China E-ventions
Selected Software-Related Invention Patents
Vol. 2 , No. 5 - June 7, 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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Guangdong, Hong Kong And Macao Cooperate On IP Protection
A number of senior intellectual property administration officials from the southeastern China province of Guangdong, Hong Kong and Macao, gathered in Guangzhou recently to discuss IP issues. Although table topics included cooperation in science, technology and trade amongst the three regions, a preliminary agreement was reached establishing a cross-regional cooperation scheme protecting intellectual property.
The proposed coordination mechanism for IP protection includes the exchange of information, mutual assistance in handling IP infringement cases, public education, joint law enforcement and the protection of IP rights during Expos and conventions. The agreement established a firm foundation for further cooperation between the three regions in the area of intellectual property.
(Source: www. Sipo.gov.cn)
China Government Considering Using Anti-AIDS Drug Patents
In an attempt to save on drug costs, the Chinese government is negotiating with pharmaceutical giants Merck, Bristol-Myers Squibb Co, Glaxo Smith Kline and others in order to gain the necessary patents for producing anti-AIDs drugs in China.
Discussions are also still underway with pharmaceutical companies to further lower drug prices following initial price cuts announced last December. China currently has a 26% import duty on pharmaceutical products, much higher than the 15% tariff imposed by most other countries on such products.
This month, China announced it has an estimated 850,000 people infected with the HIV virus which causes AIDS, but to date, only 684 deaths have been officially recorded as being directly attributed to AIDS. Nevertheless, government officials believe some 100,000 deaths have been a result of the disease. The figure of 850,000 is the highest ever given by the government and represents a 42% increase on last year's figure of 600,000, indicating China has one of the fastest AIDS infection rates in the world.
(Source: China Daily)
Chinese DVD Player Manufacturers Becoming Aware Of IP Implications
Apex Digital, a Chinese manufacturer of DVD players has enjoyed good fortunes in recent times. Although unable to compete with rivals like Sony and Panasonic on a brand name recognition level, the company's low prices have made the brand a hit with U.S. consumers. Apex, which manufactures its DVD players in China's Zhejiang province and has its corporate headquarters in Ontario, Calif., sells more DVD players in the U.S. than any other company.
Rivals claim that Apex's rapid growth was assisted by its infringement of intellectual-property rights belonging to its competitors. An Apex spokesman denies any wrongdoing, but companies that own patents on DVD technology contend that Apex is indeed one of many Chinese manufacturers and distributors of DVD players that have refused to pay royalties for the use of essential technology. Philips, AOL Time Warner and Matsushita are among the companies alleging that they are suffering because of intellectual property rights violations in China. In early April, Sony filed suit in New York against Apex. Within days, Sony dropped the suit and Apex agreed to begin paying royalties to Sony, as well as to Philips and Pioneer.
Apex may be the most high-profile example, but the multinationals accuse roughly 100 other Chinese DVD player manufacturers of similar infringements of their intellectual property rights. Recently, there has been some progress in resolving the dispute between Chinese DVD player manufacturers and the owners of patents on DVD technology, with more Chinese DVD player manufactures likely to follow Apex's lead in the payment of royalties. Toshiba and another 5 multinationals are seeking a US$ 4 or 4% royalty (whichever is higher) from Chinese DVD player manufactures on DVD player's sold by them.
Ms Tian Yujing, a senior engineer at the China Electronic Video & Audio Industry Research Institute, believes Chinese DVD player manufactures have not been paying royalties on DVD players because they were simply confused. Ms Tian went on to say, "We just buy their parts, not the technology, ... all of us believed that you pay 'tuition' when you learn the technology and since the Chinese were not learning the technology, it was only logical that they did not need to make their tuition payments".
Apex spokesman, Mr. Colton Manley, offered an alternative explanation to Ms Tian by saying that the owners of patents on DVD technology had not registered their patents in China and therefore Apex's legal obligations to make royalty payments in such circumstances were still unclear.
As Beijing's leaders are keen to show foreign investors that China intends to honor its WTO commitments, it seems that the country's manufacturers cannot continue to refuse to pay royalties on internationally accepted patents.
(Source: People's Daily)
Supreme People's Court Clarifies Patent Law Amendments
The Supreme People's Court (SPC) considered various amendments to the Patent Law of China and how patent disputes should be adjudicated according to those amendments. From these deliberations, certain issues were clarified by the SPC and some are discussed below:
In which court should a patent-related case be litigated?
Generally speaking, patent related cases should be brought before an intermediate court approved by the SPC as a court of first instance.
Which intermediate court has the appropriate territorial jurisdiction?
The SPC confirmed that patent-infringement cases are subject to the general provisions of the Civil Procedure Law, that is, the court located where the alleged infringement occurred, or where the defendant is domiciled, should hear the case. In addition, the SPC went on to state that, where the plaintiff jointly sues the manufacturer and seller of patent-infringing goods, the court located where such goods are sold is the court with the appropriate territorial jurisdiction as opposed to the court where the patent-infringing goods were manufactured.
In an action only involving a patent-infringing manufacturer, the appropriate court is the court located in the place of manufacturing and not the place of sale. If in such a case, an action is commenced in the place of sale, such an application shall be dismissed and the case should then be litigated in the court located where the patent-infringing goods were manufactured.
It has been commonplace in legal proceedings for patent torts to be suspended when the defendant applies to the patent administration office for the re-examination of the validity of the patent in dispute. Following such a suspension, the litigant's legal interests are subsequently often seriously affected. Is there any change to how the court will deal with such diversionary tactics?
