Learn mandarin - Chinese firm wins suit in US

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BIZCHINA / IPR Issue

Chinese firm wins suit in US

By Wan Zhihong (China Daily)
Updated: 2007-07-20 09:01

General Protecht, an electrical product manufacturer based in East
China's Zhejiang Province, has won a three-year patent infringement
lawsuit in the United States.

According to a Federal Court ruling in New Mexico, the ground fault
circuit interrupter (GFCI) products of General Protecht did not infringe
upon the patents of the US company Leviton.

Beginning in April 2004, Leviton filed lawsuits against several customers
of General Protecht in New Mexico, Florida and California, alleging
several patent infringements of its products.

GFCI is a small electrical device often used in houses. They can reduce
the risk of electrocution.

"It's a great win for General Protecht, which has always respected the
intellectual property rights (IPR) of others," said Chen Wusheng,
president of the company.

It shows a Chinese company, which conducts business in the US, can be
treated fairly and impartially according to the rule of law, he added.

General Protecht is a specialized manufacturer of GFCI. All of its
products are exported to countries such as the US and Canada. The
products have been approved by Underwriter Laboratories Inc (UL) and
Canadian Underwriter Laboratories Inc (CUL).

As a large-scale export enterprise, General Protecht has paid great
attention to its patents. The company has obtained several invention
patents and outward design patents in China as well as in the US, said
Chen.

Chen also said the technologies of his company are more advanced than its
US competitors and are popular with US consumers. Leviton simply wants to
use its patent rights as a tool to stifle competition, Chen added.

The lawsuit has significantly affected General Protecht's business. Sales
have plummeted sharply and the company has to pay hefty legal fees.
However, it vowed not to back down, he said.

"It's a significant win for General Protecht. The company has set up a
good example for other Chinese companies," said Quan Guotong, an analyst
with Beijing High-tech IPR Research Institute.

(For more biz stories, please visit Industry Updates)

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