Tier Two Sub-Component Utility Model Patent Verification before Coastal Exit Clearance
Verify tier-two utility model patents via CNIPA and GACC databases before export clearance to prevent customs detention and demurrage losses.
PRC Civil Code Article 1168
Meaning
Statutory provisions in Chinese civil law establish that parties who jointly commit a tortious act must bear joint and several liability for the resulting damages. The PRC Civil Code Article 1168 is applied in intellectual property disputes where multiple entities cooperate to manufacture or distribute infringing products. It allows the injured party to seek full compensation from any of the involved parties, regardless of their individual share of the fault.
Joint Liability
Under this provision, a claimant does not need to prove the exact contribution of each defendant to the infringement to recover its losses. The PRC Civil Code Article 1168 holds all joint tortfeasors responsible for the entire amount of the damage caused by their collective action. This means that a component supplier can be held liable for the infringement of the finished product if it cooperated with the assembler.
This creates a strong incentive for companies to verify the intellectual property status of the entire supply chain.
Factory Application
Manufacturing facilities in China must exercise caution when producing goods under contract for third-party brands or sourcing parts from unlicensed suppliers. The application of PRC Civil Code Article 1168 means that a factory cannot escape liability by claiming it was simply following a client’s instructions. If the factory knew or should have known that the product infringed a patent, it can be held jointly liable with the client.
This makes intellectual property screening and contract indemnification clauses essential for contract manufacturers.
Legal Remedy
Rights holders use this article to maximize their chances of recovering damages by targeting the most financially stable entity in the supply chain. The PRC Civil Code Article 1168 allows the patentee to collect the full judgement amount from the manufacturer, who must then seek contribution from its co-defendants. This shift in the burden of recovery protects the rights holder from the insolvency or disappearance of smaller distributors.
It ensures that the victim of the infringement receives the awarded compensation.