The Plaintiff, Zhejiang Kende Welding Equipment Co., Ltd., is the owner of Patent ZL 200810163970.8 for a “Welder transformer and manufacturing method”.   On 30 October 2013, it filed a lawsuit with the Taizhou Intermediate People’s Court claiming that the Defendant had, without authorization, manufactured, sold and offered to sell infringing products.  It sought various remedies including an Order that the Defendant immediately cease the infringement, destroy all infringing products and equipment used in their manufacture, and publish an apology. 

The Taizhou Intermediate People’s Court held that the Defendant’s product fell within the scope of the Plaintiff’s patent and that the Defendant had, therefore, infringed.   In a first instance judgment handed down on 23 December 2013, the Court ordered the Defendant to cease the infringement and pay compensation for economic loss in the sum of RMB 1,000,000 (approx. US$160,000).    

When the Defendant filed an appeal, the Plaintiff applied to the Court for injunctive relief pursuant to Article 100 of the newly revised civil procedure.  It sought injunctions requiring the Defendant not to infringe pending trial and to take certain steps to ensure that a final judgment against it would be able to be satisfied.  The Plaintiff provided the usual guarantees.  On the same day, the Taizhou Intermediate People’s Court ordered the Defendant pending trial to cease the manufacture, sale and offering for sale of the allegedly infringing product and to seal up and preserve all the allegedly infringing manufactured products and all equipment used in their manufacture.     

After the Court’s decision in relation to the Plaintiff’s application, the Defendant voluntarily and repeatedly sought to settle the matter.   Eventually the parties entered into a settlement agreement pursuant to which the Defendant agreed to withdraw its appeal and pay compensation, and the Plaintiff agreed to apply for withdrawal of its application for injunctive relief.     

This is the first intellectual property-related case in China in which the Court has made a post-judgment order under the newly revised civil procedural law.