Note: Cybiotronics, a patent-holder and manufacturer of cordless telephone and caller identification products, filed a complaint against Golden Source Electronics, Ltd., a Hong Kong company, alleging that it had developed, manufactured and sold products embodying inventions claimed by the patents. The Hong Kong company moved for summary judgment, citing lack of infringement in the U.S. As a Hong Kong corporation, the Hong Kong company argued that it only did business in Hong Kong and China, that it never sold or offered to sell the accused products in the U.S., and that it is therefore not subject to the reach of U.S. patent laws. The patent holder, however, relied on the Hong Kong company's trade documents including bills of lading, invoices, and letters of credit involving U.S. corporations as evidence that it was the "importer" of accused products into the U.S and that it made offers to sell its products in the U.S. The U.S. District Court of California, Collins, J., granted the Hong Kong company's motions for summary judgment on an alternative basis, namely that the patent holder failed to produce evidence that the beneficiary had actual knowledge of the patents. Regarding the beneficiary's documents and LCs involving U.S. corporations, the court ruled that they do not indicate that the beneficiary made an offer to sell or actually imported goods into the U.S.


The views expressed in this Case Summary are those of the Institute of International Banking Law and Practice and not necessarily those of ICC or the other partners in DC-PRO.