The solar photovoltaic (PV) industry has recently witnessed a shift towards a more competitive and aggressive landscape, characterized by patent battles rather than just market dynamicsAs leading companies strive to maintain their foothold in a market faced with diminishing growth, the stakes associated with intellectual property have become incredibly highIn this context, major players, including Trina Solar and JinkoSolar, have initiated legal proceedings against one another, marking the start of an all-out patent war.
Trina Solar (688599), a formidable contender within the industry, has recently taken legal action, filing requests with the court against Canadian firm Canadian Solar and its subsidiary, Changshu Trina Solar, demanding damages totaling approximately 1.058 billion yuan (around $150 million) for alleged patent infringementThe patents in question pertain to solar cell modules and related manufacturing methods.
This aggressive posture is indicative of the heightened competition present in the solar sector, where notable firms are not only seeking to protect their innovations but also to strategically hinder their rivalsBy contesting these patents legally, Trina Solar is positioning itself within an arena that could potentially curb the productivity of its competition, reflecting an increasingly cutthroat approach.
As this scenario unfolds domestically, the international landscape exhibits similar confrontationsFor instance, JinkoSolar (688223) has initiated legal action in Australia, filing a patent infringement suit against LONGi Green Energy Australia, asserting its rights over invention patents pertinent to solar technologyWith hearings already set for February 21, this case exemplifies how the competition is transcending national bordersEarlier instances of legal altercations between Jinko and LONGi have exacerbated tensions, showing a framework of ongoing animosity that may hinder collaborative engagements in the future.
Conversations surrounding the technological advancements in the PV space are already being overshadowed by legal consultations, as companies like JinkoSolar express their commitment to protecting their inventions fiercely
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The company’s chairman, Li Xian-de, remarks on the importance of respecting intellectual property, emphasizing the various ways to resolve patent disputes, including licensing and trade, instead of evasion.
On the other hand, LONGi Green Energy, represented by its chairman, Zhong Baoshen, possesses a more resilient outlook regarding these patent litigationsCiting a substantial portfolio of their own patents accumulated over the years, LONGi exhibits confidence in its ability to weather the storm of infringement claimsTheir strategy appears to involve not only defensive maneuvering but also counteractions when provoked, marking an aggressive approach to intellectual property that instigates further competition.
The context surrounding these disputes is nuanced by significant movements in the industryNotably, LG Group's exit from the PV manufacturing realm in 2022 resulted in the sale of numerous patents that were subsequently acquired by JinkoSolarThese transactions reflect the intricate web of relationships and conflicts in the solar industry, as companies seek to maximize the value of their intellectual property while navigating a landscape of fierce competition.
In terms of sheer numbers, by early 2024, JinkoSolar had transferred a portion of acquired patents to other firms, including Trina Solar and JA Solar, representing the ever-evolving dynamics among these competitorsThe transferral of rights further emphasizes the collaborative but competitive nature of technology sharing and patent strategy within the photovoltaic sector.
JinkoSolar’s move to acquire patents primarily held overseas demonstrates its proactive stance in compensating for earlier shortcomings in its international intellectual property strategySuch acquisitions denote the growth of technological arms within the solar industry, reinforcing the significance of patent ownership in achieving market presence and competitive advantage.
Despite the ongoing copyright contention, it seems that some companies are willing to resolve issues through licensing agreements
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