China E-ventions
Patent News from the Middle Kingdom
Vol. 3 , No. 1 - January 10, 2003
TOPICS THIS ISSUE:
- China Key to Kodak's 'Info-Imaging' Strategy
- U.S. Viagra Ruling Stiffens Pfizer Claims
- Antec Wages War Against Patent Pirates
- Mobile-Phone Suppliers Court China
- China's 3G Standard Wins Government Favor
- China Invests Over US$ 13 Billion in R&D in 2001
Personalizing Patents in 2003 Hi-tech does not have to be impersonal, and despite the fact that a lot of the technology we work with is produced in sterile environments, we at Lehman, Lee & Xu's patent department like to keep things warm and friendly with our clients as well as our professional associates around the world. We appreciate and thank all the readers of our China E-ventions newsletter in 2002, wish you all a very Happy New Year and hope to innovate and make the newsletter even more user friendly in 2003. In order for you to get to know us better, we will be introducing some of our patent agents and litigators in upcoming issues. In this first, revamped issue, your esteemed author would like to introduce herself. My name is Lucy Wang, and I work in the firm's Beijing office. I have been involved in patent prosecution, patent litigation and intellectual property protection throughout the Asia-Pacific region for a long while, beginning with a 10+-year stint at China's State Intellectual Property Office. Before you ask, yes, I am an engineer, which means I have a lot in common with the vast majority of our readership. I studied at the prestigious Peking University, where I obtained a Bachelor of Science and Masters Degrees. In addition to my two full-time jobs, patent attorney and working Mom, I am also currently studying for an LLM degree at China University of Political Science and Law. I write the newsletter in my "spare" time, in addition to other writing and speaking opportunities within China and abroad at international patent conferences. I always have time for feedback and questions! Please get in touch at:
| | |
Need to File a Patent or Trademark in China? Contact LLX at mail@lehmanlaw.com and click below to download a Power of Attorney: | | |
China Key to Kodak's 'Info-Imaging' Strategy
Eastman Kodak Co. is preparing a new round of investment and promotion on the Chinese mainland, according to Daniel Carp, its chairman and chief executive.
The company hopes to take advantage of its strong brand and manufacturing power in China's photographic market by devoting more resources to promoting its digital services in big cities and step up expansion in China's western hinterland, expecting to benefit from a central-government push to develop the region.
In 1998, Kodak invested US$ 1.2 billion in three Chinese state-owned photographic-film plants after agreeing to help restructure China's flagging imaging industry. Now Kodak has gone to the top of China's photographic-film market, with a domestic market share of 63.1%.
With virtually all digital cameras produced globally using a Kodak patent, Kodak relies on its expertise in color science to extend its leadership from traditional into digital imaging. China is key to their global strategy and will be their worldwide production center for all consumer digital cameras.
(Source: Shanghai Daily News)
U.S. Viagra Ruling Stiffens Pfizer Claims
U.S.-based Pfizer Pharmaceutical Ltd. has recently announced that it has obtained an American patent for the general use of phosphodiesterase type 5 inhibitors (PDE-5), which includes sildenafil citrate, the core ingredient of its popular drug Viagra used to treat erectile dysfunction. By obtaining the patent, no Pfizer competitor in the U.S. market can use sildenafil citrate to treat male impotence without first gaining Pfizer's consent.
The company hopes the ruling by the U.S. Patent and Trademark Office could help Pfizer in its dispute with 12 Chinese pharmaceutical companies, which are challenging a patent it received for sole use of the drug on the Chinese domestic market.
In the middle of this year, British authorities rejected Pfizer's patent application for the exclusive production of PDE-5.
So far, China and United State are the only two countries that have granted patent protection to Pfizer's Viagra, industry officials said.
Viagra's difficulties in obtaining a patent arise due to the ingredient already having been used prior to its present application. It was originally used for the treatment of heart disease with some researchers noting during clinical trials that such medicine could enhance the natural mechanism of penile erection. Pfizer's scientists developed the discovery into a medicine exclusively used as an impotence treatment after sifting through numerous similar chemical compounds.
While the drug has been a hit worldwide, protecting it from copycats has become a problem for the pharmaceutical giant.
China's State Intellectual Property office is reviewing a patent that it granted Pfizer last September, after the ruling was appealed by a coalition of 12 domestic pharmaceutical companies.
Before the patent was granted, a total of 17 companies were rushing to get their Viagra-like products to market. Most of the companies had finished clinical trials and nearly half of them had received approval from drug authorities for production before the September ruling banned them from marketing their products.
Pfizer's patent, which is valid until 2014, could bar domestic producers from a market worth approximately RMB 200 billion.
A ruling on the matter is not expected anytime soon.
(Source: Shanghai Daily News)
Antec Wages War Against Patent Pirates
Antec, Inc., a manufacturer of computer hardware and accessories for the upgrade and build your own (BYO) markets, has issued a warning against 'copycat' manufacturers in China and Taiwan.
The company has discovered that certain companies in the region are manufacturing products that infringe its patent pending design for its LED (Light Emitting Diode) fans. An Antec spokesperson said the company will "will do everything it can to protect its product designs and plans to vigorously pursue all companies who violate its patents."
"These companies are not only jeopardizing their own credibility, but are also unfortunately putting their distributors and resellers in danger of sharing legal responsibility for the patent infringement."
