Netac sets up a model in IPR suit

Not everyone has the courage to speak up when their intellectual property (IP) rights are infringed upon, especially when it happens in a rival's country. But Deng Guoshun, founder and president of Shenzhen-based Netac Technology Co Ltd, was brave enough to take action against PNY Technologies Inc, a market leader in the US computer storage retail market.

After a two-year lawsuit, the two parties agreed to settle out of court and signed a patent license agreement, granting PNY permission to use Netac's patent legally. "I am very satisfied with the outcome, which is exactly what we expected two years ago," Deng says, declining to reveal details about the negotiation. "We only wanted to protect our patent, and the US court ruled last October that our proof stands its ground," Deng says, explaining why his company did not seek a final court ruling and possible compensation from its rival. "We want our partnership (with PNY) to continue."

A pioneer of the USB flash drive industry, Netac is one of the largest USB memory devise solution suppliers and manufacturers in the world… Netac's action was highly praised by the Chinese industry. This patent litigation being brought against a US enterprise by a Chinese enterprise outside of Chinese jurisdiction is seen as a milestone…

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