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A Chinese private enterprise, entering the U.S. market for 6 years, suffered 5 consecutive malicious lawsuits Guo Lichen Meng Liyang Technology Group Chairman Chen Wushe in 2003 acquired a Chinese manufacturer for the U.S. market, formally set up a company on January 1, 2004, and then entered the U.S. market. In the next six years, however, he faced 5 lawsuits, giving his business huge economic and time costs. "We come to the United States not to sue, we are to do business." This is like in the United States (New York) on the Fifth Avenue to grab a person said he is a thief, let this person pay a large price to prove that he is not, the conclusion is only to you say sorry, no one to pay us any compensation, it is very unfair. "In March this year, Chen Wushe at a meeting of the China International Chamber of Commerce, once again ahead of the United States Chief trade Representative, is now the United States WilmerHale law firm senior international partner Charlene Shevsky raised questions. As the third round of China-US Strategic and Economic Dialogue (s&ed) approaches, more and more Chinese companies have begun to pay close attention to the issue of investment barriers to the US. Chen Wushe told the first financial daily that he hoped the two sides would consult on the issue in S&ed, and that the United States would give Chinese companies a convenient investment climate and relevant policy laws to invest in the US, and could give Chinese companies some real preferential policies. Six-year five-round lawsuit Chen Wushe Company has independent intellectual property rights of GFCI (leakage protection fault circuit breaker), the product is the security device that the U.S. government enforces to protect the residents ' personal safety. However, from the day he entered the U.S. market, he was constantly confronted with malicious lawsuits from rival rivals. Over the past six years, he has experienced a succession of 5 intellectual property lawsuits, which in the end have won a huge economic and time cost. The United States Leiden Company in 2004, 2005 in violation of its related patents, respectively, the prosecution of the Group and the United States dealers. July 10, 2007, the United States New Mexico State Federal District Court issued a verdict, the Tong Collar group and other defendants won. This is considered to be the first case of Chinese corporate success in Sino-US IPR lawsuits. On August 27 last year, the US Federal Circuit Court dismissed a ruling by the Federal Trade Commission (ITC), "337 investigations", accusing China's corporate-led group of infringement, which was seen as the first case of a Chinese company suing a U.S. government agency. The so-called "337 investigation" means that ITC may initiate investigations and impose sanctions on unfair practices in import trade under the provisions of section No. 337 of the United States Customs Act 1930. However, on September 3, only 7 days after the victory of the group, the Leiden company appealed again, and ITC also conducted a "337 survey" of dozens of companies, such as the Tong-Ling group. "They (local competitors) of the lawsuit is malicious, they are at the same time on the sale of our products wholesalers litigation infringement, the same product, the same patentTook turns the lawsuit, divided four court dozen, then 3-4 days not to withdraw. "Chen Wushe to this reporter said," The main purpose is to increase the cost of litigation, if I do not complain, the dealer will naturally not operate our products, we will be driven out of the United States market. I have only three options: pay for the dealer, accept the competitor, and be driven out of the U.S. market. I choose to be sued. "The United States government is not enough to be pro-business, as a private enterprise determined to develop in the US market, in recent years, Chen Wushe has been running at all levels of government to talk about what has happened to us, with a view to getting coordination and support from the government level," he said. Speaking of these years of experience, he told our correspondent sigh, "the United States market, is the strong dialogue, the survival of the game." No one will sympathize with a coward. "With the company's growth, the Chinese to the United States visa inspection strict, but also let Chen Wushe waste a lot of time." "In the works, the U.S. has a tight Visa card for our senior engineers and supervisors," he said. We're going to apply, to line up, 1.5 months to two months, so how do we get to work? Chen Wushe complained. In addition, the U.S. federal government in the efforts to attract Chinese investors, Chen Wushe also think is far from enough. He thinks his business creates a lot of jobs for the local government, but it doesn't have a policy that attracts Chinese entrepreneurs to invest in the same way as it does in terms of job numbers. There are also gaps in policy explanations and guidelines. "Let me give you an example of a small wetland, or a dried-up river, in our address, and when the whole plan is done we need to fill it out and report it to the U.S. federal government, and it will take half a year for the federal government to approve it, which is completely different from our national circumstances." "Chen Wushe said. In the face of Chen Wushe's doubts, Bashevsky that these are indeed the current issue of U.S. government investment, but there is no point to the Chinese enterprises. Bashevsky explains that the United States is a federal state, so the power of the federal government is relatively limited, a lot of power is devolved to the States, so the United States government policy and regulations to make a lot of this framework is to supplement the various states of the system of policy and regulation. And because of the difference between state and state, there are times when it is difficult for the U.S. government to guide such policies and regulations, not only in foreign investment, but in many areas. A major exporter? Faced with Chen Wushe's six-year IPR lawsuit in the United States, Bashevsky believes it is also necessary to take the usual view that "IPR-related lawsuits in the US are very common, so this is not particularly directed at China, where the US intellectual property system is based on litigation, because of the number of So many U.S. courts can not afford such a large workload, but companies are still willing to use the U.S. legal system to solve problems in the courts. "In fact, most IPR-related lawsuits are disputes between American companies," she said. "However, in the face of Bashevsky's answer, Chen Wushe is not very satisfied," her wordsLike telling me to eat with chopsticks, I need clear policy signals and guidelines. "He told us in his own experience in the United States that Chinese companies may be discriminated against in doing business in the United States," their opinion is always about China, that the Chinese government has special care for enterprises, has a negative impact on our business activities. But Chen Wushe also admits that, in the light of these difficulties alone, these malicious lawsuits are not for Chinese companies, but for everyone who enters the market and are now able to deal with the media, government officials and various interest groups more calmly. An indisputable fact is that the traditional export powers of Japan and Germany have gone the same way, and even skillfully used the rules of the game for me. Native American giants IBM, Microsoft are also facing a lot of malicious lawsuits to come to the door every day. "The only thing Chinese companies can do is to adapt to the rules of the game and actively defend themselves." Liu Shen Law firm Ge Qing to this reporter introduction said. State-owned enterprises are even harder to censor. Some state-owned enterprises are also keen to invest in the US, but scrutiny by the US Overseas Investment Review Committee (CFIUS) is a stumbling block. Wu Xiangong, the international Minister of China Railway Construction Co., took a fancy to the 8 billion U.S. dollar support for high-speed rail project proposed by Obama in 2009, and he told the reporter that two years ago a team had been established and was closely involved in bidding for the high-speed rail in California. Although the self-confidence of their own construction strength, but for the risk of consideration, Wu Xiangong still want to know how to enter, will not cause unexpected trouble. Bashevsky gives Wu Xian a systematic plan. First of all, we should evaluate the possibility of the U.S. government's plan, and secondly, given the many trade frictions between China and the US, we must pave the way for a timely response to such issues as intellectual property rights. If you want to buy US local construction companies, the Bashevsky proposal is to buy a pure construction enterprise, do not involve the operation and sensitive intellectual property, core technology, so the chances of success of approval is much greater. "Because you are a state-owned enterprise, and even if the investment is small, it is often possible to buckle the U.S. National Foreign Investment Commission Review of the trigger, so this and the U.S. Treasury communication, under the U.S. legal framework to carry out such an investment acquisition process is more important, step back, Should at least have a formal communication with the US Treasury. "Bashevsky said. For Chen Wushe and Wu Xiangong entrepreneurs who are determined to open up the U.S. market, Bashevsky is critical to their readiness.
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