The “2024 Survey on Overseas IP Disputes of Chinese Enterprises” report released by the China Intellectual Property Society (CIPS) shows that in 2023, a total of 1,173 new IP lawsuits were filed by Chinese enterprises in the U.S., an increase of 19.0% compared to 2022, which continued to rise. Among them, 447 new patent lawsuits were filed, up 56.1%; 757 new trademark lawsuits were filed, up 5.4%; and 23 new trade secret lawsuits were filed, up 27.8%.

In 2023, 1,193 IP litigation cases involving 19,902 Chinese enterprises were concluded in the United States, 399 patent cases, 815 trademark cases and 18 trade secret cases were concluded. The average time to conclude patent cases was 368 days, of which the longest time was 3,192 days and the shortest time was 3 days; the mean time to conclude trademark cases was 209 days, of which the longest time was 3,347 days and the shortest time was 0 days; the mean time to conclude trade secret cases was 343 days with the longest 1,513 days and the shortest 37 days.

Chinese enterprises’ patent litigation in the U.S. mainly involves the manufacturing industry and the wholesale and retail industry, and the trademark litigation is mainly related to the wholesale and retail industry. The enterprises involved in the litigation were mainly located in Guangdong, Fujian, Zhejiang and other provinces and cities, with Guangdong enterprises accounting for nearly 30% of the total. In terms of litigation results, 65.7% of the patent litigations were concluded with dismissal of cases by settlement; 66.1% of the trademark litigations were ruled unsuccessful due to the defendants' absence from the litigation. The average amount of compensation awarded in patent litigation was US$23,717,200, and that in trademark litigation was US$1,179,800.

In 2023, the number of Chinese enterprises involved in U.S. Section 337 investigations was 20 cases, in relation to 98 enterprises in mainland China, a decrease of 9 compared with 2022. 70% of the cases were filed for patent infringement, enterprises involved were mainly in electronic equipment and other industries. Most of the investigated enterprises were from Guangdong, Jiangsu, and Zhejiang. Among the cases concluded, the number of Chinese companies receiving positive final rulings has increased compared to the previous year.

In 2023, a total of 89 new patent and trademark litigation cases filed by Chinese enterprises in other major countries and regions and 141 cases were concluded, of which 71 new patent litigation cases were filed, an increase of 47.9% in comparison with 2022; 18 new trademark litigation cases were filed, a decrease of 43.75% than the previous year. A total of 165 Chinese enterprises were involved in new patent and trademark litigation cases filed, an increase of 60.2% compared to 2022, of which 77% of the defendants were Chinese enterprises. Among the cases with judgment damages, the average compensation amount in patent litigation was approximately RMB 3.3 million.

From Sina Finance

August 14th, 2024