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

Antenna Abuse and Gemini Abuse (Self-hosting Perils)
Perhaps all this junk is a sign of Gemini growing up
Djibouti Enters the Windows "10% Club" (Windows Was 99% in 2010)
In Africa in general Microsoft lost control
[Video] Boston Area Assange Defense (Yesterday)
It was published only hours ago
In Malta, Android/Linux Has Overtaken Microsoft Windows (According to statCounter)
statCounter milestone?
 
Microsoft Layoffs Are Still Too Frequent to Keep Abreast of and Properly (or Exhaustively) Classify
The "HR" department knows what's happening, but whistleblowers from there are rare
Bahamas Joined the "5% Windows" Club
statCounter only traces back about 1 in 20 Web requests to Windows
Links 16/07/2024: Salesforce Layoffs and Microsoft's DMARC Fail
Links for the day
Possibly Worse Than Bribes: US Politicians and Lawmakers Who Are Microsoft Shareholders
They will keep bailing out Microsoft to bail themselves out
The Software Freedom Conservancy Folks Don't Even Believe in Free Speech and They Act As Imposters (Also in the Trademark Arena/Sense)
Software Freedom Conservancy was already establishing a reputation for itself as a G(I)AFAM censor/gatekeeper
GNU/Linux Share Doubled in the United States of America (USA) in the Past 12 Months
Or so says statCounter
Even in North Korea (Democratic People's Republic Of Korea) Google Said to Dominate, Microsoft Around 1%
Google at 93.26%
[Meme] The Red Bait (Embrace... Extinguish)
They set centos on fire, then offer a (de facto) proprietary substitute for a fee
Shooting the Messenger to Spite the Message
segment of a Noam Chomsky talk
Guinea: Windows Down From 99.3% to 2.7% 'Market Share'
Guinea is not a small country
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, July 15, 2024
IRC logs for Monday, July 15, 2024
What's Meant by "Antenna Abuse" (Gemini)
syndication is not a monopoly in Gemini and if one doesn't condone political censorship, then one can create one's own syndication service/capsule
Microsoft Layoffs and Entire Unit Termination: Diversity, Equity, and Inclusion
What an announcement to make just before Independence Day
Links 16/07/2024: Old Computer Challenge and One Page Dungeon Contest
Links for the day
Microsoft Falls Further and Closer Towards 10% (Windows "Market Share") in Kuwait
more countries entering the "single-digit Windows" (under 10%) club
Gemini Links 15/07/2024: Antenna's Pro-Hamas Bias Revisited and Old Computer Challenge
Links for the day
[Video] Julian Assange, Over One Decade Ago, Cautioning About What the Internet Had Truly Become
video is not new
Homage to Malta
Malta is probably easy for Microsoft to bribe
IRC at 16
Logging has been used for us and against us
Links 15/07/2024: China’s Economic Problems, Boeing Under Fire
Links for the day
500 Days' Uptime Very Soon
Good luck doing that with Windows...
Windows Falls Below 20% in Tunisia
A month ago we wrote about GNU/Linux in Tunisia
Links 15/07/2024: Google Wants Wiz and Why "Sports Ruin Everything"
Links for the day
Gemini Links 15/07/2024: Old Computer Challenge and Sending Files via NNCP
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, July 14, 2024
IRC logs for Sunday, July 14, 2024
Debian History Harassment & Abuse culture evolution
Reprinted with permission from Daniel Pocock
Microsoft Windows Down to 23% in Spain
the rate of change is noteworthy
[Meme] It Is Not About Empowerment, It's About Optics for Bigots and Businessmen
Truth hurts
Truth is Always Truth
Desperate efforts to suppress the truth resulted in even worse chaos and some people are going to pay for it
Android Surges to New Highs in Georgia, Windows Plunges to 30% (It Was 99% in 2012)
Until 2012 almost all Web requests there came from Windows
Another Casualty of the 'GAI' Ponzi Scheme: Most of the News Cycle and News Sites
accelerated death of journalism
Empowering Predators Who Fancy Exercising Control Over Women (Using Corporate Money)
Remember this when Google talks about diversity, women etc.
GNU/Linux Continues Its Rapid Growth in July, Today We Look at Belgium
Again, a word of caution: statCounter isn't a perfect yardstick
Links 14/07/2024: Goldman Sachs Says 'Advanced' or 'Generative' Hey Hi (AI) is Just Hype, Thoughts on Negatives
Links for the day
GNOME Foundation Welcomes Dolly
It didn't work out with Molly and Holly
Links 14/07/2024: Perils for AI PC Hype Train, Further Attacks on Freedom of the Press
Links for the day
A Response to Bill Maher's Senseless Attacks on Julian Assange and Wikileaks
published a few hours ago
The List of Sites or Sources for Linux News is Getting Shorter Over Time (Despite GNU and Linux Steadily Growing in Usage)
A lack of publishing begets lack of educated, informed population (a return to Dark Ages where rulers leverage mass ignorance)
The Number of Web Servers Has Gone Down
Cloud fatigue deux?
[Meme] GNOME Foundation's Relationship With Women
Lots more coming soon, so stay tuned
The Smugness of "I'm a Journalist"
Attacking women for expressing their opinions (for example, about the abuse they received) isn't unprecedented
It Takes No Courage to Become Another Corporate Stooge
transition to spam
Why Techrights Has Just Programmatically Blacklisted ZDNet
Even their "Linux" writers are AWOL
Gemini Links 14/07/2024: The Stress of 24/7 Notifications and FOSS tools for Sipeed Tang Nano 1K
Links for the day
Windows Already Down to 10% in Lao (It was 96% a Decade and a Half Ago), Vista 11 Adoption Has Stalled
And GNU/Linux is topping a 1-year high in Loa
IRC Proceedings: Saturday, July 13, 2024
IRC logs for Saturday, July 13, 2024
Over at Tux Machines...
GNU/Linux news for the past day