BAE, KIM & LEE LLC held a seminar on China's patent litigation system and response strategies and reviewed how Korean corporations can respond to patent disputes in China.
BAE, KIM & LEE LLC said it held a seminar titled "Patent litigation strategy for Korean corporations" at its headquarters in Jongno-gu, Seoul, on the 23rd. The firm said officials from corporations across various industries attended, and interest continued in recent changes to China's patent dispute system and practical responses.
The seminar was organized to reflect how China is emerging as a central stage for global patent disputes in advanced industries such as semiconductors and artificial intelligence (AI). As Chinese corporations' technological competitiveness rises, Chinese courts are becoming key venues for global patent suits, and the point is that domestic corporations that exercise intellectual property (IP) in China or compete with Chinese corporations need to understand local systems.
In the first session, foreign attorney Kim Kyeong-nam at the Beijing office explained changes in China's patent dispute environment. Kim said, "In the past, among Korean corporations there was a perception that filing patent infringement suits in China did not offer much practical benefit," but added, "With the establishment of the Beijing, Shanghai and Guangzhou intellectual property courts in 2014, the expansion of IP tribunals, and the launch of the Supreme People's Court IP tribunal in 2019, China has built a structure to review appeals in technology-related cases such as patents in a unified, national manner." Kim added, "This is seen as a change that has significantly eased regional disparities and predictability issues, which were the biggest risks in past Chinese patent litigation."
Kim also explained that capabilities for handling technology cases and the level of relief for rights have been strengthened together. With the expansion of the technical investigator system, the amended Patent Act, and the introduction of punitive damages, the deterrent effect against infringement has increased. Kim said, "According to statistics from the Beijing Intellectual Property Court and the Supreme People's Court IP tribunal, we can confirm that foreign corporations are repeatedly using Chinese courts," adding, "This means China is no longer an unfamiliar forum for dispute resolution for foreign corporations."
In the second session, attorney Kim Chang-hwan of the IP Group addressed evidentiary strategies and the practice of punitive damages in Chinese patent disputes. Kim said, "The difficulties faced when exercising patent rights in civil law countries are the difficulty of proving infringement and the small amount of damages," adding, "China recently adopted evidence-related rules in IP civil litigation to strengthen protection of patentees' litigation rights and introduced punitive damages for patent infringement. It is worth actively considering exercising patent rights in China by making good use of these institutional changes."
Kim added, "A patentee should collect as much evidence as possible to support the likelihood of infringement," and explained, "If proof of damages is insufficient, the patentee can apply to a Chinese court for evidence preservation or an investigation order to try to obtain evidence." Kim also said, "If patent rights are willfully infringed and the circumstances are serious, punitive damages are possible," adding, "Chinese courts are handing down rulings ordering punitive damages even when the patentee is a foreign company and the infringer is a Chinese company."
In the third session, attorney Kim Tae-gyun of the IP Group introduced response measures for Korean corporations. Kim said, "From the standpoint of Korean corporations, they need to accept as reality and prepare for the changes in China's patent dispute environment," adding, "They should review the portfolio of patents that can be used in Chinese patent disputes and build a portfolio capable of responding to actual disputes." Kim added, "While it is important to create patents that make it easy to assert infringement, it is also necessary to secure a sufficient number of patents."
Kim also said, "There is a need to become familiar with China's patent environment," adding, "Korean corporations also need to broaden their contact points with Chinese law firms." Kim explained that it is necessary to check in advance the business risks when becoming a defendant in China and to prepare systems for sharing responsibility and responding jointly with partner companies.
BAE, KIM & LEE LLC was the first among domestic law firms to launch a China team in 1997, and in 2004 it opened the first local office in Beijing among domestic law firms. The firm said it continues to provide China-related and intellectual property advisory services based on local practical experience and collaboration systems with Chinese law firms.