Coordinated Handling of Patent Infringement Cases Involving intersection of administrative adjudication and invalidation procedures — (2023) SPC Admin. Final 1029

*AI-generated translation, for reference only.

Recently, the Intellectual Property Court of the Supreme People's Court concluded an administrative adjudication dispute regarding a utility model patent infringement case, clarifying that where an administrative adjudication on patent infringement issued by a patent administrative authority finds infringement, but the patent right relied upon to assert infringement is subsequently declared invalid, such administrative adjudication shall be revoked.

Zhang [REDACTED] rong is the patent holder of a utility model titled "Hot-air Furnace for Rocking-Tumbling New Energy Tea Leaves" (hereinafter referred to as the "patent in question").On October 12, 2022, Zhang Mourong filed a request with the Nanping Market Supervision Administration (Nanping Intellectual Property Office) (hereinafter referred to as the "Nanping Intellectual Property Office") of Nanping City, Fujian Province, alleging that products manufactured by Lian [REDACTED] Biotechnology Co., Ltd. (hereinafter referred to as "Lian [REDACTED] Company") infringed upon the patent in question, and requesting an investigation into the patent infringement. The Nanping Intellectual Property Office accepted the case on October 17, 2022, and subsequently conducted an on-site investigation and prepared a written record.On February 13, 2023, the Nanping Intellectual Property Office issued [2022] Administrative Ruling Min Nan Zhi Fa 51 (hereinafter referred to as the "Contested Ruling"), finding that Lianmo Company had manufactured, sold, and offered for sale products that infringed upon the patent-in-suit. The ruling ordered Lianmo Company to immediately cease manufacturing, selling, and offering for sale products that infringed upon the patent-in-suit.

After Lian Company filed a lawsuit challenging the ruling, the first-instance court dismissed Lian Company's claims. Lian Company appealed the decision.

The Supreme People's Court, upon review, found that Lian Company filed a request for declaration of invalidity of the patent in question on October 7, 2023; the China National Intellectual Property Administration issued a decision on July 29, 2024, declaring the patent in question entirely invalid; and Zhang Rong filed an administrative lawsuit against this decision.On March 28, 2025, the Beijing Intellectual Property Court ruled to dismiss Zhang Mourong's claims. Zhang Mourong did not file an appeal, and the decision to declare the patent invalid became final and effective.Accordingly, the appellate court held that since the patent rights upon which Zhang Mourong based his claims had been declared invalid during the appellate proceedings in this case, the factual basis upon which the contested ruling and the first-instance judgment were rendered no longer existed; therefore, it reversed the first-instance judgment and the contested ruling.

This case clarifies the approach to handling "civil-administrative intersection" cases involving both patent infringement administrative adjudication proceedings and patent invalidation proceedings. Specifically, once the patent right upon which the infringement allegations are based is declared invalid, the administrative adjudication finding infringement has retroactive effect, and such administrative adjudication shall be revoked.This approach is consistent with the handling of "civil-administrative intersection" cases involving patent infringement civil litigation and patent invalidation proceedings. It facilitates the coordination between administrative law enforcement and judicial proceedings, ensures the uniformity and consistency of enforcement and judicial standards, and contributes to the establishment and improvement of a multi-faceted, collaborative intellectual property protection framework.

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Address : Building 3, Yard 2, Automobile Museum East Road, Fengtai District, Beijing  

Code: 100160

Telephone: (0086)12368

Email Address: ipc@court.gov.cn

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