Home » Markets » China wields new legal weapon to fight claims of intellectual property theft
Comments Off on China wields new legal weapon to fight claims of intellectual property theftMarkets
China wields new legal weapon to fight claims of intellectual property theft
Biden waiving intellectual property rules will undermine efforts to control pandemic: Business Roundtable
FOX Business’ Maria Bartiromo receives a statement from the Business Roundtable pushing back against Biden’s comments about patents on COVID vaccines.
Chinese technology giants have seized on a new legal tactic to fight claims of intellectual property theft, raising concerns in the U.S. that Beijing’s promises to strictly enforce patent and copyright laws will be undermined by Chinese courts.
In four major cases since 2020, Chinese courts granted so-called anti-suit injunctions blocking foreign companies from taking legal action anywhere in the world to protect their trade secrets.
Three of the rulings were in favor of Chinese telecom companies—Huawei Technologies Co., Xiaomi Inc., and BBK Electronics. The fourth supported South Korea’s Samsung Electronics Corp. in a dispute with Swedish telecom giant Ericsson AB.
CHINA HAS ENOUGH STOLEN US DATA TO CREATE ‘DOSSIERS’ ON EVERY AMERICAN, SENATE PANEL IS TOLD
In the Xiaomi case, the Beijing-based company was granted an anti-suit injunction against InterDigital Inc., a Delaware firm that holds patents on wireless and digital technology used in smartphones.
Xiaomi, the world’s biggest smartphone maker, has sold millions of handsets using InterDigital patents since 2013, under industry practice that allows companies to do so while licensing fees are being negotiated.
When talks broke down after seven years, InterDigital decided last year to sue Xiaomi for patent infringement—but found itself beaten to the punch.
At Xiaomi’s request, a Chinese court in Wuhan issued an injunction barring InterDigital from pursuing its case against Xiaomi—in China or anywhere else. If InterDigital persisted, the Chinese court said, it would face fines equivalent to roughly $1 million a week.
To trade lawyers and others who have tangled with Chinese companies over intellectual property, the InterDigital case is the latest sign of how China disregards the patents, copyrights and trade secrets of foreign companies. They say the situation hasn’t improved in key respects despite Beijing’s promises, including pledges made in the 2020 U.S.-China trade deal.
"China’s growth and development strategy is contingent upon IP theft and forced technology transfer," said Charles Boustany, a former Republican congressman from Louisiana and member of the Commission on the Theft of Intellectual Property, an independent advocacy group.
BIDEN, IN CALL WITH CHINA'S XI JINPING, SETS 'GUARDRAILS' TO ENSURE 'COMPETITION DOES NOT VEER INTO CONFLICT'
The Chinese Embassy in the U.S. didn’t respond to requests for comment. In the past, China has said it has taken many concrete steps to improve its environment for protecting intellectual property, including changes to its patent and copyright laws in response to the Phase One trade deal signed with the U.S.
In the U.S. and U.K., anti-suit injunctions are typically issued by courts to prevent identical cases from playing out in multiple legal venues simultaneously. In one well-known case, a federal-district court in Washington state issued an anti-suit injunction blocking Motorola Inc. from bringing a parallel lawsuit against Microsoft Corp. in Germany.
The Chinese injunctions take that a step further by barring legal action globally, according to lawyers and others who track the Chinese courts. The Chinese courts also asserted jurisdiction over patent licensing fees globally, in what attorneys say is a break from standard practice in the West.