(ii) The focus of the disputes is relatively concentrated. In particular, software contract cases mainly focus on whether the software are developed and delivered, whether the software developed meets the agreement, whether the parties have agreed on the changes in performing the contract, and whether there is delay in performance, etc.
(iii) The difficulty of settlement varied greatly. In software infringement cases, if there is an argument about the technical facts of infringement, complex comparison of the source program, which proves difficult, is usually necessary between the allegedly infringing software and the copyrighted software; if no such argument occurs, the case is easy to solve. In software contract cases, if the agreement terms are vague or the performance standards are not well defined in the contract, the case is difficult to solve; otherwise, it proves easy.
⑤Characteristics of cases concerning jurisdiction
Cases concerning jurisdiction heard by the IP Court have the following characteristics:
(i) The number is large. Based on the litigation strategy, the complexity of jurisdictional rules, and the existence of more jurisdictional connection points, the alleged infringer has more arguments to challenge the jurisdiction in IP cases.
(ii) There are many new issues with great difficulties. These issues include whether the arbitration clause in the agreement applies to the jurisdiction of monopoly agreement disputes; whether the place where a monopoly agreement is reached can be considered as the connection point for the jurisdiction of monopoly disputes; can the network platform provider be taken as the connection point for jurisdiction in cases where the vendor is not sued; whether the place where the act of infringement is committed claimed by the patent owner can be the connection point for jurisdiction in the disputes over confirmation of non-infringement, etc. These issues reflect that with the continuous development of technology, business models, and rights protection practices, the jurisdiction of technology-related IP cases has become increasingly complex and diverse.
(iii) The judicial position is relatively lenient. Of the 446 cases of second instance on challenge to jurisdiction concluded by the IP Court, only 21 were concluded by reversal, accounting for 4.7%. In order to protect the obligee’s in exercising its litigation rights according to law and to moderately promote judicial competition, the IP Court has a more lenient judicial position towards the obligee’s choice of connection point of jurisdiction and respects the olibgee’s right to choose the court of dispute jurisdiction.
⑥ Characteristics of other types of cases
Cases concerning new plant variety rights heard by the IP Court have the following characteristics:
(i) The varieties involved are closely related to people’s daily lives, such as corn, rice, honey pomelo, flowers, etc.
(ii) The identification of technical facts is more difficult, and it is especially difficult to determine the “identity.”
(iii) The legal issues involved in the cases are diverse, such as the standing of parties in the litigation, the scope of protection of variety rights, the defense of legitimate sources, and the amount of damages, etc.
Most of the technical contract cases heard by the IP Court take the review and judgment of breach of contract as the focus of the trial, and the technical fact finding has a major impact on the determination of breach of contract.
The cases concerning technical secret heard by the IP Court involve many procedural issues, through which the IP Court has further clarified the procedural rules.
2. Create model cases with typical exemplary effect
Judgments rendered by the IP Court are judgments of the Supreme People’s Court, and are final and authoritative. The IP Court comprehensively leverages its centralized jurisdiction over technology-related IP cases of second instance to create model cases with typical exemplary effect, social influence, and uniform legal application standards.
On March 27th, 2019, the collegial panel of the IP Court consisting of Chief Judge Luo Dongchuan and Deputy Chief Judge Wang Chuang “struck the gavel for the first time” when they tried in public the first technology-related IP case—an invention patent infringement dispute of Xiamen Lukasi Automobile Parts Co., Ltd. and Xiamen Fuke Automobile Parts Co., Ltd. (Appellants) v. VALEO SYSTEMES D’ESSUYAGE (Respondent). From filing time of this second instance case to court hearing, closing and service of judgment, the IP Court took only 50 days. The case involved a frontier issue of preliminary judgment on patent infringement. Through this case, the IP Court clarified the criteria for determining functional feature, the unique value of the preliminary injunction when the preliminary decision involving the permanent injunction has not yet taken effect, and the applicable conditions and rules when the preliminary injunction and the preliminary judgment involving permanent injunction coexist. The case was identified as a guiding case by the Supreme People’s Court, and included in the “Top Ten Model Civil and Administrative Cases in 2019”.
