On April 22^nd, 2015 the  Shanghai Higher People’s Court issued a final judgment in the invention patent infringement case between plaintiff Haldex Brake Products Aktiebolag (hereinafter “Haldex Company”) and defendant Wuhan Youfin Auto Parts Co., Ltd. (hereinafter “Youfin Company”). The Court ruled that the defendant did commit the alleged infringement; that it must immediately stop manufacturing, selling or offering to sell the infringing products; and that it must compensate Haldex Company’s economic losses and reasonable enforcement expenses in the amount of RMB 800,000. Watson & Band attorneys Jianguo Huang and Zhengquan Gu represented Haldex Company.

　　Haldex Company owns a valid Chinese invention patent entitled “disc brake comprising a brake mechanism”. In 2012, however, Haldex Company discovered that Youfin Company copied its patented vehicle-use disc brake, engaged in extensive market distribution of this product, and conducted extensive advertising through its website and brochures. This conduct seriously disturbed normal market order and caused great losses to Haldex Company.

　　In response to Youfin’s infringing acts, Watson & Band filed a patent infringement lawsuit with the Shanghai No.2 Intermediate People’s Court on behalf of Haldex Company. The lawsuit was based on evidence collection, legal research, and careful comparison and analysis of the technology of the infringing product. On October 31^st, 2014, after several hearings on this matter, the Court ruled that Youfin Company committed the alleged infringement and ordered it to pay damages to compensate Haldex Company for its economic losses. Youfin Company appealed the judgment to the Shanghai Higher People’s Court. The appeal was dismissed after a trial because:

(i)    the patent held by Haldex Company is protected by law;

(ii)  the probative value of Haldex Company’s evidence was clearly greater than the probative value of the evidence submitted by Youfin Company, and  Youfin Company was the manufacturer of the allegedly infringing product;

(iii) based on the description in the patent documents and a physical comparison of the allegedly infringing product, Haldex Company’s claim that the allegedly infringing product fell within the scope of protection of the disputed patent was accurate; and

(iv)  since Youfin Company has been infringing the patent at issue, it must cease its infringement; and based on comprehensive consideration of the type of patent at issue as well as the extent, means and duration of Youfin Company’s infringement, Youfin Company must pay damages to Haldex Company in the discretionary amount of RMB800,000.

　　In this case the defendant argued that the source of the infringing product was unclear and that the patented technology utilized existing technology. Watson & Band countered with extensive and detailed evidence, careful legal research and advanced extremely accurate arguments and assertions, Watson & Band’s efforts ultimately secured an award of damages for Haldex Company that is quite close to the statutory maximum. It is thought that this case will further encourage enforcement actions by patentees and help to clean up the market and inspire innovation.