Please wait while the page is loading...
05 May 2014
A local Shanghai company recently sued Chinese IT giant Tencent and two other parties for patent infringement at the Shanghai No. 1 Intermediate People’s Court, and demanded half million Renminbi (US$80 million) in compensation.
The case involved a patent granted to the Shanghai company Kedou in 2013 for a laser light-censoring touchscreen, touch-pen and the table equipped with such technology. Kedou claimed that the interactive projecting device Q Robot, which is jointly developed by Tencent and Shenzhen Ruichen Technology and sold on Yixun infringed its patent.
Of the two other companies being sued, Shenzhen Ruichen Technology has a strategic cooperation partnership with Tencent, while Yixun is a B2C online shopping platform under Tencent.
The Shanghai court recently denied Tencent’s application for a review of the right of the court’s jurisdiction.
Li Xingwen, chief engineer at Kedou, says the main purpose of initiating this litigation is to clarify the ownership of such technology, and to avoid future confusion as the industry develops.
“Comparing to winning, I’d rather settle the case with the companies. It means the two parties have reached a mutual understanding and consensus,” says Li.
Li says the technology took the company more than 10 years to develop, and it is the only known remote control of a touch screen.
Tencent refused comment regarding this case.
Original inventions are the drive for exploiting a new industry which needs the involvement of many companies, says Li, who welcomes Tencent to join the company in developing the technology. “No single company could manage one industry well. We expect more outstanding companies to join us who will receive nice revenue once the industry grows stronger.”
According to Shen Li, a partner at DLF Lawyer, it is also the first time that Tencent has been involved in disputes over hardware patents, despite its involvement in some other copyright, trademark and unfair competition disputes.
“This case is a battle between an ant and an elephant. It is the difference in between that shows the faith SMEs have for the IP protection system in China,” she says.
China’s economy is undergoing a transitional phase from “Made in China” to “Idea from China.” Governments have realized the importance of creating an innovation-friendly environment where local SMEs have strong awareness of IP protection, Shen says, adding that consumers also have a basic understanding of the IP system.
From a micro perspective, Shen says purely developing technology is rarely a major means for SMEs to generate revenue, despite China being a giant digital product manufacturer. If the case could lead to a successful patent licensing agreement, such business model would encourage more positive cooperation between SMEs and large companies, Shen tells Asia IP. “More SMEs could then follow the path of technology development, from licensing to re-investment in R&D.”
