EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

01.07.18

China’s Self-Destructive Patent Policy Will Replace Assembly Lines of Products With Assembly Lines of Low-Quality Patents and Lawsuits

Posted in Asia, Patents at 5:52 am by Dr. Roy Schestowitz

Recent: No, China Isn’t Most Innovative, It’s Just Granting a Lot of Low-Quality Patents

China's trolls

Summary: China’s vision, as put forth by Xi Jinping (the General Secretary of the Communist Party of China and paramount leader of China), includes an unprecedented number of patents of notoriously low quality, missing the whole point of patents and neglecting to properly account for economic theories behind patents

THE Chinese patent system is a disgrace like nowhere else. SIPO is a production line or an assembly line of applications, matching perhaps the stereotypes or stigma associated with the country’s manufacturing industry. We wrote a great deal about the short-sightedness of this approach; it’ll jeopardise China’s economic leadership, except in the litigation space, which can in turn deter/discourage companies from operating there. It’s already happening; the writings are on the wall (data points).

“We wrote a great deal about the short-sightedness of this approach; it’ll jeopardise China’s economic leadership, except in the litigation space, which can in turn deter/discourage companies from operating there.”A few days ago (3rd of January 2018) we saw this new article by Hui Wang and Xu Li from Chofn Intellectual Property. Will China be wise enough to put an end to patents on GUI designs? China, as things stand at the moment, is probably the only large country that openly and broadly permits software patents. It became even more lenient on the matter several months ago (further revisions to the guidelines). Is code becoming patentable and if so, why would companies not shift all software development to India (where such patents are banned)? Does China really want this? Patents in China have gone so awfully out of control that some people pursue patents on GUIs. What benefit would workarounds have except confusing users (inconsistent interfaces)?

The parallel universe which is the patent trolls’ lobby loves China. It’s the new ‘darling’. For those who make a living out of litigation China is looking more and more like a paradise or greener pastures. Here’s one of them writing that “China invention patent applications reached nearly 1.4 million in 2017 – 14% year-on-year increase…”

“The parallel universe which is the patent trolls’ lobby loves China.”A worker of a patent troll wrote: “A massive number indeed. Let’s keep the “their quality is poor” rhetoric down…they will get better, faster with these kinds of numbers. The world should be on notice.”

To these people (trolls and their friends at IAM) all these patents are potential profit. At whose expense? Non-trolls. China’s patent bubble is going out of control. It spins out of reason. The Chinese press says this:

China made 1.38 million invention patent applications in 2017, a 14.2 percent increase year on year, an intellectual property official said here Thursday.

Of the total applications, 744,000 patents have been handled and concluded, said Shen Changyu, head of the State Intellectual Property Office, told a meeting attended by intellectual property officials from across the country.

To put things in perspective, 744,000 patents being handled in one single year is probably more than the rest of the world combined. How good an assessment can this possibly be? Does WIPO even care as long as it can boast “growth”? How many Mandarin-speaking examiners even properly assess patents from other countries in the process (at the very least in order to investigate prior art)? They probably just don’t care because this gold rush, which Xi actively encourages, is all about quantity, not about quality.

“To put things in perspective, 744,000 patents being handled in one single year is probably more than the rest of the world combined.”“Story also notes Shen Changyu, head of the State Intellectual Property Office, has urged strengthening of IP protection in China,” Managing IP wrote some days ago. They just try to impress the world with numbers, just like Battistelli. The quality does not seem to matter. Patent scope doesn’t matter either. Without speaking Mandarin it’s hard to scrutinise individual patents and considering weak protections for free speech in China do not expect a Mandarin equivalent of “Stupid Patent of the Month”.

Karry Lai, writing from Hong Kong for Managing IP, had this to say: (the headline states “China tipped for doubling in NPE [read: trolls] patent suits in 2018″)

Non-practicing entities [read: trolls] are looking to take advantage of China’s courts, with some predicting at least a doubling of NPE patent cases in 2018. But a number of factors act as deterrents in China, meaning plaintiffs need to know how to play the game

Misguided patent policy in China has made it the ‘new Texas’ — world’s emergent capital of patent trolls. NPE is just a euphemism and Managing IP is on their side. Why is China doing this to its otherwise blooming industry? Local firms already complain about trolls. They cause a lot of trouble for locals. We wrote several articles about that. They’re called not only “trolls” but also “cockroaches” and worse words. Chinese businessmen and businesswomen gradually come to grips with this relatively new menace.

