In a recent development that brings hope to lighting companies facing patent infringement, Zhongshan has taken proactive steps to support intellectual property protection. At the first IP Lighting Summit Forum held last weekend, Chen Xichong, deputy director of the Zhongshan Intellectual Property Office, announced that the city will allocate 1 million yuan this year to help local lighting firms purchase "patent insurance," offering them financial protection against potential IP violations.
Over the past three years, the number of patent infringement cases in the lighting sector has seen a significant decline—dropping sixfold. This progress is attributed to improved awareness and stronger enforcement mechanisms. For instance, in 2011, a well-known lamp company in Zhongshan introduced a swan-headed lamp, which was quickly imitated by over 30 other companies. Many enterprises faced similar challenges due to the fast-paced nature of the industry, where many companies opted for imitation rather than investing in research and development.
Zhou Jintian, director of the Rights Protection Center, shared an example where a company spent nearly three months addressing an infringement case before the infringing party finally ceased production and offered compensation. Since its establishment in 2011, the center has been actively involved in mediating disputes and helping companies defend their rights. According to statistics, the center handled 70 cases in 2010 and 234 in 2012, with 225 successfully resolved and a total of 471,800 yuan in compensation awarded.
Jiao Xuejun, head of the Patent Management Section at the Zhongshan Intellectual Property Office, noted that the reduction in case numbers reflects both increased IP awareness among local companies and more effective dispute resolution. To speed up the process, the city has implemented a model combining administrative mediation and judicial judgment. By moving enforcement and trials closer to businesses, the time required to resolve patent infringement cases has been reduced from several months to just a few weeks.
This approach has proven highly effective. In the first nine months of this year, out of 297 infringement cases, 92.24% were settled, with 225 cases resulting in compensation totaling 471,800 yuan. Additionally, 72 cases were resolved through mediation. Looking ahead, the "three cities and one district" in Foshan, Zhongshan, Jiangmen, and Shunde are set to sign a judicial confirmation agreement, allowing companies to report infringements locally and reducing both time and cost for legal action.
Another key initiative is the introduction of "patent insurance." Lin Jiayi from China People's Property Insurance Co., Ltd. explained that this specialized insurance covers patent-related infringements. The benchmark premium is 2,000 yuan, with an additional 400 yuan per unit. The maximum compensation is 15 times the premium. Both the town and city governments have supported this program, with the current cost split as 4:3:3 between the enterprise, the town government, and the Intellectual Property Office. This year’s budget includes 1 million yuan to support companies in purchasing the insurance, with plans to increase funding next year.
Despite these advancements, new challenges persist, particularly in the realm of online infringement. Zhou Jintian highlighted that issues like widespread plagiarism, "reformed to zero" infringement strategies, and e-commerce-based violations remain difficult to address. For example, when a product contains multiple components, it becomes harder to determine if it infringes on a patent. Online stores also pose a unique challenge, as they often operate without a physical presence, making it hard to trace and block infringing products.
As the industry continues to evolve, the need for stronger IP protection and greater corporate awareness remains critical. With ongoing efforts from local authorities and innovative solutions like patent insurance, the future of the lighting sector looks more secure than ever.
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