*AI-generated translation, for reference only.

[Basic Facts]

Shanghai Feng [REDACTED] Company and Shanghai Wo [REDACTED] Company became embroiled in 19 patent ownership disputes, which were heard across courts at three levels of jurisdiction, with tensions running exceptionally high. The relentless litigation severely diverted both companies' innovative energies and consumed substantial resources on both sides. This was particularly damaging given that the disputes arose during a critical window of opportunity for the development of the low-altitude economy, at a time when both parties were simultaneously facing intense competitive pressure from domestic and foreign peers as well as significant pressure from investors to deliver returns.

Upon docketing the three cases for second-instance review, the Intellectual Property Tribunal of the Supreme People's Court immediately organized mediation between the parties and coordinated with the relevant local courts to pursue a joint resolution. Given the wide gap between the parties' positions, the mediation efforts at one point reached a deadlock. At the eleventh hour, by the end of 2025, when the collegial panel had already drafted its judgment and was prepared to serve it, the panel convened a final face-to-face meeting with the principals of both companies in one last effort to achieve settlement.

Guided by the philosophy of organically unifying the "three effects," the collegial panel persisted in working to untie the emotional knot between the parties. With respect to the two core patents, the panel creatively proposed a mediation approach of "license first, negotiate fees later" to take effect once ownership had been determined, thereby steering the parties toward resolving their dispute with an eye to their overall commercial interests and the possibility of future cooperation. This ultimately led all parties to withdraw their appeals or claims, transforming what had been a zero-sum contest into a collaborative, mutually beneficial outcome.

[Significance]

First, the case defines rights and ends disputes, guiding enterprises to focus on innovation. The low-altitude economy is a strategic emerging industry addressed in the proposals for the 14th Five-Year Plan, and the sector is currently at a critical stage of development characterized by rapid technological iteration and the coexistence of competition and cooperation. Through mediation, the collegial panel effectively guided the technology companies to concentrate on their core businesses, seize the strategic window of opportunity in the industry, and focus on original innovation, technology research and development, and market expansion, while also prompting former competitors to embark on subsequent cooperation. This sent a clear judicial signal in favor of healthy competition and provided a model for fostering a sound industry ecosystem.

Second, the case achieves mutual benefit for all parties and substantively resolves the disputes. A single successful mediation thoroughly resolved all 19 cases pending before courts at three levels of jurisdiction, along with any downstream disputes that might have arisen, including applications for retrial, patent infringement claims, and patent invalidation proceedings. This significantly reduced the parties' litigation costs, substantially eased their litigation burden, and created a favorable rule-of-law environment for enterprises committed to technological innovation.