“They’re called not only “trolls” but also “cockroaches” and worse words.”In some circles, China is nowadays becoming better known for patent litigation than for production/manufacturing (a shot in the foot, except for lawyers). Here’s what IAM wrote some days ago
:

The biggest contrast is in the damages sought. Baidu is asking the Beijing court for around $7.6 million plus legal costs, in addition to an order halting JingChi’s use of any misappropriated technology. This is not a small sum for China, where a recent World Trademark Review article pointed out that the norm in trade secrets cases is statutory damages amounting to less than Rmb 1 million ($154,000). But it pales in comparison with the amount that Waymo could be expected to recoup if it convinces a jury that Uber’s Ottomoto and Otto Trucking divisions were built on stolen technology. Given what’s at stake in China’s autonomous driving market, $7.6 million may not provide much of a deterrent to companies seeking to gain a technical edge and attract investment.

How many small firms can even shell out amounts like $7.6 million? Not many. What is China hoping to accomplish with such a transition to litigation (soaring at alarming rates in Beijing)?

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

Leave a Comment

You must be logged in to post a comment.

What Else is New


  1. Links 18/1/2018: MenuLibre 2.1.4, Git 2.16 Released

    Links for the day



  2. Microsoft, Masking/Hiding Itself Behind Patent Trolls, is Still Engaging in Patent Extortion

    A review of Microsoft's ugly tactics, which involve coercion and extortion (for businesses to move to Azure and/or for OEMs to preload Microsoft software) while Microsoft-connected patent trolls help hide the "enforcement" element in this whole racket



  3. Patent Prosecution Highway: Low-Quality Patents for High-Frequency Patent Aggressors

    The EPO's race to the bottom of patent quality, combined with a "need for speed", is a recipe for disaster (except for litigation firms, patent bullies, and patent trolls)



  4. Press Coverage About the EPO Board Revoking Broad's CRISPR Patent

    Even though there's some decent coverage about yesterday's decision (e.g. from The Scientist), the patent microcosm googlebombs the news with stuff that serves to distract from or distort the outcome



  5. Links 17/1/2018: HHVM 3.24, WordPress 4.9.2

    Links for the day



  6. No Patents on Life (CRISPR), Said EPO Boards of Appeal Just a Few Hours Ago

    Broad spectacularly loses its key case, which may soon mean that any other patents on CRISPR too will be considered invalid



  7. Only Two Weeks on the Job, Judge Patrick Corcoran is Already Being Threatened by EPO Management

    The attack on a technical judge who is accused of relaying information many people had already relayed anyway (it was gossip at the whole Organisation for years) carries on as he is again being pushed around, just as many people predicted



  8. EPO Board of Appeal Has an Opportunity to Stop Controversial Patents on Life

    Patent maximalism at the EPO can be pushed aback slightly if the European appeal board decides to curtail CRISPR patents in a matter of days



  9. Links 16/1/2018: More on Barcelona, OSI at 20

    Links for the day



  10. 2018 Will be an Even Worse Year for Software Patents Because the US Supreme Court Shields Alice

    The latest picks (reviewed cases) of the Supreme Court of the United States signal another year with little or no hope for the software patents lobby; PTAB too is expected to endure after a record-breaking year, in which it invalidated a lot of software patents that had been erroneously granted



  11. Patent Trolls (Euphemised as “Public IP Companies”) Are Dying in the United States, But the Trouble Isn't Over

    The demise of various types of patent trolls, including publicly-traded trolls, is good news; but we take stock of the latest developments in order to better assess the remaining threat



  12. EPO Management and Team UPC Carry on Lying About Unified Patent Court, Sinking to New Lows in the Process

    At a loss for words over the loss of the Unitary Patent, Team UPC and Team Battistelli now blatantly lie and even get together with professional liars such as Watchtroll



  13. China Tightens Its Knot of Restrictive Rules and Patents

    Overzealous patent aggressors and patent trolls in China, in addition to an explosion in low-quality patents, may simply discourage companies from doing production/manufacturing there



  14. Microsoft's Patent Racket Has Just Been Broadened to Threaten GNU/Linux Users Who Don't Pay Microsoft 'Rents'

    Microsoft revisits its aggressive patent strategy which it failed to properly implement 12 years ago with Novell; it wants to 'collect' a patent tax on GNU/Linux and it uses patent trolls to make that easier



