In its final-instance decision for the first ever IPR case involving foreign party in the province's history, Anhui High People's Court held Sanming Heavy Machinery (SHM) of Xiagong Group infringing the patent of the South African company Landpac Impact Compaction Technology Development (Beijing), and ordered the defendant to cease infringement immediately and remunerate damage.
On March 4, 2004, Hefei Intermediate People's Court received the case. plaintiff Landpac claimed that its patent on modifying concrete road was infringed during the renovation of Hening Expressway and sought the cease of use of the patent by SHM and SHM's subsidiary, SHM Road Construction (SHMRC) as well as a damage of 600,00 RMB.
The Hefei court ruled that SHMRC infringed the said Landpac patent and ordered it to cease infringement and pay a royalty of 250,000 RMB and a damage of 150,000 RMB to the plaintiff. The other defendant SHM was ruled infringing a Landpac design patent on impact compaction wheel and demanded for discontinuation of use of the patent and payment of a damage of 50,000 RMB.
The defendant then appealed to the high court who would later remand the case. The Hefei court made the second decision on November 17, 2005, confirming SHM's infringement and the payment order of 250,000 RMB and rejecting the plaintiff's claims against Xiamen Road Construction and Xiagong Group. The high court would later reaffirm the decision.