China E-ventions
Selected Software-Related Invention Patents
Vol. 2 , No. 4 - April 5, 2002
Welcome to China E-ventions. Keeping up with technology is difficult enough, but learning about new trends in patent examination methods and policies in different countries is a monumental task. One area of keen interest these days involves a particular classification of patent that goes by many names: business method patent, Internet patent, software patent, and so on - in China, "software-related invention patents". To be clear, many of these names have distinct definitions in certain jurisdictions; however, their similarity has caused great confusion for international practitioners.
The purpose of this newsletter is to provide the foreign patent practitioner with China patent news as well as a regular snapshot of how China's State Intellectual Property Office (SIPO) is approaching these kinds of inventions.
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Ninth National Patent Technology Fair To Be Held In Beijing
The Ninth China National Patent Technology Fair, entitled WTO and Chinese Intellectual Property, will be held in Beijing from April 1 to 5.
With China's WTO entry, domestic enterprises are preparing for more competition and more opportunities. It is hoped that the National Patent Technology Fair, plus an intellectual property seminar held at the same time will assist Chinese entrepreneurs in gaining a larger market share by fully utilizing patent technology and patent strategies.
As April 1 is the 17th anniversary of the PRC's Patent Law coming into effect and April 26 is Global Intellectual Property Day, which was initiated by China, the fair will commemorate these dates and is expected to be a significant event.
Burden Of Proof Shifts To Accused In Patent Violation Lawsuits
In a recent interpretation by the Supreme People's Court, the burden of proof has now switched from the plaintiff to the defendant in cases involving medical malpractice, patent violations, environmental pollution and pet attacks.
According to the interpretations, the accused party will now lose a suit if he or she fails to come up with concrete and substantive proof disproving the plaintiff's claims.
Analysts touted the new interpretations, which focus more on the rights and interests of average Chinese citizens, as a major legal development in China.
"It enormously helps people, particularly those suffering from medical malpractice, in obtaining justice, as it is almost impossible for them to collect enough proof to make their cases in court," said Guo Shoukang, a legal professor from Renmin University of China. People suffering from side effects or adverse effects from the use of defective commercial products will also benefit.
However, there is still controversy over some of the interpretation's content, such as now allowing plaintiffs to use audio or video clips in court that were recorded without the defendant's consent.
Although the interpretations state that the material must be obtained in a legal manner and not violate defendants' rights, it is the first time that plaintiffs are allowed to support their cases with such material proof, and is a significant revision of the Supreme People's Court's statement in 1995 barring the use of any such documents as legal proof.
(Source: China.org.cn)
DVD Makers Give Chinese Manufacturers Deadline For Patent Royalty Talks
Six Japanese and U.S. makers of DVD players have given Chinese audio equipment firms until Sunday, April 7 to enter into negotiations concerning paying patent royalty fees.
Hitachi Ltd. and AOL Time-Warner Inc. are among the six companies that notified China of the deadline.
Japanese company sources allege that over 500 billion Yen was lost due to the Chinese companies manufacturing and selling DVD players using patented technology without paying royalty fees.
The six Japanese and U.S. firms have stated that, in the event the Chinese firms refuse to enter into negotiations regarding the royalty fees, they are prepared to use legal means in obtaining compensation, including claiming for damages and curbing imports.
If the Chinese manufacturers fail to respond, trade friction concerning intellectual property rights between Japan and China will likely intensify.
Industry sources reported that Chinese manufacturers annually produce over 10 million DVD players, 80% of which is exported to the United States. They also estimate that patent royalty fees of US$ 200 million were not paid to the Japanese companies who own the patented technology.
(Source: China Daily)
IP Experts Comment On DVD Royalty Controversy
Intellectual Property experts in China say the recent DVD controversy is in part due to Chinese enterprises not carrying out effective patent strategies.
Tian Fuyun, a Chinese patent lawyer, said domestic companies should team together to oppose the claims by the Japanese and US companies. He also said that patent disputes are usually negotiated by the parties involved as the value of a patent is hard to determine and is a controversial issue in court. Nevertheless, Tian added, the 6 companies asking for 20% of the sales price is a high figure.
Tian also said that royalties should be shared by all manufacturers involved in the process of producing a product, instead of only burdening the last manufacturer in the production process.
Domestic makers have argued that they should not be wholly responsible for royalties since they have already purchased key parts from foreign companies, such as decoders and chips, and the value of the patent is included in the price of these products.
China's legal system also poses another problem for the Japanese and US manufacturers asking for royalties. The collection of royalties on products sold in China before the concerned patents are approved by the State Intellectual Property Office is not supported by law.
Zhu Hong, an official at the State Intellectual Property Office, said the patents of the six companies are still being examined.