  15. EPO Scandals Played a Considerable Role in Sinking the Unified Patent Court (UPC)

    Today's press coverage about the UPC reinforces the idea that the EPO saga, culminating in despicable attacks on Patrick Corcoran (a judge), may doom the UPC once and for all (unless one believes Team UPC)



  16. J Nicholas Gross Thinks Professors Stop Being Professors If They're Not Patent Extremists Like Him

    The below-the-belt tactics of patent trolls and their allies show no signs of abatement and their tone reveals growing irritation and frustration (inability to sue and extort companies as easily as they used to)



  17. The US Supreme Court Has Just Denied Another Chance to Deal With a Case Similar to Alice (Potentially Impacting § 101)

    There is no sign that software patents will be rendered worthwhile any time in the near future, but proponents of software patents don't give up



  18. Litigation Roundup: Nintendo, TiVo, Apple, Samsung, Huawei, Philips, UMC

    The latest high-profile legal battles, spanning a growing number of nations and increasingly representing a political shift as well



  19. Roundup of Patent News From Canada, South America and Australia

    A few bits and pieces of news from around the world, serving to highlight patent trends in parts of the world where the patent offices haven't much international clout/impact



  20. Links 15/1/2018: Linux 4.15 RC8, Wine 3.0 RC6

    Links for the day



  21. PTAB is Being Demeaned, But Only by the Very Entities One Ought to Expect (Because They Hate Patent Justice/Quality)

    The latest rants/scorn against PTAB -- leaning on cases such as Wi-Fi One v Broadcom or entities like Saint Regis Mohawk Tribe, Apple etc. -- are all coming from firms and people who profit from low-quality patents



  22. If Ericsson and Its Patent Trolls (Like Avanci and Unwired Planet) Cannot Make It, the Patent Microcosm Will Perish

    The demise of patent-asserting/patent assertion business models (trolling or enforcement by proxy) may see front groups/media supportive of it diminishing as well; this appears to be happening already



  23. European Patent Office Causes Physical Harm to Employees, Then Fires Them

    Another one (among many) EPO documents about the alarming physical wellbeing of EPO employees and the management’s attitude towards the issue



  24. Battistelli Was Always (Right From the Start and Since Candidacy) All About Money

    “I have always admired creative people, inventors, those who, through their passion and their work, bring about scientific progress or artistic evolution. I was not blessed with such talent myself,” explained the EPO‘s President when pursuing his current job (for which he was barely qualified and probably not eligible because of his political work)



  25. “Under the Intergovernmental EPC System It is Difficult to Speak of a Functional Separation of Powers”

    An illustration of the glaring deficiency that now prevails and cannot be tolerated as long as the goal is to ensure democratic functionality; absence of the role of Separation of Powers (or Rule of Law) at the EPO is evident now that Battistelli not only controls the Council (using EPO budget) but also blatantly attacks the independence of the Boards of Appeal



  26. The Patent Microcosm Thinks It's Wonderful That IP3 is Selling Stupid Patents, Ignores Far More Important News

    IP3, which we've always considered to be nothing but a parasite, does what it does best and those who love stupid patents consider it to be some sort of victory



  27. Automotives, Artificial Intelligence, Internet of Things and Industry 4.0 Among the Buzz Terms Used to Bypass Alice and the EPC Nowadays

    In order to make prior art search a lot harder and in order to make software patents look legitimate (even in various courtrooms) the patent microcosm and greedy patent offices embrace buzzwords



  28. Blockchain Becomes the Target Not Only of Financial Institutions With Software Patents But Also Trolls

    Blockchain software, which is growing in importance and has become ubiquitous in various domains other than finance, is perceived as an opportunity for disruption and also patent litigation; CNBC continues to publish puff pieces for Erich Spangenberg (amid stockpiling of such patents)



  29. EPC Foresaw the Administrative Council Overseeing the Patent Office, Jesper Kongstad Made It “Working Together”

    An old open letter from the EPO shows the famous moment when Jesper Kongstad and Battistelli came up with a plan to empower both, rendering the Administrative Council almost subservient to the Office (complete inversion of the desired topology)



  30. 2010: Blaming the Messenger (SUEPO) for Staff Unhappiness at the European Patent Office (EPO)

    Tactics of SUEPO (EPO union) blaming go further back than Battistelli and can be found in the previous administration as well


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts