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Chint – What do we learn?
Chint v. Schneider and Holley v. Samsung illustrate a
trend towards higher damages awarded by Chinese
courts – finally to a level to effectively deter
infringement?
Importance of forum – what is special about
Zhejiang province?
Failure to take advantage of the “utility model”
patent system
– In 2008, of the 226,000 utility model applications
filed, < 1% were filed by foreign entities
– Yet, these utility patents may well be enforceable
©2009 Foley & Lardner LLP
Chint - China’s IP Wisdom?
In 1999
– Hitachi, Panasonic, Mitsubishi, Time-Warner, Toshiba
and JVC (6C) issued a statement alleging that various
Chinese DVD player manufactories infringed about
2,000 patents owned by 6C. Chinese DVD
manufacturers, without assessment of the merit of
the allegation, agreed to pay $4 royalty per player.
– Then other foreign companies followed, as of 2006,
Chinese DVD manufacturers pay about $20 royalty for
each player, which equals about $12.5B profit within
5 years.
©2009 Foley & Lardner LLP
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