The status quo and countermeasures of LED patents in Shenzhen

The status quo and countermeasures of LED patents in Shenzhen

 

—— Dialogue with the Chairman of Shenzhen Intellectual Property Research Association

Source: "China Science and Technology Fortune"

Shenzhen is China's largest LED industry base. The development of green and energy-saving LED lighting industry has become an emerging industry with key development and breakthrough in Shenzhen.

According to the relevant person in charge of the State Intellectual Property Office, the number of LED patent applications in Shenzhen ranks first in the country. Shenzhen, which has the most patented crabs, is the most “bitten” in LED patent disputes. The “337” incident seems to be a classic pain in many patent cases. Today, the “Ten Cities and Ten Thousand Cities” project of the Ministry of Science and Technology vigorously promotes LED. As one of the pilot cities, Shenzhen has been attacked by powerful LED foreign companies, how to protect their patents, how to guard against and evade the patent traps and litigations laid by international giants. The risk is "Achilles' heel" for LED companies in Shenzhen and even the whole country. In view of this, we interviewed the chairman of the Shenzhen Intellectual Property Research Association, Qi Hanjun.

Reporter: What is the current status of Shenzhen LED lighting technology patents?

Yan Hanjun : There are about 1,000 companies engaged in the research, development, production and application of LED technology and products in Shenzhen, most of which belong to the technical field of LED packaging and application. According to the information publicly approved by Shenzhen Science and Technology and Information Bureau before August 2008, there are 97 high-tech enterprises engaged in LED, accounting for 3.5% of the 2,835 high-tech enterprises in Shenzhen.

Among the related enterprises in Shenzhen, there is only one chip production, and there are no semiconductor materials and phosphors that are vital to the production of the products. Whether it is technology, process, equipment, or key raw materials, it needs to be introduced.

According to preliminary statistics, up to now, there have been 384 patent applications for LED lighting in Shenzhen, including 113 inventions and 271 utility models, accounting for 30% of the total applications, and utility models accounting for 70% of the total applications; Among them, individual applications accounted for 50.5% of the total applications, and unit applications accounted for 49.5% of the total applications; there were almost no invention applications before 2003, and the number of utility models applied in 2003 was very small. There were only 9 preliminary statistics; since 2003, patents The number of applications has gradually increased, and the number of applications reached a peak of 131 in 2008. Considering that there is a certain lag in the disclosure of invention patent applications (or the utility model announcement), the total number of applications for 11 in 2009 does not reflect the real situation. We estimate that it should be more than 2008 or flat. There is another phenomenon in the application that deserves our attention. The number of patent applications per unit was very small before 2003. It has increased year by year since 2004 and reached the peak in 2008.

Most of the patent applications are non-basic patents. The preliminary statistical basic patents are only 6 pieces, and one of the invention patent applications has been authorized. The specific technical fields involved in patent applications include indicator lights, display screens, landscape lighting, and daily lighting equipment for civilian use.

Reporter : What are the aspects of the patent risk status of LED lighting technology in Shenzhen?

Yan Hanjun : I personally think that the performance is as follows. First of all, the lack of basic patents, the lack of basic patents will lose the commanding heights of the market, and the profits will be taken away by others sooner or later; if the research and development efforts are not increased and other favorable measures are taken, such as obtaining a more favorable license agreement, establish Closer domestic alliances may face the same dilemmas encountered by other industries; secondly, fewer invention patents; less patent coverage; and again, insufficient continuous application.

Reporter: What are the main lessons of the "337" incident on China's LED companies? How to evaluate Shenzhen's gains and losses in LED technology patents?

Yan Hanjun : On March 20, 2008, the US International Trade Commission (ITC) officially filed the number 337-TA-640, and filed a “337 investigation” on patent infringement against 30 LED companies including three companies in Shenzhen. In response, the Shenzhen Municipal Government and the Nanshan District Government responded quickly and made important instructions to provide relevant enterprises with policy and regulatory support.

The purpose of the investigation by the patentee Professor Rothschild is ominous. At present, the information we have learned is that domestic enterprises have reached a settlement with the patentee.

