Aigo sues for patent infringement
April 26, 2010 by Jules
China IP: now the attack
The Financial Times reported this morning that Beijing Huaqi Information Digital Technology, also known as IT hardware brand Aigo, whose Chinese name literally means "love the motherland", is suing a number of PC makers in what it calls an infringement of its patents related to the use of USB technology.
Aigo is allegedly demanding damages of RMB 1m from HP. Its lawyers sent letters to HP and Toshiba in China on March 12 demanding they start negotiations within seven days.
Aigo names a number of PC models whose USB ports it claims use its technology. These include some of HP’s Compaq Presario and Pavilion models as well as some of Dell’s Inspiron, Studio and Vostro computers.
On Monday, Aigo sued HP in a Beijing court and Toshiba in a Xian court. Kenny Hsieh, general manager of research, development and intellectual property at Aigo, said that the company had tried and failed to negotiate with HP and Toshiba.
According to Mr Hsieh the patents in question were filed in China but valid in member countries of the Patent Co-operation treaty.
It is worth remembering that China does not recognise patents not filed in Chinese in the country, and rarely awards any damages to foreign companies for the massive fraud that regularly takes place inside the country. Aigo has little successful international presence and does not risk much by going for a small hit at HP or Toshiba's wallet. While IP claims are regularly made in the US on spurious evidence, the opacity of the Chinese courts system and the market share asymmetry between the parties will make this an instructive case to follow.
In: Market News