Bonum Certa Men Certa

China's Patent Policy Helps Chinese Oligarchs and Creates a Large Litigation 'Industry' Which Protects the Oligarchy

Oligarchs in China



Summary: An analysis of the latest news and views from China, where patent protectionism is on the rise not in the name of innovation but protectionism for colossal state-connected firms such as Huawei

THE UNITED STATES is quite likely the most powerful country in the world in terms of military might and economic might. Sure, China's military is bigger by some criteria and its growing GDP (not per capita) is a growing threat to US dominance. China now yields more academic papers than the US and there's a plethora of other measures by which the US is declining compared to China (as well as many other countries). What we do not like, however, is how patent maximalists blame US decline on patent rationality and a much saner patent policy. They try to latch onto reports about US demise and frame these as 'evidence' of patent law needing a change. There's a lot more to the US than this; the USPTO isn't the pillar on which the US was built. In fact, the US as a powerful country predates the USPTO.

Yesterday at IP Watch Steven Seidenberg wrote about the case of WesternGeco (WesternGeco LLC v ION Geophysical Corp. to be more specific). "On January 12," he explained, "the US Supreme Court agreed to hear a case that could produce a major change in US patent law, with effects reaching far beyond America’s borders. At issue in WesternGeco LLC v. ION Geophysical Corp. is whether and when a US patent owner can collect infringement damages on a global basis." The headline, "US May Extend Its Patent Damages Worldwide," is a good outline as it's all about damages, not scope. Our prediction is that this will be a split decision. As we explained before, it barely matters to us because we have always been focused on patent scope. A lot of patent pundits use this case for China-baiting. We have actually grown rather disgusted by their obsession with China as they often use China as the catch-all excuse for any lobbying agenda they may have. They have been doing it for over a year. Intellectual dishonesty for one's wallet is so commonplace that Richard from IAM wrote a few days ago: "The emergence of a professional IP class in China is going to have a big impact on IP value creation in the coming years - i suspect we’ll be learning a lot..."

"What you mean by "professional IP class" is a bunch of patent lawyers enabling ruin in China," I told him. I actually meant it. Another patent maximalist who links to IAM said: "The Chinese IP market continues to grow! http://www.iam-media.com/blog/Detail.aspx?g=8798408e-b309-456f-b5ab-9d81e42e2c2b …"

"You mean Chinese LITIGATION 'market' (that you profit from)," I told him. He is already based in China. Watch what IAM published some days ago: "China’s continued trademark reforms"

The patent microcosm, including patent extortionists such as Microsoft, links to IAM quite a lot. IAM is like their lobbying group or propaganda mill.

Found via the above person (from China) was this new report about how China suppresses Korean phone giants using patents. "Samsung understands the power of injunctions in China patent cases," he said, "and Samsung does not respect the Chinese courts."

LG recently left the country, which leaves only one South Korean giant in China. To quote the report:

Samsung asked a California federal judge Thursday to block Chinese smartphone maker Huawei from enforcing an injunction it won in China last month ordering Samsung to stop making or selling devices that infringe two Huawei patents found to be essential to industry standards for 4G wireless technology.

The Chinese injunction, Samsung said, is nothing more than an improper attempt at gaining leverage to force it to license standard-essential patents, or SEPs, on Huawei’s preferred terms.


We wrote about it roughly a week ago; what we're seeing here is China using patents just like it uses its censorship policy. It's a convenient pretext for sanctioning/blocking foreign companies -- a subject which received plenty of press coverage last year. Here is what IAM wrote about it:

Samsung Electronics is asking a federal judge in California to stop Huawei from enforcing an SEP injunction it won in China earlier this year. In doing so, the Korean company has given an indication of when that order might actually come into effect - and revealed the significant business disruption that it could entail inside and outside of China.

The Shenzhen Intermediate People’s Court announced an injunction against Samsung on 11th January. It found that two patents asserted by Huawei were infringed, essential to the 4G standard and that Samsung had violated FRAND principles by “maliciously delaying talks”. The two cases were filed on 25th May 2016. One day earlier, Huawei had sued Samsung over some of the same SEP families in the Northern District of California. That is where Samsung is now trying to put the brakes on the Shenzhen injunction.


As we showed some days ago, the lion's share of patent litigation in China comes from Chinese companies; it's very different from what we see in other large economies. What's also interesting is the extent to which this patent policy helps Chinese giants -- not small companies -- and thus enriches Chinese oligarchs (typically connected to the CPC).

Watch what just happened to Wuxi Shangji Automation: Just what a relatively small business needs? More litigation? "Meyer Burger goes to Chinese court for patent infringement," the headline says. It's from 3 days ago:

The Swiss PV equipment manufacturer has filed a patent infringement lawsuit in China against Wuxi Shangji Automation Co, Ltd. for the protection of its patented wire winding system for the cutting of solar wafers, the Diamond Wire Management System (DWMS).


It's one of those rare cases where a lawsuit is filed in a Chinese court by a foreign company.

We are still trying to figure out the logic behind China's relatively new patent policy, which is a full embrace of patent maximalism. Dennis Crouch recently cited this new paper titled "A Half-Century of Scholarship on the Chinese Intellectual Property System" in which, according to Crouch, the author "offers excellent guidance by focusing more on flow and transition rather than a snapshot."

The abstract mentions RCEP (a Trojan horse for software patents) and gives some historical perspective:

The first modern Chinese intellectual property law was established in August 1982, offering protection to trademarks. Since then, China adopted the Patent Law in 1984, the Copyright Law in 1990 and the Anti-Unfair Competition Law in 1993. In December 2001, China became a member of the World Trade Organization, assuming obligations under the TRIPS Agreement. In the past decade, the country has also actively participated in bilateral, regional and plurilateral trade negotiations, including the development of the RCEP.


