China Turns From 'Pirate' Nation To Giant Patent Troll
from the what-goes-around,-comes-around dept
The West's constant push for stronger patent protection in agreements like TPP and ACTA is based on the belief that they will then be able to deploy their supercharged patents against the rising economic might of China. What this completely overlooks is the fact that China will be able to turn the self-same strengthened patent regime against the West by acquiring patents and suing Western companies. Techdirt has already reported on how China is providing financial incentives for its companies to file huge numbers of patents overseas. Now it has taken another step in bolstering its patents strategy against the West by setting up a company called Ruichuan IPR Funds. Here's a press release that the site Citizen Outreach has issued on this move:
With China's creation of Ruichuan IPR Funds, imagine the assault that U.S. companies will face. Reports are that this government-sponsored troll has been seeded with $50 billion to acquire patents that will be used in actions against U.S. companies. Inasmuch as trolls aren't sticklers for the quality of the patents they purchase, Ruichuan IPR Funds will be able to build a massive arsenal for use in harassment litigation.
A little hyperbolic perhaps, but essentially correct -- and completely foreseeable. The Chinese government's move is part of a larger story that recapitulates America's own evolution from a "pirate" nation that fuelled its industrial revolution by ignoring the law and appropriating Western Europe's patented ideas, to one using the same legal instruments against European companies.
China will now be in a better position to manipulate markets, handicap the overseas competition, and push itself to the head of the pack in the global patent wars.