rate of trademark registration in China?
4. Matters for Attention in Trademark Refusal Review in China
5. Introduction of China’s Legal System of Trademark Renewal
6. Introduction on the Regulations concerning the Capital Contribution in IPR or Domain Name in China
7. The Copyright Registration in China Could Be FREE?
8. China Copyright Protection Term Longer than EU’s?
9. Matters for Attention in the Patent Preliminary Injunction Application in China(I)

READ MORE

Reconciliation in Patent Dispute between Ericsson and ZTE: While No Release of the Actual Compensation

According to the report (in Chinese) of Donews, a tech website in China, Ericsson (NASDAQ:ERIC) and ZTE (SEHK: 0763, SZSE: 000063) have signed a global cross license agreement and agree to withdraw all the lawsuits against each other, while, on the other hand, no disclosure on the patent fee paid by ZTE to Ericsson.

In April of 2011, Ericsson filed a lawsuit against ZTE in Germany, UK and Italy, claiming the infringement against its patent of GSM and 3G/UMTS wireless technology. After that, there saw a heavy fall of the stock price both in A and H market of ZTE, which was the new lowest price then. And until closing on Wednesday then (19th, January), the price of it in the A stock market was encountered a decline limit and a plunge of 7% in H stock market. According to the stock agent, that mainly resulted from the possible influence of the lawsuit initiated by Ericsson on the achievement in 2011 of ZTE.

READ MORE

Complaints from China IT Tycoon: Weak Protection over IPR Jeopardizes Industry Innovation

According to the report of Nandu Daily, Mr. Ding Lei, the CEO of NetEase (NASDAQ: NTES) and the representative of People’s Congress in China stated on the conference of Guangdong People’s Congress that despite the innovation could make customers more satisfied and bring more market share to the company, which is also the impetus to the company, it’s also haunted with the dilemma of “more innovation more suffering” due to the weak protection on IPR by the state.

According to Ding’s words, the lawsuit on the infringement against the company may last for years, therefore the proceeding may be a suffering to the company; moreover, the judged compensation may be very low even the infringed company wins the lawsuit. “Previously, Baidu stately posted the works of Han Han in its product Baidu Wenku, and why? The reason could only be the poor combat on the infringement”, said Mr. Ding.

READ MORE

The Choice for Apple in China: Patent Lawsuit or Lower Price

According to the news of Forbes.com, for the fast developing and immensely potential mobile phone market in China, Apple has adjusted its phone strategy focusing on the increasing of the market penetration, which however facing the competition from the local manufacturer in China. For such challenges, Apple seems to be tending to file the patent lawsuit for more market share in the country.

In fact, Apple is actively suing its competitor globe-wide. Previously, Apple has filed patent lawsuit against SAMSUNG and HTC in U.S.A., Australia and Europe for its market share is eaten up by android phones, while for the robust iPhone market in England, no same or similar litigation has been initiated by Apple.

READ MORE