Electronic equipment enterprises' response to patent infringement complaints: From "product suspension of sales" to "turning defeat into victory"
I. Case Introduction
The core product of a certain electronic equipment company has occupied 20% of the domestic market share within six months of its launch. However, it was subject to a complaint from its direct competitor, Company B, claiming "infringement of patent rights", and was faced with the risks of product suspension, inventory destruction, and huge compensation payments. ZYIP, through precise infringement comparison and patent stability analysis, takes a two-pronged approach. On one hand, it successfully proves that the client's products do not fall within the protection scope of the other party's patent. On the other hand, it collects key evidence to initiate invalidation countermeasures, ultimately helping the client resolve the crisis and safeguarding its market position and business achievements.
II. Case Details
1.Customer type/Industry
Electronic equipment manufacturing enterprises, whose core products are in a period of rapid market growth, have obvious competitive advantages.
2. Customer Pain Points/Problem Description
(1) Market share erosion: The core product, which had occupied 20% of the domestic market share within half a year of its launch, would suffer a complete loss of investment if it were banned due to litigation. Moreover, it might be permanently replaced by competitors.
(2) Competitive litigation suppression: Company B, which is in the same supplier tier as our company, filed a complaint on the grounds of patent infringement, demanding the cessation of sales, destruction of inventory, and compensation. Their intentions were clear and their attack was fierce.
(3) Future product layout obstruction: The patented technology involved in the case is highly relevant to our company's future product planning. If not thoroughly resolved, it will affect the long-term development of the enterprise.
3. Solutions and Processes
(1) Accurate implementation of the non-infringement defense:
A thorough analysis of the patent claims of the complainant and its review history files revealed that the patentee had actively narrowed the scope of protection in order to obtain authorization.
Based on this, a restrictive interpretation of the claims was conducted, and a comparison was made with the technical solution of the client's product to precisely identify the key evidence that did not fall within the protection scope.
(2) Initiating patent invalidation countermeasures actively:
A comprehensive stability analysis of the involved patent of Company B was carried out, revealing its deficiencies in novelty and creativity.
Through professional search, multiple key existing technology evidences were successfully collected, which were sufficient to initiate the invalidation procedure for this patent, fundamentally undermining its legal basis.
4. Achievements/Results
(1) Successfully resolved infringement allegations: With strong evidence of non-infringement, the opposing party was unable to gain an advantage in the lawsuit, allowing the client's products to continue to be sold.
(2) Established a victory in invalidity: The collected evidence was sufficient to initiate invalidation proceedings against the competitor's patent, laying the foundation for an absolute advantage in subsequent negotiations or litigation.
(3) Ensured business outcomes: Successfully defended the 20% domestic market share already achieved by the client, clearing the patent obstacles for their subsequent products.
III. Case Significance
This case represents a classic practice of the "offensive and defensive" strategy in intellectual property rights protection. It not only demonstrates the professional depth of conducting "principle of non-reversibility" defense through in-depth analysis of the review history, but also reflects the deterrent power of strategic countermeasures through invalidation proceedings. ZYIP, through a comprehensive strategy combining law and technology, assisted the enterprise in successfully reversing the situation when facing patent sabotage, highlighting the core value of professional intellectual property services in protecting business achievements and responding to market competition.