Chang Tsi Webinar: Patent Judicial Interpretation (III) & Digital Protection

Recently, Chang Tsi & Partners held an online webinar focused on the Supreme People's Court's Draft Interpretation (III) regarding patent infringement disputes, which is set to significantly impact China's patent judicial practices. The event provided a comprehensive and practical analysis of this important document, bringing together international corporate legal professionals and intellectual property managers to explore new strategies for patent protection in the digital age.

Spring Chang, Founding Partner of Chang Tsi & Partners, reviewed the evolution of China's judicial interpretations on patent infringement disputes. She emphasized the shift from the foundational rules established in Interpretation (I) (2016) to the procedural enhancements in Interpretation (II) (2020), and now the current draft of Interpretation (III).

Partner Michael Wu provided an in-depth interpretation of the improvements and practical implications introduced by Draft Interpretation (III) in the adjudication of patent infringement disputes. His focused on the optimization of jurisdiction rules and the strengthened coordination between judicial and administrative procedures. Drawing on representative cases handled by Chang Tsi & Partners, he provided an in-depth analysis of judicial approaches to addressing jurisdictional avoidance through "fictitious defendants," as well as the direct impact of new provisions on infringement litigation, including patent evaluation reports, claim construction and defense of vague claims (lack of indefiniteness). Michael Wu noted that by refining adjudicatory standards and procedural rules, Draft Interpretation (III) helps promote good-faith litigation, improve judicial efficiency, and offers clearer guidance for enterprises to develop forward-looking litigation and defense strategies in complex patent disputes.

Partner Ryan (Liangrui) Xu concentrated his remarks on the provisions in the draft legislation governing the prior art defense and the regulation of malicious litigation. He offered an in‑depth analysis of the draft provisions addressing the evidentiary rules and procedural timing applicable to asserting both the prior art defense and the prior application defense, as well as the considerations to be taken into account by the People's Courts in assessing allegations of malicious litigation. Drawing upon his extensive practical experience, Mr. Xu underscored that the proposed revisions to the comparative analysis standards and the permissible stage for raising the prior art defense would materially expand the scope of defenses available to accused infringers. Such changes are expected to provide clearer guidance for defendants on strategically invoking prior art to more efficiently challenge patents lacking sufficient novelty and inventive step, thereby fostering a return of patent prosecution and enforcement to their core economic and inventive value.

As digital transformation accelerates globally, patent competition in fields like AI, big data, IoT, and biotech has intensified, with increasingly complex infringement scenarios, shorter technology lifecycles, and frequent cross-border disputes. These challenges call for not only forward-thinking patent strategies but also the ability to handle intricate and high-stakes patent disputes. Patent litigation is no longer just a legal battle—it's a systematic process combining technical understanding, evidence management, strategic decisions, and business objectives.

Since its founding in 2002, Chang Tsi has prioritized patent law as a core practice. The firm's patent team, led by senior partners like Michael Wu and Ryan Xu, boasts expertise across various technical fields, including telecommunications, audio & video codecs, renewable energy, biochemistry, and mechanical engineering. With the implementation of Draft Interpretation (III), Chang Tsi & Partners remains committed to tracking judicial developments and continuing to support innovators worldwide in strengthening their patent protection and safeguarding their intellectual property in an increasingly digital and competitive landscape.

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