The Chinese-made way of defending the overseas: a lawsuit that has to be fought

(Editor-in-Chief: Shing: Lijie camera: Chang) Today we focus on a war between ants and elephants. In this war of disparity in power, playing the ant side is often some unknown but with independent intellectual property rights, out of the country's small and medium-sized enterprises, and they against the elephants are some of the international big-name enterprises.　　From the size and visibility of enterprises, these Chinese enterprises and international big-name enterprises are definitely not an order of magnitude, how can there be war between them?　　Tong-collar Technology Group Chairman Chen Wushe Chen Wushe: we won again!　　In Wednesday, countless applause was given to Chen Wushe, chairman of the Qualcomm Technology Group, because he challenged the US Federal Trade Commission's erroneous rulings and eventually won, winning back not only the products of the technology group, but also the American market, and the confidence of domestic companies in the face of unfair trade.　　Chen Wushe: The right to never violate anyone's intellectual property rights is a consistent proposition of the technology group. Although the lawsuit won, but Chen Wushe told reporters that over the past 6 years, two U.S. companies to prevent him from entering the United States market, and even 4 prosecutions for the technology group, in order to court, the company's technology group paid a total of 10.8 million dollars cost, consumed countless energy, which also led to the group's products,　　The market share in the United States has not widened for 6 years.　　Chen Wushe: Hundred years old shop, why to China such a not very famous a small factory, a private enterprise so panic, so fear? Hostile competition from foreign companies is not just Chen Wushe, in Shanghai, huaming Power Equipment Manufacturing Co., Ltd. Chairman Shaoyi also told reporters that they produced the core components of large transformers-on-load switch, also by foreign enterprises unfair competition.　　The competitor put the model of the China-Ming on-load switch into a trademark and applied to the court at an international exhibition in Berlin, Germany, this June to cast out the company from the exhibition of manufacturers and international customers. Shanghai huaming Equipment Manufacturing Co., Ltd. Chairman Shaoyi Shaoyi: Some of the court procedures are not perfect, so they did not achieve this goal.　　We still took part in the exhibition successfully. In Shenzhen, the floor enterprise, which has China's own intellectual property rights, has suffered 4 countervailing investigations, 1 337 investigations, and alleged patent infringement lawsuits in 6 years.　　The huge lawsuit expense, lets the enterprise gasp. Yangalong Chairman He Yi letter He Yi Letter: He is now in Germany, in the United States, Canada or more countries at the same time constantly with me lawsuit, or at the same time, if there are three or four cases together, what concept? Are you under?　　That must be unbearable. Shenzhen exports reached more than 170 billion U.S. dollars last year, dominating the domestic first.　　But the reporter also learned that almost all the domestic trade friction types, have occurred in Shenzhen, since the accession to the WTO, a total of more than 70 cases of trade friction. Zhang Jinsheng, Director of Shenzhen WTO Affairs CenterJinsheng: The sharp rise in trade frictions is a remarkable feature that China has become one of the hardest hit areas of trade frictions in the world.　　In Beijing, the Ministry of Commerce Fair Trade Bureau investigation deputy Commissioner Xiachong also told reporters, from the national perspective, not only for Chinese enterprises trade friction cases more and more, at the same time, the type of trade friction is more and more.　　Xiachong Xiachong, Deputy commissioner of the Ministry of Commerce's Fair Trade Bureau, said that some multinational companies with intellectual property rights in the United States have used the 337 investigation procedure as a means of restricting the competition monopoly market to restrain our industrial upgrading and export products, by virtue of the advantage of intellectual property, using the global patent layout strategy to block many As the global trade dispute intensifies today, trade frictions against Chinese companies have become commonplace. However, from the several cases just seen, now this trade dispute has spread from traditional industries to High-tech enterprises, the way of friction from a previous enterprise suffered from a lawsuit, developed to suffer from a variety of prosecutions or investigations, and even a number of foreign enterprises to continuously prosecute the same domestic enterprises. Why do these international giants aim at China's SME stalker?　　Come and see our investigation.　　Chen Wushe told reporters that 6 years, the company suffered 4 times from foreign companies to prosecute and investigate, because this is called grounding fault leakage protection device products, its English abbreviation for GFCI. Chen Wushe: It is mandatory in the United States. A safety device, every household, each building he has to install this GFCI product.　　Mandatory, so it has a very mature market, about 3 billion dollars a year or so. 3 billion dollars in the market, this piece of cake although many people want to eat, but the known production of this product of the 6 technology, but are all 4 U.S. companies patent protection.　　Unwilling to Chen Wushe through research and development, obstinately found a seventh approach, and applied for a patent, in early 2004, when the Leiden company to the U.S. dealers at about 8 U.S. dollars to provide products, the technology group began to enter the United States market, he gave the U.S. distributor price of only about 3.5 U.S. dollars.　　