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ErickRobinson
U.S.patentattorneybasedinShanghai:16yearsofexperienceinlitigatingpatentsworldwideforlawfirmsandcompanies.
ErickRobinson
q BAPhysics/ComputerScience,PomonaCollege
q JD,UniversityofTexasq MBA,IndianaUniversity(2017)q IAMStrategy300,TheWorld’s
LeadingIPStrategistsq USPTO,RegisteredPatent
AttorneyMobile(USA):+17134986047WeChat:erickrobinsonEmail:[email protected]
2
Erick Robinson Is An Authority On China
Erick Robinson Is An Authority On China
“Chinese companies are learning to take advantage of a maturing domestic patent system, laying claim to patents even if they weren’t the first to develop the broader technology, said Erick Robinson, chief patent counsel for Asia Pacific at the Rouse China law firm. “It is still relatively rare for Chinese companies to attack and be successful against Western companies, but you’re going to see more and more of this,” he said.”
IAM today caught up with Erick Robinson, who until2015 served as Qualcomm’s director of patents, Asia.Based in Beijing, he is now chief patent counsel, Asiafor Rouse, who explained, “…Further, this case isimportant to the entire Chinese patent system.Qualcomm is well known to have an extremely strongpatent portfolio – the best patent portfolio in themobile industry – and if it cannotsecure a litigation win or force a settlement based onthe newly improved Chinese patent enforcementsystem, it will be a setback for the Chinese courts andultimately, China itself. This is because foreigncompanies will lose some faith in a court system thathas increasingly proven itself very efficient, effective,and fair in adjudicating patent disputes in China.”
Erick Robinson Is An Authority On China
“China’s ability to protect patents has grownafter decades of non-existence andnonenforcement. In 10 years, the number ofpatent litigations filed has more thanquadrupled, with close to 10,000 casessubmitted last year. The Chinese government’snew specialised IP courts now providecompanies with an enforcement mechanismcomparable to, if not better than, those inEurope and the US. Litigation in China alsooffers many advantages to patent owners,including win rates above 75 per cent (andeven higher for foreign patentees), injunctionrates above 95 percent, short time to trial,scant discovery and low costs (less than one-tenth of those incurred in the US). Mostimportantly, because so many supply chainspass through China, a single litigation caneffectively impose a global ban on sales of adisputed product.”
November20,2015
Erick Robinson Is An Authority On China
• “StrongerChinesePatentLawsAlsoHelpU.S.Companies:ChineseCourtsAreIncreasinglyReceptiveToPatentSuits,EvenWhenTheyAreLodgedByForeignFirms,”WallStreetJournal,July20,2016.Interviewedforarticleandprovideddata.
• “Korea’sAntitrustWatchdogHintsQualcommCanExpectAnotherNear$1BFineinPatentProbe,”IntellectualAssetManagement(GlobeBusinessMediaGroup),July18,2016.
• “NPEEnforcementThirstInChina’sIPCourtsMayBeMoreMirageThanRealOpportunity,”ThePatentInvestor,In-DepthPatentMonetizationCoverage,Vol.26,July11,2016.
• “Brexit:WhatAsiaMakesofUK'sVotetoLeaveEU,”Campaign,July7,2016.• “China'sInnovatorsSettoRatchetUpPatentWars,”ThompsonReutersBreakingNews,June28,
2016.Seehttp://www.ubs.wallst.com/ubs/mkt_story.asp?docKey=1329-L4N19G0OR-1• “AppleMayBeWisetoSettleInfringementDisputeWithChineseStartupShenzhenBailiTo
EaseItsAccessToTheChineseMarket,”ThePatentInvestor,Vol.24,June27,2016.• “QualcommbringsenforcementactionagainstChina’sMeizuinBeijingIntellectualProperty
Court,”ThePatentInvestor,In-DepthPatentMonetizationCoverage,Vol.24,June27,2016.• “WiLAN,MarathonandOthersCloselyWatchApple’sDisputeWithChineseStartupAheadOf
TheirOwnSuitsInChina,”ThePatentInvestor,In-DepthPatentMonetizationCoverage,Vol.24,June27,2016.
• “Qualcomm'sLicensingModelWillBe“Destroyed”IfItCan’tWinKeyChinaCase,SaysItsEx-AsianPatentDirector,”IntellectualAssetManagement(GlobeBusinessMediaGroup),June27,2016.
• “AppleShouldSettlePatentDisputeInChinaToEaseAccessToChineseMarket”,PatentVuefromEnvisionIP,June27,2016.
