Courts in Hangzhou, capital of East China’s Zhejiang province, have been working to leverage their judicial functions to promote the rule of law to boost confidence of companies both at home and from abroad through equal legal protection.

In one of the cases handled by Hangzhou courts, a manufacturer of medical instruments for sports from the United States, holding several patents in the field, discovered that a Hangzhou firm was using its patented technology without authorization. Consequently, the US company filed four lawsuits in the Hangzhou Intermediate People's Court, demanding cessation of the infringement and compensation for damages.

"The four cases all involved medical devices for sports injury rehabilitation, making the patent infringement analysis particularly challenging," said Li Yi, the presiding judge.

To accurately determine infringement and define liability, the Hangzhou court enlisted two technical investigators to assist in the analysis. After thorough examination, the collegial panel concluded that there was a high probability of infringement in this case.

With the technical hurdles cleared and the judgment framework established, Li saw an opportunity for collaboration between the companies. 

After numerous rounds of mediation, the two parties reached a settlement, agreeing to a "compensation plus subsequent patent licensing" cooperation model.

"Initially, we were unsure if the Chinese court would favor local companies, it turned out our concerns were unfounded. We received fair compensation, and established a partnership eventually," a representative of the US company said.

"Equal protection is a fundamental requirement for a first-class business environment. Impartial and fair adjudication is the basic tenet for judges handling cases involving intellectual property," said Wang Jiangqiao, chief judge of the Hangzhou Intellectual Property Tribunal.

During the annual session of the National People's Congress (NPC) in 2024, Liu Ting, an NPC deputy and head of the wellness business marketing department of the Panasonic Appliances (China) Co, highlighted the challenges foreign enterprises face in China, such as difficulties in cross-border or cross-regional litigation, high costs and lengthy process of litigation, which dampen their confidence in investing in China.

Liu called for equal protection of Chinese and foreign market entities, emphasizing the need to combat intellectual property infringements, protect innovation, and optimize judicial services for foreign-funded enterprises.

Shen Li, chief judge of the Hangzhou International Commercial Tribunal, said that Liu's concerns are also what the court has been focusing on. To address those challenges, the court developed a digital platform for resolving foreign-related commercial disputes, incorporating features like electronic service, online authorization and remote hearings.

In addition, Hangzhou courts have built an online mediation platform to help resolve foreign-related commercial disputes.

By the end of 2024, the online mediation platform had introduced 93 professional mediation institutions, including the Singapore International Mediation Centre and the Hong Kong International Mediation Centre, and over 1,400 mediators. The platform handled 262 foreign-related commercial cases, with a mediation success rate of 25.7 percent.

Liu, the NPC deputy, said that he had seen Hangzhou's achievements in optimizing the business environment. Hangzhou courts’ commitment to protecting the rights and interests of Chinese and foreign companies on an equal footing and their efforts to resolve corporate difficulties beyond the courtroom are vivid practices that will boost the confidence of more foreign investors and attract more high-end talents to settle in Hangzhou, Liu added.