Chen Wushe: We have occupied nearly 10% of the U.S. market in just 6 months, only 6 months.　　In order to rob the lost market, 4 companies in the United States have been selling Chen Wushe Products 4 agents to court, the reason for the prosecution is that Chen Wushe products violated the U.S. 500 companies Leiden Company's two patents. Chen Wushe: Suing us in four states to prosecute our four American distributors.　　The goal is very clear, is to increase the cost of litigation. Chen Wushe feels that this is no longer a normal intellectual property protection, but a capital strangulation war under the name of intellectual property rights. You know, American lawyers cost as much as 600 dollars per hour, a lawsuit down, only lawyers spend 2 million or 3 million dollars is the usual, if Chen Wushe unwilling to pay tens of thousands of dollars of legal fees, give up the lawsuit, then the product will withdraw fromAmerican market.　　If Chen Wushe spends thousands of dollars in attorneys ' fees, it will seriously weaken the company's financial strength and even bring down the business.　　Chen Wushe: Not to lose in the law, but to lose under the financial pressure. Facing Lai Santon Capital strangulation war, Chen Wushe Choice is--active lawsuit.　　First he applied to the United States New Mexico State Federal District Court to concentrate all four cases in the court, and demanded that the company not prosecute American dealers in the tech group until the case was not tried.　　Chen Wushe: Our two motions were agreed by New Mexico State, the Federal District Court.　　In the end, America's leading lawyers, who spent 5 million of billions of dollars to hire, did not disappoint Chen Wushe, and the US court ruled that the technology won: Chen Wushe's products did not violate two of Leiden's patents. Chen Wushe: The judge ruled that the defendants in China were successful.　　This is the verdict of 558 patent infringement cases, we have won the victory. After getting the court's verdict, Chen Wushe that since then he can concentrate on the development of the U.S. market, but let him not think that the two cases just won 36 days, Leiden Company's strategic partner Passisim Company also on the basis of patent infringement, will pass the technology group and other 4 Chinese enterprises sued the U.S. Federal Commission on International Trade,　　Requires 3 patent infringement "337" investigations from China's grounding fault leakage protection devices. Chen Wushe: That means two people take turns, Levin Santon lost, Passisim with 337 survey. The purpose is to use the United States International Trade Commission (FTC) to have a customs restraining order, a power that bans our products from entering the U.S. market, which means cutting off our financial resources and causing us to spend our money and even go bankrupt in the midst of an expensive U.S. lawsuit.　　This one (verdict) we lost the lawsuit. 337 of the Chen Wushe faced with a difficult choice, the United States customs banned his products into the United States market, and the U.S. market for 110V voltage design grounding fault leakage protection device also can not be sold in the country, Chen Wushe face bite, but this war is not easy, from the historical perspective,　　The success rate of the United States Federal Trade Commission is no more than 3%.　　Under the most difficult circumstances, he thought about 2004 when Leiden invited him to Long I. headquarters in the United States, the other's technical vice president outrageous demand that he give up the patent in the United States, and written recognition of the infringement of the other party's patent said.　　Chen Wushe: Very arrogant to tell me, he said, Mr. Chen, if you do not sign this agreement, we must eliminate your business, he said that we have a lot of money in Leiden company, we have a lawsuit, if you do not sign this appointment, we will fight to destroy you so far. At that time, stubborn Chen Wushe did not hesitate to refuse the other party's unreasonable requirements, and recall 5 years of a scene, Chen Wushe that the overthrow of the 337 investigation ruling although only less than 3% success rate, but he firmly believe that with independent intellectual property rights of the patented products, mustGet a fair verdict.　　Then, the technology group filed a lawsuit against the U.S. Federal Circuit Court, 1 years later, August 27 this year, the final verdict came out, and the technology group won again.　　Chen Wushe: An exciting verdict, the verdict proclaimed our full victory. Leiden Company to deal with the way the technology, let me Think of "Three Kingdoms" in the scene of the third British war Bu. The strength of the world's top 500 companies with their strategic partners, take turns, and even want to use high legal fees to bring down the Chinese enterprises, their tricks are used to the extreme.　　So besides this wheels off, what other foreign giants have the means to deter Chinese companies? As we can see, it took 6 years for the company to have 4 lawsuits with Leiden, and it cost us more than 10 million dollars for legal fees. Despite the eventual success of the technology, the cost is high. Now this use of litigation, to delay, blocking the entry of Chinese enterprises into the international market, has become a well-known international enterprises of the means.　　In addition to intellectual property, trademark registration, countervailing subsidies have become the reason for them to initiate proceedings.　　