• “HoneymoonOverasAppleHitWithPatentChallengeInChina,”AustralianBusinessReview,June20,2016
• “ViewFromtheDeskofErickRobinson,ChinaIPLawExpert,”LicensingEconomicsReview,June1,2016.
• “AppleOrderedToStopSellingiPhone6inChinaFollowingPatentDispute,”Shanghaiist,June18,2016.
• “Apple’sChallengesInChinaUnderlinedByPatentDispute;IPhonePatentCaseAddsToIncreasinglyToughEnvironmentForWesternCompanies,”WallStreetJournal,June17,2016.
• “QualcommCaughtinPatentWarsinChina,”NewYorkPost,June24,2016.• “‘DawnRaid’DrillsMayBecomeDeRigueurasChineseAuthoritiesSwoop,”FinancialTimes,
November20,2015.
RECENTPUBLICATIONS/PRESENTATIONS• “Why China Is A Good Place For NPEs” IP Law360, March 13, 2017• “Non-Practicing Entities Can Help Support Innovation and Tech Companies in China” Global Times (in
conjunction with The People’s Daily), December 28, 2016.• “Defending a Patent Case in the Brave New World of Chinese Patent Litigation” IAM Magazine, December 1,
2016. • “China:NewKingofthePatentLitigationHill”IPDealmakersForum,NYC,November17,2016• “HowtoObtainEffectiveEvidenceinChina”ManagingIP,October2016.• “China’sEvolutionFromManufacturingToInnovation:ErickRobinsonExaminesHowPatentsAndThe
Anti-MonopolyLawAreChangingTheRulesInChinaAndHowCompaniesCanProtectThemselves,”IntellectualPropertyMagazine,July7,2016.
• PatentEnforcementinChina:ForExecutivesandIn-HouseCounsel,Text,ToBePublishedEarly2017• “ChinaPatentBlog”,November2015-Present(ChinaPatentBlog.com).• “ForeignCompaniesinChinaMustLearnThatRespectIsParamount”FinancialTimes,November20,
2015.• “ChinaIncreasingPatentRightsasUSGoestheOtherWay”IPLaw360,October22,2015.
QUOTEDINMAJORPUBLICATIONS:• “ChinaisRisingForPatentLitigation”Lexpert Magazine,March15,2017.• “CautiousOptimismAsChinaMullsIntroducingNationalIPAppealsCourt”IntellectualAssetManagement
(IAM), January23,2017.• “ChinaSmashesWorldPatentRecordwith1MFilingsinaYear”FinancialTimes,November24,2016.• “AtBottom,NowheretoGoButUp,PatentInvestorsSay”BloombergBNA,November18,2016.• “WiLANMustNavigateItsLocalRelationshipswithAddedCareasItWadesDeeperintotheAsian
PatentMarket”IntellectualAssetManagement(IAM),November8,2016.• “China’sPatent-LawsuitProfileGrows”WallStreetJournal,November7,2016.• “SonySuedinChinaforPatentInfringement:WiLAN’sMoveThreatenstoStopJapaneseGroupfrom
SellingLTESmartphonesinCountry”FinancialTimes,November6,2016.• “NPEAssertionComestoChinaasWiLANSubsidiaryFilesSEPSuitAgainstSonyinNanjing”Intellectual
AssetManagement(IAM),November4,2016.• “TheCheapPhoneIsDeadinChina”Bloomberg,October19,2016.• “GlobalPatentConcernsfor2016:10PatentIndustryLeadersProvideTheirInsight”LegalIQ:Global
PatentCongress2016,September26,2016.• “ErichSpangenbergLeadsMarathonPatentGroup’s‘Transformational’FocusOnEnforcementinChina,”
ThePatentInvestor,In-DepthPatentMonetizationCoverage,Vol.31-32,August29,2016.• “IPLitigationinChina:ForeignCompaniesStillFaceChallenges,”TheAmericanLawyer,AsiaEdition,
August8,2016.
Erick Robinson Is An Authority On China
• Highwinrate(75%- 95%)• ForeignplaintiffswinmorethanChineseplaintiffs(butmustdotheirhomework)
• Virtuallyguaranteedinjunctions(99%)• Shorttimefromfilingtotrial/judgment(6-14months)
• Sparsediscovery=Lowcost• Validitychallengesareoftennotcompleteuntilafterjudgment(andinjunction)
• DominantChinesemarketforsales(largestworldwideformanyelectronics)andmanufacturing(largestworldwide)
• SpecializedIPCourtsandjudgesthattakeprideintheirskillandfairness(nodiscriminationagainstNPEs)
• Althoughacivillawsystem,judgesseekoutandrespectpriordecisions
• Governmenthasdemandedthatthecourtsbefairandcreateastrongenforcementsystem
• Forumshoppingavailable(aBestBuyinLongview…)
• Pre-trialassetfreezeavailable–freezingbankaccounts,inventoryausefulnegotiatingtactic
• SystemforblockinggoodsdueforexportatCustomsiswelldeveloped
WhyChina?
