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China Enforces IP Protection
December 01, 2019
 
In the latest sign that China may be doing more than paying lip service to IP protection, the Shenzhen Intermediate People’s Court has handed down an injunction in a patent case initiated by China Star Optoelectronics Technology (CSoT) against a domestic rival. Chongqing HKC, based in Sichuan Province, has reportedly been ordered to halt production, sale and export of certain models of 32-inch LCD displays. The decision, the first page of which was posted online in a news article, comes just seven months after CSOT sued Chongqing HKC in April. It is said to name two different product models. Media reports name the patent-in-suit as an LCD right numbered “ZL20061009897.5”.

  • The Shenzhen court order is the second legal setback for Chongqing HKC in the space of six months. The firm is a joint venture between Shenzhen’s HKC Corporation and several government bodies from the city for which it is named. 
  • In 2018, Taiwanese panel maker Innolux asserted 17 patents against the then-three year old company in a signal to “free-riders” on the Chinese mainland. HKC responded with several countersuits, but according to a May press release from Innolux, all five of its patents-in-suit have been invalidated.
  • A prior conflict began with AU Optronics making claims of trade secret misappropriation and grew to include Chinese patent claims before the two settled in January 2018.
 
Now it looks like the upstart has become an incumbent, and found a smaller target for its burgeoning patent portfolio – CSoT is one of China’s biggest patent filers.
​
High profile litigation in this space could continue to propel what has been a fairly active transactions market. Last week, IAM reported on touchscreen display maker BOE picking up a US patent portfolio from Microchip Technology. HKC itself has also been active on the secondary market as it grapples with legal challenges on multiple fronts. But last week’s judgment in Shenzhen shows that it might well be Chinese patents and Chinese courts that carry the day in these emerging battles. 
​From: iam-media

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