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The Intellectual Property Litigation Trends in Central China

The Intellectual Property Litigation Trends in Central China 

Introduction 

With ongoing progress in science and technology and the wide implementation of the innovation-driven development strategy across China, intellectual property rights has become increasingly prominent. As China's economic hinterland and innovation high ground, central China region has seen its trends of intellectual property litigation featuring the active regional scientific and technological innovation and reflecting the overall trend of national intellectual property protection. This article presents the trends of intellectual property litigation in central China concerning the latest development of patent, trademark and copyright litigation in central China and the challenges and opportunities of trade secret protection by analysing the intellectual property cases advised by Zhong Lun team in recent years.

New Trend of Patent Infringement Litigation 

In recent years, patent infringement litigation in central China has seen a trend of spreading from small household appliances and communications sectors with frequent technology updates to traditional industrial sectors such as automobiles and machine tools. Compared with that of the eastern coastal areas, the pillar industries in central China are mainly concentrated in the traditional industrial sectors. There are relatively fewer enterprises in the sectors of household appliances and communications, and therefore the number of patent infringement litigation cases in those sectors is few. However, the number of patent infringement cases in traditional industrial sectors in central China has continued to rise in recent years, as a result of the increased activity of technological innovation and the intensity of market competition. Taking the patent infringement disputes advised by the author's team in a special vehicle industry for example, the cases involved multiple patents and multiple models of vehicles. Due to the high threshold of market access and huge capital investment in the automobile industry, once a patent infringement occurs, it often produces high frequency patent invalidation cases and high-value claims, which puts higher professional requirements on and poses more challenges for litigators. At the same time, some "specialised and special new" companies in the central region have an increased awareness of patent rights protection, and dare to legally challenge giant competitors in the industry, either due to the companies' confidence in their advanced technology and the need for expansion. An example in this case is a David-and-Goliath-type patent infringement dispute handled by Zhong Lun of late representing a small "specialised and special new" enterprise based in the central China region as plaintiff against a top 3 enterprise in the field of communications in China. Although the market position and the technical strength of the two parties differ greatly, the two had fierce competition and heated confrontation on whether there had been patent infringement in some specific products. The two parties filed several actions including patent infringement cases and patent invalidation cases before the China National Intellectual Property Administration, the central region courts, the Supreme People's Court of China.

New Trends in Trademark and Copyright Litigation

As for trademark litigation cases, the Supreme People's Court of the PRC has recently issued a series of judgments, demonstrating a cautious attitude towards bulk rights protection. The Supreme Court has clearly stated that such approach should not be encouraged, but should actively guide rights holders to focus their rights protection actions on producers at the source of infringement, and take legal and reasonable measures to protect their own rights and interests. This shift aims to maintain market order, promote a fair competition environment, and provide clearer and targeted guidance for trademark rights holders seeking protection of their rights.

With the rapid development of the software industry, the volume of claims over software copyright infringement is soaring. Some software giants have employed a "catch-you-later" strategy in IP protection where they turned a blind eye initially when pirated software started to emerge and trade in the market, and would only act when such IP piracy reaches a certain scale, and they would pick out key infringer with deep pockets to pursue actions and enforce their IP rights. In a recent foreign-related software copyright infringement case we handled, a well-known multinational chemical software company detected a potential infringement of a listed company using pirated software in its Central China branch, and quickly applied to the court for pre-litigation evidence preservation. The evidence of software infringement involving dozens of computers was fixed, and based on this evidence, a massive claim for tens-of-millions-of-yuan damages was initiated. The suspected infringer ended up with suffering catastrophic loss. Such trend of rights holders shifting from launching small bulk claims against multiple infringers to cherry-picking few key infringers for high-value claims will have a significant impact on how companies manage the compliance relating to trademark, copyright and intellectual property rights.

New Challenges in the Protection of Trade Secrets

After China revised the Law of the People's Republic of China Against Unfair Competition and a series of other laws and regulations in 2019, the threshold for filing commercial secret civil cases was lowered, which promoted the development of trade secret litigation in the central China region and across the whole country. Companies are keen to protect their own commercial secrets and interests through legal actions. A few recent cases handled by our team involved the protection of commercial secrets by central China-based companies in high-tech fields such as biological strains and carbon nanomaterials. The case values are enormous, and legal and technical challenges coexist in the matters, including secret point confirmation, judicial appraisal, and compensation for damages, which pose great challenges to the presiding judges and acting lawyers. It is very necessary and urgent to get confirmation of the rules and summarise the practical experience.

