Preliminary Hearing Prospects Uncertain

On 13 Oct 2008, Shanghai No.1 Intermediate People's Court conducted a preliminary hearing on a lawsuit filed by the company against Shandong Xinfa Pharmaceutical Co., Ltd. (SXP) alleging patent infringement. Before the hearing started, the chief judge decided that it should be a preparatory hearing, instead of a formal trial.

SXP is charged with using the company's patented technology for the production and sale of D Calcium Pantothenate products without permission. The defendant has been asked by the plaintiff to halt the alleged infringement and to pay RMB 75 mln in compensation for patent royalty and financial losses.

The defendant argues that it had submitted an application declaring the company's patent invalid to the State Intellectual Property Office of the PRC. SXP claims that the D Calcium Pantothenate's key technologies are already open to the public, and that there is no evidence showing any patent infringement.

The company showed a cautious attitude towards the final result of the case, and reiterated that it would abide by the court's order.


Source: Shanghai Securities News

Date: 14 Oct 2008

CN01/NW/DM/NK/KM