Summary of Key Points
Recently, Chinese technology companies (such as Jieka, a manufacturer of collaborative robots) have faced an increasing number of intellectual property (IP) lawsuits overseas, particularly in Europe. This phenomenon reflects the evolution of IP from a common business tool to a strategic tool in the global tech competition. As Chinese companies expand their presence overseas, they have shifted from simply exporting products to also exporting their brands and technologies, leading to more direct competition with European and American giants. The establishment of the Unified Patent Court (UPC) in Europe has further increased the cost and effectiveness of IP litigation against Chinese companies, raising the risks of such disputes. The article discusses the current state of Chinese companies' IP capabilities and their strategies for responding to these challenges.
Why Have Overseas IP Litigations Suddenly Targeted Chinese Companies?
In the past, Chinese companies focused on selling products at competitive prices when entering foreign markets. However, now they are competing directly with European and American leaders by exporting their brands and technologies. For example, in the field of collaborative robots, four of the top five global companies in 2025 are Chinese, with Jieka Robot ranking second (holding 11% of the market share), while the former industry leader, Yuao (a subsidiary of Teradyne), has seen a significant decline in its market share. As Chinese manufacturing penetrates deeper into European and American markets, the competition has shifted from price wars to a full-scale battle involving patents and standards. Additionally, in times of economic pressure, European and American companies are more inclined to use IP as a weapon, as litigation can result in the removal of Chinese products from the market or the obstruction of their distribution channels, potentially causing them to miss out on market opportunities.
The Power of the European UPC Court: A New Weapon for Competitors
The Unified Patent Court (UPC), which began operating in 2023, is a specialized court for handling patent disputes in Europe. Previously, litigation had to be conducted in each country individually, which was costly and time-consuming. Now, the UPC can handle cases involving multiple EU countries and issue immediate temporary bans, potentially leading to the removal of products from the entire EU market, making it difficult for distributors to cooperate with Chinese companies. The cost of responding to such lawsuits for Chinese companies is extremely high, including hiring European lawyers and collecting evidence across countries. Even if they win the lawsuit, the resulting market losses can be difficult to recover. For instance, Yuao's parent company used its Danish subsidiary to sue Jieka's German subsidiary, taking advantage of the UPC to quickly target Jieka's European market.
The Current State of Chinese Companies' IP Capabilities
Progress: China has seen a significant increase in high-value invention patents, with 2.36 million patents as of June 2026 (16.8 patents per 10,000 people), and the export of intellectual property rights increased by 64.9% in the first half of the year, indicating that Chinese technology is becoming more valuable overseas. China's innovation index also ranks among the top ten in the world (the only middle-income country to do so).
Shortcomings:
- Weak overseas patent presence (more patents in China than abroad)
- Lack of proactive risk management (many companies only address issues after they arise)
- Few high-quality patents (a large number of patents, but few in core technologies)
- Underemphasis on "soft" IP (such as software and design, which can be easily exploited by competitors)
Strategies for Chinese Companies to Respond
1. Compliance First: Obtain necessary certifications (e.g., EU CE, North American cSGSus) and apply for multiple patents (Jieka has over 300). Participating in the development of industry standards is also crucial as a stepping stone to entering foreign markets.
2. Conduct FTO (Freedom to Operate) Analyses: Before launching a product, thoroughly check for potential patent infringements. If risks are found, modify the design or obtain licensing from the relevant parties to avoid pitfalls.
3. Risk Assessment Before Exhibitions: The UPC requires that products displayed at exhibitions be checked for potential infringements, even if they are not sold, as this could lead to a ban. Conduct thorough patent screenings before participating in exhibitions.
4. Proactive Defense: If you hold high-quality European patents, you can use the UPC to sue competitors for infringement. In 2025, there were already 20 cases where Chinese companies were plaintiffs in UPC litigation, using legal means to protect their market interests.
In summary, the deeper Chinese companies go into overseas markets, the higher the IP risks they face. However, by taking proactive steps and adhering to legal and regulatory requirements, they can establish a solid footing in this intellectual property landscape.