Since the beginning of this year, a growing number of listed companies have faced carefully orchestrated "raid attacks." These incidents are often framed as "patent infringement" cases, but behind them lie various motives—some are about defending rights, others for financial gain, while some are aimed at eliminating competition or even disrupting an IPO process. The real reasons vary from company to company, but the pattern is becoming increasingly common.
One such case involved Company A, which had a relatively smooth path in the capital market: it was listed on the New Third Board in 2015, released its prospectus in 2016, and was expected to successfully go public in 2017. However, just when it seemed like everything was going according to plan, Company B—a rival in the same industry—filed a patent infringement lawsuit against Company A, effectively blocking its IPO journey.
"We just wanted to stop Company A from going public," said Wang Gang, the chairman of Company B, who did not deny his intentions. The strategy almost succeeded: in the middle of this year, Company A voluntarily submitted an application to suspend its IPO review with the China Securities Regulatory Commission (CSRC). At a recent audit committee meeting, the patent dispute once again became a central issue.
This kind of IPO-blocking war under the guise of patent infringement is not an isolated incident. According to a senior executive at a major Beijing-based investment bank, patent-related lawsuits during the IPO process are among the most dangerous "black swan" events. For tech companies, patent ownership is crucial. If not handled properly, these lawsuits can delay or even derail an IPO.
The competition between the two companies has escalated. Why do some companies become targets of patent litigation? According to Wang Gang, it's not always about seeking compensation. "We haven’t sued Company A for so many years because their scale wasn't big enough. Even if we won, the compensation wouldn’t be satisfactory."
In reality, many patent lawsuits against listed companies are more about eliminating competition than about legal rights. Before 2015, Company A and Company B operated in the same industry but were geographically separated. However, after Company A listed on the New Third Board in 2015, Company B realized that Company A had grown significantly and now exceeded its size.
"If a competitor goes public first, it will bring more pressure," Wang Gang admitted. "I can tolerate a little profit, but if they keep expanding and acquiring upstream and downstream businesses, I can't accept it."
Industry experts say that when two companies in the same sector are vying for an IPO, using patent infringement lawsuits as a tool to block each other is a common tactic. Some investment bankers even describe it as an easy maneuver to disrupt the process.
In response to the legal attack, Company A adopted a dual strategy: active defense and counterattack. They filed a request to invalidate the patent used by Company B at the State Intellectual Property Office’s Patent Reexamination Board. "They found a 'straw man' and claimed it was my friend. He worked in my company and said the patent was his," Wang Gang remarked. "The best defense is a good offense," he added, emphasizing that a well-timed counterattack can be very effective.
Another challenge comes from so-called "patent trolls"—entities that file lawsuits with weak or questionable patents to create uncertainty. These tactics can cause significant disruption. As Cong Sen, a lawyer at Beijing Yuan Zhou Law Intellectual Property Agency, explained, it's essential for companies to conduct thorough due diligence on all patent-related matters to avoid being caught off guard.
As the IPO landscape becomes more competitive, the use of legal tools like patent litigation is likely to remain a strategic weapon in the ongoing battle for market dominance.
1. Capacitor testing industry: The main products are capacitor leakage current ripple test power supplies used for capacitor life and quality testing. It is an industrial power supply product mainly adopted by capacitor manufacturers` for products quality control or capacitor use manufacturers` for sourcing capacitor inspections with current endurance life test, according to the variety of output voltage and frequency required for different capacitance tests, the DC output voltage of this power supply is up to 3000V, the AC voltage output is up to 400V, the AC current is up to 400A, and the output frequency can be 50Hz-100KHz according to customer requirements.
2. Capacitor aging industry: The main products are our first-generation high-power DC power supply products, based on the development of IGBT-based hard-switching technology, with high output accuracy, low ripple, high efficiency, fast response speed and good cost advantages, the power supplies are featured with constant voltage, constant current working mode automatic switching function, overvoltage protection circuit, overheat protection circuit, short circuit protection function. For the convenience of industry users, this power supply can also add customized functions, such as: automatic shutdown for load discharge function, overvoltage, overcurrent protection value preset and view function and pulse aging function, etc., to adapt to the use of sophisticated capacitors of capacitor manufacturers.
3. Surface treatment industry: The DC rectifier based on the high frequency switching technology of IGBT switching devices is a product developed by our company for industrial applications such as electroplating, electrolysis, water treatment, and hard oxidation. There is no mandatory requirement for output ripple in this industry application. So, this industrial power products do not put too much LC circuit processing to the input and output ends. It has high requirements for output current stability and long-term operation capability, mostly low-voltage and high-current output, up to 2000KW, with ultra-high DC output of 50000A.
To overcomes the harsh application environment and long-term operating conditions. The industrial power supplies basically adopt water cooling, and the internal components of the power supplies are treated with three preventions, which can realize the effective heat dissipation and effective protection of internal devices of the power supply.
The above-mentioned industrial power products can accept customized production requirements without minimum order quantity restrictions.
Industrial power supplies are power products specially designed and produced for a certain industrial production industry. For industrial power supplies, absolute balance of electronics characteristics is not the main focus. Different industrial applications focus on different specific electronics index, some focus on the stability of the power supply output voltage or current, but the ripple is not the key judging criteria; some industrial applications have customized requirements for power supplies, such as adding time control, adding pulse functions, adding multiple outputs, etc. At the same time, it is necessary to consider the cost requirements of large-scale purchases of industrial applications, so for industrial power supplies, Application adaptability, Long-term operating Reliability and Reasonable cost control are the main points of attention for industrial power supplies.
1. Capacitor testing industry: The main products are capacitor leakage current ripple test power supplies used for capacitor life and quality testing. It is an industrial power supply product mainly adopted by capacitor manufacturers` for products quality control or capacitor use manufacturers` for sourcing capacitor inspections with current endurance life test, according to the variety of output voltage and frequency required for different capacitance tests, the DC output voltage of this power supply is up to 3000V, the AC voltage output is up to 400V, the AC current is up to 400A, and the output frequency can be 50Hz-100KHz according to customer requirements.
2. Capacitor aging industry: The main products are our first-generation high-power DC power supply products, based on the development of IGBT-based hard-switching technology, with high output accuracy, low ripple, high efficiency, fast response speed and good cost advantages, the power supplies are featured with constant voltage, constant current working mode automatic switching function, overvoltage protection circuit, overheat protection circuit, short circuit protection function. For the convenience of industry users, this power supply can also add customized functions, such as: automatic shutdown for load discharge function, overvoltage, overcurrent protection value preset and view function and pulse aging function, etc., to adapt to the use of sophisticated capacitors of capacitor manufacturers.
3. Surface treatment industry: The DC rectifier based on the high frequency switching technology of IGBT switching devices is a product developed by our company for industrial applications such as electroplating, electrolysis, water treatment, and hard oxidation. There is no mandatory requirement for output ripple in this industry application. So, this industrial power products do not put too much LC circuit processing to the input and output ends. It has high requirements for output current stability and long-term operation capability, mostly low-voltage and high-current output, up to 2000KW, with ultra-high DC output of 50000A.
To overcomes the harsh application environment and long-term operating conditions. The industrial power supplies basically adopt water cooling, and the internal components of the power supplies are treated with three preventions, which can realize the effective heat dissipation and effective protection of internal devices of the power supply.
The above-mentioned industrial power products can accept customized production requirements without minimum order quantity restrictions.
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Yangzhou IdealTek Electronics Co., Ltd. , https://www.idealtekpower.com