Camangi Corporation

Case:

Key Words:

web call, infringement of the patent right, warning letter

Reference:

Fair Trade Commission Decision of July 12, 2007 (the 818th Commissioners' Meeting)（no disposition）

Industry:

Telephones and Cellular Phones Manufacturing (2721)

Relevant Laws:

Article 19 , 22 , 24 and 45 of the Fair Trade Law

Summary:

1. The complainant of this case was a web-call provider, which supplied web-call software and hardware to terminal servers or dealers. The complained, Camangi Corporation, was also a web-call provider. The complained did not go through the procedures regarding patent infringements – the procedure was that the complained must seek the judgment of the court of the first instance to decide whether the patent rights at issue are infringed, submitted the materials to the professional institute to assess whether there was an infringement and confirm such an infringement, and stated clearly the content and scope of the patent rights and facts which were specific to the infringement. Unexpectedly, through publishing announcement on newspapers, notifying by telephone calls and issuing warning letters to the trading counterparts of the complainant from November to December 2006, the complained indicated that the complainant's sales or use of its web call products infringed the complained's patent rights. It requested the complainant to cease to sell and stop the use the products in case. It also indicated on its initiative that the complainant should negotiate with the complained about the matters, cooperation, authorization (on its use or sale), and purchasing of related products. It was accused that the complained affected the trade order and caused unfair competition.
2. Findings of FTC after investigation: The complained was the patent right holder of the Intellectual Property Office No. I250771. From November to December 2006, it notified, by telephone calls, SYSAGE Technology Co., Ltd. and the Taipei City Government – both of them were suspected of being involved in selling or using the infringement patent in this case. The contents of the telephone calls were aimed at stating clearly that the web call products that were sold or used by the receivers infringed the patent rights of the complained and the complained kindly requested the receivers to cease their acts. It was further found that the announcement to the industry published by the complained in the Economic Daily News on November 30, 2006 firstly disclosed the patent rights number and patent name, followed by a statement that the internet call service procedure sold by the related internet communication enterprises in the commercial sector might be infringing the above mentioned rights; and it finally called upon the public that they should identify whether the products were legally authorized by the original equipment manufacturers prior to the use of the products. A comprehensive analysis was made on the content of the whole text, and it was determined that the text did not specify the matter that certain competitors infringed the patent rights of the complained. It was finally found that the complaint email letter that was sent to the Taipei City mayor's mailbox on December 4, 2006, and the legal attest letter that was mailed to SYSAGE Technology Co., Ltd. on December 5, 2006 – both of the email and letter contained the extracted content of the aforesaid notice to the industry – were all aimed at notifying the persons who were suspected of being involved in the infringement and requesting their cessation of infringement.
3. Grounds for non-disposition: In accordance with the findings of FTC after investigation, the telephone calls made, announcement and notice published and letter issued by the complained were aimed at the cessation of infringement of the patent rights caused to the complained through the receivers' acts of sales and use, they did not state clearly that other specific competitors other than the receivers did infringe the patent rights of the complained. The FTC found that the contents made in the telephone calls, announcement, notice and letter were the patent holder's notifications of cessation of infringement against the acts of the sellers and users in accordance with the patent laws and regulations. Furthermore, the complained had commissioned a thirty party to assess whether there was an infringement of patent rights before the announcement and notice on November 30, 2006 was published and the warning letter on infringement of patent rights to SYSAGE Technology Co., Ltd. on December 5, 2006 was issued. The result of the assessment was that the website of SYSAGE Technology Co., Ltd. was substantially identical to the legal scope of the patent held by the complained. Therefore, the complained's exercise of its patent rights were proper and were in accordance with the Patent Law and in accordance with Article 45 of the Fair Trade Law. No provisions of the Fair Trade Law shall apply. It would be, as a matter of course, difficult to find the complained a violation of Articles 19(i) and (iii), 22 and 24 of the Fair Trade Law.

Appendix:
Camangi Corporation's Uniform Invoice Number: 13133377

Summarized by Yeh, Su-yen; supervised by Liou, Chi-jung