First Chinese enterprise initiatively joined the US IP lawsuit finally won the case

[Abstract] Yancheng Jiekang Sucralose Manufacture Co., Ltd. intervened in an investigation instituted due to a complaint by Taylor Science and Technology Co., Ltd. (UK) and Taylor Sucralose Co. (US) and prevailed. Since China's entrance to the WTO, this is the only Chinese enterprise that has intervened in an ITC Section 337 action and prevailed. However, this has been a rather long time in coming as it has been 8 years since China entered the WTO.

China News Agency Beijing, June 8

China. Yancheng Jiekang Sucralose Manufacture Co., Ltd. stated in a press conference held on June 8 that they had intervened in an action initiated by Taylor Science and Technology Co., Ltd. (UK) and Taylor Sucralose Co. (US) about the investigation regarding patent infringement before the US International Trade Commission (ITC), and prevailed. After China entered the WTO in 2001, this is the only Chinese enterprise that has intervened in an ITC 337 investigation and prevailed.

Sucralose is a novel sweetening agent with saccharinity 600 times that of sucrose. In recent years, sucralose exportation from China has developed rapidly, which caught the attention of American and European manufacturers.

In order to maintain its absolute monopoly in global sucralose market, Taylor Co. requested that the ITC investigate three Chinese manufacturers in April, 2007 on the ground of patent infringement. At the very beginning, Jiekang was not named as a respondent in the Section 337 investigation. However, due to the danger that the ITC may have issued a "general exclusion order", Jiekang intervened to prove that its production technology does not infringe on the patents in question.

After strict investigation and evidence gathering, the ITC ruled on April 6, 2009 that Jiekang Sucralose Manufacture Co., Ltd., one of the biggest sucralose manufacturers, did not infringe the US patent claimed by the sugar giant Taylor. In accordance with the US law, the US President has the right to review the final judgment within 60 days of the ruling. President Obama did not exercise his right of review. Therefore, Yancheng Jiekang finally prevailed.

It is reported that Jiekang has invested over 20,000,000 RMB during the entire process of responding to the action, which lasted for almost 2 years.

The officials from the Chinese Commerce Ministry pointed out that a plurality of cases in recent years showed that the US ITC 337 investigations have been used as one of the competitive strategies employed by many transnational companies. The success in this case indicates that the Chinese enterprises' scientific and technical innovation and the protection of intellectual property through the protection of intellectual property rights is improving.

Glossary:

The so-called "337 investigation" refers to the investigation executed by the US International Trade Commission as to whether imported products infringe upon IP rights in accordance with Article 337 of the Tariff Art which was adopted in 1930.