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

Manchester United Dumped Microsoft Because Qualcomm Sort of Did
The Windows PCs were an utter failure
Kazakhstan Doesn't Need GAFAM Datacentres (Spy Hubs)
Suffice to say, as far as we can gather nothing came out from the empty (false) promises of GAFAM's "data centers in Kazakhstan"
Christmas Music Project: Back to When Music Was Music
now Canonical (or Ubuntu) says we should make available tens of gigabytes of disk space
 
Gemini Links 27/12/2025: geminiprotocol.net Downtime and Capsular Gemlog Manager
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, December 26, 2025
IRC logs for Friday, December 26, 2025
Tossing Embarrassing News Under the Christmastime Bus
This isn't just some coincidence; those are conscious choices
Victim-Blaming in Debian
Verhelst previously did blame-shifting when Debian suicide clusters happened
IBM Cuts in Japan, Red Hat is Attached to a Sinking Ship
IBM, which controls Red Hat, is a rapidly shrinking company
Free Software Foundation (FSF) Supported by Unconventional Digital Bartering Communities
But no strings attached
Geminispace: 5,000 Capsules in 2026
There are 4.8k now
Gemini Links 26/12/2025: Careful What You Eat and "My Secret Santa"
Links for the day
The Indigenous Community Versus Corporate AstroTurt and 'Cancel Culture'
Good people will recognise exactly what's happening here and respond to it tactfully
Richard Stallman: Epstein is a Serial Rapist. Bill Epsteingate: Epstein is a Friend.
Supporting the FSF (or Richard Stallman) is supporting those who asserted Epstein had serially raped women
The Paradox of GAFAM: Saying You Protect Women, Appointing Abusers of Women to Run the Company
older articles
Censored by FreeBSD Core Team Secretary, Reinstated After Talking About it in Public
FreeBSD misfiring a CoC?
Links 26/12/2025: Chatbot Toys Terrorising Children, US Undeclared "War on Terror" Unilaterally Extends to Nigeria During Holidays
Links for the day
Links 26/12/2025: French Postal Services Under Russian Attack, U.S. Cheetos Accuse People Who Obstruct Information Warfare by Russia of "Censorship"
Links for the day
Debian's Daniel Kahn Gillmor is Wrong, Signal is No "Gold Standard" (It's Also Promoted by Proponents of Back Doors)
I'm not too sure why Debian or the ACLU would wish to associate with this
Next Year Will be the Year of Quantum, Just Like 2020, 2015, 2010, 2005 and So On
"Quantum" is the future
The Silent Power of Coercion Over Speech
The important thing is optics
So Simple That You Can Touch and Feel It
In light of recent experiences
Internet Relay Chat (IRC) Under Attack by Cross-Network Spam Floods
So far we've been spared (our network has not been targeted at all) [...] Let's hope the spam won't discourage the hundreds of thousands of people worldwide who still use IRC
An "AI-Infused" Windows
Microsoft Windows isn't becoming a worthless pile of garbage by accident
Microsoft Laid Off Over 30,000 People This Year, Coders Are "Too Expensive"
Go get some popcorn. Microsoft "slopware" is about to get real!
Critics Have Long Said Microsoft Produces "Slopware", Microsoft Wants to Prove Them Right
Slop instead of code is a step in the right direction?
The Top 8 Innovations of IBM in 2025
What innovations will come out from IBM in 2026?
And as the Year Turns...
The significance of new years isn't based on geology or astronomy or anything like that
Appliances Versus Computers
Replacing a computer inside an object of some kind or inside an appliance (which nowadays includes "modern" cars) isn't simple and isn't cheap
A Dark Side of Europe
They try hard to silence people who speak about these issues
Why People Love Techrights (and Also Loved "Boycott Novell")
I will continue to publish for many decades to come
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, December 25, 2025
IRC logs for Thursday, December 25, 2025
Browsing Techrights With a GUI and 10 Megabytes of RAM Per Tab
Some people say it's not possible in 2025, maybe in part because they depend on very bloated software
A Tribute to Richard Stallman
It's about knowledge and sharing
Links 26/12/2025: Impermanence, Salt and Thermometer, Freetube
Links for the day
Gemini Links 25/12/2025: Hibernation and TV Detox
Links for the day
Canonical is Making the Cost of PCs Very High, Due to Unnecessary Ubuntu Bloat
They say the reason for the price surge is LLM hype/frenzy
Canonical's Ubuntu is Bloatware
How did Ubuntu get so fat?
The EPO is a Very Vicious Organisation You Neither Wish to Join Nor Stay in for "Too Long"
Consider what the EPO thinks of its own workers, the staff that actually does real work
2026 Will Hopefully Turn Out to be Slopless
we seem to be starting the post-Christmas period on the right footing
Links 25/12/2025: Mail Carriers in "a Murky Future", Dihydroxyacetone Man’s "Chip Embargo Against China Backfiring Spectacularly"
Links for the day
The Register MS: All I Want For Xmas is Microsoft
they actually put effort into it
How to Win Nobel Prize for Peace
Do you get to Heaven (or peace platitudes) by sleeping with 72 virgins?
The Right to Repair (Especially When Products Are So Poorly Made)
Many electrical appliances fail often/quick and are nearly impossible to repair
Links 25/12/2025: Ample Cover-up Found in Jeffrey Epstein Files; ChatGPT Causes Psychosis, Not a Good Use Case
Links for the day
Giving Money to Free Software
In life, people must make sacrifices to do what's right and just
The Register MS: Don't Use Linux
That really says a lot about The Register MS
EPO People Power - Part XV - EPO Cocainegate to Resume This Weekend
The next installment (number 16) will probably come out this weekend
Microsoft: XBox is Going "Online", "Cloud"...
XBox as a console is pretty much dead
The Year of the Bubble
We hope that in 2026 the marketing liars will find some new buzzwords to latch onto and quit calling everything "AI"
Mozilla Firefox is a GAFAM Browser With Slop, Move to a Free Software Web Browser
on mobile the options would be more limited
libera.chat Was Under Attack Last Night
Several months from now libera.chat turns 5
Free Software Foundation (FSF) Raises Over $300,000 Before Christmas
the FSF made it past $300,000
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, December 24, 2025
IRC logs for Wednesday, December 24, 2025