Both lessons and experience. There are many export-oriented enterprises in Shenzhen. If the overseas market is lost, it is more difficult to convert enterprises from export-oriented to domestic sales within 1-2 years, and the losses are relatively large. Over the years, companies have been burying their heads to make money. Although the government has continuously increased the propaganda of intellectual property rights, enterprises have not understood the risks of overseas intellectual property rights. The reasons behind them are many and complicated. Since intellectual property does not come at a glance, it requires continuous investment and care, so it is more passive once it comes to overseas litigation. Fortunately, Shenzhen enterprises have relatively strong ability to accept new things. Under the hard work of the company itself and the efforts of all parties, they have achieved satisfactory results.

The lesson is profound and the experience is precious. The experience is multi-faceted. First, the enterprise cannot easily defeat it. This is the basis. Secondly, it is necessary to form a multi-party force to help enterprises tide over the difficulties. The third is to respond promptly, because one of the characteristics of the “337 investigation” is quick and timely response. It also includes the identification of a team of domestic and foreign litigation lawyers in a short period of time.

After the financial crisis, Obama seems to be transforming the US development model, calling back the manufacturing industry that was abandoned, and the recent global climate summit. These seem to indicate that the relationship between intellectual property and the fierce competition in the future will become closer and closer.

Reporter: Do you think that the lack of patents in Shenzhen LED companies is patent knowledge or patent protection awareness or PCT patent applications?

Yan Hanjun: The intellectual property work of Shenzhen enterprises is really good in China, but there is still a gap compared with foreign advanced enterprises. As for the reasons for the lack of it, there may be many aspects. For example, the basic research of LED basic research and development is not enough, but the key factor may not be patent awareness. Knowing the patent application, knowing that the patent can bring wealth can not be equated with the patent consciousness. For LED companies, it is necessary to fully integrate intellectual property into the daily work of the enterprise. When planning the development strategy of the enterprise, think of intellectual property rights, and the intellectual property work should be normalized. For example, whether the domestic and foreign related patent documents and the retrieved documents have been retrieved before research and development. How to share the application within the enterprise, how to determine the application strategy and the writing strategy of the application documents, and so on. Intellectual property awareness is strong, and many other work can be done. For example, people, finances, and things may not be a problem, because leaders believe that these are necessary production factors, rather than an optional money-making institution.

There are specializations. Intellectual property rights are dynamic, and they are constantly being adjusted compared to other laws. It is difficult to master the company itself with great precision. Some highly specialized intellectual property work can be externally assigned to the corresponding intellectual property institutions, such as law firms and agency companies.

Reporter : How do LED lighting companies in Shenzhen do their best to prevent unnecessary risks and properly handle the intellectual property disputes that have already occurred?

鄞汉藩: For the intellectual property disputes that have already occurred, don’t be afraid, don’t be afraid. Second, we must strive for support from many fronts, especially the support of the government and relevant professional associations and institutions. Third, make a variety of preparations and try to end the lawsuit at a small price.

Reporter: At present, for the reality of China, China's LED industry, specifically to LED lighting companies, have gotten effective IP strategies to get rid of the current predicament?

Yan Hanjun: Since there are relatively few basic patents, most of them have already been sprinted by foreign companies. It may be a more realistic method to purchase legally licensed products or sign a license agreement early.

Enterprises in different fields can compete with foreign companies in specific fields according to their own technical strength and characteristics, and can completely achieve breakthroughs in one or a certain type of products. According to our understanding, some outstanding LED lighting companies in foreign countries have not set up time, the time is more than 10 years, the R&D team is not huge, there are more than 100 people; similar enterprises also have in China.

Resume :

Chairman of Shenzhen Intellectual Property Research Association, Shenzhen Intellectual Property Appraisal Committee, Intellectual Property Expert Identification Team Leader, Shenzhen Intermediate People's Court Intellectual Property Expert Advisory Committee, Communication Engineer. Former director of the Patent Office of Shenzhen, obtained the qualification of patent attorney and technical contract arbitrator. He has presided over and participated in more than 100 intellectual property judicial technical appraisals, organized and completed the implementation of patents in Shenzhen under the market economy, the reform and practice of China's current scientific and technological achievements evaluation system, and the comparison of intellectual property protection in the Mainland and Hong Kong. And research, "to join the WTO Shenzhen patent protection status and problems research", "US 337LED litigation enterprise emergency analysis", "LED LED337 investigation report evaluation report", "Futian District software enterprise intellectual property protection research" and other topics.

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