InjunctionsareVirtuallyGuaranteed
4
Length of Cases Continues to Shrink, Especially for Foreign Patentees
DatafromCIELA.CN(InventionPatentsOnly)
5
Daysfrom
Filingto
Judgmen
t
ChinaWelcomesForeignPlaintiffs
http://www.iam-media.com/blog/Detail.aspx?g=8dc59dc8-6405-4b86-b241-27e89afc6089
http://www.corpcounsel.com/id=1202764600143/IP-Litigation-in-China-Foreign-Companies-Still-Face-Challenges?mcode=0&curindex=0&curpage=ALL
OnestudythatsuggestsforeigncompaniesarenowbetterabletoprotecttheirintellectualpropertywasdonebytheLondon-basedlawfirmRouse.Inanalyzing346first-instancepatentinfringementcasesinitiatedbyforeignplaintiffsbetween2006and2014,thefirm,whichrunstheBeijing-basedintellectualpropertieslitigationdatabaseCIELA,foundan82percentwinrate (282cases).
Inaseparatestudy,Beijing-basedKangxin IntellectualPropertyAgencyCo.Ltd.,anaffiliateoflawfirmKangxin Partners,foundan89percentwinratein114first-instancepatentcasesinitiatedbyforeignplaintiffs(102caseswon)between2013and2015.
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QualcommIsUsingChinaForEnforcement
http://www.bloomberg.com/news/articles/2016-06-24/qualcomm-to-test-strength-of-china-agreement-with-patent-suit
“We’reaskingthecourttoassistusandgetthemincompliance,”saidDonRosenberg,Qualcomm’sgeneralcounselinatelephoneinterview.“Chinaisreallymakingaconcertedeffort,includinghavingthespecialIPcourts,toenforceintellectualpropertyrightsandtovalueintellectualpropertyrights.We’reputtingourfaithinthecourtsystemthereandwewouldn’tdothatifwedidn’tthinkwewereincapablehands.”
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AppleUnderstandstheDangerofChinaAsAPatentVenue
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ChinaIsGrantingInjunctions
http://www.wsj.com/articles/beijing-regulator-orders-apple-to-stop-sales-of-two-iphone-models-1466166711
ShenzhenBaili,alittle-knownstartup,wonasurpriseinjunctionagainstsalesofApple’siPhone6andiPhone6PlusinBeijing,basedonapatentcoveringsmartphonedesign.Applesaidtheorderhadbeenstayedpendingappealandsalesremainunaffected.
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Apple Understands the Danger of Chinese Patent Litigation
• InJune,ApplealsolostapatentlitigationinBeijing toanearlybankruptShenzhen-basedcompany,Baili.
• Thepatentinsuitwasadesign patent.
• Applehasappealed andtheinjunctionhasbeenstayedpendingappealbecauseBaili didnotapplyforapreliminaryinjunction.
• Bothpartiesarewaitingforthe appellate courtinBeijingtoadjudicatetheinfringementissue.
• IfthecourtholdsforBaili,thenaninjunctioncanbeimmediatelyinstitutedontheinfringingproductswithnobondneeded. Thisistrueevenifthevalidityissuehasnotyetbeenaddressed. Ifthepatent(s)is/arelaterruledinvalid,thenBailicannolongerenforcethepatent(s)buttheyneednotreimburseAppleforanyharmintheinterim.
• Ifthecourtinvalidatesthepatent(s)beforeoratthesametimeasaddressinginfringementthennoinjunctioncanbeissued.Ifthecourtinvalidatesthepatent(s)beforeoratthesametimeasaddressinginfringementthennoinjunctioncanbeissued.
• Drawingsfrompatent:
DamagesAreIncreasingTheBeijingIPCourtlastweek(8Dec2016)awardeddamagesof50,000,000RMB($7.2MUSD)inapatentcase. Thisincluded49millionRMBincivilcompensationplus1millionRMBinlegalfees. Thisisoneofthefirstinstancesofacourt awardinglegalfeestoaprevailingpartybasedonthetimespentonthematter.
