Bonum Certa Men Certa

Like the EPO, Taiwan/China (SIPO) Harm SMEs With a Policy of Patent Maximalism Which Fosters Litigation, Not Innovation

Related and recent: “Legal and Administrative Rules at the EPO Are Similar to Those at SIPO” (China)

SIPO and Battistelli



Summary: A culture of patent maximalism breeds plenty of lawsuits in China (good for the legal 'industry'), but small companies that are innovative lose focus and resources, just like in Europe where SMEs are discriminated against

THE LAW of China is widely regarded as oppressive. Patent law too is increasingly being viewed as oppressive because companies that are innocent of infringement can get in a lot of trouble and even go under.



Managing IP, a site by (and for) the patent microcosm, published this interview a few days ago. "We have witnessed that Chinese courts are more willing to grant higher damages in civil IP lawsuits, thereby increasing the cost of counterfeiters in their illegal business," says the 'article' (more like self-promotion).

This may be good for Adidas (which is advertised in this interview), but what about much smaller companies? Adidas can afford plenty of lawyers, others cannot.

"This may be good for Adidas (which is advertised in this interview), but what about much smaller companies? Adidas can afford plenty of lawyers, others cannot."A few days ago Foxconn's patents person was given a platform by IAM, another site by (and for) the patent microcosm. Foxconn is a truly massive corporation, unlike the vast majority of companies in Taiwan/China. Should we not be hearing the voices of those on the receiving end of endless litigation and fear?

Inadvertently, the patent trolls' lobby (IAM) recognises that China grants too many rubbish quality patents. It's too much to keep abreast of, especially for small companies which lack a legal department. Here is what IAM wrote:

China is a particular challenge, especially when it comes to what is publically [sic] available in official information. For example, as things stand, it is often a lot more difficult to find user-friendly platforms on a par with what’s available to follow things like patent assignments in the US. This is no doubt an area that will improve as the country’s IP industry matures; while in fields like the use of big data, there are indications that China is ahead of other jurisdictions, something Jou himself has discussed with IAM.


Well, Foxconn has the human and financial resources to wade through and find patents of relevance to its products. What about companies with 5 orders of magnitude fewer employees? China seems to have taken nepotism, especially for large corporations, to unprecedented levels. As we noted last month, China proudly protects state-connected giants, even with embargoes of the competition.

Unfortunately, the EPO is trying to mimic China and UPC (with broad injunctions) is a symptom of that. A few days ago it wrote: "You can still join the "Patent information from the BRICS countries: China" webinar. It starts in one hour..."

The EPO's management wants to believe [1, 2] that receiving more patent applications from China might save the EPO. It also relies on giving preferential treatment to massive multinational monopolies while only attempting to maintain the illusion of catering for SMEs. #IPforSMEs is a hashtag that the EPO repeats every day this month.

"The EPO's management wants to believe that receiving more patent applications from China might save the EPO.""Litigation is a last but important resort when it comes to fighting wilful infringement," it said some days ago, adding the obligatory #IPforSMEs hashtag. The first two tweets of Thursday [1, 2] had the hashtag and said: "Developing an IP strategy might have much more benefits than you'd expect."

No connection whatsoever to SMEs. The first two tweets and also the last of the day just keep talking about "SMEs", but very much like in China, the EPO tries hard to distract from its harm to SMEs (the UPC, for example, would be a huge blow to SMEs; it be of no benefit to them as they often operate locally, not EU-wide). The first tweet of Friday was also accompanied by the #IPforSMEs hashtag.

Get the pattern?

"A long time ago we warned that China's (or Xi's) approach to patents would come to haunt and harm China. We were right."Remember that China's patents are rubbish in terms of quality. Totally garbage. This isn't a secret and it's not an insult. The country is just trying to game the numbers at SIPO and WIPO. And guess what... it's working. As IP Watch put it 3 days ago: "Innovators around the world filed 3.1 million patent applications in 2016, up 8.3 percent in a seventh straight yearly increase, WIPO’s annual World Intellectual Property Indicators (WIPI) report shows. The report, WIPO’s annual report, released at the United Nations in Geneva today, showed China topping patent, trademark and design filings in 2016."

