How does patent contribution Rate affect damages in infringement cases? Court ruling: Cooling the air conditioning patent dispute

The summer heat is gradually fading, the autumn wind is cool, and the air conditioners in people's homes can also take a break after a busy summer. However, contrary to the drop in temperature, the heat of a dispute over intellectual property rights related to air conditioning has risen and attracted wide attention from the society.

Recently, the Supreme People's Court made a final judgment on an invention patent infringement dispute involving air conditioning, rejecting the appeals of both appellants, and upholding the Guangzhou Intellectual Property Court's decision that the accused infringing party Guangdong Meibo Refrigeration Equipment Co., LTD. (hereinafter referred to as Guangdong Meibo Company) immediately stop the infringement. And compensate the patentee TCL Air Conditioner (Zhongshan) Co., LTD. (hereinafter referred to as TCL Company) economic losses, a total of 1.68 million yuan of the first instance judgment.

  Air conditioning patent dispute again

  On November 8, 2000, TCL Corporation was established, which is committed to the design, manufacturing, sales and service of separate floor type air conditioners, separate wall-mounted air conditioners and various variable frequency air conditioners, central air conditioners and other products. Although its entry into the air conditioning industry has not been long, it has quickly occupied the mainstream position of the industry, and its annual sales have increased significantly, and it has become a well-known enterprise in the industry.

Founded on May 17, 2010, Guangdong Meibo Co., Ltd. is a wholly-owned subsidiary of Anhui Meibo Electrical Appliance Group Co., LTD. (hereinafter referred to as Anhui Meibo Co., LTD.), whose business scope includes manufacturing and sales of refrigeration and air conditioning equipment. It is understood that Guangdong Meibo Company is a national high-tech enterprise, with the ability to research and develop air conditioning technology innovation, a total of more than 130 types of patent authorization.

On April 27, 2017, TCL submitted an invention patent application named "Air conditioning grille components and vertical air conditioners" (hereinafter referred to as the patent in question), and was authorized on March 30, 2018 (patent number: ZL201710290925.8), the patent in question is legal and valid.

TCL company agent, Beijing Yiju Law firm lawyer Zhou Meihua in an interview with China Intellectual Property News introduced that the air outlet side of the vertical air conditioner is provided with an air outlet grille, the air outlet grille is provided with an up and down extension of the air outlet, which can be opened or closed by rotating the air deflector plate. In this case, if the air guide plate is only connected with the air outlet through the end, it is easy to make the air guide plate fall off, and the patent in question solves this technical problem by setting a certain number of limit parts.

Considering that the accused infringing products produced by Guangdong Meibo Company and sold through the online store set up by Anhui Meibo Company allegedly infringed its patent rights, TCL Corporation sued Guangdong Meibo Company and Anhui Meibo Company to the Guangzhou Intellectual Property Court, requesting the court to immediately stop the infringement and jointly compensate for their economic losses, totaling 4.11 million yuan.

In this regard, Chen Suixing, the joint agent of Guangdong Meibo Company and Anhui Meibo Company and the lawyer of Guangdong Baishi Jie Law Firm, told this newspaper that the technical problems that the wind guide plate is easy to fall off are not common in daily life, and the sales volume of the suspected infringing products is not high, and the compensation amount claimed by TCL company is too high.

  The defendant was found guilty of infringement

  On November 23, 2020, the Guangzhou Intellectual Property Court made a judgment of first instance that after comparison, the accused infringing technology scheme had the same technical characteristics as all the necessary technical characteristics recorded in the patent claims, and fell within the scope of TCL's rights to request protection, and the non-infringement defense advocated by Guangdong Meibo Company and Anhui Meibo Company could not be established.

On the issue of liability for compensation, the Guangzhou Intellectual Property Court held that TCL did not provide the specific amount of its losses due to infringement or Guangdong Meibo's illegal profits due to infringement, nor did it provide the amount of patent licensing fees that could be referenced. However, through the review of the evidence, considering that the implementation of the patent involved must use the mold, the service life (number) of the mold can reflect the production capacity, according to which the production and sales quantity of the accused infringing products can be estimated. After weighing the types of patent rights involved, the nature of the infringement, the circumstances and other factors, the first instance judgment Guangdong Meibo company compensated TCL company for a total of 1.68 million yuan in economic losses.

