Bonum Certa Men Certa

China's Patent System is a Trade Barrier and a Legal Wall Preventing Fair Competition With the Communist Party of China (CPC)

Giant Chinese corporations are connected to the government (CPC) and are guarded by patent thickets and platoons of lawyers

Panorama



Summary: With over 200,000 lawsuits per year (a 40% jump in just one year) and millions of patents of questionable value/validity China is becoming an assembly line of lawsuits that favour large domestic firms which are connected to the government

THE Chinese patent office, SIPO, is harvesting patents for China. Almost all the patents in there are from Chinese firms. So are the lawsuits. Who is targeted by these patents and the lawsuits? Sometimes foreign companies. It seems as though the goal of SIPO is to drive out competition from abroad. The EPO and USPTO are nothing like that. In fact, many patents there are not domestic; the same is true in India.



Danny Friedmann is attempting to make sense of China's strategy, but it's behind a paywall (in spite of the .org domain suffix). We too have our theories, which we have put forth over the years. IAM has just said that the "Chinese cabinet body under leadership of President Xi plans major changes to IP litigation: * Higher damages * Reforms to evidence collection regime * More specialist courts * Tech-savvy, "politically determined" (!) judges..."

Maybe politically-motivated is what they meant. It's all about politics. Pooh the Bear (Xi) and the misguided CPC that kills (e.g. works to death) people under the guise of "People's [Communist] Republic" (for enrichment of CPC-connected capitalist oligarchs) now realises that its patent strategy is reducible to a legal mess. As IAM noted, litigation has skyrocketed (up 40% in just one year). To quote:

At a press conference on Wednesday, China’s leading IP jurist, Supreme People’s Court vice-president Tao Kaiyuan, announced that 2017 saw a 40% jump in IP-related litigation in the country. The figure for new first-instance cases for all categories of rights nationwide was 213,480. Justice Tao also made the first public comments on a new roadmap for IP reforms unveiled this week by the very highest level of the Chinese state.

Surging past the 200,000 mark for the first time, Chinese IP cases have more than doubled in four years. That is about 18 times greater than the total figure for new patent, trademark and copyright cases in US federal courts during 2017, which according to Lex Machina was 11,602.


"IP suits in China in 2017 came in at over 200,000," IAM added. "That's 18 times greater than the total in the US."

Tian Lu wrote about the opening of another court because China seems to actually believe that more and more patent lawsuits would do its overwhelmingly producing economy any good. "Since 24 February 2018," Lu wrote, "the Xi’an Intellectual Property (IP) Tribunal has officially come into operation. Located in Xi’an International Trade & Logistics Park, it is the first specialized IP tribunal in Northwest China, and is considered to be a major development in the National IP Strategy, in terms of promoting the judicial system reform, and fully implementing the ongoing Belt and Road Initiative."

Unsurprisingly, this judicial system reform mostly benefits friends and allies of the government, not ordinary Chinese businesses.

These 200,000+ lawsuits per year are affordable for large companies, not for small ones.

This comes to show how out-of-touch China is. Not the US. If the goal is to become a litigation hub, then they sure are succeeding. IAM is loving it because it fronts for the litigation 'industry'. A few days earlier IAM attempted to shame Korea into the same thing. "Korea's IP royalty deficit grew last year," it said, "thanks largely to big payouts to US companies."

As if the solution to patents (or patent litigation) is yet more of them. This pure nonsense is promoted by those who fail -- or simply refuse -- to understand that Korea rejects patent maximalism including patents on software. The US is in fact becoming more like Korea and IAM has just pointed out this amicable resolution. IAM's Zhao is merely describing how China (with its patent trolls epidemic) hammers away at LG and Samsung -- showing, if anything, China's insanity, not Korea's weakness. LG has quit China and it's actually China's loss. It might result in fewer manufacturing contracts. To quote Zhao: "Although data shows Korea has continued to achieve IP surplus with China, big Korean companies seem to be going through a rough patch in the country. Most recently, this blog reported Huawei’s victories in Chinese IP office and courts against Samsung Electronics, as well as LG Chem’s difficulty in licensing battery to Chinese companies. There are few examples of Korean companies asserting patents in China."

They would need actual Chinese patents. It's unfortunate that the general tone at IAM is, "get lots and lots of patents and then file lots and lots of lawsuits." That makes sense when one considers the firms IAM fronts for. Later this month IAM will attempt to disclose its bias by differentiating "News" and "Analysis"; it will still be lobbying for those who are paying e.g, Battistelli and the lawyers, patent trolls etc.

"Sisvel and Via launch mobile technology patent pools on the same day in anticipation of 5G roll-out," IAM wrote some days ago regarding this blog post about patent parasites going east (it's a real problem for China because they prey on Chinese companies).