Courts now have the discretion to determine whether to suspend a patent infringement proceeding having regard to the particulars of the case. For example, if the defendant advances a request for the invalidation of the patent of a utility model or a design, other than an invention, the patent infringement proceeding should be suspended. However, if the plaintiff can establish that the evidence provided by the defendant in support of the invalidation is insufficient to invalidate the patent, the court may determine not to suspend the patent infringing proceeding. In addition, if the defendant advances a request for the invalidation of the patent after the prescribed interrogatory period expires, the patent infringement proceeding should not be suspended. Nevertheless, the court has the discretion to suspend any patent infringement proceeding if it thinks it is necessary and appropriate to do so within the guidelines set down by the SPC.
(Source: People's Daily)
Application Number: 00100257
Publication Number: 1264091
Application Date: 00.01.12
Publication Date: 00.08.23
Title: Global tracking system for the inquiry, differentiation and protection of commodities and trademarks on the Internet
Intl. Class. Nr.: G06F 17/60; G06F 15/16
Applicant(s)Name: Wu Anwei
Inventor(s) Name: Liu Songwang; Yang Xintao; Wu Anwei
Legal Status: Publication
Abstract: This anti-forgery global tracking system used for the inquiry, differentiation and protection of commodities and trademarks on the Internet is composed of a serial number and cipher array generating system, Internet ciphered checking system, Internet data warehouse, and an Internet inquiry system. Features include each commodity having a different cipher and serial number. Said system has a database for storing the ciphers of each sold or inquired commodity.
Application Number: 00100485
Publication Number: 1307298
Application Date: 00.02.01
Publication Date: 01.08.08
Title: Electronic food-order receiving and processing system, method, and goods supplying equipment
Intl. Class. Nr.: G06F 17/60
Applicant(s)Name: Wu Xiaoguang
Inventor(s) Name: Wu Xiaoguang
Legal Status: Publication
Abstract: The electronic food-order receiving and processing system includes a table ordering unit to receive food orders, a central processing unit to receive the orders from the table ordering unit, assorted command units to receive the assorted messages from the central processing unit and transmit such messages to the operator; and a change-computing command unit. All units are connected together via LAN. The amount of money for the meal inputted into the table ordering unit is transmitted to the central processing unit, which sends the meal charges message to the change giving command unit, whereupon the change giving command unit converts the message to a change giving command to the operator.
Application Number: 00100498
Publication Number: 1307299
Application Date: 00.02.02
Publication Date: 01.08.08
Title: Computerized shopping system with method utilizing random numbers
Intl. Class. Nr.: G06F 17/60
Applicant(s)Name: Jian Zhengting
Inventor(s) Name: Jian Zhengting
Legal Status: Publication
Abstract: This computerized shopping system includes a setting unit, an inputting unit and a confirmation unit connected to a random number generator as well as a service system connecting the computer system to the network and the web server. The shopping process includes the setting of upper and lower limit values based on the commodity prices, displaying the commodity-specific information on a web site, receiving the client's input signal to generate random numbers, and the confirmation of the purchasing of the product. Features of the system include increasing consumer interest and stimulating shopping.
Application Number: 00100771
Publication Number: 1307301
Application Date: 00.02.03
Publication Date: 01.08.08
Title: Electronic financial business system and program
Intl. Class. Nr.: G06F 17/60; G06F 9/44
Applicant(s)Name: Li Guanlin
Inventor(s) Name : Li Guanlin; Wu Zhensheng; Guo Junxian
Legal Status: Publication
Abstract : The electronic financial business system and program includes an electronic account opening program. Two client ends with individual recognition numbers are contacted by a servo via a digital mobile communicator. Ciphering is undertaken by servo on the client end via the communicator. Through such process access to the financial account is provided to the client end according to the recognition number and cipher. The execution of said electronic business program includes client information entering the servo via the communicator transmitting the recognition numbers and recognizing the financial account and undertaking the relevant input transactions to the account.
Application Number: 00102962
Publication Number: 1313567
Application Date: 00.03.10
Publication Date: 01.09.19
Title: Method for creating a bi-directional real-time Commodity network market
Intl. Class. Nr.: G06F 17/60
Applicant(s)Name: Zhang Hong
Inventor(s) Name: Zhang Hong; Yue Xiangqian; Zhang Donghua
Legal Status: Publication
Abstract: The method for creating a bi-directional real-time commodity market includes registering the user documents and commodity documents, demanding information, searching information about demands, commodities, hot point inquiries, demands, bargains, recording user requests to the database, analyzing said hot points, reading the commodity and demanding documents from users, submitting trade forms from users, and demanding network payment.
Application Number: 00105216
Publication Number: 1316710
Application Date: 00.04.04
Publication Date: 01.10.10
Title: Double fund settlement method and its computer management system
Intl. Class. Nr.: G06F 17/60
Applicant(s)Name: Zhang Xiangyang
Inventor(s) Name: Zhang Xiangyang; Gao Jie; Wang Zhizhen
Legal Status: Publication
Abstract: A fund settling method and its computer management system is unique in that it allows a user managing his/her surplus fund account by computer to freeze part of his/her funds over a certain period of time via a user terminal. The said frozen fund can be unfrozen, the frozen period can be elongated, or the frozen funds can be transferred to a particular account by the user or an authorized person via another user terminal as required, so as to ensure a high rate of payment reliability.
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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.
