Law firms, courts boost IP protection

With Chinese companies facing growing numbers of lawsuits over intellectual property, legal support and consulting services have gained a higher profile.

Some law firms in China have established groups specializing in IP lawsuits, aiming to help Chinese companies better cope with international cases, said Chen Guojin, chief judge of the IP department at Guangdong Provincial High People's Court.

Chinese courts are hearing IP disputes in public, and then posting verdicts online, thereby providing references for other enterprises that may intend to expand overseas, Chen added.

Xu Chunjian, deputy president of the high people's court, echoed Chen, saying a fair trial and a better legal environment will be good for Chinese companies as they expand.

A committee responsible for coping with foreign-related IP cases was also set up in Guangzhou. At a symposium it sponsored last year, it aimed to help Chinese companies better understand how to defend their rights in overseas markets.

To improve the ability of Chinese companies to deal with investigations of alleged intellectual property violations involving US companies, the Ministry of Commerce has established a response mechanism, with the help of chambers of commerce and industry associations, to provide consultation and training.

A US law dealing with intellectual property violations — Section 337 — is enforceable by Chinese courts when one party to a dispute is a US company and one is Chinese.

Measures to help Chinese companies defend their rights have borne fruit as domestic enterprises have started to receive favorable verdicts.

For example, in October, the US firm InterDigital Communications was ordered by the Guangdong people's court to pay Huawei 20 million yuan ($3.26 million) in compensation for monopolistic practices. The US company had alleged under Section 337 that Huawei had violated its patents in 3G and 4G wireless devices and called applied for an investigation in January 2013. But the court decided in favor or Huawei.