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Special Report
Court Brings Light to Sany's US Case

On March 2, Chinese industrial giant Sany Group (Sany) announced on a press conference that its core request of the lawsuit against the U.S. President Obama and the Committee on Foreign Investment in the United States (CIFUS) filed by its subsidiary Ralls Corp had been accepted. Experts called this case a milestone, which provided a model for overseas Chinese enterprises and showed the value of own brands. Intellectual Property (IP) plays a vital role on Chinese enterprises competing in the international market.


Competitiveness: key to the turn


During the press conference, Sany said the progress breaks the stereotype that presidential orders aren't subject to judicial review, which indicates that Sany is possible to get compensation.


Due to the case, Sany attracts the world's attention once more. Founded in 1994, Sany has more than 200 of products in 26 categories, with many products of leading positions worldwide. In recent years, Sany, business covers more than 110 countries and districts, has devoted itself to overseas expansion. It has established five overseas research and manufacture centers in India, America, Germany, Brazil Indonesia, and thirty overseas subsidiaries.


In August, 2010, Sany established its subsidiary Ralls Corp in the U.S. to take charge of the investment and construction of wind power projects. On September 28, 2012, the U.S. President Obama issued a presidential order to prevent Ralls Corp from building four wind farms in Oregon, citing national security risks for their locations near a military base. He asked Ralls Corp to remove all properties as well as equipments in two weeks, and withdraw all investment to the wind power projects in 90 days.


According to the court order, Obama's "order regarding the acquisition of four US wind farm project companies by Ralls Corp" on September 28, 2012, violates the due process clause of the the fifth Amendment to the United States Constitution by depriving Ralls Corp without providing adequate opportunity to be heard or an adequate explanation of the reasons for the decision. The court next will hold a hearing on whether the government deprived Ralls Corp of its property without due process of law.


In the press conference, Xiang wenbo, president of Sany, stressed that the company will fight to the end in the lawsuit. "Actually, what we really need is not a lawsuit but a fair solution." said him.


IP: crucial to innovation


As a dark horse in the field of mechanical engineering, Sany Corp has become a leading enterprise throughout the world. Its rapid growth is indispensable from its innovation strategy of independent research and development.


Chen Luchang, director of the IP department at Sany, told the reporter from CIP News that the company has worked out an IP Work Plan and established a special IP department long before. "From technology to patent and then to standard", Sany has formulated a unique IP strategy in practice, that is, to protect core technology through file patents and then to form standards of technology and products based on patent systems.


Up to now, Sany Corp has filed more than 6,400 patent applications including 200 PCT applications, 3,700 of which have been granted. Its average annual growth rate of patent applications has reached 40 percent. In 2012, five of its invention patents were awarded China Patent Award of Excellence, and one first prize of Patent Award of Hunan. 


An industry insider said Sany's twenty-year experience in innovation and development reveals that independent research and development of core technology and products is the only road for enterprises to gain independence and maintain long-term development. It is obvious that Sany's the lawsuit is inseparable from its innovation.


(China IP News)

All China Patent Agents Association