Bonum Certa Men Certa

China's Patent Policy Likely to Drive Out Foreign Companies and Maybe That's Just the Intention

From manufacturing powerhouse to litigation hub; what would that cause to investment though?

Pudong skyline
Pudong, a district of Shanghai, China



Summary: While corporate media focuses on trade war (e.g. US almost banning Huawei-branded phones) there's a broader picture which includes patent aspects (Huawei and other Chinese giants use patents for sanctions)

AS we noted in our last post, it's becoming a liability for firms to operate (e.g. sell) in China, manufacture in China, or be based in China because it makes them susceptible to more patent lawsuits. Korean, Japanese, European and American firms might learn this sooner or later.



As IAM put it yesterday, "Shenzhen will play host to one of the first patent-related domestic court clashes between Chinese mobile device manufacturers following Coolpad’s launch of a suit against Xiaomi..."

IAM loves it, as its funding sources are litigators and even trolls. But what does that mean for the rest of us, who are neither litigators nor trolls?

IAM covered this latest twist in the Coolpad case (mentioned here last week), alluding to news from late on Friday:

Chinese smartphone maker Coolpad announced late Friday night that it has sued larger rival Xiaomi for infringing three Chinese invention patents. The cases will play out in the city where Coolpad is headquartered, at the Shenzhen Intermediate People’s Court. Notably, it will be one of the first major patent clashes between major players in China’s smartphone sector to play out in domestic courts.

In a voluntary disclosure filed with the Stock Exchange of Hong Kong, Coolpad said that six separate cases have been accepted by the Shenzhen Intermediate People’s Court. The plaintiff is a subsidiary of the group called Yulong Computer Telecommunication Scientific.


Korean companies like Samsung are also being legally harassed in China by patent giants and trolls. It's not the sort of environment it used to be; it's a lot more hostile. There are even embargoes being imposed by the state (to protect state-connected firms like Huawei).

What adds to/fans the flames of this litigation atmosphere is the poor patent scope. SIPO has gone further and further out of its way to expand the scope of patents. Last week we wrote about the Court of Appeals for the Federal Circuit (CAFC) ruling in favour of GUI patents [1, 2] (incidentally against a Korean company, LG, which we've just mentioned), but this lunacy which is patents on GUIs has gone wild in China. Yesterday Managing IP published this article about that:

At the end of December 2017, Beijing IP Court decided the first GUI (graphical user interface) patent infringement case in China. This case is a battle between two anti-virus software giants: the plaintiff Qihoo 360 currently is the largest cyber security company in China; and the defendant Jiangmin is a pioneer anti-virus software provider in the PC era. Beijing IP Court rendered a decision in favour of Jiangmin.


There's also a slightly older article about that. To quote:

China’s first lawsuit for infringement of graphical user interface (GUI) design has been recently concluded by the Beijing IP Court. This case has attracted much public attention, as GUI designs have become protectable in China by so-called design patents only as of 1 May 2014, and despite a large number of GUI design patents being granted since then, their enforceability remained untested until the present case. The judgment issued on 25 December 2017 now results in heated discussion and leaves, in particular, software developers counting on strong GUI design protection very disappointed.


GUI patents are so broad and vague that it's pretty incredible they even get granted. They're not inventions. Combine that with China's litigation rates (soaring nowadays) and it looks ever more daunting to enter the Chinese market. Maybe, in a sense, this is what Xi's CPC intended; maybe it just wants to drive out foreign companies in order to promote local brands like Huawei (government-connected). Censorship has long been one pretext for banning foreign firms from operating in China, so why not patents? It makes it look a lot more rational than nativism/nationalism.

Recent Techrights' Posts

Slopwatch: Sites Gone Rogue, Google Promoting Lies, and DDoS Attacks by Plagiarism Giants
Charlatans and frauds engage in a war against artistic industries, mislabeling plagiarism as "AI"
End of the Smartphone Era? No.
Maybe the media should focus on producing accurate, factual news
Latest Is Not Greatest: The Case of "Foldable" Tech
don't be shamed into abandoning old things just because the "fashion industry" of Apple and Samsung tells you to
 
