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In the News

New Chinese Patent Alliance?

Chinese smartphone manufacturers, including Lenovo, Coolpad, Konka, TCL, and ZTE have reportedly teamed up to defend themselves against anticipated patent lawsuits from companies like Apple, Nokia, and Microsoft.

The foreign manufacturers plan to increase their share of China¡¯s booming smartphone market, which grew 58% in the third quarter of 2011. Over 24 million units were sold in China in the third quarter ¨C more than in the US ¨C making China the world¡¯s largest smartphone market.

The growth in Chinese demand for smartphones has been driven by the availability of low-cost Android-based models from Chinese brands like ZTE and Huawei. Chinese internet companies like Alibaba and Baidu also sell Android-based phones. Smartphones costing the equivalent of only $US 50 are expected to be available in China in 2012.

Earlier market expansions by foreign companies into Europe and Australia led to a series of patent skirmishes that are still being fought, and which have caused allegedly infringing phones to be removed from trade shows and retail shelves in some countries.

Microsoft has reportedly been in licensing negotiations with Chinese telecom company Huawei over products using Android software. But Huawei, which has not been reported to be a member of the new alliance, has 65,000 worldwide patents of its own.

Microsoft claims that it has already entered into license agreements with more than half of all Android device manufacturers, including Samsung (the world¡¯s leading smartphone maker), HTC, and Compal (which supplies Dell, HP, and Toshiba).

It¡¯s not clear exactly how the alliance intends to fight against lawsuits by foreign competitors, but efforts may include patent pooling and sharing legal expenses.

Web link: http://aeonlaw.com/new-chinese-patent-alliance/

SIPO explains patent transfer procedures

Netizen: The patentee, also the inventor, would like to transfer the patent to his company. Should he make direct application to State Intellectual Property Office or commission the original patent agency to handle it? What are the transfer procedures? What documents or materials should be prepared besides the patent transfer contract and declaration of changes in bibliographic data?

SIPO: According to Article 10 of China¡¯s Patent Law, for the transfer of the right to apply for a patent or of patent rights, the parties concerned shall conclude a written contract and file for registration at the patent administration department under the State Council, and the latter shall make an announcement thereof. The transfer of the right to apply for a patent or of patent rights shall become effective as of the registration date. Therefore, the patentee should sign contact with the company and register in SIPO. Even if the contract is signed between the inventor and his company, they need to fulfill the aforementioned procedures.

According to 6.7, Chapter 1 in the Part I of "Guidelines for Patent Examination", this procedure can be handled by the parties themselves or they may appoint a patent agency to carry out. Procedures for the transfer of patent rights are as following: related parties should submit to State Intellectual Property Office the transfer contract and declaration of changes in bibliographic data. If it is signed by units, the contract should be stamped with official seal; if it is made by individual, the contract should be signed with name. If there are more than one applicants (or patentees), the consent letter should also be submitted.

In conclusion, if you transfer the patent to your company and your company intends to continue to entrust your original patent agency, you should submit a declaration of bibliographic data (fill in "applicant or patentee" items), patent transfer contract signed or sealed by you and your company and the power of attorney issued by your company to the agency; If your company intends to entrust a new patent agency, you should submit a declaration bibliographic data (fill in "applicant or patentee" and "patent agency" items), patent transfer contract signed or sealed by you and your company and the power of attorney issued by your company to the new agency; If you plan to handle on your own and your company does not commission any patent agency, you should submit a declaration of bibliographic data (fill in "applicant or patentee" items), patent transfer contract signed or sealed by you and dismiss letter signed by you.

The formats for declaration of change in bibliographic data and commission letter can be downloaded from the official site of State Intellectual Property Office (http://www.sipo.gov.cn/bgxz/).

Web link: http://ip.people.com.cn/GB/152255/16802993.html
Lehman, Lee & Xu is a top-tier Chinese law firm specializing in corporate, commercial, intellectual property, and labor and employment matters. For further information on any issue discussed in this edition of China Patents In The News or for all other enquiries, please e-mail us at mail@lehmanlaw.com or visit our website at www.lehmanlaw.com.
© Lehman, Lee & Xu 2012.
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