According to our Business Confidence Survey 2024/2025, two-thirds of German companies report challenges related to IP protection. Among these, 16% specifically cited difficulties in pursuing infringement cases in court.
Impact Story 1: Defense Against Unfounded Patent Infringement Claim
The Challenge
A German company, established in 1908 and one of the global leaders in vibration control for industrial equipment and construction projects, has a subsidiary in China since the 1990s. Recently, the subsidiary was sued by a local company before an intermediate people’s court for alleged infringement of a Chinese utility model patent.
The German company provided AHK Greater China with written evidence demonstrating that its products were based on its own patented technology and did not infringe any third-party rights.
Our Actions
- First, we reviewed the company’s patent filings and product documentation to get a more accurate picture on the validity of its claims.
- Then we drafted and submitted an official letter to the competent authorities, rising awareness of the case and making the company’s voice heard.
- We directly communicated with the local intellectual property bureau and relevant court contacts to highlight the company’s evidence and ensure that the case would be assessed with special attention – also in order to avoid negative effects on the business environment as such.
- Throughout the process, we acted as a bridge between the company, its legal representatives, and the authorities, making sure the German company’s position was clearly understood and fairly considered.
The Result
Thanks to the company’s solid evidence, combined with the support of both AHK Greater China and local authorities, the lawsuit was dismissed in accordance with legal procedures.
Impact Story 2: Successful Enforcement of Patent Rights
The Challenge
Another German company, founded in 1915 and one of the global leaders in automotive parts manufacturing, has subsidiaries in China since the 1980s. Its Chinese subsidiary discovered that a local company was manufacturing and selling two types of automatic transmission products that infringed its valid patents in China. This infringement not only caused direct losses in orders and sales of their subsidiary but also created risks for downstream automotive manufacturers, including the potential need to recall vehicles equipped with infringing components.
The German company filed a lawsuit with a local intellectual property court. However, the patents were soon to expire, and the company could not afford the long waiting times (which is one of the biggest obstacles German companies often face in litigations according to our recent survey)- They then involved AHK Greater China for advocacy advice.
Our Actions
- We had a closer look at the technical aspects of the patents, the scope of the infringement, and the potential market impact.
- We coordinated closely with the German company’s legal counsel and in-house teams to ensure consistency of arguments and alignment of advocacy efforts.
- We issued a detailed support letter addressed to the local IP court and the intermediate people’s court. The letter emphasized not only the economic damage to the German company but also the broader implications for fair market competition, innovation incentives, and the reliability of China’s legal environment for foreign companies.
The Results
The court processed the case in time, found infringement and upheld the company’s patent rights, thereby creating more legal certainty, protecting the subsidiary’s market position and sending a strong signal that intellectual property rights are afforded equal protection under Chinese law. This is a significant move to strengthen confidence in China’s legal framework for foreign companies.
