China Airlines (03931) received the first-instance “Civil Judgment” issued by the Fujian High Court

Zhitong Finance App News, China Airlines (03931) issued an announcement stating that in August 2022, the company received a civil lawsuit from the Fujian Provincial High People's Court (Fujian High Court) ((2022) No. 7). According to the indictment, Ningde Times New Energy Technology Co., Ltd. (Ningde Times, a company listed on the Shenzhen Stock Exchange, stock code 300750) brought against the company, AVIC Lithium Battery (Luoyang) Co., Ltd. (AVIC Lithium Battery Luoyang), and Fuzhou Dynamic Auto Sales & Service Co., Ltd. (an automobile seller independent of the company) relating to the intellectual property infringement claim (case) relating to “power battery packaging components” (201320059664.6) (the patent involved in this lawsuit).

The case was tried by the Fujian High Court. The company received the first instance “Civil Judgment” (this judgment) issued by the Fujian High Court on October 16, 2024. The main contents are as follows:

1. On the date of entry into force of this judgment, China Aviation Lithium Battery Luoyang and Company shall immediately stop carrying out acts that infringe on the utility model patent rights of the Ningde Era Patent No. ZL201320059664.6, that is, stop selling or selling the infringing patented products manufactured by Rendeh Times until July 18, 2022;

2. China Aviation Lithium Battery Luoyang and Company shall jointly indemnify the Ningde era for economic losses of RMB 58.051 million and reasonable expenses of RMB 500,000 to stop infringement within 15 days from the effective date of this judgment;

3. Reject other lawsuits from the Ningde era.

The processing fee for this case was RMB 694,300, with Ningde Times paying RMB 260,000; AVIC Lithium Luoyang and the company jointly covered RMB 432,300; and Fuzhou Dynamic Auto Sales & Service Co., Ltd. paid RMB 2,000.

Technological progress and product iteration in the field of power batteries are rapid, and the company's products use more advanced technology and structural design. Furthermore, the patent involved expired on February 1, 2023, and there is no situation mentioned in this judgment that there is a need to immediately stop sales or promise to sell the patented products involved in this lawsuit. This judgment is a first instance judgment of the Fujian High Court. It is not a final judgment. The amount of compensation mentioned above is an amount jointly borne by the company and AVIC Lithium Battery Luoyang, and there is currently no need to pay. This judgment will not adversely affect the company's production and operation.

The company will appeal the first instance ruling to the Supreme People's Court during the appeal period.