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Intellectual Property Newsletter by MeritsIP, August 21, 2025

Editor’s Note: Intellectual Property Highlights and Strategies for Innovation

Welcome to the MeritsIP Newsletter. We delve into critical updates in the intellectual property landscape, providing insights and strategies to help you navigate the ever-evolving world of patents, trademarks, and copyrights. Read on to stay informed and ahead in the game of innovation.


China patent news

The Expert Argumentation Meeting on the Guidelines for the Pledge Registration of Data Intellectual Property in Guizhou Province (Trial) was Held

On August 11, the Guizhou Intellectual Property Office organized an expert argumentation meeting on the Guidelines for the Pledge Registration of Data Intellectual Property in Guizhou Province (Trial). Expert representatives from law firms and think – tank institutions participated. The meeting explained the necessity and main content of formulating the Guidelines. Experts discussed the legality, rationality, feasibility, and controllability of core contents like pledge registration conditions, processes, and submitted materials, and offered constructive suggestions. Next, the office will revise the Guidelines according to these suggestions, aiming to make it comply with laws, meet practical needs, be easy to operate, and provide normative guidance for data intellectual property pledge registration.

Source: True


The Promulgation of the Regulations on the Protection and Promotion of Intellectual Property Rights in Chongqing

Recently, the 17th meeting of the Standing Committee of the 6th Chongqing People’s Congress passed the Regulations on the Protection and Promotion of Intellectual Property Rights in Chongqing, effective September 1, 2025. Comprising six chapters and 55 articles, the Regulations have five main features. It provides macroscopic coordination for IP work, empowers industries to enhance IP value, achieves coordinated linkage for protection, optimizes services for public service efficiency, and highlights Chongqing’s unique IP features. These include clarifying government responsibilities, promoting high – value IP creation, strengthening administrative and judicial protection, establishing public service systems, and contributing to national strategies.

Source: True


Starting Point’s Popular Web Novel Infringed, Court Adopts “Dual – Track” Compensation to Increase Illegal Costs

The Lucheng District People’s Court in Wenzhou concluded a copyright infringement case of a web – novel using “dual – track” compensation. Defendants Ye and a recycling shop in Wenzhou infringed the information network dissemination right of “Swallowing the Stars 2: The Origin Continent” held by Xuan Ting Company. They illegally spread the novel via WeChat public accounts and mini – programs from August 2024, even after being notified. Ye claimed non – commercial use, but the court found subjective intent and serious infringement. The court supported Xuan Ting’s “dual – track” compensation claim: punitive compensation for 149 chapters with known readership and statutory compensation for 41 chapters without data. This model can punish malicious infringement, optimize rights – protection for right – holders, and show a strict attitude towards digital copyrights. After the judgment, Ye apologized and promised no similar infringements.


Exports in the First Half Exceeded 400 Billion Yuan: Yiwu, Zhejiang, Beautifies Global Shelves with Intellectual Property

In the first half of 2025, Yiwu, Zhejiang, with a daily express delivery volume of over 34 million pieces, exported to over 230 countries and regions, achieving an import – export value of over 40 billion yuan, a 25% year – on – year increase. Reporters explored the role of intellectual property in its economic success. The Yiwu Intellectual Property Rights Protection and Service Center, established by the local Market Supervision and Administration Bureau, offers 34 services, handling over 90,000 cases and saving over 50 million yuan for businesses. Yiwu has 222,000 valid trademarks and over 39,000 valid patents. The bureau focuses on preventing counterfeiting and infringement in the large – scale commodity city, strengthening publicity and implementing full – chain protection. Meanwhile, businesses and entrepreneurs are promoting brand building and “going global.” The Yiwu Brand Development Promotion Association launched the “Yiwu Good Goods” brand – collection store. Overseas intellectual property service stations have increased the success rate of overseas disputes and saved costs for enterprises.


