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

[Video] Dr. Richard Stallman's Keynote Speech in Kerala Finally Uploaded
In non-free format and proprietary YouTube, but perhaps that's better than nothing
LLM Slopfarm: A Site's Last Incarnation Before Throwing in the Towel, Going Offline Permanently
A lot of coverage that claims to be about Finland is chatbot-generated nonsense or poorly-plagiarised work
 
Links 27/03/2025: U.S. Honeybee Deaths Reach Record High, Legal Occupation Next in Line After War on Science
Links for the day
Using Courts for 'Revenge' is Always a Losing Strategy
Trying to cause someone you dislike to spend a lot of money
IBM CFO James Kavanaugh Refers to Firing of Almost 10,000 Americans as "Workforce Rebalancing" (Shifting IBM's Centre of Balance to Low-salary Contracts/Countries)
The scale of IBM layoffs is getting too large to evade WARN Notices
Islands Are Leaving Microsoft Behind, According to statCounter
Android has had a very strong year
EPO Management Fails to Deny That the Office is Discriminating Against Women
Europe's second-largest institution isn't just exceedingly corrupt but also immoral
In Some Countries the Market Share of Vista 11 is Going Down, Not Up
despite being released in 2021
Rumour: Mass Layoffs in IBM Canada Today
Maybe later today some people from Canada will say something firmer and maybe some media will even talk about that
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, March 26, 2025
IRC logs for Wednesday, March 26, 2025
Gemini Links 27/03/2025: X-Files' "Kill Switch", Orlando, and ASN (Autonomous System Number) 'Hack'
Links for the day
Links 26/03/2025: Healthcare Cuts and Turkey's Own "2025 Project" (Culling Opposition)
Links for the day
Microsoft Canonical Pays IDG to Spread FUD (Fear, Uncertainty, Doubt)
this seems a tad exploitative and reminds us of the time Novell kept telling companies that using anything other than SUSE was dangerous
Gemini Links 26/03/2025: GTD, Zenshuu, and Geminispace Community
Links for the day
Links 26/03/2025: Media's Failures, Arrests of Journalists, Limitations of End-to-End Encryption
Links for the day
LLM Slop (Lots of It Spewed Out by Microsoft) Versus Linux
Microsoft is a very, very evil company. It doesn't mind destroying the Web if there's a chance it'll make a buck in the process or mess up people's brains (in Microsoft's favour).
Slopfarms (Sites That Only Ever Publish LLM Slop) Are Killing Google News
pair of slopfarms still propped up by Google News
Microsoft's Serial Strangler's Law Firm Has a Long History of Fronting for People Who Do Bad and/or Illegal Things
Whose terrible idea was this?
Novell and Microsoft Apologist/Booster Bruce Byfield Writing About the FSF is a Recipe for Problems
Totally not shoehorning some agenda
Looking Forward to the Fall of UPC and Revocation of the Unified Patent Court (UPC) Agreement, Which Was Always Illegal and Unconstitutional
We'll try to keep abreast of any progress in this case
Slopwatch: Google News, LinuxSecurity.com, and the General Demise of the Web
many supposed or so-called "news" pages are just spewed out by some chatbots (or tools which help plagiarise original articles without getting caught; detection gets harder)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, March 25, 2025
IRC logs for Tuesday, March 25, 2025
Links 25/03/2025: Clownflare’s Slop and Bounties on Fake Patents
Links for the day
Links 25/03/2025: Terrace Workbench and Spellcheck in LibreOffice on FreeBSD
Links for the day
Let Them Eat 'Apps'
Go Appless
Linux Runs Almost Everything, But They Almost Never Tell You This (No Marketing Budget)
Only about 1% (or at most 2%) of the Linux Foundation's budget goes towards Linux; a lot is routed towards Bill Gates and Microsoft promotion
Free Software Community Folks Are Closer Together Than the Cliques and Opportunists Rallying Around "Open Source" (Openwashing, Marketing, Conniving)
Generally speaking, freedom-loving geeks learn to reject morbid elements and trolls, who end up expelled
The Open Source Initiative (OSI) Might Get 'Forked' Soon
Someone who read our series has already taken a leading role
IBM Layoffs in the United Kingdom (UK) in 2025
Should Free software people trust such a secretive company?
Roku Will 'Lead' Attempts to Abolish the Illegal and Unconstitutional Unified Patent Court (UPC), Which Represents EPO Corruption and Lobbyism Spreading Upwards Inside the EU
When bribery buys policies and courts, even illegal policies and courts
Growing Poverty Rates in the United States of America (or Elsewhere) Beneficial to GNU/Linux Adoption
Toxic politics around the world, including the US, may mean weaker economies
European Patent Office (EPO) Illegally Turning to Slop Behind Closed Doors, Staff Objects to This Hidden Catastrophe
Who stands to gain from all this and at whose expense?
Gemini Links 25/03/2025: Relaxation, Literary "Movements", and Gemini Mentions
Links for the day
After US Government Funding Cuts the Centralisation of the Web (Especially Certificate Authority Let's Encrypt) is at Risk
They try to pull the plug on open protocols with decent encryption available (unless it is outsourced to third parties)
Links 25/03/2025: Putin Sends Children to Battle, 23andMe Drowns as People's Highly Personal DNA Data Floats
Links for the day
When Microsoft Folks Who Literally Strangle Women Try to Strangle Microsoft Critics
Speaking to Court staff yesterday, they too are shocked about those SLAPPs
Martinique: Windows Down to All-Time Low
we cannot expect Windows to ever recover
Anticipated in 2018: Lilie James & Location tracking, Googlists complained
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 24, 2025
IRC logs for Monday, March 24, 2025