Shaoyi Shaoyi, chairman of Shanghai Huaming Power Equipment Manufacturing Co., Ltd.: We have hired foreign lawyers and are preparing for legal proceedings. In Shanghai, Hua Ming Electric Power Equipment Manufacturing Co., Ltd. chairman Shaoyi told reporters that they are collecting materials, is ready to take a more than 50-year-old German Enterprise-Rhine, the industry, known as Mr. Mr Company sued Germany's court. So what is the cause of this lawsuit?　　Shaoyi told reporters that their products are the core components of large and medium-sized transformers on-load tap-changer, this switch for a country's power grid security is critical, it can not only accurately stabilize the quality of the voltage, but also required to achieve decades of operation, can not be faulted.　　Shaoyi: Key to National Grid contact, the core of the product, if it goes wrong, maybe a city, or a large piece of the city will cause power outages, in addition to our country this two years of UHV development, power grid development, cross-provincial power grid connection, need to tap switch as a liaison role. On-load tap changer for a country and its importance, so Shaoyi and father two generations through more than 20 years of efforts, not only to make their products reached the international highest level, with independent intellectual property rights, while also selling products to more than 70 countries and regions, in the market rapid expansion,　　With a number of the world's top 500 companies to establish strategic partnerships, this June, the field of international Giants--MR's company launched a surprise attack on Wah Ming.　　Shaoyi: During the show in Germany, Mr Law filed a lawsuit against the court, asking us to stop promoting the sale of VCV and VCM products.　　Shaoyi told reporters that the reason for the prosecution of Mr Company is: Wah Ming two high-end products VCV and VCM models, and Mr Company's registered trademarks are the same, thus infringing the trademark of Mr Company. In the global power equipmentShaoyi was furious that the company and the world's customers gathered at the exhibition, the Chinese Ming was attacked by tort lawsuit. Shaoyi: Mr Vcv as a certificate of trademark registration, we can see that this time is July 20, and Wah Ming This product is on sale in 2007, there is a VCM registration time is also 2009 years of July 20,　　And Wah-Ming VCM Sales Time is 2009 February has completed the trial, passed the experiment, to achieve the listing of sales. According to the evidence provided by Shaoyi, the product models of huaming were brought to market in 2 years and 5 months respectively before Mr Company's trademark, does this mean that Mr Company has registered the product model of huaming into a trademark?　　Reporter also contacted the German Mr Company in the domestic wholly-owned subsidiary Kai Tak Trading Co.　　And for Mr Company's explanation, Shaoyi not agree, in order to prove that the German Mr Company in the knowledge of the case, the registration of the Chinese trademark, Shaoyi also deliberately took out a picture. Shaoyi: This is the May 2009 at an electrical equipment exhibition in Russia, Mr Sales representative came to see our VCV switch, also took our VCV information, so we can easily understand from the time, we started from 2007, they saw our products in May 2009,　　The registration of their trademarks was filed on July 20 in 2009.　　Shaoyi told reporters that the lawsuit to sue Mr Company for trademark registration, regardless of the cost must play, because if the German courts do not overturn the ruling on the trademark infringement, Wah Ming's two products will lose a number of countries in the market.　　Shaoyi: All business activities involving VCV and VCM are required to stop, in which country the country in which they apply for trademark applications, including Germany, the European Union, Turkey, Russia, and the Hong Kong region of our country.　　In the interview, the reporter learned that once the world has been on the switch overlord Mr and Shanghai Hua Ming has repeatedly trade frictions, in 2006, Mr Company on the grounds of intellectual property infringement, the Chinese Ming to sue to the United States court, but eventually, as the prosecution of Mr Company chose to reconcile.　　Shaoyi: I hope the content of this reconciliation can tell the whole industry, but the other side he hoped that the content of the reconciliation can be kept confidential, so we have to comply with such a commitment, but at least one point, through this Settlement agreement, huaming products can be unimpeded in the world.　　Although Mr and Huaming settled the settlement agreement 6 years ago, the deal was broken this year, and Huaming also decided to appeal against rival markets.　　Shaoyi: The annual lawyer fee of about 700,000 to 1 million dollars, may continue to two time, but we do not fight this lawsuit, our products will not go abroad. In overseas competition, the courage to sue the other party is not only Wah Ming, Shenzhen Yan-lung company chairman He Yi Letter told reporters that 8 years, they suffered in overseas markets anti-dumping, countervailing investigation, a 337 investigation and suspected infringement of patentLawsuits were investigated and prosecuted by international giants.　　Although Yangalong eventually won all the transnational lawsuit, but the development of the enterprise is also seriously affected, from 2004 to date, the cost of overseas rights of more than 30 million yuan, involved in the energy and loss of business opportunities difficult to calculate, therefore, Yangalong although has its own unique patented technology, but the overseas market has been wandering.　　