Tiny Fashion Toys Secure a 100 – Million – Yuan International Order? The Comic Expo “Leverages” the Fashion Toy Economy with Copyrights

From August 8th to 11th, the 15th China International Film and Animation Copyright Protection and Trade Expo took place in Shipai Town, Dongguan. Guangdong Weisi Fashion Toy Intelligent Manufacturing Co., Ltd. got a nearly 100 – million – yuan copyright trading order from a Japanese firm. Over 600 key enterprises from over 40 countries and regions participated, with an intended cooperation amount of 1.56 billion yuan and an online – offline sales volume of 180 million yuan.

There were active copyright transactions, like a 108 – million – yuan cooperation agreement on August 9th. The “ChinaGoods Anime Dimension Shopping Season” had good live – streaming sales results.

As a major copyright province, Guangdong set up an “IP Authorization Exchange” and upgraded the “Fashion Toy Copyright Loan”. Dongguan, China’s largest fashion toy production base, introduced new industrial support measures, planning to allocate 120 million yuan and launched the 2025 Dongguan Original Fashion Toy Design Competition.

A copyright service workstation at the expo offered one – stop services and free work registration. China has a trinity copyright protection system, and there are calls to promote the high – quality development of relevant industries.


Review and Determination of the Defense of Independent R & D in Cases of Infringement of Technical Secrets

This case is about a trade – secret infringement dispute in the production of rotary vane automotive air – conditioning compressors. Chongqing Jianmou Co., Ltd. claimed its design parameters of core components were trade secrets. After several former employees joined Changzhou Kangmou Automotive Air – Conditioning Co., Ltd., Jianmou found Kangmou’s products similar to its own.

Jianmou sued Kangmou for infringement. Kangmou argued for independent R & D, presenting work instructions and product drawings. The first – instance court dismissed Jianmou’s claim, believing the technology came from Kangmou’s prior independent R & D.

Jianmou appealed. The second – instance court of the Supreme People’s Court found Kangmou’s evidence insufficient. Kangmou couldn’t provide original or electronic drawings, couldn’t prove pre – employee – joining production of similar products, and there were many doubts in the evidence.

The second – instance court reversed the first – instance judgment. It ordered Kangmou and relevant individuals to stop infringement and compensate Jianmou 1 million yuan. This case offers a reference for similar cases on the court’s evidence review when an independent R & D defense is claimed.


Xinjiang Unveils Ten Measures to Regulate Abnormal Patent Applications

The Xinjiang Uygur Autonomous Region Market Supervision and Administration Bureau has issued the “Ten Measures for Regulating Abnormal Patent Application Behaviors in Xinjiang Uygur Autonomous Region”, effective August 26, 2025, with a validity of 5 years. Aimed at promoting the shift of intellectual property work from quantity – based to quality – oriented and curbing abnormal patent applications, the measures include strengthening publicity, not recommending for national – level intellectual property awards, being cautious in regional science and technology award nominations, canceling eligibility for financial subsidies and patent fee reduction, strictly controlling convenience measure approvals, punishing credit – breaking behaviors, supervising key targets, using patent evaluation results, and imposing legal penalties. The notice also includes a list of abnormal patent application behaviors defined by the CNIPA.


China Trademark news

Hangzhou Intermediate People’s Court: First in China! The Second Instance of a Trademark Infringement Case Involving Virtual Game Cars Reversed the Judgment, with Compensation of 1 Million Yuan

This is a trademark infringement and unfair competition dispute. The court noted that despite differences between virtual game cars and real – world cars, there are cross – overs and overlaps. For example, they share similar functions in transportation and appearance display, and consumer groups may overlap.

Shanghai Qiaobataifeng Industrial Co., Ltd. authorized the use of George Patton car elements in a game. The virtual cars in the game resembled real cars and had similar functions. The defendants’ use of similar trademarks in promotion and the game led to public misunderstanding, which, considering Xuanwo’s trademark distinctiveness and popularity, constituted infringement.

The first – instance court’s judgment was revoked by the second – instance court (Case No. (2024) Zhe 01 Min Zhong 10520). The second – instance judgment required the defendants to stop infringement and unfair competition, compensate Xuanwo 1 million yuan, and publish a statement in the China Intellectual Property News to eliminate the impact.


international-patent-news_1

Disney Sues NPE InterDigital for Monopoly: A Hidden War Over Video Coding Patents

On August 8, 2025, Disney Enterprises Inc. sued non – practicing entity InterDigital in the U.S. District Court for the District of Delaware. Disney accused InterDigital of abusing control over key video compression standard – essential patents, using unreasonable licensing strategies to monopolize and collect excessive fees, which restricted competition and raised costs in the video streaming industry.

