China’s TCL Corporation Settles IP Dispute with
Taiwan’s AU Optronics

Guangdong-based television brand TCL announced on September 26 that the intellectual property dispute between Taiwan's AU Optronics and TCL and TCL subsidiaries which has been ongoing since 2013 has been settled after negotiations between the parties involved.

Both parties announced separately that they had reached a settlement with a view to continuing to work with one another in the future. Neither party mentioned the terms of the settlement or if any compensation had been paid.

A report from Taiwan’s United Daily News pointed to TCL’s declaration that “Reaching the settlement in this instance, will promote cross-strait cooperation between industry peers, setting a good foundation for Shenzhen China Star Optoelectronics Technology Co.’s global operations” as significant. TCL owns panel maker China Star Optoelectronics Technology Co. (CSOT) and recently announced that the latter would launch an IPO with A shares independently. In the announcement TCL stated that they planned to buy 10.04% of shares in CSOT for RMB4 billion (US$603 million), giving TCL a total share of 85.71% in the firm.

Beijing Intellectual Property Court Hears Baidu v. Sogou Entry System Patent Suit

The two year patent infringement battle between Chinese internet giants Sogou and Baidu over Chinese character entry systems has finally come to a head, with proceedings beginning in the Beijing Intellectual Property Court on Sept. 14.

The compensation demanded and the number of patents involved make it a significant case in China. Sogou had originally sued Baidu for infringement of 17 patents surrounding the technology at the Beijing Intellectual Property Court, the Shanghai Intellectual Property Court and the Shanghai High People’s Court, however, eight cases have been rescinded by Sogou after 11 of the patents were invalidated in part or as a whole. The proceedings starting on Sept. 14 concern only one of seven remaining Chinese entry system patents held by Sogou in their litigation against Baidu. Sogou is seeking RMB10 million (US$1.5 million) in this case.

Baidu launched a suit against Sogou in October 2016, a year after the suit was launched against them, suing Sogou for 10 patents it claims were violated by the Sogou pinyin entry system and the Sogou mobile phone entry system. Baidu is seeking compensation of RMB100 million (US$15 million).

Baidu had filed reexamination requests with China’s Patent Reexamination Board, and the invalidation decisions were announced from May 2016 onwards.

Securities Firms in Taiwan Secure 20 Utility Model FinTech Patents in Last Year

Taiwan Intellectual Property Office figures reveal that Taiwanese securities firms have applied for 20 utility model FinTech patents in the last year, with Cathay Securities alone having been granted four utility model FinTech patents, among which are included the technology behind an app allowing for the opening of investment accounts on the internet and a stock picking app.

Much of the focus on FinTech in Taiwan has been to digitize already existing services. The stock picking app has already accumulated 170,000 downloads since it was launched in June 2016 and an improved version was launched.

No Taiwanese entrants featured in the IDC FinTech Top 100 rankings, although four China-based companies were featured, Shenzhen-based Ping An Techonology, Hangzhou-based Hundsun Technology, Beijing-based Pactera Technology and Shanghai-based ECCOM Network Systems. Taiwan’s E.Sun Bank and Taishin Bank were awarded prizes at the Asian Financial Services Congress earlier this year, however, scooping the prizes for Asia/Pacific's Leader in E-Commerce Integration and Asia/Pacific's Leader in Mobile Banking respectively.

Cambodia Signs MOU Agreeing to Extend Validity to
Chinese Patents

On Sept. 21, the head of China’s State Intellectual Property Office (SIPO), Shen Changyu, and the minister of Cambodia’s Ministry of Industry and Handicrafts, Cham Prasidh, signed a memorandum of understanding (MOU), confirming that invention patents granted and that continue in effect in China can be registered in Cambodia and immediately go into effect in the country on request by the applicant.

Shen called the MOU a milestone in IP cooperation between the two countries. The move is also expected to increase Chinese investment in the Southeast Asian country, in line with China’s Silk Road Economic Belt and the 21st-century Maritime Silk Road initiatives.

SIPO will provide patent application, search and evaluation services for the Cambodian ministry in return, as well as engaging in exchanges between IP staff from both countries.

Cambodia previously reached agreement with the European Union to extend validity to European patents upon request by the applicant in January of this year, and the measure went into effect in July.

HK Customs Confiscate Counterfeit Moon Cakes in Run Up to Mid-Autumn Festival

The Hong Kong Customs and Excise Department launched an event aimed at tackling counterfeit foodstuffs and other goods in advance of the Mid-Autumn Festival set to take place on October 4 this year. Moon cakes and other snacks are traditionally associated with the holiday. In total they confiscated 213 boxes of moon cakes suspected to be imitations, with a market value of HK$60,000 (US$7,679). Customs officials targeted stalls in the Sheung Shui and Sham Shui Po districts as well as internet sales. Three men and two women were arrested, including two store owners, two store assistants and one internet seller, ranging in age from 38 to 59.

They also confiscated 1058 other products, such as lanterns, toys and stationery that they believed to be infringing intellectual property rights. Customs officials had already investigated six stores they believed to be selling infringing goods in the Chai Wan, Shau Kei Wan, Sham Shui Po, To Kwa Wan, Kwai Fong and Kwai Hing areas. The total value of the confiscated lanterns, toys and stationary was estimated at around HK$50,000 (US$6,400). Five men and five women were arrested, including six store owners and four store assistants.

Taiwanese VCs increase investment in AgriTech

Taiwanese venture capitalists have increased their investments in agricultural start-ups, according to an article in Taipei's Commercial Times.

The investment targets have spread in focus from precision agriculture, to agritech and agricultural corporate services, with an emphasis on obtaining patents. The paper cited figures from the Taiwan Venture Capital Association showing that there were three investment deals in 2014 involving agricultural startups and agritech, with a value of NT$5.3 million (US$175,000), whereas the figures from 2015 show that 29 companies in this category received funding, with total investment of NT$979 million (US$32.4 million), outstripping the traditional manufacturing, green energy and environmental sector in terms of number of deals and the total investment.

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