Conclusion (First 150 Words): A recent Supreme People’s Court (SPC) decision in China (Case No. (2024) 最高法知民再1号) has redefined how patent invalidation affects enforcement of prior infringement judgments. The case, involving a utility model patent for a “foldable mobile terminal支架,” highlights critical issues: when a patent is invalidated post-judgment, does the timing of defendants’ payment impact repayment obligations? The SPC ruled that fairness, not just execution timing, must guide decisions—even payments made before invalidation may require reversal if inequities arise. For businesses tracking patent validity, this case underscores the need to monitor patent status rigorously to avoid financial and legal risks.

What This Case Reveals About Patent Invalidation and Enforcement

The Core Dispute: Multiple Defendants, Varying Execution Timelines

The case involved three defendants:宸某公司 (manufacturer),某通讯公司 (alleged co-manufacturer), and某电子公司 (retailer). The plaintiff,周某, secured a 2022 judgment ordering宸某公司 to pay ¥30,000 and某电子公司 ¥2,000 in damages. However, in November 2022, China’s National Intellectual Property Administration (CNIPA) invalidated the patent. Key discrepancies emerged:

• • 某电子公司 paid ¥2,000 in March 2022 (before invalidation).
• • 宸某公司 paid ¥30,000 in October 2024 (after invalidation, due to loan renewal pressure).

Legal Framework: Patent Law Article 47 Explained

China’s Patent Law Article 47 states:

1. 1. Invalidated patents are “deemed never to have existed.”
2. 2. Payments under pre-invalidation judgments generally don’t require reversal (to preserve legal certainty).
3. 3. Exceptions apply if “unjust enrichment” occurs (e.g., the patentee acted in bad faith).

The SPC emphasized that rigidly applying Article 47(2) based solely on execution timing could incentivize delayed payments, harming fairness.

Why Tracking Patent Validity Matters for Stakeholders

Risks of Ignoring Invalidation Decisions

For defendants:

• • Failing to monitor patent status may lead to unnecessary payments that later require reversal.
• • Delayed payments (e.g., due to financial constraints) could still trigger repayment if invalidation occurs.

For patentees:

• • Invalid patents lose enforcement power retroactively, risking claims of unjust enrichment.
• • Refusing to withdraw enforcement post-invalidation (as in this case) may damage litigation credibility.

Impact on Enforcement and Financial Liabilities

How to Navigate Post-Invalidation Enforcement Scenarios

Key Steps for Defendants Facing Execution

1. 1. Track Patent Status: Use tools like CNIPA’s patent database, EPO Patent Search, or WIPO Patent Search to monitor validity.
2. 2. Challenge Early: File for invalidation promptly if prior art or defects exist.
3. 3. Leverage Legal Remedies: If sued, request stays if invalidation is pending; post-judgment, seek再审 (retrial) using invalidation as grounds.

Best Practices for Patent Owners

1. 1. Conduct Prior Art Searches: Use PCT Patent Search or Design Patent Search to assess validity before litigation.
2. 2. Monitor Invalidation Proceedings: Respond to CNIPA requests to defend the patent.
3. 3. Act in Good Faith: Withdraw enforcement post-invalidation to avoid unjust enrichment claims.

Common Questions About Patent Invalidation and Execution

Q1: What happens to a patent infringement judgment if the patent is later invalidated?

The patent is “deemed never to have existed,” so the judgment loses its legal basis. Payments may require reversal under Article 47.

Q2: Does the timing of execution affect repayment?

Traditionally, payments before invalidation were final. However, the SPC ruled fairness matters—even pre-invalidation payments may reverse if inequitable (e.g., encouraging delayed payments).

Q3: How does fairness factor into post-invalidation enforcement?

Courts now balance legal certainty (Article 47(2)) with equity. If enforcing pre-invalidation payments harms defendants disproportionately, reversal is required.

Q4: What should defendants do if a patent is invalidated after a judgment?

File for再审 (retrial) to challenge the judgment. If payments were made, request execution reversal to recover funds.

Q5: Are international patent systems (e.g., EPO, WIPO) similar?

While specifics vary, most systems (e.g., EPO’s opposition procedure) include invalidation retroactivity rules. Tracking patent status via EPO Patent Search or WIPO Patent Search is critical globally.

Summary: The Future of Patent Invalidation Enforcement

This SPC case marks a shift toward fairness over rigid timing rules. For businesses, tracking patent validity—via tools like EPO Patent Search, WIPO Patent Search, or CNIPA databases—is non-negotiable. Defendants must act swiftly post-invalidation, while patentees must prioritize good faith to avoid enforcement reversals. In short, proactive patent tracking ensures compliance and mitigates risks in an evolving legal landscape.

Track patent validity: It’s not just about ownership—it’s about safeguarding your rights and obligations.

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