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Utility Model Protection In China

By William F. Heinze

According to Professor Wegner, yesterday, "at the opening of the oral hearing in the Zhejiang High People's Court in Chint v. Schneider, Chinese utility model holder Chint completed its major victory over French competitor Schneider through an unprecedented $ 23 million settlement (RMB 157 million), approximately half the damages awarded two years ago by the Wenzhou Intermediate People's Court."

He also offers a few lessons from Foley and Lardner's presentation on "China Patent Practice: The New Realities Strategies for Success for the Multinational Enterprise," including

• The 828,000 Chinese patent, utility model and design applications filed last year represent ?by far ?the largest number of patent filings of any country in the world.
• Because early patent protection will not be possible [due to rising application backlogs], utility model protection should be considered as an alternative.
• Less than one (1) percent of utility model applications are by foreign enterprises.
• Utility model protection is excellent for prompt grant of the patent right.
• The patent is registered with a substantive examination deferred until enforcement.
• Utility model protection is an excellent way to quickly boost the size of granted patent protection.
• Utility model protection has resulted in very high damages awards on a case by case basis
• a trade secret invention practiced in the United States may still be the basis for patenting in other countries; Only the United States adopted the unique bar against patenting an applicant?s secret invention. No other country has followed the U.S. lead of Judge Learned Hand in Metallizing Engineering.
• it is anticipated that many disputes will arise as to ownership of improvement inventions that are made as part of outsourcing or joint venture agreements.

Full post as published by I/P Updates on April 15, 2009 (boomark / email).