He Yi Letter: The game is too complicated, you think, we with them, plus the world more than 10,000 flooring enterprises, China has more than 5,000 flooring enterprises, such a game of interest, as long as the floor, who can not get around this thing. He Yi told reporters that in overseas lawsuits, being chased by international giants is not entirely a bad thing, with Yangalong a lawsuit won, the popularity is getting higher, at the same time, with the international giant launched a survey and prosecution, some can not withstand the test of China flooring enterprises were forced to return to the country,　　It also provides a greater space for the development of Yangalong. He Yi: Also got the benefit of dealing with trade barriers, to deal with the crackdown, in response to such lawsuits, we developed.　　And the stronger it gets, the bigger it gets. In a foreign sniper war, with independent intellectual property rights of Chinese enterprises not only paid the price of legal fees, consumption of a lot of energy, more importantly, these encounter sniper enterprises, often their own funds smaller, once the lawsuit is entangled, enterprise financing and sales channels will be affected, into survival dilemma.　　So, in the face of the initiative to find the elephants, ants have no chance of survival? So, what is the domestic enterprises to do to ease the legal situation, market damage? Chen Wushe's experience is: the first thing domestic enterprises to do is, their own patent perfect, can really stand on the heel. At the same time, in order to deal with the ongoing litigation war of some international giants, domestic enterprises must innovate constantly and launch new products.　　With the overseas sales of new products profits, supporting the litigation costs of old products, so as to continue to survive, develop and grow. Chen Wushe: Magic One Foot road, we now have 2010 years of the latest products, we will send to the United States recently certified, we have new products.　　So we have to deal with this rogue type of litigation, there is our solution.　　And Yan-Lung company chairman suggested that the domestic enterprises of the same industry should hold a group of heating, take out their own patents, the formation of patent alliances, to increase the voice of the international market. He Yi Letter: Together to protect the rights, common maintenance, mutual support. Including cross licensing, and everything. The equivalent of a patent pool, which should be to protect us against risk, rights.　　It will help to fight against foreign giants. In addition, Wah Ming chairman Shaoyi also suggested that domestic enterprises should fully study the laws and insurance provisions of various countries, use these rules to protect themselves.　　He told reporters that in 2003, he set up a trading company in the United States, the annual cost of 1000 dollars to the insurance company called the Insurance of intellectual property litigation, the result of two years of lawsuit, did not spend a penny. Shaoyi: That company isRegistered in the United States, the equivalent of a foreign enterprise in the United States, it enjoys some of the laws and policies of the United States environment. So after the case begins, all of our attorneys ' fees and the damages that may be lost will be borne by the insurance company. The plaintiff, since it was you who provoked the case, the insurance company is not responsible for the cost.　　Of course this is just one aspect, and the other is to sever the connection to your core business, which is to create a firewall. In Shenzhen, the reporter also saw that the establishment of the anti-dumping and industrial damage early warning system, the system will be a possible outbreak of trade friction in advance early warning to help enterprises in advance response.　　At the same time, Shenzhen World Trade Center director Zhang Jinsheng also told reporters, local governments in attracting investment, we must pay attention to the formulation of the policy is consistent with the WTO rules, to avoid the government's support policy, to become foreign sanctions against Chinese enterprises. Shenzhen World Trade Center director Zhang Jinsheng Zhang Jinsheng: Including your government's land, bank loans, including some of our local preferential policies, what tax cuts, concessions and so on.　　So now Europe and the United States for our subsidies, especially the government's subsidy policy is now more and more. Half an hour to observe the ants and elephants of the war, may be in the form of patent war, trademark war, subsidy war and so on, but it is essentially a war of interest. Throughout our several cases reported today, the cause is because China's small and medium-sized enterprises invented new technologies, manufacturing new products, broke the original profiteering pattern, so that foreign consumers with lower prices to enjoy high-quality products. So they come up with lawsuits to drag down Chinese companies. In the face of this war without retreat, we cannot stand idly by, except for these small and medium enterprises to find their own way out. After all, these small and medium-sized exporters, with their own intellectual property rights, are the most dynamic part of China's economy, and they are suffering from lawsuits today, indicating that their technological and manufacturing prowess does pose a pressure that cannot be ignored by foreign counterparts. That pressure goes well beyond the competition that some Chinese companies are bringing with low cost and low prices. This part of the small and medium-sized enterprises out of overseas, to open the market space for Chinese products, to build the brand image of Chinese products is essential. Through the war between ants and elephants, we should find these positive signals and use our wisdom to change the traditional international trade pattern with strong and weak.