Bonum Certa Men Certa

China Seems to be Using Patents to Push Foreign Companies Out of China, in the Same Way It Infamously Uses Censorship

(Anti)Competitive advantage by unfair competition and outright exclusion?

Chinese money



Summary: Chinese patent policies are harming competition from abroad, e.g. Japan and the US, and US patent policy is being shaped by its higher courts, albeit not yet effectively combating the element that's destroying productive companies (besieged by patent trolls)

Using legal aggression with patents -- lots of patents which SIPO is granting sparingly these days -- companies become ever more aggressive. China is becoming business-hostile (as we predicted) in some sense and IAM said earlier today that "Beijing IP Court slaps Sony Mobile with injunction based on SEP infringement" and "[a]ccording to Xinhua, the case was filed back in 2015, but negotiations between Sony and Iwncomm over the patent stretch back to at least 2009. The injunction is set to affect 35 Sony models, including the Xperia Z1 and Xperia Z2 in the country. China’s Lexfield Law Offices has helpfully translated the court’s reasoning for granting the injunction..."



One should note that, based on this from IAM [PDF], Iwncomm was a delegate in its conference. Other new posts about it say that it's about a "standard (required in China) known as WAPI." (WLAN Authentication and Privacy Infrastructure)

"Whatever the motivation may be, it will probably harm China's ability to compete in the international scene."Now that SIPO is allowing software patents, which are about to become even more permissible on April 1st, the above is made possible. WAPI is said to be "designed to limit trade into China," based on Wikipedia, which adds that it's "requiring foreign companies to provide confidential trade secrets to Chinese corporations."

Maybe that's the thinking behind patent maximalism in China? Similarly to the country's censorship policy, which is often criticised as means of embargoing foreign companies and thus propping up local (domestic) companies?

Whatever the motivation may be, it will probably harm China's ability to compete in the international scene.

Over in the US, Trading Technologies with its notorious patent lawsuits is mentioned by a blog of a pro-software patents firm which is closely involved. It's about patents on interfaces (in relation to user interfaces) and the firm explains that "the Federal Circuit issued an opinion in Trading Technologies Int’l., Inc. v. CQG, Inc., its first decision finding a user interface to be patent eligible subject matter. The court designated the opinion as non-precedential. On Monday SHzoom LLC filed a motion under Federal Circuit Rule 32.1(e), which allows any person to request that the court reissue a decision as precedential. The text of the motion is set forth below."

"But not all is positive as TC Heartland is looming and for the time being the US trumps China when it comes to patent trolling."Being non-precedential means, much to the regret of patent law firms, that CAFC remains a colossal barrier to software patents. Most of its decisions are against software patents and these decisions are precedential too, just like Alice.

But not all is positive as TC Heartland is looming and for the time being the US trumps China when it comes to patent trolling. Moreover, as EFF lawyers have just put it, the US Supreme Court won't stand in the way of trolls, as we noted briefly last night in relation to SCA Hygiene v First Quality ruling. Here is an explanation:

In a ruling this week that will cheer up patent trolls, the Supreme Court said patent owners can lie in wait for years before suing. This will allow trolls to sit around while others independently develop and build technology. The troll can then jump out from under the bridge and demand payment for work it had nothing to do with.

The 7-1 decision arrives in a case called SCA Hygiene v. First Quality Baby Products. This case involves a patent on adult diapers but has a much broader reach. The court considered whether the legal doctrine of "laches" applies in patent cases. Laches is a principle that penalizes a rightsholder who "sleeps on their rights" by waiting a long time to file a lawsuit after learning of a possible infringement. It protects those that would be harmed by the assertion of rights after a lengthy delay. For example, laches would work against a patent owner that saw an infringing product emerge yet waited a decade to sue, after significant investment of time and resources had been put into the product.

The ruling in SCA follows a similar decision in Petrella v. MGM holding that laches is not available as a defense in copyright cases. The Supreme Court has generally rejected "patent exceptionalism" and has often reversed the Federal Circuit for creating special rules for patent law. So this week's decision was not especially surprising. In our view, however, there were compelling historical and policy arguments for retaining a laches defense in patent law.


Japan's Sony, as in the above case in China, is currenly suffering embargoes due to patents (in China) and Japan's Toyota is also in the patent headlines today. It uses Linux (or Android) in cars. It's no longer a slave of Microsoft (like it used to be). So all that Microsoft can do, based on new articles from today, is demand payments for patents -- undisclosed payments from Toyota [1, 2, 3, 4]. "The companies would not disclose the financial terms of the deal," says one of the reports, but we can imagine that it means a flow of cash from Toyota to Microsoft. Days ago IAM complained about Japanese courts not being "friendly" to patent aggressors. Well, China's courts certainly are, which makes one wonder what China has in mind with its extreme patent strategy (loosening control and attracting over a million patent applications in a single year).