Disney claimed InterDigital failed to meet “Reasonable and Non – Discriminatory” (RAND) licensing obligations. It monopolized video compression technology and charged high fees through methods like refusing RAND – based licensing, bundling non – RAND and RAND patents, filing global patent lawsuits, and “double – charging”.

The case shows an issue in video compression standards: H.264 and H.265 only regulate decoding, leading to disputes over RAND – committed encoding patents. Disney and InterDigital have different views on RAND application to encoding patents.

This legal conflict emphasizes the need for video standard – setting organizations to include encoding technology in standards and unify RAND constraints to avoid disputes. Balancing IP protection and public interest is crucial for the tech industry.


European Patent Office Releases Photovoltaic Technology Insight Report

On July 16, 2025, the European Patent Office (EPO) published a report on photovoltaic technology trends from 1974 – 2023. The research covered about 340,000 inventions and 70,000 international patent families (IPFs) in four areas: materials, equipment, equipment management, and applications. Invention numbers in photovoltaics grew strongly since the late 1990s, dipped in 2013, and then recovered. Before 2013, IPF numbers rose rapidly, but after 2013, they declined while total patent families increased due to a surge in Chinese applications. Specific technologies like vehicle – integrated photovoltaics and sun – tracking have become prominent recently. Geographically, Asian applicants, especially from China, have made the most contributions. Chinese applicants’ share grew sharply in the past decade and exceeded Japan’s in 2022. Among the top 20 applicants from 1990 – 2023, most were Japanese companies. In Europe, over 300 startups and universities filed photovoltaic patent applications from 2010 – 2023. Startup applications fluctuated, while university applications were relatively stable. Startups focused on equipment – related technologies, while universities concentrated on equipment and materials. The report sees opportunities for Europe to strengthen its position in the photovoltaic field.


Overseas News | Epson and Amazon Team Up to Combat Counterfeit Ink Cartridges, Awarded $7.2 Million in Compensation

On August 14 local time, Judge Marsha Pechman of the Washington Federal Court issued a default judgment in favor of Amazon and Seiko Epson in their lawsuit against multiple defendants selling counterfeit printer cartridges, awarding $7.2 million in compensation. In May 2024, Amazon and Epson filed a lawsuit, accusing Turkish and British residents of selling counterfeit Epson printer cartridges on the Amazon platform. As all defendants are non – US residents, the judge first confirmed the court’s jurisdiction. The judge also said that the defendants’ intentional infringement activities in the jurisdiction further proved the court’s personal jurisdiction. The ruling pointed out that a default judgment was necessary as the sellers didn’t respond. The judge ordered the defendants to pay $5.8 million in statutory damages to Amazon and Epson, and $1.4 million to Amazon for consumer refunds. A permanent injunction was issued, banning the defendants from selling counterfeit products on Amazon and distributing Epson – branded products. As of publication, neither the lawyers for Amazon and Epson nor the defendants responded. The case was heard by the US District Court for the Western District of Washington.


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[Attention] Why are trademark squatting cases frequent in the UK and Germany? How can cross – border sellers prevent and respond?

This article explores the frequent trademark squatting in the UK and Germany, analyzing reasons, consequences, and countermeasures for cross – border sellers. In Germany, the “registration – based” system with weak examination and in the UK, “fast – track” review and low costs contribute to the problem. Common factors are regional weakness in trademark protection and abuse of e – commerce platform rules.

Squatting leads to direct economic losses like high ransoms, large legal fees, and business standstill, along with long – term negative impacts on the business ecosystem.

To prevent squatting, sellers should enhance trademark monitoring, register in multiple regions quickly, and focus on core markets. For handling cases, in Germany, sellers can object during the announcement, apply for invalidation, or use urgent registration. In the UK, legal action, objections, and invalidation procedures are options. Overall, prevention should be prioritized, professional legal advice sought, and trademark use evidence maintained.


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