The Fastest Procedure to Stop Infringement: Administrative Adjudication of Patent Infringement Disputes

CHANG TSI
Insights

September18
2024

1. Case Background

The client discovered a large number of infringing products on Chinese e-commerce platforms. These products were also being exported to Australia, the United States, and other regions, significantly impacting the client's market share.

2. Evidence Collection and Strategy Formulation

To stop the infringement, on March 3, 2024, the client entrusted Chang Tsi & Partners to take legal action against the target company for patent rights protection.

Through investigation and analysis, Chang Tsi found that the infringing products were produced and sold by four related companies, all located in the same region. On March 14, 2024, Chang Tsi sent investigators and notaries to the factories to notarize and collect evidence of the infringement.

Given that the infringing products were being sold both domestically and internationally, quickly seizing the client's market, it was crucial to stop the infringement as soon as possible. Therefore, considering the speed and strong enforcement of the administrative adjudication procedure for patent infringement disputes, as well as the fact that all four companies were in the same region, Chang Tsi decided to file an administrative adjudication for patent infringement disputes with the Intellectual Property Office governing the four companies, aiming to stop all the infringing activities in a single case.

3. Filing for Administrative Adjudication and Initially Stopping the Infringement

Chang Tsi prepared a detailed patent infringement comparison table and evidence materials, and on March 21, 2024, filed an administrative adjudication for patent infringement disputes against the four companies with the local Intellectual Property Office (referred to as "local office"). Chang Tsi maintained close communication with the local office, helping them confirm the existence of the infringement and the urgency of stopping it. On March 25, 2024, the local office accepted the case, and on March 27, they launched a joint operation, with multiple teams simultaneously visiting the four companies to seize the infringing products. This joint operation resulted in the confiscation of dozens of boxes of infringing products, totaling several thousand items. Meanwhile, all infringing links on the e-commerce platforms were taken down.

4. Obtaining a Patent Administrative Adjudication on the Infringement

The four companies hired professional patent lawyers and submitted a defense arguing non-infringement. Chang Tsi researched the defenses and drafted multiple legal opinions to refute them, which were provided to the local office for reference.

On May 31, 2024, Chang Tsi attended an oral hearing at the local office, where they debated the key issues raised in the defense. Following the oral hearing, Chang Tsi submitted additional legal opinions addressing the key concerns of the adjudication panel.
On July 1, 2024, the local office adopted all of Chang Tsi’s opinions and issued an administrative adjudication ruling that the four companies’ manufacturing and selling of the infringing products constituted infringement and that they must cease all infringing activities. This ruling took effect immediately upon issuance, allowing Chang Tsi to use it to prevent further infringement at customs, on e-commerce platforms, and with other intellectual property offices.

5. Case Commentary

This case demonstrates that it took less than one month from the client’s initial engagement to the preliminary halt of the infringement. From engagement to obtaining a ruling confirming the infringement, the entire process took less than four months. Administrative adjudication of patent infringement disputes is a fast procedure for stopping infringement.

Based on Chang Tsi’s experience with administrative adjudication of patent disputes, once a case is accepted, local intellectual property offices handle it with great enthusiasm, and cases typically conclude within four months. Additionally, local offices take administrative adjudication seriously, appointing technical investigators to verify facts and conduct technical comparisons, and they are willing to address highly challenging legal issues.

Drawing on this experience, Chang Tsi actively adjusts its rights protection strategies. In the past year alone, Chang Tsi has secured favorable administrative rulings from various intellectual property offices in Guangdong, Zhejiang, and other regions, maintaining positive interaction with these offices and safeguarding the legitimate rights and interests of numerous rights holders.

Michael Wu
Partner | Attorney at Law | Patent Attorney
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