China Patent Infringement

Update time:2018-01-16  source:

Strategies for dealing with China patent infringement are complicated. The most basic question when another party is unlawfully stealing your innovation is whether you want to end the infringement completely to gain the benefit of added market share, or force the infringer to license your technology.

This depends in part on which strategy is more profitable, but the risks and costs of pursuing litigation must also be considered.  Because patent litigation is expensive and risky, and foreign litigation even more so.

This question is particularly important for technologies where first mover advantages in new markets can be enormously profitable.

If your competitor is unable to enter a market now, it may never develop the technology or marketing channels to compete in the future.

Another important question is whether the infringer has the financial means and intellectual property portfolio to counter sue.

A businesses that is worth stopping in the courts probably has its own patent portfolio, built in part to act as a shield against litigation.

It may have a patent in their portfolio that you are infringing. If your infringer sues you, the stakes can rise dramatically. 

Such patent infringement actions often end in an inexpensive stalemate because there is simply too much risk for both sides.

Because of the many risks and uncertainties surrounding an infringement action, we use a model based on the Black-Scholes option pricing model to help determine the proper strategy to use against an infringer.

The model accounts for the costs of litigation, potential benefits from increased market share or licensing revenue, and the risks from both less than desired outcomes and negative outcomes.

Looking at the problem quantitatively and objectively helps in the selection of the strategy that benefit your business in the long run.

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