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    Invalidating a patent in china ranches osi updating classic america

    Many sophisticated patent owners have also found that they can use their patent portfolios defensively as a deterrent to litigation.

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    With the increasing costs of drafting, prosecuting and maintaining patents worldwide, many companies are asking themselves why it is necessary to invest in building and managing a global patent portfolio with strong patents that protect current and future products and that can survive validity challenges brought by competitors.Call them “junk patents” or “low quality patents”, however you’d label China’s utility model patents; earlier this year, a utility model patent owner obtained a damages award of USD6 million and a permanent injunction for the infringement of such a patent.This is likely to be the second largest damages award after the famous USD48.5m damages award against Schneider in September 2007 for a utility model covering low voltage switches.The Schneider case was considered by some to be a one-off phenomenon.With another multi-million dollar infringement award, should we really pay attention to utility model patents in China?Multinational corporations are increasingly feeling the pressure from products manufactured in China, and Chinese companies are increasingly finding they need to secure and enforce patents in China to defend their global and Chinese market shares.This article considers how IP owners can employ defensive strategies within the Chinese patent and court systems to protect against loss of market share and to mitigate the risks of injunctions and liability for damages.After a warning is issued, the party being warned or an interested party can commence a legal action seeking a declaratory judgment for non-infringement.The conditions for bringing such an action are as follows: The major implication for the patent holder in such a scenario is that the alleged infringer may commence a declaratory action before a local Court where it is domiciled, depriving the patent holder of the opportunity to choose the forum.It found the defendant company infringing this patent and filed a lawsuit in the Weifang Intermediate Court, seeking injunctive relief and damages of RMB45m.The alleged infringing product is a MEMS microphone.In China, patent infringement cases are generally heard by the Intermediate People's Courts.show all | collapse all Sending warning letters to the alleged patent infringers is a common tactic employed by patent holders to try to settle disputes amicably.Patent validity proceedings are dealt with at first instance by the Patent Review and Adjudication Board ("PRAB") of SIPO based in Beijing and not by the Courts.

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