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

What Efforts to Cancel Richard Stallman Ought to Teach Us About the Media, Including Very Large British Publishers
Richard Stallman is like a modern-age Alfred Dreyfus
 
Links 02/06/2026: New York Times Debunks "Hey Hi (AI) Layoffs" (Excuse, False Narrative), Sheinbaum Publicly Bemoans US Meddling
Links for the day
Despite Mass Layoffs and Culls Dubbed "Buyouts" Google's Debt Doubled in a Year and It's Desperate for Money (to Pay Salaries and Bills)
Google and GAFAM in general have mass layoffs because they have no clear route towards profitability
Social Control Media Does Not Improve Reach, It Wastes a Lot of Time
many people still think that no presence in Social Control Media necessarily means invisibility
Gemini Links 02/06/2026: Arch Linux WriterDeck and Papyrix Reader
Links for the day
Bloggers Still Have Considerable Impact on This Planet
Nowadays, in academia almost anywhere in the world, there's growing expectation that lecturers will spend not much of the time doing research or even teaching
The Firing Line Against Techrights
Tomorrow we'll tell a story about campaigns to intimidate us with death threats
The Cyber Show on the Fight Against Technofascism
It's very long (all combined), but nevertheless refreshing
After Threats to Greenland Northern Europe Seems to be Moving Away From Microsoft Windows Even Faster
The facts on the ground are, more people/businesses/institutions "get the message"
Claim of 500+ IBM Red Hat Layoffs With Termination Next Month
IBM is doing great... at hiding internal affairs
Slop Did Not Rewire Democracy, It's a Giant Flop
we already see slop giants accepting they'll never make money
The Register MS Embeds in Articles "SPONSORED LINKS" That Link to "AI" Ponzi Scheme/Scam
The circular financing giants are allocating budget for the spam, as do the banks (lenders)
Many Countries Divest From Microsoft
new numbers at statCounter today
European Patent Office (EPO) Series: A Tale of Two Antónios - On the Campaign Trail in Brussels
Part 1
SEO is an Acronym That Stands for Slop Engine Orientation
The Web changed a lot when Web directories, portals, and then social control media gained popularity
IRC Network OFTC is Shedding Off Servers
Down to 17
Julian Assange's Counsel Jennifer Robinson Has Just Won an Award
Jennifer Robinson is relatively young
Schweizerische Bundesbahnen (Swiss Federal Railways) and Richard Stallman
It seems like RMS is receiving endorsement or at least belated recognition from very high-profile institutions
Almost 30 Years After Rob Malda Made Slashdot It Still Inspires New Implementations
Maybe the issue isn't Slash per se, just the complexity of it (which SoylentNews complained about in the past)
Links 02/06/2026: "The Infosec Phrasebook", 'Perfect Randomness' and "Leaving the Tech World Professionally"
Links for the day
Faking Demand for Slop: Google's Search Prompt Becomes Slop Prompt (Bait, Switch, Fake Usage)
If there is no consent, then it's unsustainable
When You Give People (or Companies) Money to Buy Your Own Products and Then Call It "Revenue"
A lot of modern "economics" don't benefit ordinary people (all they get is high inflation rates); they're devaluing money by faking economic activity
IBM is Self-Detonating, the Cheeto-Infused Rally is Another Con by Don
pump and dump
"Quantum" as the "Next Big" Bubble
disappointing and delivering nothing
Links 02/06/2026: "$1.5 Trillion Defense Budget Benefits Billionaire Cheeto Mussolini Supporters", US "Plans to Criminalize Sleeping Outside"
Links for the day
Gemini Links 02/06/2026: Organising Oneself and Killing Off Distracting "Notifications"
Links for the day
SLAPP Censorship - Part 95 Out of 200: The Growing Risk of Tolerating Men Who Abuse and Physically Assault Women
FOSS should not be a "safe harbour" or "hideout" for criminals
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 01, 2026
