CENFO TEAM_Zhijia, WEN

As a form of intellectual property rights, patent rights play a key role in promoting technological innovation and protecting the rights and interests of applicants. In this paper, we will illustrate the nature of patent law and how it affects innovation and economic development through some specific case studies.

The nature of patent rights

A patent is an exclusive right granted by the state that allows the patentee to control his or her invention for a certain period of time. The essence of this exclusivity is that it provides an incentive for the patentee to invest time and resources in researching and developing new technologies. The core objective of patent law is to promote innovation by protecting intellectual property rights while also providing society with publicly available technical information.

Case Study ①: iPhone’s Patent War

In the field of smartphones, the success of the iPhone demonstrates the importance of patent rights. When Apple launched the first iPhone in 2007, it held a series of patents, including multi-touch technology and graphical user interface design. These patents protect Apple's innovations and prevent infringement by other companies. Thanks to patent protection, Apple's trend-setting product has been able to gain a competitive advantage in the market and continue to invest in research and development, promoting the advancement of smartphone technology.

Among them, the main patented technologies are:

1. Multi-touch technology (Patent: US Patent No. 7,479,949): Apple's iPhone introduces multi-touch technology, allowing users to use their fingers to perform a variety of gesture operations, such as zooming, sliding and clicking.

2. Graphical user interface (GUI) design (Patent: US Patent No. 7,966,578): The iPhone's user interface design is one of the keys to its success. The corresponding patent covers the iPhone's graphical user interface design, including icon arrangement, menu operations and touch screen operations on.

3. Elastic scrolling and elastic zoom (Patent: US Patent No. 7,469,381): This patent covers the scrolling and zooming effects on the iPhone, making the interaction of content on the screen more smooth and intuitive.

4. Lock screen (Slide to Unlock) (Patent: US Patent No. 8,046,721): The sliding unlock function of the iPhone is one of its major features and innovations. It changes the inconvenience of physical unlocking or password unlocking in the past, and unlocks the device by sliding the icon on the screen.

5. Auto-rotate (Patent: US Patent No. 7,812,826): This patent covers the iPhone’s automatic screen rotation function, which automatically adjusts the orientation of screen content based on the orientation of the device.

These patents not only help Apple protect its intellectual property (on April 15, 2011, Apple sued Samsung Electronics for patent infringement, of which the sliding unlock patent was awarded US$120 million in 2017), but also encouraged other companies to carry out similar innovations (Samsung once launched signature unlocking), which promoted the advancement of smartphones and mobile technology.

Attached is the sliding unlock patent litigation process:

☑On April 15, 2011, Apple sued Samsung Electronics for allegedly plagiarizing Apple's product designs in a series of handheld smart devices.

☑In 2014, the jury ruled that Samsung mainly infringed two of Apple's five patents, the '647 patent and the '721 patent. The 647 patent related to the function of turning addresses and phone numbers into links, and the 721 patent was a sliding unlock patent. Samsung needs to pay USD 119,625,000 in compensation.

☑In February 2016, based on Samsung’s appeal, the U.S. Federal Court of Appeal overturned the original judgment and determined that Apple’s patents were invalid, including slide unlock.

☑In October 2016, based on Apple’s request for a retrial of the complaint, the U.S. Federal Court of Appeal once again found Samsung to have infringed the patent and upheld the original judgment.

☑On November 6, 2017, the Supreme Court rejected Samsung’s continued appeal, and Apple was eventually awarded US$120 million in compensation.

The iPhone patent battle has sparked an industry-wide debate over the validity of patents, infringement and competition laws. These legal disputes have resulted in significant legal fees and time, while also making smartphone manufacturers more cautious in handling intellectual property issues.

In addition, these patent disputes have also pushed some companies to enter into cross-licensing agreements that allow them to share certain patents to avoid legal disputes. Such agreements help maintain industry stability and innovation.

The iPhone patent war highlights the key role of patent rights in technological innovation. Apple's patent protection helps them stay ahead of the market and encourages other companies to innovate as well. But at the same time, these patent disputes also show the complexity of the patent system and the risks that may lead to legal disputes. Therefore, the protection and management of patent rights are crucial in the modern technology industry and need to be handled carefully and wisely.

02 The Social Value Of Patent Law

Patent law not only benefits patentees, but also has a positive impact on society as a whole. It enables companies and individuals to share their technological innovations, which is crucial for the spread and advancement of technology. In addition, patent laws can also attract investment because investors see that their funds will be used to protect unique innovations, thereby increasing the competitiveness of technology companies.

Case Study ②: Sanofi’s Lantus

In the medical field, drug patents are one of the important factors promoting the development of new drugs. When Sanofi was developing the Lantus drug (trade name, hormonal insulin glargine), it is a long-acting insulin used to treat diabetes. It is very important for diabetic patients and can help control blood sugar levels and improve patient quality of life), a large amount of research and development resources have been invested to ensure its safety and effectiveness. At the same time, a number of patents have been applied for, covering the preparation methods, uses and drug combinations of Lantus, which mainly include:

Patent 1 (US Patent No. 5,889,045): This patent covers technologies related to drug preparation and delivery systems, especially technologies related to the long-acting insulin hormone insulin glargine, and involves preparation methods and uses of drugs.

Patent 2 (US Patent No. 5,919,775): This patent covers technology related to the pharmaceutical preparation and use of the hormone insulin glargine, including technology regarding the pharmaceutical preparation method and delivery system.

Patent 3 (US Patent No. 6,103,852): This patent covers technologies related to the preparation, formulation or delivery of the hormone insulin glargine, including possible preparation methods, chemical properties of the drug, etc.

It is precisely with the protection of these patents that Sanofi's investment is guaranteed, allowing them to continue to develop and sell Lantus without others plagiarizing the finished product, causing the investment to be in vain. At the same time, the success of Lantus has prompted other pharmaceutical companies to develop similar insulin treatment drugs, providing more medical solutions and thus increasing treatment options for diabetic patients.

It can be seen that drug patents play a vital role in medical innovation. This case reminds us of the critical role of patent rights in medical innovation, which not only benefits pharmaceutical companies but also has a profound impact on the global healthcare field.

Patents are a key tool for innovation and intellectual property protection. Through case studies, we can clearly see the nature of patent law and how it drives technological innovation and economic development. Patent rights not only encourage individuals and companies to invest in innovation, but also help society obtain new technologies and promote global scientific and technological progress. Maintaining and supporting the patent system is therefore critical for continued innovation and development.