In a first instance decision rendered by Beijing No. 2 intermediate People's Court in a car condenser patent case, two local companies, Valeo and Beijing Huayi, which are an automotive supplier and motor sales company respectively, were ordered to indemnify 4.84 million yuan in damages to Keihin Corporation, a Japan-based integrated systems manufacturer.

Keihin alleged that it own the No. ZL200380107672.2 invention patent, a technique applied on car condenser. However, they found that the same accessories manufactured by Valeo, which was used on the New Bora motor series, have violated their patent. They then brought Valeo to the court for sought injunction and 11.26 million yuan in damages, and the Beijing Huayi, the car seller, should bear the legal liability as the co-defendant. Valeo argued that the patent was based on the existing technology, which would not constitute infringement, and therefore required the court to reject the defendant's request.

The court held that the defendant's acts and their products have infringed Keihin's patent. On the ground of New Bora sales volumes between January 2010 and December 2012, and based on the license fees by Keihin, the court then made the decision above.

As of now, The disgruntled Valeo appealed to the higher people's court.

(China IP News)