Well, it's all about China, but the above yardstick is totally oblivious to quality or uniqueness of patents. They muddy the water.

A long time ago we warned that China's (or Xi's) approach to patents would come to haunt and harm China. We were right. China has become 'home' to a parasite no other country in the world actually wants; it's now full of patent trolls and sharks; locals are complaining. Here is how IAM put it:

The introduction of specialised IP courts has ushered in a new era in Chinese patent litigation. Recent statistics from the Beijing IP Court lift the veil on an enticing jurisdiction for patent owners


The term "patent owners" is a euphemism; these are firms which have nothing but patents. They're empty shells. As we noted earlier this year, Microsoft will quite likely unleash patent trolls in China and hope that everyone pays 'protection' money in the form of Azure tax. Here is what IAM wrote about it in its latest issue: (magazine, hence paywall)

Today, we are announcing that Microsoft Azure IP Advantage will be available in China beginning October 1, 2017, ensuring that Azure customers in China can enjoy the same great IP protection benefits as customers in the rest of the world. Microsoft chief IP counsel Erich Andersen, writing on the Microsoft Azure blog....


We already wrote many articles about Microsoft Azure IP Advantage, e.g. [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12]. It's a shrewdly-disguised patent extortion scheme.

Over in Taiwan, according to two other blog posts from IAM [1, 2], things are becoming as bad as in (mainland) China. Basically, patent aggression in China begets more aggression. It's a bubble of low-quality patents and litigation, so HTC caves in. To quote IAM:

A report in Chinese media states that an HTC-owned invention patent with a relatively recent grant date recently emerged from an invalidation proceeding before China’s SIPO Patent Re-examination Board (PRB) largely unscathed. The challenger was Chinese smartphone maker Gionee – a relatively small player in the domestic market that also sells devices in India and Southeast Asia. The patent, a grant covering “Mobile device and antenna structure” issued by SIPO in December 2016, also has US family members.


The other blog post speaks of "Taiwan IP Court hand[ing] record $50 million victory to a crucial smartphone supplier in trade secret case". It's not about patents, but "[t]he ruling is one of the most visible IP wins to date for a company that has kept a low profile and eschewed collaboration, leaning heavily on trade secrets to protect its technological edge."

"Over-regulation in the form of over-patenting tends to suppress and depress innovation/production."China has traditionally been stigmatised as a "pirate", "thief" or "imitator" with "knockoffs" and "counterfeits". China seems eager to change that perception, but at what cost? What actually gave China plenty of competitive edge was the lack of bureaucratic red tape. Over-regulation in the form of over-patenting tends to suppress and depress innovation/production.

Recent Techrights' Posts

Wikipedia - Like Some Free Software Projects Infiltrated and Bribed - Bans Its Own Founder
Over the years we've named (not shamed) some projects and organisations that got corrupted by money and ended up banning their own founders
The “Aktion T4” at the European Patent Office (EPO) Saves Money for the President's Own Purse
Call for parents of children with special needs
SLAPP Censorship - Part 116 Out of 200: 5 Years of Multiparty Lawfare Against Techrights, Funded by Americans and Also by Third Parties (Including Microsoft Salaries)
The public and our government will be informed in full
After IBM's Shares Collapsed the CEO is Trying the "Quantum" Trick Again, Bolstered by a Demented Dictator in the White House
from what we can gather IBM's CEO is trying to get the US government to participate in the scam
 