IRC logs for Monday, June 01, 2026
Rust is a Disaster for Both GNU and Linux, But 'Linux' Foundation (GKH) Keeps Promoting It Despite the Problems
And non-GPL licences
IBM's CEO and his "pump and dump scheme" ("Arvind's lies about quantum")
Don't be misled by Wall Street
Gemini Links 01/06/2026: Xylophone Essay, Ham Radio, and Slop Contaminating USENET/Newsgroups
Links for the day
How to Tackle Corruption Effectively and Gradually
In my personal, humble experience
European Patent Office (EPO) Series: A Tale of Two Antónios
"Campaign for the Re-Appointment of the President"
Links 01/06/2026: Patent Applicant Disclosures Drop After the January 2025 IDS Surcharge, "China Exports Surveillance"
Links for the day
Links 01/06/2026: Irreversible GAFAM Bans and "The Pirate Bay Remains Resilient"
Links for the day
Running and Writing Sites for People, Not Bots (Including Search Engines)
Had those sites spent more time focusing on RSS feeds (not social control media "games") and less on SEO (trying to game search engines), they wouldn't be sobbing now
SBB, the Swiss Railroads, Want to Hear Richard Stallman
Can Dr. Stallman persuade key decision makers to adopt not only "Linux" but also Software Freedom (not the same thing), as he did in South American before? Or like he did in Kerala?
Resumes and Vanity Pages
Wikipedia is fast becoming a glorified marketing company
Trusting Microsoft is Foolish
Mr. Rossmann says they "gaslight customers" in their Web site, but it goes a lot further than this
Techrights in a Nutshell, in Very Generic Terms
"for dummies"
SLAPP Censorship - Part 94 Out of 200: SLAPP by Garrett's Litigation Buddy Started 20 Months Ago, He Has Not Even Put in His Defence Yet!
This is what happens when one deals with incels and misogynists who promote slop and Microsoft
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, May 31, 2026
IRC logs for Sunday, May 31, 2026
Gemini Links 01/06/2026: Buckingham Palace Garden Party, TUI Annoyances, Lateral Thinking with Withered Technology
Links for the day
Links 31/05/2026: Heat Wave Grips France and Edgar Morin Dies
Links for the day
Gemini Links 31/05/2026: Backup vs. Mirror, Year of the Death of a Euphemism, Slop Makes Only Yet Another (Untested) Calculator
Links for the day
IBM Red Hat Has a Long History or Track Record of Misusing Trademarks to Send Lawyers to Try to Take Down Pages and Web Sites of Critics
Red Hat claims to own words; IBM thinks it owns names
Richard Stallman is Coming Back to Bern to Give a Talk Next Month
another big talk coming up
Gravitating Towards What Your Role in Society May Be (or What You're Truly Good At)
Many IBMers already realise that they spent years if not decades of their lives working on mostly meaningless products/projects
900 Days Later
900 days is a very long time (almost 1,000)
Cybershow Requires Free Software to Record Shows
Cybershow is run by people who understand that without Software Freedom there can be no sovereignty
Losses at Microsoft's GitHub Seem to be Deepening
How many billions of dollars has Microsoft lost by betting on the false prediction that it can somehow "monetise" public code by LLMs?
Links 31/05/2026: Slop 'Code' (Junk) "Increasingly Leads to Production Failures" and "Huge Slop Costs With No Clear Benefits"
Links for the day
European Patent Office Strikes Intensify Tomorrow, Huge Strikes Planned for June, 10,000 Strike Participations Registered
Campinos may well be ousted soon
SLAPP Censorship - Part 93 Out of 200: A Blueprint of Reckless Lawfare in the UK, Waged and Funded by Americans (in Another Continent)
Lawfare powered by slop companies (including Microsoft) from America, targetting British people who consistently oppose slop because it's objectively terrible
Links 31/05/2026: Watershed Moment, Traveller RPG Book Binding, and GUI Annoyances
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 30, 2026
IRC logs for Saturday, May 30, 2026