The biggest medicine patent licensing case ended up with losing of the producer. A few days ago, China International Economic and Trade Arbitration Committee (CIETAC) made its arbitral decision on this case and ordered the producer Shanghai Xin Xian Feng Pharmaceutical Co., Ltd. (hereinafter referred to as Xin Xian Feng) to immediately cease to use the patent of the licensee Guangzhou Wei Er Men Pharmaceutical Co., Ltd. (hereinafter referred to as Wei Er Man) and prohibited Xin Xian Feng from producing, selling and offering to sell the relevant products; Xin Xian Feng should compensate Wei Er Men for 4.7 million Yuan.
In the beginning of 2006, Wei Er Men and Xin Xian Feng signed a patent license and cooperation contract which Wei Er Man licensed Xin Xian Feng to produce the medicine named Cefperazone Sodium and Sulbactam Sodium for Injection with the license fee of 80 million Yuan. This was the largest medicine patent license in China at that time. However, after cooperating for 1 year, the two parties came into conflict. According to Mr. Ming Jie SUN, a director of Wei Er Man, Xin Xian Feng failed to pay the license fee as agreed in the contract and interrupted Wei Er Man in licensing other companies who produce similar medicines. After several negotiations with Xin Xian Feng, Wei Er Man cancelled its patent license to Xin Xian Feng. However, Xin Xian Feng continued to produce relevant products and participate in the bidding with selling point of the patented medicine. Therefore, the two partied went for arbitration.
It is worth noting that the patent of Wei Er Man is also in dispute. Mr. Sun admitted that the invalidation actions filed by some pharmaceutical companies are still undergoing. But according to the Patent Law, the patent is still valid and Xin Xian Feng’s act violated Patent Law.