The above is just a short outline of some of the latest information we have about China. A lot of it is actually misinformation from patent maximalists who, as we shall show in the next post, seek to exploit China to justify an expansion of patent maximalism in the US. They already lobby Iancu along those lines.

Recent Techrights' Posts

Tentative Summary of Things to Publish in Project 2030
I'll still be in my forties by then
Rust People: Drain the Swap, You're Holding It Wrong
Does Rust make sense?
Slopwatch: LinuxSecurity, linuxconfig.org, and Plagiarised Phoronix
Many articles out there are nowadays fake
 
Our 5-Year Geminispace Anniversary is Coming Up
I still remember when Gemini Protocol was quite new
It's Right to Point Out Violence From the Right
Violence is a recurring theme
Web Browsers That "Do Hey Hi" (AI)
State-of-the-art plagiarism or "autocomplete on steroids" (not coined by us, nevertheless a nice description) don't have much/any prospect
Links 20/09/2025: Hardware Projects in View, Some Independent Publishers About Russia Prosper After Cheeto Cuts Funding
Links for the day
Gemini Links 20/09/2025: Options and TV Time Machine
Links for the day
Links 20/09/2025: Retrocomputer, Antique Phone Experience, and More
Links for the day
Links 20/09/2025: Internet Shutdowns, Media Censorship, and Climate Worries
Links for the day
About 700 New Gemini Capsules in 13 Months (or 54 Per Month)
4.8K would represent a 20% increase
Techrights the Name Turns 15
About 6 weeks from now we turn 19
Microsoft is Running Out of Time and Floating Fake Figures, Fake Projects, Fake Narratives, Fake Excuses
Also, a lot of Microsoft's "revenue" claims are circular financing (i.e. Microsoft buying from itself, which means Ponzi-like fraud)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, September 19, 2025
IRC logs for Friday, September 19, 2025
Gemini Links 20/09/2025: Navigating the Pressures of Modern Life and SpellBinding Accidentally Wrote Another Gemini Server
Links for the day
Links 19/09/2025: Press Freedom Dying in US, Anti-Austerity Strikes in France, and Alan Rusbridger to Leave 'Prospect'
Links for the day
European Patent Office Illegally Gutting and Outsourcing Its Functions, Acting Like an Above-the-Law Commercial Business (It Won't Stop at Formalities Officers (FOs) and Classification Slop at the EPO)
breaking/violating laws and conventions
Offloading to the Sister Site
In the interest of not overwhelming readers
Links 19/09/2025: Coffee Club and "SpellBinding is Now Absurdly Fast"
Links for the day
Links 19/09/2025: Lobbyist of American GAFAM Becomes Data Protection Commissioner in Europe
Links for the day
Links 19/09/2025: Media Freedom Ceases to Exist in US, "Consider Dropping Twitter/X"
Links for the day
Gemini Links 19/09/2025: Thinking and Insect Bites
Links for the day
Microsoft E.E.E.: Git Will Now (or Very Soon) Fully Depend on Rust, Which is Controlled by Microsoft
Microsoft now makes Git dependent on Rust, or making Git dependent on GitHub, which is proprietary
The Right to Punch People (Apparently)
At Brett Wilson, Brett's job title is "Head of Crime" and Wilson normalises calls for violence
Slop or Fake Articles Have Turned Linux Journal From a Pioneering/Trailblazing "Linux" Magazine Into a Nuisance
some sites with former reputation - good reputation - turn into cesspools
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, September 18, 2025
IRC logs for Thursday, September 18, 2025
Brett Wilson LLP Seem to Have Had Only One Litigation Client in 2025, He Was Previously Charged, Just Like the Serial Strangler From Microsoft (Whom They Now Represent)
Karma is superstition, regulators are not
Project 2030 to Cover How "Project 2025"-Styled Anti-Media Zealots From America Targeted Techrights and Tux Machines
The common denominator is also their attacks on women
Brett Wilson LLP Failed to Meet Deadlines Set by Judge 7 Months Earlier, Tried to Ruin Our Holiday, Then Had the Audacity to Ask Us for Over 3,000 Pounds for Its Own Lateness
As a matter of principle we will never respond to assassin while we are on holiday
On Claims That After Bluewashing Red Hat Will Increasingly Become an Indian Company
Discussed this week (long and detailed)
Americans Attacking British Sites Only Months After They Leave America
We find it kind of funny if not ironic that this site, originally an American site, got legal harassment only from Americans and only months after it had moved to the UK
Despite Losing Over a Quarter Million Dollars a Year Software in the Public Interest (SPI) Gives Helping Hand to Libreboot
SPI's financial state depends a lot on its public image or its reputation
Slopwatch: Google Helps Plagiarism and Sends Traffic to Ripoff Artists
That Google as a company helps spamfarms is noteworthy
If You Want to Know the Future, Listen to the Free Software Foundation (FSF) and Andy Farnell
We're sure the FSF will have plenty of its own output
Links 18/09/2025: A Taliban Ban on Internet Access and Troubled US Job Market
Links for the day
Gemini Links 18/09/2025: Computer Literacy and Accessing Alhena's Database
Links for the day
Links 18/09/2025: US War on Media (Truth Banned, Cancel Culture by the Hard Right), NYT Chief Executive Warns Cheeto is Deploying ‘Anti-press Playbook'
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, September 17, 2025
IRC logs for Wednesday, September 17, 2025