Increasing US investigations over alleged IPR infringement have
forced more and more Chinese companies to actively register patent
rights across the world in an effort to protect their own rights
and prevent potential lawsuits.
Many production, knowledge and technology-based Chinese
enterprises have suffered from global accusations over IPR
violations without making their patents registered at the initial
stage.
US international Trade Commission (USITC), a major complainant,
has instituted 46 Section 337 investigations against Chinese
companies since 2002, making China the largest victim among other
countries, according to statistics from the Chinese Ministry of
Commerce.
The commission launched 12 investigations against Chinese firms
since the beginning of this year, involving US$1.66 billion, up
more than 43 percent as against the same period of last year, the
statistics show.
Section 337 investigations were put forth against products
imported to the United States that are suspected of constituting
unfair competition. This is particularly based on the infringement
of intellectual property such as patents and trademarks, according
to Section 337 of the US Tariff Act of 1930.
Of the 39 concluded cases, 28 Chinese companies, including a
major battery manufacturer facing charges from US rival Energizer,
were found innocent or reached compromises with complainants, said
Yu Benlin, officer with the ministry, at an IPR forum held on the
sideline of the ongoing 11th China International Fair for
Investment and Trade in this coastal city of east China's Fujian
province.
Many Chinese enterprises did not realize to register patent
rights for inherited traditional techniques, said Yu, citing the
case that a group of wood floor manufactures were charged with
violating a technique about seaming up floor pieces with special
rabbet designs -- a skill invented by an ancient Chinese carpenter
nearly 1,500 years ago.
They just took it for granted to use the technique in the
designing and production process, but some foreign companies had
registered patent rights for it beforehand, according to Yu.
Registering patent rights in the United States, Europe, Japan
and other key trade markets is becoming a common practice among
Chinese firms, which have been striving to expand business and
improve economic and trade cooperation, said Li Yong, vice general
manager with the Xiamen Overseas Chinese Electronic Co., Ltd.,
known as Prima outside China.
Early registration is a forceful weapon fighting against IPR
accusations, said Li, whose company has registered more than 400
patent rights about a large variety of quality electronics
products.
"Establishing a big patent reserve and forming a unified team
with other companies involved is a lesson we learnt from trade
frictions with foreign firms," he stressed.
A latest report from the World Intellectual Property
Organization show that China has become the world's third largest
patent right applicant. In 2005, China applied for some 170,000
patent rights, up nearly 33 percent as against 2004. Moreover,
China is the fourth largest nation, after the United States, Japan
and Republic of Korea, whose patent applications were approved.
In addition, the Chinese State Intellectual Property Office
accepted 3,910 applications for international patent rights, almost
fivefold of that in 2000.
While establishing a patent reserve mechanism, Chinese companies
should also try to learn the US patent systems and find out the
judicial differences between the two countries, said J. James,
attorney with US- based Howrey Law Office, who has dealt with
Section 337 investigation for many years.
The Chinese government will help companies to tackle US IPR
investigations by ways of developing "IPR insurance" to shun risks
and promote communications with USITC, said Yu.
(Xinhua News Agency September 11 2007)