Demonstration Next Week at the European Patent Office (EPO), Administrative Council Seen as Complicit
Corruption in Europe hurts all of us
IBM is Now Hinged on False Accounting and False Promises
This is the legacy of the current CEO
"PARTNER CONTENT" or 'Content Farms' That Promote Slop and Misinformation (The Register MS)
The Register MS represents a big part of the problem we all face
Turn Off the Slop, It's Wasting Energy and Destroying the Planet (the Only Planet We Have)
Right now we see lots of headlines about energy shortages and drained-up reserves
Lessons From Almost 30 Years of Site-Building Activities
We still strive to become faster and lighter
Do Not Outsource (the Seductive Mirage)
Abandoning so-called 'conventional wisdom'
Media Complicit in IBM Fraud Meant to Prop Up the Share Price Based on Lies, Fabrications
Even IBM insiders are fuming at this
In Some Countries, Windows Has Lost Its Monopoly
Windows fell to an all-time low globally this month
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 23, 2026
IRC logs for Tuesday, June 23, 2026
Gemini Links 24/06/2026: Motivation, PostScript Printer, and Why Hyperscalers and the Smolnet are Compatible
Links for the day
The Media's "Satya Says" Syndrome Distracts From Grim Reality
how insiders see Microsoft slop
Oracle's Collapse Has Nothing to do With Slop, It's About Its Debt Exploding by Almost 50% in Just 12 Months
How are people meant to trust the media?
Now... a Word From Our Sponsor
Powerade
Links 23/06/2026: Microsoft Studio Closures and Journalism Subjected to Further Cuts
Links for the day
Gemini Links 23/06/2026: Gardens, Basketball, Blocking Hyperscaler, and New Commodore Phone
Links for the day
Links 23/06/2026: Apple Price Hikes and Technical Debt in Slop
Links for the day
Greece Ought to Curb the Threat of Social Control Media
its national discourse seems to be run by an American company called Facebook
State of the GNU/Linux Desktop (and Laptop)
The time to advocate GNU/Linux is now
The 'XBox Narrative' Distracts From Destructive Cuts Across the Whole of Microsoft
Microsoft is preparing to lay off a likely record-breaking number of people [...] this isn't just an XBox problem
SLAPP Censorship - Part 115 Out of 200: Spending the Next Decade Writing About SLAPPs and Trying to Fix the System
It's the same industry that got paid by corrupt EPO officials to try to cover up the corruption
Microsoft's Stock Fell Nearly $200, But the Real Problems Are Just About to Begin
if they dump slop, what will they tell shareholders?
The Cyber Show on Starmer and Software Freedom
The Cyber Show's Andy has just explained why our departing national leader wasn't all bad
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 22, 2026
IRC logs for Monday, June 22, 2026
Gemini Links 23/06/2026: Girlrotting, Homeworlds at BGA, Slop Ruins Sites
Links for the day
A Lifetime of Whistleblowing
Ellsberg did not have an easy life, but it was a rewarding life with a rich legacy focusing on justice
European Patent Office (EPO) Series: A Man With Many Missions...
Campinos – accompanied by Gilles Requena and Patrice Pellegrino
Links 22/06/2026: Ubisoft Co-founder Dies, Americans Have Turned Against Slop
Links for the day
Links 22/06/2026: "The Sycophancy Machine" and "Port 22 Open for 54 Days"
Links for the day
When People Who Make the Most Money Are the Best "Boot Lickers" (Sucking Up to Jeffrey Epstein's Circle and the Dictator)
Sucking up to rich people may pay off
The Aim is Not Fame
Reposted from schestowitz.com
"Internally Important, Externally Irrelevant": IBM in a Nutshell
Right now its debt spins out of control and its stock spirals down the drain
SLAPP Censorship - Part 114 Out of 200: Thousands of Long Articles to Come, Properly Covering the SLAPP Industry in the UK and Its Modus Operandi
"Stowell described SLAPPs as ‘a stain on our legal system’."
Finding a Way to Get Paid to Improve LibreJS
So now we have more people resurrecting LibreJS and improving it
Microsoft Can't Even Wait Until July, Shutdowns and Layoffs Already Happening
Mashable speak of "a grim picture for the state of Xbox."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, June 21, 2026
IRC logs for Sunday, June 21, 2026
Gemini Links 22/06/2026: Appreciating Simple Things, Perfect Summer Evening, IRIX, Vim and so
Links for the day