Safe-Run pays VMI damages after China appeal court IP judgement

Dutch firm issues rebuke after Safe-Run press release claims victory

Safe-Run Intelligent Equipment Co., Ltd has been ordered to stop infringements immediately and pay  damages to leading tyre building machinery manufacturer VMI Holland B.V. totalling RMB 2.46 million (around 320,000 euros). VMI notes that these payments are “very high [compared] to the average damage awards of around RMB 100,000 in similar cases in China.” The leading tyre building machinery manufacturer also issued a firm rebuke to Safe-Run after the latter issued a press release on 31 July claiming victory in the companies’ ongoing legal dispute. Contrary to Safe-Run’s view, VMI said the Jiangsu High People’s Court of China’s ruling represented “a major defeat for Safe-Run and almost total vindication of VMI’s position.” VMI first announced it had won “a significant lawsuit” against Safe-Run relating to its intellectual property in February 2021. Subsequently, the Netherlands-based firm said the appeal court finalised its judgement that Safe-Run were infringing on VMI’s two key patents relating to tyre building machines. Safe-Run’s statement is not currently available.

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The appeal court’s final decisions related to four out of the five patent infringement cases filed by VMI against Safe-Run and one patent declaratory judgment case filed by Safe-Run. The final decisions were issued in July 2021. VMI added that it had petitioned the court to execute its judgement against Safe-Run after the company “failed to pay damages within the required time period.” Subsequently Safe-Run complied, paying VMI’s damages in full, once required to do so by the court.

In the fifth patent case appeal, which is still pending following VMI’s original victory at trial court, VMI said that Safe-Run’s attempts to invalidate VMI’s patent had been unsuccessful. The Dutch manufacturer states: “Chinese Supreme People’s Court’s Intellectual Property Tribunal issued a final decision upholding the validity of all claims of the patent. The patent is stable and enforceable. The appeal court is issuing decision and we are awaiting this decision with confidence.”

VMI adds that the case is one in a series of legal disputes between VMI and Safe-Run now before the courts in China. The manufacturer said that it “expects to have all its rights confirmed in the long term” after its successes “in court actions related to abuse of court and patent hijacking by Safe-Run.”

VMI added that it “strongly believes that intellectual property rights belonging to all companies must be protected at all times,” as well as underlining its “complete respect for the Chinese judicial system.” It concluded that it would “continue to fight against infringement to protect its intellectual property rights and maintain healthy competition.”