IAM got some quotes too:

Speaking to the IAM blog Via President Joe Siino commened: “Given the direction of technology in mobile and certain fields like automotive, there’s an increasing need to license multiple standards at the same time and so having a multi-generational option available is very important and that’s only going to increase as 5G rolls out.” As the fifth generation of mobile technology starts to be implemented Via will launch both a standalone pool but also combine the new innovations into its new combined mobile platform.

Sisvel’s move should also help simplify things for the growing band of manufacturers which are including mobile technology in their products. “With the mobile communication program, Sisvel makes the implementation of the enabling technologies simpler, giving implementers yet another level of peace-of-mind,” David Muus, program manager of the new platform commented in the press release Sisvel issued about its launch.


Sisvel's new press release can be in a patent troll's site.

"Chinese patent market may not be as unpredictable as you think," IAM said, "based on findings from new study" it wrote about earlier on. This says China is not the "Wild East many patent owners believe it to be"; they want patent chaos, so some of them relocate. "The research," IAM said, "finds that although better patent quality generally leads to a higher likelihood of an invention patent sale, both lower and higher quality patents are less likely to be licensed out than medium-quality patents. Meanwhile, quality had no effect on the transaction of utility model patents. It should be noted, though, that quality here is defined broadly, as the study uses the R&D cost of patents reported by companies that have participated in the Chinese Inventor Survey as a proxy."

China is where patent lawsuits now crush competitors that are small or foreign; the ultimate winners are large firms. Here's Taiwan's Foxconn suing smaller firms:

Major Taiwanese liquid crystal display panel maker Innolux is suing two affiliates of its mainland Chinese rival HKC for infringing on 17 of its intellectual property rights.

The move by the subsidiary of Hon Hai Precision Industry, better known as Foxconn, is believed to have been led by its Chairman Terry Gou, who is trying to bolster the group's display panel business.


Foxconn is a gigantic company; although it is Taiwanese, a lot of its workers and production are in mainland China. It's not hard to imagine Foxconn getting its way because is has deeper pockets and more patents. The Chinese patent system is now tilted in favour of such corporations.

Recent Techrights' Posts

Censorship of Information Unflattering to IBM (or GAFAM)
Years ago we gave a platform to a censored Microsoft whistleblower
Silent Layoffs at Microsoft in 2026
Time will tell is there are investigative journalists out there who will quit parroting Microsoft (e.g. false layoff figures) and relying on LLMs controlled by Microsoft to spew out false "facts" for them
SLAPP Censorship - Part 91 Out of 200: Legal Aid in Support of Freedom of the Press and British Women (Attacked by Americans)
bolstered by prominent counsels
Codecs and Software Patents - Part XII - GNU's Web Site Will Soon Have Many Recent Talks by Chief GNUisance Richard Stallman (RMS)
GNU videos being transcoded or converted into AV1
The Fall of Slop (Even Microsoft Admits There's a Problem)
If Microsoft admits that slop is too expensive and is for "entertainment purposes" because it cannot be relied upon, why would anyone other than the pushers and profiteers still insist that slop bears potential?
 
