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Niutang Chemical won the lawsuit in the United States! Winning a cross-border patent lawsuit
China Changzhou Net News "In accordance with the procedures of the U.S. International Trade Commission (ITC), Changzhou Niutang Chemical Factory Co., Ltd. was not found to violate Section 337 in the products exported to the United States... "On the morning of the 24th, Wang Fangda, the general manager of the company, could not suppress his joy when accepting an exclusive interview with this reporter. At 4:00 pm local time in the United States on the 22nd, the ITC issued a notice on its official website. After the preliminary ruling by the ITC administrative judge, , after 18 months, the intellectual property infringement case of British Taylor v. Niutang Chemical, which attracted much attention from the global industry, finally ended with China winning. Niutang Chemical Plant Co., Ltd. has also become the first company in our city to win a lawsuit in the US Section 337 intellectual property investigation.
The lawsuit broke out
On April 6, 2007, Tailai Company, which is headquartered in the UK and has its production base in the United States, filed a lawsuit under the U.S. Tariff Act of 1930. The U.S. International Trade Commission launched an investigation procedure stipulated in Section 337 of the Act (referred to as a 337 investigation) against 26 Chinese companies that produce and represent sucralose, claiming that the production process of the above-mentioned companies infringes on the company’s intellectual property rights - Niutang Chemical Works Ltd. tops the list.
“I was stunned when I received this email from the United States. I have never encountered anything like this in my business operation for more than 40 years.” Wang Fangda’s memory of the scene at that time Still new.
Faced with a lawyer’s retainer fee of more than 20 million yuan, and with no certainty of winning the lawsuit, Wang Fangda calmed down and decided to actively respond to the lawsuit. “If you don’t file a lawsuit, it will be equivalent to admitting the other party’s According to the accusation, the company will not only lose the newly opened U.S. market, but will also face high compensation claims. It is not enough to compensate for the entire family business created by Niutang Chemical over the past 40 years."
The Origin of Sucralose
The reporter learned during the interview that sucralose has been certified by the U.S. Food and Drug Administration (FDA). So far, it is recognized globally as the safest and safest food. A healthy, calorie-free, fat-free sweetener that not only tastes good, has high sweetness, but also does not make people fat. It is good news for patients with obesity, diabetes, hyperglycemia, hyperlipidemia, and cardiovascular and cerebrovascular diseases. It has become a common household food in European and American countries. It is also widely used in ice cream, drinks, biscuits and other foods, and can also be used as a condiment in dishes. At present, the annual global market demand is 4.6 billion yuan, and is growing at an annual rate of 20%.
In 2002, Dr. Cai Ya, deputy general manager of Niutang Chemical Plant, formed a 6-member research team, consulted a large number of domestic and foreign literature, and after more than a hundred arduous tests and a cost of more than 10 million yuan, it was independently developed in early 2004. Domestic sucralose. In 2005, 6 tons were exported to the US market, and in 2006, the export volume increased to more than 20 tons. Due to the intervention of Niutang Chemical Plant, the price of sucralose in the US market has dropped from US$300-400 per kilogram when Tailai Company had a monopoly to the current US$150-160 per kilogram.
Industry insiders believe that when Chinese companies master relevant core technologies and enter this market, Tailai Company will no longer occupy an oligopoly advantage, and the gap between it and its goal of becoming a leader in this field will become wider and wider. big. Under such circumstances, it is not surprising that in order to resist the encroachment of Chinese companies in the US market and maintain its inherent market share, it would apply for a Section 337 investigation.
Niutang Chemical won the lawsuit
Dr. Cai Ya, who participated in the whole process of the investigation, said that in accordance with ITC regulations, starting from April 2007, the company spent three months carefully preparing According to relevant response information, on September 10 of that year, Cai Ya and the lawyers and experts hired by the Chinese side flew to Washington and accepted nearly 24-hour questioning for three days and nearly 24 hours by the lawyers hired by the other company. On October 10 of that year, six people including lawyers, experts and videographers from the other company came to Niutang Chemical Plant to conduct on-site investigation. "They investigated in great detail, even looking at the dust on the walls and underground, hoping to find some 'evidence', but we are not worried at all because our process is fundamentally different from Tailai's process." Cai Ya said that after the three-day investigation, the other party's lawyers and experts not only expressed satisfaction with Niutang Chemical Plant's active cooperation, but also gave a thumbs up to its original production process.
Just after the Spring Festival in February this year, Cai Ya and the relevant lawyers and experts he hired flew to Washington again to attend the ITC trial.
"This is the first time I have entered a court in my life, and it is an American court, but I am not nervous at all, because the facts will prove everything." Cai Ya said that the trial lasted for two days. He answered questions from the opposing lawyer and the judge for an hour and a half. The response process was completed on February 29.
On the afternoon of the 22nd local time in the United States, the ITC issued an announcement on its official website as scheduled, and forwarded the preliminary ruling results through the American lawyer hired by the company.
Niutang Chemical won the lawsuit!
Famous media outlets around the world reported the incident immediately. The British BBC pointed out that Tailai Company will face new competition from China under the title "Tailai Company Lost Sweetness Qi Lawsuit".
The New York Times reported on a prominent page that "Tailai Company lost its lawsuit against a Chinese manufacturer, which will have a huge impact on the future development of the company."
On the same day, Tailai Company’s stock fell 12%.
Disrupting the market structure
A stone hanging in my heart finally fell to the ground. Sitting opposite the reporter, Wang Fang straightened his back: "Spring is here, and hope is right in front of us." He revealed to reporters that due to the impact of this 18-month lawsuit, in 2007, three companies exported to the U.S. market The amount of sucrose dropped to 15 tons. "But this will definitely not affect Niutang Chemical's accelerated development." Wang Fangda revealed that during the lawsuit, Niutang Chemical continued to accelerate effective investment. In November this year, a line with a total investment of 45 million yuan and an annual output of 250 tons of trichloride was launched. The new sucrose production line will be completed and put into operation. By 2009, the company will be able to increase sales by 200 million yuan, and the company's total sales are expected to reach 900 million yuan.
Industry insiders analyze that according to Niutang Chemical’s plan, exports to the US market will reach 50 tons this year and jump to 200 tons next year. Both output and market share will rank first in Asia. In the next few years, The global sucralose market structure may undergo fundamental changes.
The person also pointed out that the results of this survey will serve as a positive example for other companies. If my country's export products are repeatedly subject to Section 337 investigations in the international market, once it spreads to major export markets, it will cause a major blow to the entire industry that relies on exports. Therefore, private enterprises cannot adopt passive methods in foreign-related lawsuits, but must be good at using international practices and legal means to protect their own rights and interests from infringement.