The world machinery industry giant v. Chinese company infringement case lost in the United States

It is reported that after a two-year verdict, the case of an international intellectual property right infringement case suffered by a company in Jiangsu Wuxi in the US market, the world's largest high-altitude operations machinery industry giant eventually lost the case. This is also the first multinational patent infringement case handled by the Chinese aerial work machinery industry.

In March 2008, Jiangsu Shenxi Construction Machinery Co., Ltd. participated in the construction machinery exhibition in Las Vegas, USA. Suddenly, it received the prosecution summons issued by Sacramento, a world leader in aerial work, and the Delta State Group, through local state courts. V. Shenxi’s core components of the hoisting cranes were suspected of appearance of infringement and unfair competition. The lawsuit then triggered widespread concern in the domestic industry.

It has been revealed that in recent years, Chinese companies in Mainland China have been threatened by patent infringement by foreign companies, suppressing Chinese products on the basis of unfair competition, and even some foreign companies have not resorted to using Article 337 to directly enter Chinese companies into the blacklist of “forbidden sales”. Most domestic companies generally lack the ability to compete in the face of international trade protection and lack understanding of product quality, intellectual property rights, market access, etc., resulting in frequent setbacks in the international market, and most of them chose to evade the issue.

Experts from the China Construction Machinery Industry Association pointed out that the motives of the US company in the international infringement case were impure. Shenxi’s active response as the leader of the domestic industry ultimately won the trial with hardship and dignity and proved that the independent intellectual property rights made in China could not be allowed by foreign competitors. The wilful trampling on this is a milestone in the handling of international trade disputes by domestic companies.

“The elevator manufactured by the company is determined according to the internal structure function, the appearance is a functional design, and there is no infringement at all”, said Wu Renshan, chairman of Shenxi Co., in an interview today, saying that the plaintiff’s motive was obviously malicious to prevent Chinese products from entering the US market. Although the other party is the world leader in the industry, our evasion means that we will voluntarily abandon the United States and other international markets and the loss will be hard to estimate.

After a lengthy two-year lawsuit, Shenxi Company paid a lot of hard work and a huge amount of US$1.5 million in legal fees. In August 2010, the Las Vegas State Court finally ruled that the Chinese company won the case. Wu Renshan said that we are not afraid of confrontation with European and American competitors. This lawsuit has strengthened our confidence in continuing to innovate to enter the American market and the world market.

The industry generally believes that China has become the world’s second largest export trading country, and that Chinese-made products have always affected the international market with low prices and low added value in the impression of European and American countries. Therefore, domestic companies have improved their products’ independent R&D and innovation in the international market. How to avoid passive assault in trade is still a top priority.