We learned that the Guangzhou Intellectual Property Court heard the plaintiff Shenzhen Quanwei Intellectual Property Operation Co., LTD. (hereinafter referred to as Quanwei Company) and the defendant Guangdong Fuaisi Ecological Technology Co., LTD. (hereinafter referred to as Fuaisi Company) infringement of the invention patent dispute case, has ruled to allow the plaintiff Quanwei Company to withdraw the lawsuit. In this case, Quanwei Company appealed to the court to order Fuaisi Company to stop infringing the invention patent, dismantle the tower granulation equipment, and compensate for economic losses of 10 million yuan.
Basic case
Quanwei company said that the method and equipment for the production of granular compound fertilizer by high tower granulemaking (patent number: 03139601.1) the original patentee of the invention patent, Shenzhen Batan Ecological Engineering Co., LTD., is a collection of scientific research, production and sales as one, with the production of compound fertilizer, controlled release fertilizer and green ecological fertilizer as the main business. The development and utilization of industrial and agricultural waste waste into fertilizer environmental protection high-tech enterprises, national science and technology innovation spark leading enterprises, is the first listed company in China's fertilizer industry, its products can effectively improve the internal quality of agricultural products, protect the ecological environment. Quanwei received the patent on January 29, 2019 from the patentee Shenzhen Batan Ecological Engineering Co., LTD. The company found that since 2012, the company has used the patented method in the patent claim 1 and the equipment in the patent claim 10 to produce and sell the composite fertilizer products without authorization. As a high-tower enterprise with nitro as its starting point, the success of its nitro products in one-time trial production is not accidental. The company's tower has been intensively prepared for more than two years. Fuai Si Company annual output of 200,000 tons of high tower grouting granulation compound fertilizer, the compound fertilizer environmental assessment document approval time is September 25, 2007, completion acceptance time is June 19, 2012, the high tower equipment is the use of patent claims 10 patented equipment. The act of Fuaisi encroached on the market position of Quanwei and caused great economic losses to Quanwei. Therefore, we request the court to order Fuaisi to stop the infringement, dismantle the tower granulation equipment of Fuaisi to produce fertilizer, and compensate for the economic loss of 10 million yuan.
At the time of filing the lawsuit, Quan Wei Company applied to the court for evidence preservation, requiring the court to inspect the internal structure and device of the high tower granulation equipment of the accused product in Chenghai District, Shantou City, Guangdong Province, seal up the raw materials used in the production of compound fertilizer, and copy the production operation manual, production process description, operating procedures and other materials related to the production of compound fertilizer. The court took into account that the annual output of the high-tower equipment involved in the case of Fuaisi Company reached 200,000 tons, and if it stopped the operation of the production equipment for evidence preservation, it would lead to huge losses, which would not only easily cause conflicts between the two parties, but also easily affect the local supply of fertilizer for spring farming and the price of fertilizer. Through in-depth analysis of the patent technology scheme and case evidence involved in the case, we learned that Fuaisi Company once mentioned the environmental assessment report and environmental protection acceptance report of the accused equipment when promoting its production capacity. The court guided Quanwei Company to change the object of protection and obtained the values of the equipment and fertilizer products monitored by the environmental assessment report and environmental protection acceptance report. To determine the production equipment and product characteristics, so as to effectively resolve the contradictions and losses that may be caused by the application for evidence preservation, and at the same time solve the problem of timely delivery of litigation materials to Fuaisi Company, providing the basis for settlement. After receiving the court litigation materials, the company also expressed its willingness to mediate, and the case eventually led to the two sides reaching a patent licensing agreement, and the two sides turned enemies into friends. On May 7, 2022, the plaintiff Quanwei Company withdrew its lawsuit to the court.
