Patent infringement case: VMI applauds Safe-Run ruling

VMI Holland says it “strongly welcomes” the decisions made by the Higher People’s Court of Jiangsu Province in its favour in two final judgements, delivered on 3 November 2021. The court has not only refused Safe-Run’s application to set aside the first instance judgements that a lower court made against the company; it has also maintained the damages for Safe-Run’s continued infringement of one of VMI’s patents in China.

These cases have been underway since 2016 when VMI brought legal action against Safe-Run and its related company due to their infringement of an established VMI patent. Since then, Safe-Run’s counterclaims, including its patent invalidation petitions, have met with no success. Both China National Intellectual Property Administration (CNIPO) and various courts have fully sustained the patent’s validity. The initial infringement judgement issued by the Intermediate People’s Court of Suzhou Municipality has now been confirmed and made effective by the higher court.

VMI considers these two judgements extremely significant for several reasons:

First, they confirm that Safe-Run has infringed VMI’s patent, order it to stop the infringement immediately, and make final an award of more than RMB 3 million (£350,400) to VMI, including damages and costs. VMI notes that this is “a high award for patent cases in China” that “reflects the court’s view both on the legal merits of VMI’s claims and on the gravity of Safe-Run’s offence.”

Second, they confirm that VMI’s patent in the dispute is valid and enforceable, and any claims to the contrary have been “thoroughly disproved.” This upholds VMI’s intellectual property, which the company states is the “true foundation” of its business.

Third, they show that China’s legal system is “committed to protecting innovative IP,” having delivered a “fair and objective judgement in these complex cases.”

A positive signal

“We believe these two judgements send a positive signal to all companies that invest heavily in original IP, and this very much includes Chinese innovators, as well,” states VMI. “This can only raise confidence among international investors in China and improve business relationships between Chinese and foreign companies.”

Other court cases between VMI and Safe-Run continue, but VMI is nonetheless “extremely pleased” that a significant milestone has now been reached in this ongoing endeavour. “Our determination to defend our own IP has been vindicated, which reinforces our central commitment to our many highly-valued Chinese clients: they can continue to benefit from the world-class technology in our products, built and maintained in China, supplied by VMI,” the company concludes.