It's Friday Night Again, So Microsoft is Again Shelving (Under Weekend Lull) Nightmare News for XBox Staff
It did the same thing when the chiefs of XBox got canned
Links 29/05/2026: "Spyware Economy" and Cuba's Energy Crisis
Links for the day
Gemini Links 29/05/2026: Rap Rant and LLMs Criticised
Links for the day
Akira Urushibata on Misleading Numbers From Anthropic's Project Glasswing (False Marketing by FUD Tactics)
Posted yesterday and approved a short while ago
[Video] Richard Stallman's Rapperswil (Switzerland) Talk Online
accessible without proprietary software
Trusting Trust is an Old Issue, Predating Rust and LLM Slop by Over Half a Century
Microsoft Lunduke wants to make a case against Rust and slop (LLMs), but the issues he addresses aren't exactly new or unique
California Should Have Abandoned So-called 'Age‑Verification Laws', Not Make Exemptions (for Now)
This has nothing to do with 1) children 2) safety 3) safety of children
Links 29/05/2026: Cory Doctorow on Why the Internet Feels So Broken, American Pope on Defederation
Links for the day
Techrights Does Not Censor Information About IBM, It Platforms and Retains Suppressed Voices From Inside IBM
They don't like it when people criticise the management [...] panic attacks mentioned
Bob (Robert) Cringely Devoted Three Years of His Life Trying to Profit From LLM Slop and Now He Sounds Off, It's Just Not Working and It Can Crash the Economy Soon
"The labs raising money at valuations with too many zeros are happy"
Techrights After About 60,000 Articles in 20 Years
Sites fail if they don't offer anything new or if they wrongly believe that adopting slop to parrot other sites will give them exposure
Organised Plunder or Robbery: GAFAM and Hardware Companies Rely on Media Bribery to Perpetuate False Narratives and to "Drive Sales" (and Drive Prices Upwards)
The price-fixing seems plausible and, if so, we need to demand action
Linux Foundation Destroys the Identity and History of Linux
Groklaw's PJ was thorn on the side of LF sponsors
The Problem of Microsoft Crimes
Opposing crime isn't "hatred"
Red Hat Will Die Inside a Dying IBM
IBM isn't where Red Hat came to thrive but where it came to die
Very Large Strike at the European Patent Office Today, "Production" Sank a Huge Deal
At this pace, we might be looking at tens of thousands fewer European Patents being granted this year
Gemini Links 29/05/2026: Leadership and Religion, the Board Game (Second Edition)
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 28, 2026
IRC logs for Thursday, May 28, 2026
Links 28/05/2026: Pakistan and Afghanistan Are Still Fighting, Iranians Back Online
Links for the day
"LLMs Are Not Much More Than Plagiarism Engines"
the impact of LLMs on communities and software projects
Is Slop Profitable Yet? No.
Everything is a giant minus
Bob (Robert) Cringely Has Just Explained That After 3 Years of Hard Work It Became Apparent LLM Slop is Unfit for Purpose in Courts
Added moments ago to Daily Links
Links 28/05/2026: LibreSSL 4.3.2, "Jeff Bezos Is Afraid Of What Comes Next", Measles Making a Comeback
Links for the day
PCs That Are Made to 'Expire' and 'Secure' Boot Contributing to Planned Obsolescence
People who are responsible for this ought to be held accountable
Evil, Faceless Corporation: Google Steals Money From You If You Don't Purchase an Android Device for MFA
At this point, under the guise of "hey hi" (slop) Google is firing tens of thousands of workers
People Go Back to Basics, Abandon Microsoft's GitHub to Avoid Slop
The media didn't pay any attention to GitHub's de facto chief quitting Microsoft only a few months ago
SLAPP Censorship - Part 90 Out of 200: When Efforts to Silence His Spouse and Also the Wife of a Blogger in Another Continent Only Give More Exposure to Embarrassing Information
The Garrett trial ended in October 2025
IBM - Much Like the European Patent Office (EPO) - Gives the President (Head of Board and CEO) All the Money While Staff Drowns in High Inflation Rates
They're discussing the same sort of thing we often see mentioned in the EPO
"THE REGISTER EXPLAINER" as "Paid-for SPAM" at The Register MS With "AI" 40 Times in the Short Page
What will be left of The Register MS in a few years?
2025: EPO President Campinos Breaks the Cookie Jar, Steals Another Million Euros While His "Brother-in-Law" Does Cocaine at the Office and Staff Prepares Rolling, Indefinite Strikes
any additional month of Campinos in charge of the EPO is a liability not just to the EPO but the EU as well
Gemini Links 28/05/2026: Dumping Microsoft GitHub, Gopher Rabbit Hole
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, May 27, 2026
IRC logs for Wednesday, May 27, 2026
Links 27/05/2026: TSMC Workers Next to Consider Strikes, Ceasefire Cracking
Links for the day
SLAPP Censorship - Part 89 Out of 200: SRA Admits Malfunction, That's Why Transparency is Paramount
There have been more efforts than we can to count or can enumerate (probably over 100 such efforts) to gag us and to prevent us writing about what has happened
Our Free Software Activist in Connecticut (USA)
We'll soon revisit the latest round of legislation on "age" (surveillance, ID)
Links 27/05/2026: Living Without 'Smartphoones' and "Russia’s Biggest Attack on Ukraine in 18 Months"
Links for the day
Gemini Links 27/05/2026: The USA as an "Experiment" and Some Ubuntu Manuals
Links for the day
[Video] Full Video of Richard Stallman's Talk in Rome
It seems inevitable that the official GNU site will have it
Slop is a Passing Fad, It's About Faking Productivity (Plagiarism, Misinformation, and False Positives)
Slop is a bubble. Some people accept it later than others.
Anderon - Like Kyndryl - Could be Far Deeper in Debt Than Its Alleged Worth (Vapourware)
Time will tell, but it seems like a Federal-enabled (by the Federal Government) accounting scam, nothing more, nothing less
The Media That Keeps Covering "AI" Because the Pushers of It Pay for Spam
23 times in the page they mention "AI"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, May 26, 2026
IRC logs for Tuesday, May 26, 2026
Codecs and Software Patents - Part XI - The Stance of RMS (Dr. Stallman) Reassured GNU Regarding AV1
cautioned against software patents since the early 90s if not earlier