Thisisoneofthefirstcasesafterthenewburden-shiftingrulesfordamages. Thus,damageswerenotlimitedtostatutorydamages. ThisisthebeginningofanewphaseinpatentdamagesinChina.
• Chinesev.Chinese• Relativelysmallcase• TechnologyrelatedtoUSBsecurity• Largestdamagesbythatcourt• Oneoffirstcasesafterdamagesburden-
shiftingrule
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ChenJinchuan,deputydirectorofthecourt,saidtheyhavebeenenhancingIPprotectionbygreatlyincreasingcompensationfromrightsviolators,especiallythosecommittingbadfaithandrepetitiveviolations,sothatthecostofIPinfringementwillnolongerbelow."ThemarketisthebestframeofreferencetodeterminethevalueofIPs,"hesaid.
http://www.ebeijing.gov.cn/BeijingInformation/BeijingNewsUpdate/t1461670.htm
Judgment
Appealfiled(staysinjunction)
Courthearing
Evidencesubmissionandexchange
Courtservesresponseonplaintiff
Defendantfilesresponse
Courtinitiatesserviceofcomplaint
Courtacceptscomplaint
LitigationTimeline
Plaintifffilescivilcomplaint
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Injunction
1– 4months 1– 4months 1– 3months<30days <30days57
Filingtojudgmentinjustoverayear
(Appealisadditional6-12months)
Defendantcanfilechallengetojurisdiction(tobedecidedwithin45daysbystatute)
DefendantfilesinvalidityactionatPatentreviewboard(patentlitigationrarelystayed)(pendency1- 2.5years)
MONTH
“Preliminary”Injunction
12
Judgment
Appealfiled(staysinjunction)
Courthearing
Evidencesubmissionandexchange
Courtservesresponseonplaintiff
Defendantfilesresponse
Courtinitiatesserviceofcomplaint
Courtacceptscomplaint
Plaintifffilescivilcomplaint
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Injunction
1– 4months 1– 4months 1– 3months<30days <30days57
Filingtojudgmentinjustoverayear
(Appealisadditional6-12months)
Defendantcanfilechallengetojurisdiction(tobedecidedwithin45daysbystatute)DefendantfilesinvalidityactionatPatentreviewboard(patentlitigationrarelystayed)(pendency1- 2.5years)
MONTH
Litigation Timeline
Whenanappealisfiledbythedefendant,theinjunctionisnormallystayed.
Formaximumleverage,a“preliminary”injunctionrequestcanbefiledorrenewedafterwinningatfirstinstance(trialcourt).Becausethepatenteehasalreadyshowninfringement,thisPIrequestwilllikelybegranted.
However,abondmustbepostedbythepatenteebeforethePIisenforced(nobondisrequiredifthedefendantdoesnotappealorthedefendantlosestheappeal).
Bond Calculation for Preliminary Injunction
• Theamountofbondrequiredisgenerallyinconsistentacrosscourtsandjudges,andnostatisticsareavailable.
• OnlyconsistencyisthattheamountismuchlessthantheamountsrequiredinGermany.
• AccordingtotheSupremePeople’sCourt’sjudicialinterpretation,theapplicantshallprovideaguaranteeequivalenttothepreservationamount,andthecourtwilldecidetheamountbasedonthespecificcircumstancesofthelawsuit.
• The local courts generally use the same standards,andthe applicant mustprovide bond equal tothe amount ofdamages claimed.
• According toBeijing higher court‘s provisions,where the applicant cannotprovide the bond equal tothe amount claimed,if the parties'rights andresponsibilities areclear andirreparable damage will occur,the court mayrequire 20%ofthe amount claimed.
Bond Calculation for Preliminary Injunction
Beijing Shanghai Jiangsu Zhejiang(Shaoxing)Principle Equivalenttothe
preservationamountEquivalenttothepreservationamount,ornolessthanthedamagethatcouldhappenduetowrongpreservation.
Equivalenttothedamagethatcouldhappenduetowrongpreservation.
Theguaranteeshouldbe20%thepreservationamount
Exception:
Forapplicantsunabletoprovideanequalamountofguarantee
Ifthecasemeetsbothconditions,
1.rightsandobligationsofthecaseisclear2.Ifnotpreserveintimemightcauseirreparabledamage
Thentheguaranteeshouldbenolessthan20%thepreservationamount
Referenceforthedetermineofguaranteewhenunabletoidentifythedamage:
20%whenthepreservationamountisbelowRMB10million;10%whenthepreservationamountisbetweenRMB10millionto100million;5%whenthepreservationamountisaboveRMB100million.