With information technology advancing rapidly, the trend of digitalised information is increasingly apparent, bringing new challenges and opportunities to the protection of trade secrets. Traditional security methods are no longer able to cope with new types of risks such as network attacks and internal leaks, which pose as an unprecedented threat to the security of companies with trade secrets. One recent cybersecurity case involving employees of a multinational company in central China saw a risk of leakage of trade secret information worth over a billion CNY. The risks of civil infringement of trade secrets, trade secret crime, cybersecurity crime, and even espionage crime are intertwined, putting companies to a serious test.

In response to the lowered threshold for civil filing, the handling of criminal cases involving trade secrets has been more stringent. Whenever a case involves public safety or significant economic interests, the criminal crackdown will significantly intensify. Law enforcement agencies may launch a comprehensive crackdown on the entire infringing group. In such a severe crackdown situation, criminal responsibility may be improperly pursued against members of the group who have not actually participated in the infringement at all or have a lower level of participation. It is therefore necessary to protect the criminal defense rights of the suspects and the defendants while cracking down on trade secret crimes. Our team provided criminal defense services to one citizen in a recent joint criminal case involving trade secrets in the central China region. Multiple meetings were conducted to understand the case and we analysed the possibility of conviction and the necessity of detention for trade secret crimes, were successful in applying for a bail during the transfer, review and prosecution stage, and strived to obtain a result of exemption from prosecution or non prosecution during this stage.

Meanwhile, with the revision of the Counterespionage Law, there is a high possibility that the trade secrets of high-tech enterprises with foreign-related factors may turn into cases of "state secrets, other intelligence, materials, and items related to national security". The act of infringing on trade secrets may also end up with espionage charges, leading to the case filing and investigation by national security organs. 

Conclusion 

With the improvement of awareness of intellectual property protection, the intellectual property litigation in central China is undergoing profound changes. From the fields of household appliances and communications changing to heavy machinery, from industry giants blocking small businesses shifting to small businesses challenging industry giants, patent infringement has become a powerful tool for market competition. With regards to the protection of trademarks and copyrights, the rights holders have shifted from small-value bulk actions against a large number of infringer to high value claims against key individual infringer, greatly enhancing the efficiency and intensity of rights protection. The protection of trade secrets has risen to be a key element in intellectual property protection, and has become the jewel in the crown measured by the case value, the complexity and the profiles of companies involved. A comprehensive application of civil, administrative, and criminal means of trade secrets, as well as the precise identification of cyber security crimes, trade secret crimes, national security crimes, etc., tests the wisdom and the courage of both companies and lawyers.

中国中部地区知识产权诉讼趋势分析 

一、引言 

随着科技的不断进步和创新驱动发展战略的深入实施,知识产权的重要性日益凸显。中国中部地区,作为国家的经济腹地和创新高地,其知识产权诉讼的走势不仅反映了区域科技创新的活跃度,也预示着国家知识产权保护的整体趋势。本文以中伦团队近年代理的知识产权案件为例,从中部地区专利、商标、著作权诉讼新态势以及商业秘密保护的挑战与机遇等几方面入手,分析中国中部地区知识产权诉讼趋势。

二、专利侵权诉讼新态势 

近年来,中国中部地区的专利侵权诉讼呈现出从技术更新迭代快的小家电、通讯领域向汽车、机床等传统工业领域蔓延的趋势。相较于东部沿海地区,中部地区优势产业主要集中在一些传统工业领域,家电、通讯领域的企业相对较少,涉及到专利侵权诉讼案件数量相对较少。但近年来,中国中部地区传统工业领域的专利侵权案件数量持续上升,这反映了该领域技术创新活跃度和市场竞争的激烈程度有所增加。就以笔者团队近年代理的涉及某特种车辆行业市场专利侵权纠纷案件为例,案件涉及多件专利和多种型号的车辆。由于汽车行业准入的高门槛和巨大的资金投入,专利侵权一旦发生,往往产生高频次的专利无效案件和高索赔,这对诉讼代理人提出了更高的专业要求和挑战。

与此同时,中部地区一些“专精特新”企业的专利维权意识也逐渐觉醒和增强,基于对自身技术领先的自信和市场拓展需要,敢于挑战行业巨头。中伦团队近来代理的一个专利侵权纠纷就是这样一个小对大的例子,原告方即为中部地区的一家小型“专精特新”企业,而另一方则是我国通讯领域前三位的企业。虽然双方的市场地位和技术实力相差悬殊,但在具体产品是否存在专利侵权的问题上,双方的博弈异常激烈,双方在国家知识产权局、中部地区法院和最高院层面发动了包括专利侵权诉讼案件和专利无效案件等在内的多项法律行动。

