Behind Gly VS Oaks: Patent Infringement Initiates Market Share Competition

 Behind Gly VS Oaks: Patent Infringement Initiates Market Share Competition

Mutual results are reflected in the market reaction: the closing price of Gree Electric Appliances on June 13 was 51.27 yuan per share, down 2.86% from the previous day; the closing price of Oaks was HK$0.68 per share, up 3.03% from the opening price on June 10, but still in decline compared with the opening price on June 10.

On June 13, lawyers Yin Qingli and Zhang Xinnian, after analysing from the legal level, said to upstream journalists that if Oakes air conditioner does exist the crime of selling substandard products or will be suspected of selling fake and inferior products; if Gree Electric Appliances report falsely, it is suspected of damaging commercial reputation and reputation of goods.

According to the report, many consumers have previously reported to Gree Electric Appliances that Ox Air Conditioner is cheap but consumes a lot of electricity. According to the laboratory test of Gree Company, there is a big gap between some models of Ox Air Conditioner products and their publicity and nominal energy efficiency. Our company entrusted a third party with professional qualifications to test and verify that the test results are consistent with our conclusions, energy efficiency ratio and refrigeration consumption power test conclusions are not qualified.

On the afternoon of June 11, Gree Electric received some media at Zhuhai Headquarters. Staff are also on-site open-box testing of Ox air conditioning energy efficiency. In the field test, the energy efficiency of many air conditioners tested is lower than the national stipulated value.

Dong Mingzhu said, Never tell me about Ox air conditioning. Our sales, installation every day, are more than 78,000 sets. From the number of installations, we think that the operation of Gree Electric is very optimistic. Second, why not let the Tiaux air conditioner, its worse than beauty. Beauty used to dig people here, but now its not digging. Now Oaks Air Conditioner digs everyday in my place, even the workers dig, and even my people go to his place to change their names. This is my current mood, stealing our technology, and cheating.

Statistics show that the average sales price in 2018 is about 1,000 yuan lower than that of Oakes Air Conditioner.

Oaks Air Conditioning: Doubts about Playing the National Righteousness Brand

In the 1980s, Mao Sui of Zheng Jianjiang sponsored the Longguan Watch Parts Factory, which was on the verge of bankruptcy, and Aux Air Conditioning started. At present, Ox Group covers household appliances, power equipment, medical, real estate, financial investment and other fields, ranking among the top 500 Chinese enterprises for many years.

In 2015, the barbaric expansion of Ox air conditioning attracted the attention of Gree Electric Appliances. Dong Mingzhu, chairman of Gree Electric Appliances, criticized him on different occasions.

Upstream journalists found that the reported Ox air conditioner has eight models, of which KFR-25GW/NFW3 and KFR-35GW/NFW3 are popular products. In 2018, online retail sales reached 1.671 billion yuan, with sales of nearly one million sets.

For the media-oriented open-box inspection of Gree Electrical Appliances, on June 12, Ox Air Conditioner published the laboratory accreditation certificate of China National Accreditation Committee for Qualification Assessment on Weibo, involving the energy efficiency label certificate of eight products reported by Gree Electrical Appliances, in order to show their innocence.

Oakes Air Conditioner said that all products were tested and submitted testing reports and other materials to the Energy Efficiency Marking Management Center for record. Ox Air Conditioner also said that in order to alleviate consumersdoubts, Ox Air Conditioner has asked the State Administration of Market Supervision to appoint an authoritative testing agency to supervise and test Ox products, and the testing report will be released to the public in time.

In an interview with local media in Zhejiang, Ox Air Conditioner questioned that Gree Electrical Appliances should fight directly against local enterprises: National brands should join hands with foreign countries, Gree Electrical Appliances should fight directly against local enterprises, regardless of national justice, regardless of the overall situation of the country.

But this remark has played a counter-productive role, a large number of netizens do not buy and questioned, People are talking about product quality, but you use national justice to prevaricate, a little guilty.

Statistics show that off-line market Gree air conditioning is still the king, Oaks and its gap is very large.

Patent infringement battle or fuse

Upstream journalists also noted that in addition to Oaks air conditioning, its online and offline sellers were also included in the scope of the defendant.

According to the latest civil ruling No. 135 issued by the Beijing Higher Peoples Court (2018) on June 12, in 2018, Gree Electrical Appliances sued the Ox Air Conditioner and its distributors for infringing on its new utility exclusive rights. Gree Electric claims that it has a patent for the invention named evaporator, while the corresponding technology recorded by Ox Air Conditioner is basically the same as that of Gree Electric. The Court of First Instance ruled that Ox Air Conditioner had committed infringement. Oaks Air Conditioner appealed to the Beijing Higher Peoples Court because of doubts about jurisdiction, and finally the appeal application was rejected.

