Weichai Power announced on November 2 that according to a market research report issued by the company's technical center, many patents such as the diesel oil and gas separators legally protected by the company were seriously violated, claiming to send a lawyer’s letter to the infringing companies and ordering them to Stop infringement, compensate for losses, and take legal actions such as civil lawsuits when necessary.
In this sternly worded announcement, three infringing companies were listed, China National Heavy Truck Group Co., Ltd. and its affiliates were in the middle. It is worth noting that just one day before the announcement of Weichai Power, China National Heavy Duty Auto Group's red chip listing passed the hearing of the Hong Kong Stock Exchange and it will be offered as soon as mid-November.
At the time of the listing of competitors, lawsuits are commonplace in overseas securities markets. In 2004, SMIC initiated the listing financing plan for Hong Kong and the United States, and TSMC filed a lawsuit in the California Federal Court of Justice against SMIC for infringement of patent rights and theft of trade secrets. In October this year, before BYD spun off its mobile phone foundry business in Hong Kong, Foxconn also sued BYD to the Hong Kong High Court for violating the company’s commercial secrets.
The outcome of the lawsuit will be altogether no matter what, but it will affect investor confidence and thus affect the amount of fundraising for competitors. I am afraid this is the purpose of such patent litigation. The grievances between China National Heavy Duty Truck and Weichai were long and long. The two sides once had a mother-child relationship, and then Weichai left home and set himself up.
At present, the scale of heavy truck production and sales of heavy truck in the industry ranked first, but the Shaanxi Automobile Group Weichai Holdings has developed rapidly in the past two years, production and sales scale has closely followed the heavy truck, FAW, Dongfeng, firmly occupy the fourth position in the industry. Moreover, Weichai's engines, gears, transmissions and other products account for most of the domestic market share, and can increase the cost of competitors and strengthen its own performance by increasing the price of its own products.
It is precisely for this reason that SINOCHEM decided to start another new stove, get rid of Weichai's clamp, and build its own engine production line and other supporting industries. As a result, SINOBIRC will need to make large-scale financing through listing in Hong Kong, and it may be no coincidence that Weichai Power may initiate a lawsuit at this time.
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