VMI defends IP against Safe-Run misappropriation

In three decisions made on 13 and 14 December 2022, the IP Tribunal of the Supreme People’s Court of China found in favour of VMI and against Safe-Run in litigation related to patent ownership disputes. VMI considers these decisions a victory “for all innovators everywhere.”

In the case related to patent ownership of patents CN104354311B (201410624213.1) and CN201610332841.1 and CN201620457270.X, VMI proved that its key technology on the vertical moving drum as well as the steering device qualifies as protectable trade secrets. The Supreme People’s Court also concluded that Safe-Run misappropriated these trade secrets and has awarded the patents as filed by Safe-Run back to VMI.

Complex, difficult case

According to VMI, the focus of the cases was the attempted hijacking of its proprietary Intellectual Property, in which Safe-Run “meticulously misappropriated VMI secret technology to copy VMI’s entire tyre building machines, then blatantly usurped inventorships by filing the misappropriated VMI technology as patents under their name.”

Courts at different levels in provincial and national tribunals reviewed evidence presented by VMI and analysed the claims made by Safe-Run. The Netherlands-based firm comments that the highest court in China made its final decisions in favour of VMI with “thorough and careful examination.” It adds that legal actions between VMI and Safe-Run continue despite the final conclusions to these specific cases. “VMI will prosecute all those who abuse its IP or steal its technical know-how, and reserves the right to protect its IP in any court of any jurisdiction, wherever our rights are infringed.”

Commenting on the decisions, VMI states that “the highest court in China has now clearly and decisively upheld IP protection for genuine innovation.” The machinery manufacturer considers this “excellent news” for both companies doing business in China and the Chinese economy as a whole. “It means that Chinese manufacturers will continue to have more open access to leading-edge innovations, provides assurance for emerging Chinese innovators and raises confidence in businesses across (the) world about their own long-term trading relationships with China.”

Judgement in favour of innovation

VMI expresses gratitude that its “rights have been upheld” and its “cases vindicated so completely,” adding that these judgements “prove that the Chinese legal system will uphold the rights of innovators and enforce the law to protect the IP of all companies doing business in China, no matter what their origins may be.” It thus considers the court’s decision not just a victory for VMI, rather one “for all innovators everywhere” that “sends a clear signal that the Supreme Court of China will defend innovators in the context of fair and open competition.”

Concluding its statement on the decision, VMI writes: “Innovation is the key to a better future for us all and we are delighted that our decision to invest in building a strong, Chinese element to our global business has been vindicated, giving us confidence that the future will be positive, rewarding and mutually beneficial.