Chinese companies may not have home-court advantage

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Chinese companies may not have home-court advantage

A new report suggests that foreign plaintiffs in IP cases are winning at higher rates in Chinese courts than Chinese rights holders, notwithstanding long-standing concerns about bias in favour of domestic enterprises

According to a study from Thomson Reuters, in cases since 2006 involving foreign plaintiffs and Chinese defendants, the plaintiff won approximately 75% of the time. Meanwhile, Chinese plaintiffs facing Chinese defendants only prevailed 63% of the time.

Foreign plaintiffs also generally received higher statutory compensation- the mean award was slightly over Rmb 200,000 ($32,300) in cases with foreign rights holders, as opposed to about Rmb 120,000 for Chinese patent holders.

Though this data does not conclusively refute concerns of domestic bias in Chinese courts (for example, the difference in quality in patents held by international versus domestic companies may help to explain the higher rates of success), it does demonstrate the complexity of the issue.

Other interesting tidbits from the report:

· While more Chinese patent applications are directed at data processing systems than any other category, inventors are also filing many patents in categories such as digital information transmission, pharmaceuticals, alkaloids/plant extracts and polymer applications. In fact, filings from Chinese inventors hold nearly 80% of global applications for inventions involving alkaloids and plant extracts, about 60% of applications for general pharmaceutical activities and more than half of all patents involving polymerisation and polymer chemical modification.

· The report noted that in 2008, each Chinese patent in the data processing category received on average 1.17 forward citations. Though this is notably lower than US patents in this field (6.72 forward citations per patent), it is comparable to Japanese patents (1.82 forward cites), Europe (1.31 forward cites) and South Korea (0.76 forward cites). Data processing is the most active field for Chinese patent filers, and forward citations is one metric that some use to evaluate patent quality.

· Patent applications in China increased by 16.3 percent between from 2012 to 2013, with similarly large increases each year since 2009. However, filings by foreign applicants stayed relatively flat during this period, and thus making up a smaller portion of total patent filings in China.

The full report, "China’s Innovation Quotient – Trends in Patenting and the Globalisation of Chinese Innovation", can be found here.



 

more from across site and SHARED ros bottom lb

More from across our site

The firm says new role will be at the forefront of how it delivers value and will help bridge the gap between lawyers, clients and tech
Qantm IP’s CEO and AI programme lead discuss the business’s investment and M&A plans, and reveal their tech ambitions
Controversial plans were scrapped by the Commission earlier this year after the Parliament had previously backed them
Lawyers at Spoor & Fisher provide an overview of how South Africa is navigating copyright and consent requirements to improve access to works for blind and visually impaired people
Gillian Tan explains how she balances TM portfolio management with fast-moving deals, and why ‘CCP’ is a good acronym to live by
In the eighth episode of a podcast series celebrating the tenth anniversary of IP Inclusive, we discuss IP Ability, a network for disabled people and carers active in the IP profession
The longest government shutdown in US history froze ITC operations, yet IP practices stayed steady as firms relied on early preparation and client communication
Licensing chief Patrik Hammarén also reveals that the company will rename its IPR business to better reflect its role in defining standards
The acquisition of Pecher & Partners follows the firm’s earlier expansion into litigation to create a ‘one-stop shop’
News of Via Licensing Alliance launching its first semiconductor patent pool and INTA electing a new president were also among the top talking points
Gift this article