In a DVD player, there are roughly 2,000 patents involved, most of which are owned by manufacturers outside of China.
Li Mingde, a professor at the China Intellectual Property Centre of the China Academy of Social Science, and Of Counsel at Lehman, Lee & Xu, said Chinese companies are becoming more aware of the necessity for patent protection, but there are still many enterprises that have neglected to make good use of their technology.
The State Intellectual Property Office of China said that foreign companies submitted approximately 230,000 patents. Foreign companies control 81% of the patents in the information industry, 87% in the bioengineering industry, and 90% in the chemical drug industry.
Few Chinese companies have discovered the big business opportunities in patents, and some have even forgot to register their patents, Li said.
It was only after the recent growth of the China market that foreign companies have raised the issue of royalties. Foreign DVD technology developers pledged to collect royalties in 1999, eight years after Chinese companies began to manufacture DVD players.
If domestic companies do not pay enough attention to patent development, registration and application, Li warned, they could fall into the situation not unlike that of employees of foreign companies in China. "They will do more, while the foreign companies earn more," he said.
(Source: China.org.cn)
Application Number: 99124855
Publication Number: 1297205
Application Date: 99.11.19
Publication Date: 01.05.30
Title: Peripherals interconnection bus compatible master controller and its judging device and method
Intl. Class. Nr. : G06F 13/16
Applicant(s)Name : Weisheng Electronic Co., Ltd
Inventor(s) Name : Lai Jin; Cai Zhaojue; Yang Zhenping
Legal Status : Publication
Abstract : A PCI bus compatible master controller and its judging device and method are disclosed. Said judging device is composed of the polling scheduler coupled to the function circuit. It receives and stores local inquiry signals and start-type inquiries. When bus acknowledges there is a delay in transaction stops, the start-type inquiry starter repeatedly transmits the PCI bus inquiry signals to the bus. When there is no delay in transaction stops, the function circuit can transmit data over the bus. Its advantages are a high utilization rate of the PCI bus and a uniform delay of function devices.
Application Number : 99124454
Publication Number : 1297203
Application Date : 99.11.17
Publication Date : 01.05.30
Title : Transaction device with multi-delay reading and its operation method
Intl. Class. Nr. : G06F 13/14
Applicant(s)Name : Weisheng Electronic Co., Ltd
Inventor(s) Name : Lai Jin; Cai Zhaojue; Yang Zhenping
Legal Status : Publication
Abstract : The transaction device with multiple delayed readings is composed of a request queue, a data storage pool and a controller. When the request signal of the master controller is received, the address of the said request signal is stored in the request queue and controller sends "transaction stop" to PCI bus and requests the data of said address from data storage pool. When the master controller sends same request signal again, controller identifies that its address and data are stored in the request queue and deletes the address from the queue. Advantage is a shortened data transfer delay time.
Application Number : 98100429
Publication Number : 1226716
Application Date : 98.02.19
Publication Date : 99.08.25
Title : Speech controlling device for stock transaction and horse races
Intl. Class. Nr. : G06F 19/00
Applicant(s)Name : Huang Jinfu
Inventor(s) Name : Huang Jinfu
Legal Status : Publication
Finishing result : Deemed withdrawn
Abstract : A sound controlled machine used for investing in foreign exchange, stocks and horse racing is comprised of a terminal with a modem and display screen which is connected via a telephone line to the main station, such as the computer system of a horse racing club, or a stock exchange. Information instructions and control instructions are input by microphone, and speech IC and CPU are used in it for simple and convenient application.
Application Number : 97196158
Publication Number : 1226983
Application Date : 97.08.05
Publication Date : 99.08.25
Title : Fingerprint collation
Intl. Class. Nr. : G06F 19/00
Applicant(s)Name : Enix Corp.
Inventor(s) Name : Tamori Teruhiko
Legal Status : Publication
Abstract : A fingerprint collation system which can reliably identify a fingerprint, operate an electronic money system, and execute an operation control according to fingerprint collation, data transmission and reception, etc. The electronic money system identifies a user's fingerprint by means of a module converting money to an electronic transaction and a money-dedicated ROM operating system supported by a fingerprint collation apparatus as standard devices. The fingerprint collation system collates a fingerprint inputted to a fingerprint-reading-sensor and executes a predetermined operation when the fingerprint coincides with one of the registered fingerprints. In a system that transmits and receives data, and equipped with the fingerprint collation system, an information processing system generates a cipher key from each fingerprint and encodes and decodes data by this cipher key.
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China E-ventions is intended to be used for news purposes only. It should not be taken as comprehensive legal advice, and Lehman, Lee & Xu will not be held responsible for any such reliance on its contents.