Oakes Air Conditioners suit against Gree Electric is not going well. According to the judgment of Ningbo Intermediate Peoples Court on July 12, 2018, Gree Electric Appliances Co., Ltd. manufactured and sold GFR-35GW/(35573) FNAa-A1 Gray Electric Appliances Painting Age air-conditioning, which violated the patent of the utility model of Ox air-conditioning named Motor Steering and Installation Seat and the patent number ZL2015 20143902.0. It was decided that Gree Electric Appliances Co. immediately stopped manufacturing, selling and permitting. Novo sells infringed products and destroys stock infringed products, and compensates Ox for economic losses of 10 million yuan. Subsequently, however, Gree Electric Appliances filed a partial patent invalidation application with the Patent Re-examination Board of the State Intellectual Property Office. On January 4, this year, the Patent Re-examination Board issued a letter agreeing to the invalid application of Gree Electric Appliances.

Upstream journalists noted that in recent years, the contradiction between Gree Electric Appliances and Oaks Air Conditioning is mostly related to patents.

Enterprise survey data show that the number of patents for Gree Electric Air Conditioner has exceeded 50,000, and only the number of patents authorized is as high as 29,366. Although the number of patents for Oxford Air Conditioner has increased rapidly in recent two years, there is still a big gap compared with Gree Electric Appliances. Industry insiders believe that the number of patent applications per year averages more than 5,000 Gree appliances, which occupies an absolute advantage in patent-related litigation.

Market statistics show that Ox is the king of the online market, far ahead of the duopoly of Gree and America. ?

According to Oviyun. com data, the average price of online channel of Oxford Air Conditioner is 2702 yuan per unit in the first 31 weeks of 2018, which is lower than the average price of Gree Electrical Appliances (3820 yuan per unit), Haier (3161 yuan per unit) and Mei (3104 yuan per unit), and also lower than the average price of 2801 yuan per unit of Haixin and the overall average price of 2960 yuan per unit of online channel in the industry. Off-line channel, Ox air conditioner 3168 yuan per unit average price, also lower than the overall market average price of off-line channel 3785 yuan per unit in the same period.

In the first quarter of 2019, there is still a big gap between the price of Oxford Air-conditioner and the leading Gree Electrical Appliances in the industry. The data show that the average price of Gree Electric Air Conditioning Line is 4365 yuan per unit, while the average price of Ox Air Conditioning Line is only 3005 yuan per unit.

Industry insiders analysis, with more and more audiences in the online market, Ox air conditioning in the overall air conditioning market has posed a threat to Gree Electric.

Under the influence of the real estate cycle and the high sales base in the pre-air conditioning period, the growth rate of air conditioning industry has declined quarterly since 2018. According to the data of the National Information Center, the retail air-conditioning sales volume in the domestic market in 2018 was 65.53 million units, up 16.56% year on year, but the growth rate slowed down. Ovi Cloud Statistics, in 2019, air-conditioning industry market sales may continue to decline. Industry insiders said that in the air conditioning industry inventory overcapacity situation, in 2019 or will usher in the air conditioning industry shuffle.

On June 11, China Golden Corporation released the Research Report of Gree Electrical Appliances Looking at the Current Air Conditioning Market Pattern from Reporting Ox Air Conditioning, which shows that the sales of Ox Air Conditioning Line are booming, which has threatened the duopoly pattern of Gree Electrical Appliances and America in the air conditioning industry. In addition, the weak market demand has led Gree Electric to pay more attention to Ox air conditioning. But this also reflects the poor sales situation of the air-conditioning industry.

Lawyer Analysis: Legal Relations Behind Reporting

Yin Qingli, a well-known lawyer, said that if there is a real inconsistency between the energy efficiency ratio and the refrigeration consumption power labeled in the Ox air conditioning system, that is, the product quality does not meet the product standard of packaging label, that is, the product is not qualified, penalties should be imposed according to Article 50 of the Product Quality Law - ordering the production and sale to stop and confiscate the products illegally produced and sold. It shall also impose a fine of not less than 50% but not more than three times the value of goods illegally produced or sold; if the circumstances are serious, the business license shall be revoked; if the case constitutes a crime, criminal responsibility shall be investigated in accordance with the law.