Burden of Defendant's Appraisal Fees in Patent Infringement Disputes When Patent is Declared Invalid

WISECODE Take

Many business owners believe that if a court has not made a substantive ruling, the plaintiff does not need to bear appraisal fees. The Supreme People's Court's ruling in (2023) Supreme Court Zhi Min Zhong No. 2221 debunks this. It is like an athlete disqualified for failing eligibility requirements; they must bear all equipment testing fees. In this case, plaintiff Shaoqi Tech sued Fanqi Tech for patent infringement, with each pre-paying 58,000 RMB in appraisal fees. After the CNIPA declared the patent invalid on February 8, 2024, the Supreme Court dismissed the lawsuit on April 16 and ordered the plaintiff to bear the total 116,000 RMB. This means patent invalidation has become a financial weapon for defendants to shift appraisal costs. Companies with no litigation plans in China are unaffected. If you plan to sue, our patent portfolio check-up service can assess patent stability beforehand to avoid paying the opponent's fees. First, when sued, use invalidation requests as a defense to avoid appraisal fees; second, plaintiffs must strictly evaluate patent stability before filing. Ensuring a stable legal foundation is the first step in controlling litigation costs.