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Court Ordered 23 Million Compensation in First Instance Trial of CATL v. Tafel

The Chinese power cell giant CATL published the first-instance civil judgment of its dispute with Jiangsu Tafel Energy Technology Co., Ltd. and Dongguan Tafel Energy Technology Co., Ltd. over infringement of utility model patent right. Fujian Higher People's Court ruled that the two Tafel companies shall jointly compensate CATL for economic losses of 22,979,287 yuan and reasonable expenses of 326,769 yuan. 

CATL, the plaintiff, claimed that it submitted an application for utility model named "Explosion-Proof Device" and was later granted by CNIPA. Without the permission CATL, the two Tafel companies jointly manufactured, sold and promised to sell the power batteries with specifications of NCM100Ah, NCM120Ah and NCM135Ah for production and operation purposes, which used the patented technical solution involved in this case, hence constituting infringement of the patent right of CATL. Thus the plaintiff requested the two Tafel companies to jointly compensate for economic losses of 120 million yuan.

The defendants argued that the plaintiff had modified the claims in the invalidation procedure of the patent involved, which meant that the patent was now in a state of partial invalidation, and requested to suspend the trial of the case.

After hearing the case, the court held that the patent is currently in force. Without the permission of the patentee, the two Tafel companies jointly manufactured and sold infringing products that fell within the scope of patent protection involved, which jointly infringed the patent right of CATL and constituted joint infringement.