Lawyer in Ningde era: AVIC Lithium IPO process may be blocked by "Patent infringement" case

After the start of the "patent war" between Ningde era and AVIC Lithium Power, the two sides involved still hold their own opinions.

"submitting a request for invalidation to the Patent Reexamination Board is a routine operation in intellectual property litigation cases." On August 3, Xiong Chao, a lawyer at Beijing Law firm, told the Financial Associated Press that if the infringement is to be judged in the intellectual property case, it is necessary to judge whether this right is legal and valid. If this right can be denied on the basis of invalidating the trademark or patent, the case itself will no longer exist. "what AVIC Lithium means is that it does not constitute an infringement, so it requires confirmation of the so-called infringement. This is also a practice that cannot be deprived of by the law. "

On August 2, CNAC Lithium Electric official WeChat issued another statement on the Ningde era's patent infringement lawsuit. AVIC Lithium said that the company received two "Civil Complaints" ((2021) Min 01 No. 1995 and 1996 at the beginning of the Republic of China) served by the Fuzhou Intermediate people's Court against the company in Ningde Times, and said that on the same day, the company submitted to the State intellectual property Office the above two requests for invalidation of patents involved in litigation.

"the ultimate goal of China's patent law legislation is to 'promote scientific and technological progress and economic and social development', rather than becoming a stumbling block to enterprise and economic development." AVIC Lithium Power said that as one of the earliest enterprises in China to enter the field of lithium battery research and manufacturing, the company has accumulated a large number of technologies with independent intellectual property rights after long-term deep ploughing, and has carried out a comprehensive layout of intellectual property rights. As the case has entered the proceedings, in order to avoid having an impact on the trial of the case, the specific content will not be disclosed here. The company attaches great importance to this matter and will respond to the lawsuit in accordance with the legal procedure and is not afraid of the challenge.

On July 21, a reporter from the Financial Associated Press took the lead in disclosing the news that the Ningde era had formally sued AVIC Lithium for patent infringement. At that time, the person revealed that AVIC Lithium was suspected of infringing on its entire range of products. Subsequently, the Ningde era confirmed the news. AVIC Lithium, another party to the case, also responded quickly. Its official said that the company insists on independent research and development, and the products provided to customers have been investigated by professional intellectual property risks, making sure that the products produced do not infringe on other people's intellectual property rights.

"at present, disputes such as patent litigation are very common market competition phenomena." In Xiong Chao's view, Ningde era, as a leading enterprise in the battery industry, has mastered a large number of technology and invention patents. "only when there is competition, can the industry promote common prosperity." At the same time, in the context of the rapid development of new technology, enterprises should also comprehensively and effectively implement the intellectual property protection and protection management system. "

Wang Rongjin, a partner of Shanghai Jinbang Equity Investment Management Co., Ltd., believes that Ningde era does have a lot of layout and investment in patents, and does not rule out the possibility that AVIC lithium battery has encountered relevant patents in the process of product research and development. "the initiation of patent litigation in the Ningde era also depends on the final outcome."

This is not the first time a patent infringement lawsuit has been filed in the Ningde era. In January 2020, the Fujian Provincial people's Court accepted the Ningde era lawsuit against Tafel for patent infringement of new energy, involving 120 million yuan. Ningde Times hopes that Tafel New Energy will stop manufacturing, selling and promising to sell battery products that infringe its patent rights, and compensate for the corresponding losses. In April of the same year, Ningde Times again sued Tafel for patent infringement of new energy, involving four patents, involving 80 million yuan. The two lawsuits involving a total of 200 million yuan, but also fired the domestic power battery intellectual property patent "the first shot."

"this incident seems to be a patent dispute between two power battery companies, but in fact it may be the 'cake' of the Ningde era of AVIC Lithium Electric." Some industry insiders believe that.

Statistics from the China Automotive Power Battery Industry Innovation Alliance show that in the first half of 2021, Ningde Times ranked first with 25.76GWh, BYD and LG Chemistry ranked second and third respectively with 7.65GWh and 4.72GWh, and AVIC Lithium ranked fourth with 3.63GWh. And AVIC Lithium's "circle of friends" is getting bigger and bigger, and it has become an important battery supplier for GAC, Changan, Geely, Dongfeng and other first-tier car companies.

It is worth noting that AVIC Lithium is at a critical moment in the IPO program. According to the previous plan, AVIC Lithium intends to declare A-share IPO, in the first quarter of 2022 and is currently conducting the final round of financing for Pre-IPO.

"there is a high probability that the IPO process of AVIC Lithium will be affected by [the case]." Xiong Chao believes that the evaluation of the value of enterprise intangible assets and the status of some legal rights is one of the key points examined by investors and relevant regulatory authorities, and if the enterprise itself has some legal situations to be determined, it is bound to be affected. "the case cycle will not be short, not optimistically speaking, it may be about three years."