Subsequently, both parties refused to accept the first instance judgment and appealed to the Supreme People's Court.

Zhou Meihua said that Guangdong Meibo Company and Anhui Meibo Company did not have objective obstacles to submit the evidence they had about the scale of the alleged infringement, but refused to provide evidence, constituting an obstruction of proof. In addition, the infringement lasted for a long time, even after TCL filed a lawsuit, it was still promoted, and the circumstances were serious and subjective malice was obvious. Therefore, TCL Company made an appeal request for an increase of 7.98 million yuan in punitive compensation during the second instance, and requested a total compensation amount of 11.97 million yuan.

Guangdong Meibo Company and Anhui Meibo company believe that the amount of compensation awarded in the first instance is too high, and Guangdong Meibo company's product profit margin has been hovering in the downstream of the industry, which is a low-profit enterprise. For the contribution rate of patented technology, the environment, conditions and opportunity of the function and role of the relevant technology should be further considered, and the technical contribution rate of 3%-5% determined by the first instance is higher.

After hearing, the Supreme People's Court held that the litigation claim for punitive damages increased by TCL Company in the second instance had exceeded the scope of the original litigation claim and would not be heard; The first instance judgment of the Guangzhou Intellectual Property Court on patent infringement and the determination of the amount of compensation were not improper. Although Guangdong Meibo Company did not recognize the amount of compensation, it should bear the adverse consequences of failing to provide proof because it refused to submit the profit data of infringement. Therefore, the Supreme People's Court made the above final judgment.

"The judgment made by the Supreme People's Court is final, and out of respect for the judgment of the Supreme People's Court, Guangdong Meibo Company has actively implemented the judgment, and the compensation has now been fulfilled." Chen Suixing said.

  Clarify the contribution of patented technology

  Air conditioning as a common electrical appliance, which contains a lot of patented technology, if the manufacturer because of a certain technical solution in a product produced intellectual property friction, in order to accurately calculate the amount of infringement compensation, the technical contribution rate of the patent is an important parameter.

In this regard, Chen Jinlin, partner lawyer of Beijing Liushen Law Firm, introduced that the contribution rate of patent technology is a concept specially introduced to calculate the amount of compensation for patent infringement, and the amount of compensation for patent infringement can be determined according to the actual loss suffered by the right holder due to the infringement or the interests obtained by the infringer due to the infringement. When determining the loss of the right holder or the profit of the infringer due to infringement, it is necessary to consider the contribution ratio of the technology judged to infringe the patent right to the total profit of the infringing product, which is the contribution rate of the patented technology.

"Obviously, the total profit of the accused infringing products is not all brought by the patented technology, and there are many factors contributing to the profit of the product, including brand effect, technical level, sales strategy and so on." In this case, the court of first and second instance mentioned the contribution of brand value, and it is unreasonable to consider all profits as the interests of the infringer and compensate all the rights holders. Therefore, it is necessary to clarify how much of the total profits are contributed by patents. Chen Jinlin believes.

So, how should we judge the contribution rate of patented technology? Chen Jinlin said that in fact, the contribution rate of patent technology is indeed difficult in determining the amount of compensation for patent infringement, and there is still no unified judgment standard. There are many factors contributing to profit in a product, and it is difficult to use a uniform standard to accurately judge the contribution of each factor. In judicial practice, the court generally considers the contribution rate of patent technology after comprehensive consideration of various relevant factors, without giving a clear calculation standard or formula. "In this case, the Guangzhou Intellectual Property Court took into account that the brand reputation and additional services of air conditioners will affect consumers' choice of products, and the technical improvement of the patent involved is the indoor air conditioner, which is less difficult than the outdoor compressor part, so the contribution rate of the patent technology is determined to be between 3% and 5%, which is also recognized by the Supreme People's Court." Chen Jinlin said. (Zhao Zhenting) (Source: China Intellectual Property News)

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