(Source: Songdok)
Mobile-Phone Suppliers Court China
A group of the world's leading mobile-equipment suppliers have agreed to limit the licensing fees they levy on third-generation wireless technology in a bid to persuade China and other developing countries to adopt the 3G standard being deployed in Europe.
The agreement will see manufactures of the wireless 3G phones and network infrastructure pay 10% to 25% less in the sale price of the product due to the decrease in royalties to be paid to the patent holders.
The deal between European equipment makers Nokia, Ericsson and Siemens, and Japanese mobilephone operator NTT DoCoMo Inc., is designed to help make the European 3G technology more cost-effective than a rival standard supported by North American equipment companies.
With both Nokia and Ericsson having invested heavily in the technology, it is critically important for both companies that the European version of 3G, known as WCDMA, is successful as its present rival CDMA 2000 technology is favored by many North American equipment makers.
The European equipment makers can afford to throw away some licensing revenues," said Mr. Mark Paxman, a wireless specialist with the PA Consulting Group in the U.K. "But they need [WCDMA] to succeed at almost any cost," according to Mr. Paxman.
Nokia and Ericsson together claim to hold more than 50% of the WCDMA patents but Mr. Paxman still expects the royalty costs on WCDMA equipment to total about 15% as other patent holders may not agree to curb their rates.
(Source: Dow Jones & Company)
China's 3G Standard Wins Government Favor
The Chinese Government has decided to give technical support to domestically developed third generation (3G) mobile communication technology, widely expected to be the next big thing in the mobile communications business, with China's Datang Telecom and German giant Siemens likely to be the major winners.
According to Zhou Huan, president of Datang, the government has allocated broader spectrum resources for TD-SCDMA (time division synchronous code division multiple access), a 3G technology developed by Datang, rather than adopt those developed by European and American companies.
Siemens, a major partner of Datang, will also reap profits from users of TD-SCDMA technology. After investing over EUR 200 million (US$ 203 million) in TD-SCDMA over the last few years, Siemens announced last week it would invest a further EUR 50 million (US$ 50.8 million) into the development of TD-SCDMA. Besides the China-based TD-SCDMA, the other two 3G technologies are the European-developed WCDMA (wideband CDMA) and CDMA2000, nurtured by Qualcomm in North America.
The Chinese government's spectrum allocation, which is very favorable for TD-SCDMA, paved "a golden way" for Datang and Siemens, Zhou said. "China's mobile telecom market will no longer be a playground for overseas companies in the coming 3G age," said Zhang Guobao, deputy minister of the State Development Planning Commission.
Zhang said with the adoption of the domestically invented technology, China will no longer pay billions of dollars in licensing fees to overseas core technology owners. However, Datang and Siemens still have to contend with TD-SCDMA's relatively infant state technologically and that it has no commercialized network equipment or mobile terminals.
Johan Lodenius, senior vice- president of Qualcomm, the core patent owner of CDMA2000, said one of the major obstacles facing TD-SCDMA is the fact that there is still no TD-SCDMA chips available for mobile phones. "It could be years before TD-SCDMA's real commercial use," he said.
To speed up TD-SCDMA's commercialization, Datang recently formed an alliance with several telecom vendors to produce sets of TD-SCDMA equipment. The members of the alliance include Soutec, Huali, Huawei, Legend, ZTE, China Electronics Corp and China Putian, who are chip makers, mobile phone vendors and network equipment makers.
China Mobile and China Unicom, the country's dual mobile carriers, attended the launching ceremony of the industry alliance. While neither has announced they would adopt TD-SCDMA technology in the 3G age, it is widely believed that if the government issues new mobile licenses to other telecom carriers, TD-SCDMA will very likely be used by the new mobile carriers.
(Source: People's Daily)
China Invests Over US$ 13 Billion in R&D in 2001
Statistics from the National Statistics Bureau, the Ministry of Science and Technology and the Ministry of Finance, show that over RMB 100 billion (US $13 billion) was spent on scientific research and development (R&D) in China last year.
In 2001, expenditure on R&D in China was RMB 104.3 billion, RMB 14.7 billion more than the previous year, and was equivalent to 1.1% of China's gross domestic product in 2001.
The statistics indicate that 68.4% of the R&D funds were spent in China's coastal provinces and municipalities, such as Shanghai, Guangdong, and Shandong.
With spending on R&D being a pivotal index to a nation's scientific and technological power the statistics also indicate that the Chinese government has strengthened its financial support of the country's scientific and technological development. In 2001, the Chinese government contributed RMB 70.3 billion towards R&D, RMB 12.8 billion more than the previous year, and 3.7% of national expenditure.
(Source: Asia Pulse)
Lehman Lee & Xu
China Lawyers, Notaries, Patent, Copyright and Trademark Agents
http://www.lehmanlaw.com
Beijing Office | 6th floor, Dongwai Diplomatic Office Building
23 Dongzhimenwai Dajie
Beijing 100600 China
Tel.: (86)(10) 8532-1919
Fax: (86)(10) 8532-1999
Email: mail@lehmanlaw.com | | Shanghai Office | Suite 1310, Kerry Centre
No. 1515, West Nanjing Road
Shanghai 200040 China
Tel: (86)(21) 6288-2698
Fax:(86)(21) 6288-2699
Email: shanghai@lehmanlaw.com | |
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.
