Over the last ten years, China has made considerable changes to its intellectual property enforcement mechanisms, including specialised IP courts in key cities such as Beijing, Shanghai and Guangzhou. For foreign entities filing in the world’s most competitive IP market, the ability to enforce these protections has long been a key consideration.

The latest WIPO statistics show that around three times the number of patents were filed in China in 2023 compared to the second highest filer, the US. International businesses, particularly those at the forefront of technology, rely heavily on IP protection and often have questions about how Chinese courts handle IP disputes involving foreign entities. Whether foreign entities receive equal treatment in China when facing IP disputes has also been seen significant focus.

With a range of longer term data now available, our China team examines official statistics and real-world case examples that provide some clarity to these questions.

Current Situation about IP Disputes in China

In November last year, the Beijing IP Court released a White Paper providing IP statistics over the last ten years, which shows a total of 52,498 cases were accepted in the ten years to October 2024, registering an average annual growth rate of 11.64%. During the same period, the Beijing IP Court concluded 51,320 cases, with an average annual growth rate of 20.36%[i].

Since its establishment on January 1, 2019, the Intellectual Property Court of the Supreme Court of China has also seen a significant caseload. As of June 26, 2024, the Supreme Court had accepted 20,338 cases and closes 17,638 cases[ii].

IP infringement involving foreign entities

As the volume of IP disputes in China rises, so does the number of IP infringement cases involving foreign entities. 

According to the Supreme Court, the number of IP infringement cases involving foreign litigants has seen rapid growth, accounting for about 10% of the total number of cases accepted by the Supreme Court, with an average annual growth rate of 28.6%. Foreign-related cases account for about one-third of all invention patent cases. Additionally, the volume of cases with both entities being foreign litigants is steadily rising [ii].

In 2023, the Supreme Court accepted 421 foreign-related cases. Between 2019 and 2023, the Supreme Court accepted a total of 1,678 foreign-related cases and closed 1,198 of them[iii].

Impartial treatment for foreign entities in disputes

As the number of disputes involving foreign entities continues to rise, statistics show that the Chinese courts have consistently demonstrated commitment to impartiality and fairness in handling such cases.

A survey conducted by the Primary People’s Court of Chaoyang District of Beijing Municipality reveals that from 2014 to 2022, it adjudicated 117 cases where foreign litigants sued domestic entities. In these cases, the success rate for foreign plaintiffs was approximately 77%[iv].

According to Beijing IP Court, foreign-related cases constitute about 30% to 40% of the Beijing IP Court’s total caseload. The success rate for foreign plaintiffs pursuing tort claims in civil cases involving foreign litigants is notably higher compared to that in cases involving only Chinese parties[v].

Moreover, data released by Beijing IP Court underscores the impartial treatment of foreign litigants in IP disputes. Of the foreign-related IP cases, 76.6% involved a foreign plaintiff suing a Chinese entity; 19.0% involved a foreign defendant sued by a Chinese entity; and 4.4% involved disputes between foreign litigants. In cases excluding those involving both foreign litigants, the success rate for foreign litigants was 68%[vi].

Examples of disputes involving foreign entities

Provided below are several brief examples of specific cases that demonstrate these statistics.

• In the patent infringement dispute between Bayer and Shenzhen Ante High-Tech Industrial Co., Ltd, which involved a high-pressure syringe technology, a settlement of 24.3 million RMB was awarded to Bayer. This amount represents the highest amount of compensation ever awarded in China for patent infringement in the life science field[vii].
• In the patent infringement dispute between a Swiss company Synthes GmbH and a Chinese company Double Medical, the Supreme Court held that the products in question fell within the scope of Synthes GmbH’s patent, and fully supported Synthes GmbH ’s claim for compensation exceeding 20 million RMB[viii].
• In the patent infringement dispute between UK-based Dyson and Chinese company Dreame—both renowned as leading manufacturers of home appliances with more than twenty IP disputes in China—the Supreme Court successfully mediated a strategic settlement between the two parties. Dyson highly commended the Supreme Court’s efforts in facilitating this settlement[ix].
• In a notable case involving the invalidation of a patent for an Enzalutamide compound (ZL200680025545.1). Both the Beijing IP Court and the Supreme Court supported the appeal of the US patentee and revoked the invalidation decision made by the China National Intellectual Property Administration (CNIPA).
• In another case involving the invalidation of a patent (ZL200680018368.4) owned by Swedish company ALFA LAVAL CORPORATE AB, both CNIPA and the Beijing IP Court asserted that the patent was invalid. However, the Supreme Court revoked the invalidation decision and the first-instance judgment, upholding the patentee’s rights[x].

How we can assist

As the IP enforcement system in China establishes a range of precedents through decisions and makes further improvements, our team will continue to monitor progress for our clients.

For IP owners looking to protect in this essential market, reach out to our experts in China. We will be happy to engage with you and your team to provide further information and answer your questions.

[i] White Paper on the Ten Years of Judicial Work at Beijing Intellectual Property Court (2014-2024)

[ii] Official News from the Intellectual Property Court of the Supreme People’s Court: https://mp.weixin.qq.com/s/T_i1zTLdySLjJsuDZZIjUA

[iii] Annual Report of the Intellectual Property Court of the Supreme People’s Court (2023), Pages 10-11: https://ipc.court.gov.cn/zh-cn/news/view-2789.html

[iv] Official Announcement from Chaoyang District Court: https://mp.weixin.qq.com/s/_cXxBPErp5AJr6LP5GACZA

[v] Information Provided by a Judge from Beijing Intellectual Property Court in an Interview: http://www.cnfocus.com/chinese-court-protects-foreigners-ip-equally/

[vi] Data Provided by Beijing Intellectual Property Court at the Zhongguancun Forum: http://www.iprchn.com/cipnews/news_content.aspx?newsId=118962

[vii] News from IPRDAILY: 浅谈生物医药领域专利侵权案件赔偿问题的审判思路|深度|领先的全球知识产权产业科技媒体IPRDAILY.CN.COM

[viii] Official News from the Intellectual Property Court of the Supreme People’s Court: https://ipc.court.gov.cn/zh-cn/news/view-1630.html

[ix] News from CHINACOURT: https://www.chinacourt.org/article/detail/2023/09/id/7527141.shtml

[x] Official News from the Intellectual Property Court of the Supreme People’s Court: http://gongbao.court.gov.cn/Details/fc50948df5856b8026a069cadd4d93.html