Sub Assembly Mapping Strategies under PRC Patent Law
Mapping sub-assemblies against PRC patent claims separates component scope from combined assembly limitations to manage indirect liability and customs hold risks.
Joint Liability
Meaning
Legal obligation structures under Chinese civil law compel multiple tortfeasors to remain individually responsible for the entire sum of damages awarded to an injured party. Under the doctrine of joint liability, an injured business can seek full compensation from any of the participating infringers, regardless of their individual share of the fault. This mechanism ensures that the claimant can recover their losses even if some of the infringing parties are insolvent.
It functions as a powerful tool in complex commercial and intellectual property litigation.
Joint Infringement
Joint liability arises when multiple parties act with a common intent or contribute to the same injury. In manufacturing, this occurs when one supplier produces a counterfeit component and another company assembles the final product. Both are liable for the total damages.
Liability Apportionment
Although any party can be forced to pay the full judgment, the internal apportionment of liability depends on the relative fault of each participant. The party that paid more than its fair share retains a right of contribution against the other tortfeasors. This requires initiating a secondary lawsuit to recover the excess payment.
In practice, the primary infringer often bears the financial burden, while secondary actors like distributors pay smaller portions based on their actual contribution.
Recovery Action
Plaintiffs often target the wealthiest defendant to secure quick payment of the court award. This strategy makes larger, more established manufacturers vulnerable if they associate with unreliable suppliers. Implementing rigorous supplier audits and demanding indemnity clauses in procurement contracts helps mitigate this commercial risk.
Protecting the business from joint liability remains a priority for supply chain managers.