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Full Version: China goes on an intellectual property offensive
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MAKI SAGAMI, Nikkei staff writer
September 22, 2021 18:00 JST


TOKYO -- Foreign businesses in China are becoming key targets in a growing number of intellectual property lawsuits filed by Chinese companies. Enhanced IP legislation, which has led to high amounts of damages for violations granted by courts, has opened the floodgates for litigation.

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The number of IP lawsuits in China has been on the rise. A total of 28,528 IP infringement cases concerning such areas as patents, utility models and designs were heard by Chinese courts of first instance in 2020, up 28% from the previous year. Copyright and trademark suits are also soaring.

Two key factors are behind the swelling wave of IP litigation. One is a growing amount of IP owned by Chinese businesses.

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In 2020, China was the biggest source of applications for international patents in the world for the second consecutive year, with a total of 68,720 fillings. An increased number of Chinese technology-oriented companies see IP protection as a key element of their business strategy.

The other factor is enhanced IP legislation.

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The revisions have raised the maximum damages that can be granted by courts in these cases. The changes have also introduced punitive damages, which are awarded in addition to actual damages in certain circumstances. Now, five times the actual damages may be granted in cases involving serious violations of IP rights.

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Many Chinese companies have world-beating 5G or AI technologies. Onodera predicts a spike in Chinese lawsuits against foreign companies concerning these technologies.



https://asia.nikkei.com/Business/China-t...-offensive