This Saturday It's Gonna be 3.5 Years* Since Russia Invaded Ukraine. No Microsoft Protests Against Microsoft Having Provided Russia With Services.
Companies do not have consistent policies and enforcement of "corporate values" is somewhat of an egg salad
Links 22/08/2025: Cisco Layoffs, LA Times Says "AI Hype is Fading Fast"
Links for the day
Gemini Links 22/08/2025: K for Kentucky and Caddy Versus LLM Slopbots
Links for the day
The "End Software Patents" Initiative of the FSF Explains "WHY [to] ABOLISH SOFTWARE PATENTS"
We hope to cover patent-related issues more and more as the big anniversary of the FSF approaches
Freenode Sniffing
The grown-ups left the building
The Only Thing Worse Than Misinformation is Misinformation Sold to Everyone as "Intelligence"
Misplaced trust is worse than none at all
The Register MS Now Openly Admits LLM Hype Does Damage, But It's Also Being Paid to Participate in the LLM Hype (With Paid 'Articles' and 'Webcasts' for Paying Advertisers)
The Register MS gets paid to do this
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 21, 2025
IRC logs for Thursday, August 21, 2025
Enshittification of Airports, Airlines, and Airplanes
If people are willing to tolerate standard declines and enshittification (nowadays sold as "pivot to AI" or "replaced by AI" or "AI layoffs") they will pay for it some other way
Airlines and Their Tricks That Only Work in the 'Digital Age'
People sceptical of the direction technology has taken are not "Luddites"
Open Source Initiative (OSI), Which Became a Propaganda Front of Microsoft and "Hey Hi" (Hype, Misnomer), Wants You to Forget These Scandals
A lot of these issues won't be set aside until there's a resolution
The Culture of Overnight Coding
An industry-wise push-back is needed
Windows Down to New Lows in Guinea Bissau and Many Countries Around It
If Android is accounted for, Windows is down to about 10%
Gemini Links 21/08/2025: Modern Dating, Debian 13, and Apache
Links for the day
Microsoft Has Had About 10 Waves of Mass Layoffs So Far This Year (Not Two as Mainstream Media and Slopfarms Endlessly Claim)
Notice how the MSM (Mainstream Media) never mentions the debt of Microsoft. It is a conscious, deliberate decision.
Links 21/08/2025: Covid Cases on the Rise, "Social Media Trolls", Russia's Attacks Intensify
Links for the day
Gemini Links 21/08/2025: The Attraction of Back Alleys, Initramfs, and BSD ISPs
Links for the day
Links 21/08/2025: Stephanie Shirley Dies and "Groklaw Domain Hijacked?"
Links for the day
Search in 2025 (Age of DDoS Attacks Under the Guise of "AI" "Innovation")
One common concern when things go "live" is that any random bot out there can execute queries, pumping up RAM and CPU usage, as happened when we used MediaWiki and WordPress
Using Slop for Images Does Not Make Your Site Look Advanced or Witty, It Just Makes Your Whole Work Look Like Presumed Plagiarism
Lazy slobs and Serial Sloppers use the guise/excuse of "AI" to plagiarise and spam the Web
Financing of the "Hey Hi" (AI) Bubble by Those Who Profit From Planetary Destruction (Global Warming)
It's about personal gain, too
Richard Stallman Will Speak in Ethereum Cypherpunk Congress
it's good to see that the FSF pays considerable respect to it founder, who is moreover invited to speak at events
(At Least) Second Wave of Mass Layoffs in Microsoft This Month
This is not the first time this month that Microsoft has mass layoffs
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, August 20, 2025
IRC logs for Wednesday, August 20, 2025
IBM Operatives Inside The Register MS and More Shady Money to Follow
The Register MS bites every banknote it can sink its teeth into
On the Internet, Nobody Knows Microsoft and Windows Are Becoming Niche Players Until Data is Shown Correctly, Not Microsoft-Sponsored Articles in Microsoft Publishers
Microsoft controls a lot of publishers and thus it controls information
Slopwatch: Serial Sloppers and Slopfarms in Google News (e.g. Linux Journal and WebProNews)
Google plays an active role (if not deliberately then through utter neglect and carelessness) in plagiarism
Links 20/08/2025: Mass Surveillance Framed as "Artificial Intelligence" (All Old Things Reworded to Misframe Old Computer Issues), Europe Resists Capitulation to US(SR)
Links for the day
Gemini Links 20/08/2025: Trips and Permacomputing
Links for the day
Links 20/08/2025: Oracle Layoffs in India, "AI" Scammers/Profiteers Admit It's a "Bubble", Softbank-Saudi (Oil) Control Tech Companies
Links for the day
Social Control Networks Give You False Metrics to 'Addict' You To Them
Leaving social control media may seem hard, but the same is true for any other addiction
A Lot of What Happened in Twitter Was Bots, Botfarms, and Troll Farms. It's Even Worse Now (Under X.com) and People Are Noticing.
Last month we said the same was happening in YouTube
Microsoft May Have Become - at Least Partially - Like a Boiler Room Scam
Giving imaginary salaries using imaginary tokens based on imaginary value (with restrictions on conversion to cash)
In Vietnam, Microsoft's Search Engine "Market Share" Fell to Almost 0%, CocCoc More Than 5 Times Bigger
Why are people still investing in this company?
All That's Left of MSNBC (Microsoft-NBC) is Microsoft NOW
When plutocrats and large corporations (even deep in debt) buy all the communication channels
The Register MS, Paid to Promote "AI" Hype, Does "Sez" (Says) Pieces
every bubble-funded "news" site tries to make it a story about "AI"
Many Companies Are Run by Liars Who Ride Other People's Money
Or steal it
Before CoreAI There Was Builder.ai
GitHub isn't about "AI" (just a bunch of lies and storytelling for shareholders' patience)
Microsoft Windows in Croatia at New Lows
We've been keeping track of this trend for a while
Using the Best Tool/s for the Job: RSS Feeds and RSS Readers
Use RSS feeds. Reject those "modern" Web things
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, August 19, 2025
IRC logs for Tuesday, August 19, 2025
Gemini Links 20/08/2025: Neovim, XML, and Alhena 5.2.9
Links for the day