Local time, 6 July, after five years of the judicial process, the United States Federal District Court in Ohio was finally made to Chinese enterprises favourable verdict: Jiangsu Sunon non-infringement. At this point, San Leo in the United States two intellectual property litigation, win over rivals United States rich Lakes (Flexsys) company.
This in favour of the local court, mean Sunon Corporation following the "337 investigation case won after crushing competitors rely on legal set up trade barriers.
"As the chemical industry overseas intellectual property in the first case, the litigation victory in Jiangsu Sunon and even many Chinese enterprises with landmark significance. "Saint Augustin CEO and Chief Financial Officer CAI Zheng Qi said:" it will encourage local companies to brave response international market legal barriers. "
"Saint", "rich" controversy
Saint Augustin and rich Lakes battle between intellectual property rights as from 2005. At that time, Saint-Augustin in rubber antioxidant production technology have made a breakthrough in the international market has been open. Competitors, the global rubber chemical areas of the giant rich Lakes to feel threatened, soon on Saint Leo has launched a series of patent litigation.
28 January 2005, rich lakes in the United States, Ohio, District Court, alleging violations of Sunon products, requiring its patents against Saint Augustin will be selling to the United States, and presented in the territory of at least $ 20 million worth of damages.
Less than a month, the company has rich Lakes to the United States International Trade Commission ("ITC") to the attention of companies such as the Saint Augustin expands rubber antioxidant "337" investigation of alleged violations of its Sunon has United States patents. Application to issue permanent Sunon products limited exclusion orders and prohibition orders. Ohio district court proceedings have been suspended, waiting for the "337" survey results. 337 articles "as United States enterprises block competitors to enter the United States market, a means of protection, more lethal than the anti-dumping. Anti-dumping duties is increased, and there are strict time limits; and "337" infringement investigation once established and entered into force, the defendant will pay high legal costs and costs for patent licensing, more seriously, exporters of products may be permanently excluded from outside the United States market.
In accordance with the regulations, Sunon must respond within one month, or as a waiver, the time was very nervous. Rich Lakes prosecution time node selected before the Spring Festival, Saint Leo had to prepare materials during the Spring Festival, but also in the United States employ lawyers team.
For inexperienced Chinese enterprises, in a very short period of time to understand the program, choose a lawyer and a successful litigation is almost unlikely. Moreover, the master "337" investigation of legal fees are very high, at more than 800 dollars per hour, if you want to go through the procedure, have at least 300 million. General domestic enterprises also have to go through the program, it has been in economic collapse.
Respond or not respond?
At that time, the company's profits are only a few tens of Yuan, if entered, the money will be swallowed up by the legal fees-in fact, five years, the entire litigation costs more than $ 20 million.
No lawsuits? Saint Augustin will be wearing the hat of the infringement, the product will be excluded from the United States market, leveraging rich Lakes chain patent litigation, the destruction of Saint Leo's international market and the gradual strangulation Saint Leo, even suppressed objects to other Chinese chemical industry enterprises.
In fact, is rich in lakes have begun to do so. It in Korea to Saint Leo's biggest export customers Kumho Court. At the same time, Saint Leo's other foreign clients have received a warning letter rich Lakes, known as Saint Leo violate their patent, warned customers purchase carefully to avoid being sued. "Some customers are not willing to train the TAM muddy water, will not buy our products, stop to our orders. "Saint Augustin company Ministry managers/f Leung said:" Saint-Augustin in international markets open up in a deadlock. "
Saint Leo finally chose litigation, stretches for more than five years of war in this action. 12
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