Competitors initiate patent infringement lawsuits. Will Fangbang Electronics IPO be able to meet?

The first competitor initiates a patent infringement lawsuit. Can this company's IPO meet?

From WeChat public number: Sycamore Tree V

In the past few days, the United States’ ZTE (31.310, 0.00, 0.00%) “one-core sealing throat” has made people aware of patents and technology. However, a Japanese company has been blocking patent litigation before the Sino-US trade war. Our country is planning to market a high-tech enterprise. The company to be listed in this country is Guangzhou Fangbang Electronics Co., Ltd. If the IPO is approved, it will land on the Shenzhen Stock Exchange.

Let's look at what Eastern Electronics is doing.

Fangbang Electronics' main business is R&D, production and sales of electronic thin-film materials products. It specializes in providing electronic thin-film material products and application solutions. The company's core products are electromagnetic shielding films, and other products are conductive adhesive films.

Fangbang Electronics, the predecessor of Fangbang Electronics, was established on December 15, 2010, and became a joint stock limited company on December 23, 2015. It has achieved rapid development in the seven years since its establishment. 2014, 2015, 2016 In January and January 2017, the company’s operating income was RMB 100 million, RMB 130 million, RMB 190 million and RMB 98 million, respectively. The net profits from non-repatriated mothers were RMB 31.07 million, RMB 43.30 million, RMB 76.98 million and 3747, respectively. Ten thousand yuan.

The prospectus disclosed the industry's competition. In the year 2000, Japan's Tuozuda developed an electromagnetic shielding film. Twelve years later, Fangbang Electronics also successfully developed an electromagnetic shielding film product with independent intellectual property rights. The electromagnetic shielding film is Fangbang. Electronic core products account for more than 90% of the company’s revenue.

Founded in 1945, Otsuda is headquartered in Osaka, Japan. Otakoda develops telecommunications, electronics and optoelectronics, and other emerging fields based on wire and cable business, especially in the functional materials related to electronic materials. With its technical advantages, its developed electromagnetic shielding film products are widely used by smart phones and other electronic devices.

However, six months after Fangbang Electronics submitted the IPO materials on June 16, 2016, the first competitor Tuo Zi Da (the plaintiff Da Zonda Wire Co., Ltd.) initiated a patent litigation on January 6, 2017. Blocked and sued the Guangzhou Intellectual Property Rights Court and sued the issuer for infringing the invention patent of the invention of Patent No. 200880101719.7, the 'shielding film for printed wiring board and printed wiring board', and submitted the following lawsuit request: (1) The defendant was ordered to (State Electronics) immediately ceased to infringe the plaintiff's invention patent No. 200880101719.7, including but not limited to the suspension of manufacturing, sales, promising to sell shielding films for printed wiring boards that infringe upon the plaintiff’s patent rights, and destroying equipment and molds dedicated to the production of infringing products, and Destroy all inventory infringing products; (2) Decide the defendant (Fangbang Electronics) to pay the plaintiff a tort compensation for its infringement, including the notary fees, investigation fees, legal fees and other reasonable expenses paid by the plaintiff to stop the infringement. , A total of RMB 20,500,000; (3) The defendant bears the costs of litigation in this case.

On April 27, 2017, Tuo Zi Da filed a “Application for Change of Claim” with the Guangzhou Intellectual Property Court, requesting that the second claim in the original complaint be changed to: Order the defendant to pay compensation to the plaintiff for infringement of his infringement And the plaintiff’s reasonable expenses for stopping the infringement amounted to RMB 92.72 million.

The two lawsuit requests are still very severe. The first “to stop manufacturing, sales, and promise to sell shielding films for printed wiring boards that infringe upon the plaintiff’s patent rights, and to destroy equipment and molds dedicated to the production of infringing products, and to destroy all inventory infringing products. ', if Tuo Zi Da wins, the other state electronics is undoubtedly the catastrophe, directly shut down the fate of liquidation.

On July 21, 2017, the Guangzhou Intellectual Property Court rendered a judgment and rejected all of the plaintiff's claims, and the plaintiff Tuozida paid the case acceptance fee of 505,400 yuan. As of the signing date of this prospectus, Tuo Zida has The Higher People's Court of Guangdong Province appealed.

Although the first-instance Fangbang Electronics won, the results of the second-instance trial have not yet come out. This has added enormous uncertainty to Fangbang Electronics' IPO audit. Should the second instance verdict support Tuo-da's litigation request? Before the second-instance judgment was made, Can the issuing committee allow this company to attend the meeting?

Even if the second instance dismissed the claims of Tuo Zida, is it possible for Fang Bang Electronics to sit back and relax? No, legally speaking, as long as terminal products using Fangbang electronic products such as smart phones are sold in the United States or Japan, Tuo Zi Da is still A patent infringement suit can be filed in the United States or Japan.

In the patent infringement lawsuit, the negative point of Fongbi Electronics was that the initiator of the lawsuit, Japan Takuda, was the original inventor of this product technology, and Fangbang Electronics had this technology only 12 years after it was invented. 2. It is suspected that Fangbang Electronics infringed on the patented technology of the original person Tuo Zi Da.

Technology-intensive companies use patents as an important weapon to protect themselves and their opponents. Internationally renowned companies such as Intel, Microsoft, Qualcomm, Apple, Boeing and others all have powerful lawyers from time to time to initiate patent litigation against competitors and challengers. In the past few years, technology companies have also learned the patent warfare strategy. According to reports, a Shenzhen company audited by the Issuance Committee in early December last year has not yet obtained the IPO approval document. The reason was that one company sued for patent infringement.

Suspending or canceling the review may be an unfavorable situation to this Fangbang Electronics.

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