Gellec withdraws RMB 149M patent suits against its rival SEMCORP

Chinese lithium-ion battery separator supplier Gellec has withdrawn its RMB 149 million patent infringement lawsuits against its rival SEMCORP, according to an announcement by SEMCORP on Monday.

The announcement states that SEMCORP received civil rulings from the Guangzhou Intellectual Property Court allowing Gellec to withdraw two separate lawsuits against the company.

The lawsuits, initially disclosed in December 2023, involve two invention patents, numbered ZL201810969215.2 and ZL201810859589.9. Gellec had previously claimed RMB 50 million and RMB 99 million in damages, respectively.

The reason behind Gellec's decision to withdraw the lawsuits remains unclear.

A news report earlier this month revealed that one of the disputed patents, ZL201810969215.2, was declared invalid by the China National Intellectual Property Administration (CNIPA) on October 11.

The other disputed patent, ZL201810859589.9, has faced three invalidation challenges, with the final decision still pending.

SEMCORP did not mention whether the two parties have reached a settlement.

To date, SEMCORP has filed at least five separate lawsuits against Gellec, claiming a total of RMB 280 million in damages.

In May 2023, SEMCORP filed lawsuits against Gellec for infringing on three of its patents, numbered ZL201810751698.9, ZL201920914445.9, and ZL201921292978.4, seeking a total of RMB 70 million in damages.

SEMCORP withdrew the lawsuit related to the ZL201921292978.4 patent in November 2023 and the lawsuits related to the ZL201810751698.9 and ZL201920914445.9 patents in March 2024 following invalidation decisions by the CNIPA.

In August 2023, SEMCORP filed additional lawsuits against Gellec in the Guangzhou Intellectual Property Court for infringing on its patents numbered ZL201380061102.8 and ZL201810710744.0, seeking a total of RMB 210 million in damages. These two lawsuits are still pending.

Listed on the China A-share market since September 2016, SEMCORP is a leading player in the lithium battery separator sector. The company's mid-year report for 2024 indicates that its lithium battery separator business currently holds 447 active patents, including 36 international patents. Additionally, there are 252 patents pending, with 92 being international applications.

Founded in February 2010, Gellec develops as an emerging rival of SEMCORP in the lithium battery separator sector. According to GGII (Gaogong Industry Institute) statistics, SEMCORP and Gellec rank first and fourth, respectively, in the domestic market share for wet-process lithium battery separators. In September 2023, Gellec withdrew its initial public offering (IPO) application from the STAR Market of the Shanghai Stock exchange, a decision that insiders believe is related to its ongoing lawsuits with SEMCORP.