Waiting for more than a year, Yang Zuoxing, the CEO of Shenzhen BitWei Technology Co., Ltd got a civil ruling, saying that Bitmain sued this company for infringement of patents is rejected.
The ruling of the Civil Judgment of the Urumqi Intermediate People’s Court in Xinjiang Uygur Autonomous Region showed that the plaintiff Beijing Bitmain Technology Co., Ltd., and Suan Feng Technology Co.’s appeal are rejected. If they disagree with this ruling, they can submit an appeal to the court within 10 days from the date of delivery of the ruling, and submit a copy in accordance with the number of the other party, and appeal to the Higher People’s Court of Xinjiang Uygur Autonomous Region.
On August 31, 2018, Yang and other defendants received the Ruling, which has overdue the appeal deadline. As of press time, they have not received any notice of continued appeal from Bitmain. Caijing.com.cn tried to contact Bitmain but got no reply.
The ruling of the Civil Judgment
In July 2017, Bitmain Technology Co., Ltd., and Suan Feng Technology Co. sued Shenzhen BitWei Technology Co., Ltd, and other three defendants, including Bitwei’s CEO Yang Zuoxing, New Special Energy Co., Ltd, Beijing Biranruci Technology Co., Ltd. for infringement of patents. Bitmain and Suan Feng have three requirements, first, the defendant should immediately stop manufacturing, using and selling the alleged infringing products; Second, the defendant should compensate the economic loss about 2.6 million RMB. Third, the defendant should jointly bear the appeal expenses about 80,000RMB
On July 27, 2017, Urumqi Intermediate People’s Court of Xinjiang Uygur Autonomous Region filed a case and heard the case.
The patent filed by Bitmain is called “serial power supply”, and is a basic technology frequently used by mining chip manufacturers. This patent was successfully applied by foreign technicians many years ago.
In 2013, Vasily, an engineer at Bitfury in Russia, read some patent documents on the series power supply and realized that chips can also be connected in a series of LED lights. Vasily was inspired to use the serial power supply concept for the first time on a version of the mining chip.
When Vasily visited “Fried Cat” in Shenzhen, he brought this idea to China and used the series power supply concept on the “Prisma Miner”. Prisma Miner was the first product to use the technology of series power supply for publicly sold products in China.
In the same year, Britmain’s S5 mining machine also adopted this technology and submitted a series power supply patent. Later, the defendants including Bitwei used this technology and were sued by Bitmain.
On April 8, 2018, the Patent Reexamination Board of the State Intellectual Property Office decided to review the invalidation request (№35537). A ruling was given in an instrument that Bitmain did not comply with the “creative” requirement shown in Article 32 of Article 23 of the Patent Law of the People’s Republic of China. Bitmain’s “series power supply ideas, virtual currency mining machines, and computer servers” patent was invalidated.
On April 12, 2018, the Patent Reexamination Board of the State Intellectual Property Office released a ruling, saying that Bitmain No.201520533250.1 new practical patents were all invalidated.
On August 31, 2018, the Civil Judgment of the Urumqi Intermediate People’s Court in Xinjiang Uygur Autonomous Region announced that Bitmain’s appeal is rejected, but could appeal to the court within 10 days.