三、商标权、著作权诉讼新动向 

就商标诉讼案件而言,近期最高人民法院通过一系列判决,对知识产权批量维权行为表明了审慎的态度。最高院明确指出,不应鼓励此类维权方式,而是积极引导权利人将维权行动聚焦于侵权源头的生产商,采取合法、合理的手段来维护自身权益。这一转变旨在维护市场秩序,促进公平竞争环境,为商标权利人提供了更加明确和有针对性的维权指引。

随着软件产业的迅猛发展,软件著作权侵权案件的索赔额呈现出巨量上涨态势。某些软件巨头采用放任盗版软件交易,导致相关企业普遍使用盗版的“放水养鱼”式的维权策略。待盗版企业达到一定数量和质量后,选择其中有赔偿能力的重点侵权对象进行维权行动。中伦团队近期代理的一起涉外软件著作权侵权案例中,一家著名的跨国化工软件公司侦测到某上市公司在中部的分公司使用盗版软件的可能后,迅速向法院申请诉前证据保全,固定了涉及几十台电脑的软件侵权证据,并基于这些证据发起了高达数千万元的巨额索赔,该涉嫌侵权企业几乎遭受灭顶之灾。当前,权利人从针对多个侵权企业的小额批量索赔到锁定个别重点侵权企业进行巨额索赔的趋势,将给企业的商标、著作权和知识产权合规管理工作带来重大影响。

三、商业秘密保护的新挑战 

2019年中国修订了《反不正当竞争法》等一系列法律法规后,降低了商业秘密民事案件的立案门槛,推动了中部地区乃至全国商业秘密诉讼的发展,企业积极地通过法律手段维护自身的商业秘密权益。笔者团队近期代理的几起商业秘密纠纷案件,就生动体现了中部地区企业在新兴技术领域对知识产权保护的重视和实践。这些案件涉及生物菌种、碳纳米材料等高科技领域的商业秘密保护,案件标的巨大、法律和技术挑战并存,其中涉及到的秘点确认问题、司法鉴定问题、损害赔偿问题层出不穷,给承办法官和代理律师带来极大挑战,亟待规则的确认和实践经验的总结。

随着信息技术的迅猛发展,信息的数据化趋势日益明显,为商业秘密保护工作带来了全新的挑战与机遇。传统的保密手段已难以应对网络攻击、内部泄露等新型泄密风险,这使得企业商业秘密的安全面临前所未有的威胁。在中伦团队近期代理的一起某跨国企业中部地区员工涉嫌网络安全犯罪案件中,价值十几亿元的商业秘密信息面临泄露风险,商业秘密民事侵权、商业秘密犯罪、网络安全犯罪甚至间谍罪交织在一起,企业面临着严峻的考验。

与民事立案门槛降低相呼应的是,商业秘密刑事案件的处理也呈现出更加严厉的趋势。一旦涉及到公共安全或重大经济利益,刑事打击力度会显著增强。执法机关可能会采取“一窝端”的策略,对整个侵权团伙进行全面打击。但在这种严厉打击的形势下可能对那些并未实际参与侵权行为,或者其参与程度较低的成员不当追究刑事责任。在严厉打击商业秘密犯罪的同时,同样需要保障犯罪嫌疑人、被告人的刑事辩护权利。在近期中部地区发生的一起涉及商业秘密的共同犯罪案件中,笔者团队向其中一位公民提供了刑事辩护服务:通过多次会见了解案情,在分析商业秘密犯罪的定罪可能性、羁押必要性的基础上,为其在移送审查起诉阶段成功申请取保,并力争在该阶段获得免于起诉或者不起诉的结果。

同时,随着《反间谍法》的修订,具有涉外因素的高新技术企业的商业秘密与“国家秘密、其他关系国家安全的情报、资料、物品”存在较大转化的可能性,侵犯商业秘密的行为也有可能转化为间谍犯罪行为,导致国家安全机关的立案侦查。

结语 

随着知识产权保护意识的不断提升,中国中部地区知识产权诉讼趋势也在发生深刻变革。从家电、通讯领域到重型机械领域,从行业巨头对小企业的封杀到小企业挑战行业巨头,专利侵权日益成为企业之间市场竞争的利器;在商标和著作权保护中,权利人从对大量企业的小额批量维权行动转向对个别重点企业的巨额索赔,权利保护的效率和力度大大增强;而商业秘密保护,在知识产权保护领域中异军突起,无论从案件标的、案件疑难程度、当事人知名度,都成为当之无愧的王者。对商业秘密民事、行政、刑事手段的综合运用,对网络安全犯罪、商业秘密犯罪、国家安全犯罪等的精准识别,考验着企业和律师的智慧和胆识。