Focus issue
The handling process of this case mainly involves how to resolve social contradictions easily caused by evidence preservation measures in the case, including:
First, while adhering to the strict judicial protection of intellectual property rights, it is also necessary to consider how to ensure people's livelihood and promote stability. Regarding the necessity of taking preservation measures in the case, the plaintiff Quanwei Company filed an application for evidence preservation, requesting the court to inspect the internal structure and device of the high tower granulation equipment of the accused product in Chenghai District, Shantou City, Guangdong Province, and seal up the raw materials used in the production of compound fertilizer. Since the accused equipment belongs to a large compound fertilizer production equipment, and it is difficult for the company to obtain equipment or enter the equipment to obtain evidence of technical solutions, its evidence preservation application has a certain rationality and necessity. However, the use of stoppage inspection evidence preservation method, will lead to the defendant due to production and suffer huge losses, the preservation measures not only easy to deepen the contradiction between the two parties, and, in the spring ploughing season, compound fertilizer fertilizer efficiency is stable, can improve the yield of crops, such as stopping the operation of compound fertilizer production equipment, easy to affect the local spring ploughing fertilizer supply and fertilizer price stability. Therefore, while protecting intellectual property rights, ensuring people's livelihood and food security is also the top priority of judicial protection.
Second, on the basis of fully understanding the technical plan, guide the parties to choose another way of preserving evidence with the least damage to ensure that spring cultivation and spring planting are not missed. Through in-depth analysis of the patented technical scheme and documentary evidence involved in the case, the court found that when Fuai Company advertised its production capacity on the website, it mentioned the product model "15-15-15", the environmental assessment document of the "annual output of 200,000 tons of high tower spray granulation compound fertilizer Project", and the environmental acceptance report of the "high tower compound fertilizer project". After asking Quanwei Company about the completion and use status of the equipment involved, and consulting whether the EIA report and environmental acceptance report must be obtained before the completion and use of the equipment involved. It is understood that the chemical fertilizer production project involved in the case has the environmental assessment report No. 64 (2007) and the environmental acceptance report No. [2012] B07 "High Tower Compound Fertilizer Project", and the values monitored in the above report can initially determine the production equipment and product characteristics involved. Moreover, the environmental assessment document (2007) No. 64 of the "Tower spray granulation Compound Fertilizer Project" and the environmental acceptance report of the "Tower Compound Fertilizer Project" of Chenghuan Inspection [2012] B07 are all managed and preserved by Chenghai District Branch of Shantou Ecological Environment Bureau. Therefore, the court guided Quanwei Company to change its preservation ideas by clarifying it, and only applied for access to the above EIA report and environmental acceptance report to determine product characteristics and minimize the possible impact of evidence preservation measures. The change in the way of evidence preservation can effectively resolve the contradictions and losses that may be caused by the evidence preservation measures, and help to solve the problem of timely delivery of litigation materials to Fuaisi Company, and provide the basis for the negotiation and settlement of the two parties. Under the promotion of the court, the parties actively negotiated and finally reached a settlement with the standard of 1 million yuan annual royalty paid by Fuaisi to Quanwei Company, and Fuaisi Company can continue to use fertilizer production equipment, smoothly forming a win-win situation.
【 Case impact 】
This case belongs to the case of ensuring people's livelihood and promoting stability. The invention patent involved in the case, "High tower granulation method and equipment for the production of granular compound fertilizer", is a patent for the invention method and equipment for the production of fertilizer. The plaintiff appealed for the removal of the defendant's high tower granulation equipment, and asked the defendant to compensate for losses of up to 10 million yuan. Since it was the spring ploughing season at that time, and the compound fertilizer particles were uniform and the fertilizer efficiency was stable, which could improve the yield of crops,The handling of the case not only involves the dispute between the two parties, but also involves the issues of spring ploughing and spring planting, agricultural yield and ensuring people's livelihood. On the basis of fully studying and adjudicating the characteristics of the patented technology and equipment involved in the case, the court determined that while protecting intellectual property rights, it should also ensure the keynote of promoting stability of the people's livelihood, guide the plaintiff to change the preservation application, create conditions for resolving contradictions and alleviating conflicts, and effectively avoid delaying the price fluctuation of spring ploughing and compound fertilizer for farmers. The court finally facilitated the two parties to sign a patent license agreement to reach a settlement, the plaintiff withdrew the lawsuit, the two sides shook hands and made peace, and achieved a win-win situation. The handling of the case achieved good social effects, and also demonstrated the court's judicial responsibility and determination to escort the rural revitalization, protect the people's livelihood and promote stability.Source: Guangzhou Intellectual Property Court
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