On June 1st, 2021, the Fourth Amendment of Chinese Patent Law came into force. Under the new patent law CNIPA is entitled to handle patent infringement disputes that have significant impact across the country and to provide early resolution for drug patent disputes with the request of patentees or interested parties. The judicial and administrative "dual-track" system for patent infringement cases has been further strengthened thereof.

In 2022, CNIPA has concluded 2 administrative adjudication cases of major patent infringement disputes and 70 cases of early resolution for drug patent disputes. Due to the COVID-19 pandemic and quarantine policy, some of those cases were conducted online, which actually brought convenience to the parties involved and saved time and costs.

To improve the efficiency of administrative proceeding and to standardize the workflow of online hearing, Measures for Online Oral Trials of Administrative Adjudication Cases of China National Intellectual Property Administration (CNIPA）(Hereinafter referred to as the Measures) came into effect on February 24, 2023.

The Measures clearly specifies that the following four types of cases can be applied to online oral hearing:

1. Administrative adjudication cases of major patent infringement disputes;
2. Administrative adjudication cases of early resolution for drug patent disputes;
3. Administrative adjudication cases of disputes over exclusive rights to layout-designs of integrated circuits;
4. Other administrative adjudication cases that are suitable for online oral trails.

What worth noting is that two well-known Chinese tech giants, Huawei and Xiaomi, have been involved in patent dispute these days. Based on 4 patents, Huawei filed administrative adjudication cases on patent infringement against Xiaomi, CNIPA accepted the cases. Two of these cases involve 4G/LTE technology, which are standard essential patent (SEP) disputes. Others involve mobile phone photography and unlocking technologies, which are non-SEP disputes. The root cause of patent disputes between Huawei and Xiaomi is the failure to reach a licensing agreement. In this scenario, Huawei may want to take advantage of CNIPA's administrative track for major patent infringement disputes. By initiating the adjudication process quickly at a low cost, Huawei is hoping put pressure on Xiaomi so as to obtain a dominant position in the negotiation of licensing agreement.

Based on the strengthened "dual-track" system, we provide our clients with a more diverse and comprehensive strategy to protect their patents. For instance, we provide well-rounded strategy for a Chinese well-known tech giant - the strategy of patent infringement civil lawsuit combining with administrative adjudication, administrative complaints, and customs seizures.

If you need further information or have any question, please feel free to contact Michael Wu at michaelwu@changtsi.com or contact your usual counsel. We would be happy to advise.