Recent Techrights' Posts

Linux Foundation Says "Housekeeping", "Hung", "Normal", "Native Feature/Support" and "Girl/Girls" Are Offensive Words
Bombing people is OK, just use the right "terms"
It Looks More Like Microsoft GitHub Layoffs
GitHub is just losing loads of money
 
Links 12/08/2025: Science, Hardware, and Ukraine Excluded From Negotiations About Its Future
Links for the day
GitHub the Company Has, in Effect, Just Died (Time to Look for Alternatives)
To Microsoft, what's left of GitHub after dismantling/folding it is some "training set" (people's code, without permission to "train" i.e. misuse under the guise of "GenAI" plagiarism)
Gemini Links 12/08/2025: Meditation, OpenStreetMap, Smolweb, and More
Links for the day
Google News is Dying: Most of Its Top Stories Now Are LLM Slop With Slop Images (i.e. 100% Fake 'Content')
Google News has been drowning in this sort of stuff for quite some time
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, August 11, 2025
IRC logs for Monday, August 11, 2025
Our Predictions Were Right: GitHub Dying as Losses Pile Up (as a Company It Cannot Continue to Exist, It's Not 'Free Hosting')
GitHub always lost money
Links 11/08/2025: Meritless Twitter Suspensions and Disney Scraps Deepfake Dwayne Johnson
Links for the day
Gemini Links 11/08/2025: Upgrading Debian Bookworm and Better Quality PDFs From Gemini Pages
Links for the day
Currys PCWorld Lied a Decade Ago, 10 Years Later It Still Effectively Voids Your Warranty for Installing GNU/Linux Despite It Being Increasingly Mainstream
Microsoft gatekeepers
Team GNOME Has Libeled Me for Nearly 20 Years
we are not dealing with sane people
Experience With Airlines in 'Web Sites' and in 'Apps'
In a lot of ways, Stallman Was Right about what JavaScript would turn out to be
Open Does Not Mean Free
wiser to ask if some program is freedom-respecting
The Register MS Takes Money From Companies Banned by the Biden and Trump Administrations (National Security Risk)
today's sponsor
Sabotaging GNU/Linux PCs (and Users) is Not a 'Joke'
maybe cruelty is the very objective
How We Process Screenshots of Slop to Suitably Tag Them as Slop
everything is a single command
Links 11/08/2025: Data Breaches, Politics, and Climate
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 10, 2025
IRC logs for Sunday, August 10, 2025
Gemini Links 11/08/2025: Tea Caffeine Hot and Super ZZ Zero
Links for the day
Slopwatch: LinuxSecurity, Brian Fagioli, and Other Serial Sloppers
Maybe Microsoft wants to dub this "Web5"
Gemini Links 10/08/2025: Residents Management Company, Automation, and Politics
Links for the day
Links 10/08/2025: AOL Ending Dial-up
Links for the day
Seductive Mirage or Allure of Complex, Proprietary Coffee Machines (or Similar White Elephants)
Software is a lot like those things
Links 10/08/2025: Webrings, “AI Sunglasses” and “AI Eyeglasses”, US Administration Intensifies Attacks on Science and Research
Links for the day
Sometimes Newer is Worse
We generally need to reject this dumb notion that "old" means bad
The Code Used to Make Techrights Fits on a Seventh of a Floppy Disk (or 100KB When Compressed)
For the sake of comparison I've just downloaded the latest version of WordPress. The ZIP file is 27.2MB in size, or ~27,200KB.
What They Tell Young Programmers
Coding in 2025
Simpler is Better When Simple is Enough
Over-complicating things to "sell" new versions is so 1990s
Links 10/08/2025: From Social Control Media to Prison, New Examples of Windows TCO
Links for the day
Sloppy Reporting About Slop, or How The Register MS Lowers Its Standards
Maybe the management isn't even aware of this
IBM's Strategy: Cull 'Expensive' Workers, Replace Them With Cheaper Ones
So far we saw not even one rebuttal or challenge to the claim of Red Hat layoffs scheduled for tomorrow
If You Attack Somebody Too Much You Legitimise and Strengthen That Somebody
at the end those attacks add up to a "martyr" status
The Man Who Helped Microsoft Kill Linux is Trying to Delay Our Lawsuits Against Him
By conservative estimates, and based on court documents submitted by them, they're prepared to spend over a million dollars on lawyers, fighting against me and my wife
Gemini Links 10/08/2025: Gen Con 2025 and Framework Laptop
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 09, 2025
IRC logs for Saturday, August 09, 2025