Ending a long-running intellectual property dispute in the tire and rubber industries, the Shanghai Higher People's Court (the "Court") on October 12 rejected a final appeal by SI Group Inc. and SI (Shanghai) Co., Ltd. regarding two landmark patent application rights and trade secret infringement cases. The ruling affirmed Sino Legend (Zhangjiagang) Chemical Co., Ltd.'s ownership of and sole rights to a Chinese patent for its SL-1801 tackifier (Publication No. CN 101338013 / Patent No. ZL 200810041551.7).  

In its decision, which upheld a lower court decision issued earlier this summer, the Court noted that SI's appeal lacked any factual and legal basis, and reiterated that there was no infringement of any trade secrets by Sino Legend. Further, Sino Legend's process was confirmed to be novel and inventive. 

The Court also strongly admonished SI for attempting to manipulate the proceedings in its previous lawsuit, stating, "The appellant's [earlier] applications to withdraw the case were not intended to end litigation, but to prolong the case. The appellants' behavior violates the integrity and creditability of the system." 

"The Court's ruling validates the technical strength of our patent, while also helping support our reputation for honest, ethical conduct as we pursue continued innovation," said Mr. Corey Xie, general manager, Sino Legend. "We've worked extremely hard to build our intellectual property portfolio, and will continue to aggressively protect it against infringement on a global basis." 

In a related dispute, the U.S. International Trade Commission (ITC) last month notified both parties that it was reviewing its initial Section 337 investigation determination in its entirety - not a routine nor matter of course procedure. The ITC's final ruling is expected by end of year, pending confirmation following the re-opening of the federal government. 

Less than five years after beginning full-scale production, Sino Legend has become the largest Asian manufacturer of resins for the tire and rubber industries, holding 70 percent of the Chinese market and 30 percent share for the rest of Asia. The company is a supplier to 13 of the top 15 multinational tire companies operating in Asia, as well as to the majority of China's domestic manufacturers.

(Source: 4-traders)