A recent legal action has been taken by JinkoSolar, a Chinese Solar Module Manufacturer. It filed a claim regarding patent infringement against VSUN and Toyo, in the US district court. The claim is focused on its two Topcon patents, 11,824 and 11581454.
Both were granted in 2013 for solar cell manufacturing methods and photovoltaic modules. This issue depicts how important patents are as a key part of the innovation process, contributing to the sustainability of renewable energy.
This post covers information about the patent infringement case, completed with some additional insightful explanations and a deeper understanding of its impacts on the solar industry. Let’s take a look to gain valuable lessons.
The Basics of the Patent Dispute
According to the patent litigation lawyer Louise Lu, Jinkosolar has been struggling with significant investments in the global solar module. Holding leadership in the market, it will defend itself from any party who uses the product unauthorizedly.
What the Patent Infringement Claim Is About?
According to the infringement filing, the company stated that they have been suffering consequential and actual damages. However, they haven’t made sure of the total damages and the full context of the infringement.
It can only be done through a specific process involving accounting. JinkoSolar applied for an injunction to prevent the infringing products from both VSUN and Toyo from being sold.
How the Dispute Escalated?
The company has actively stepped up the defense of the Tunnel Oxide Passivated Contact (Topcon) through some legal actions. Jinko filed a lawsuit in December 2024 against two parties, Toyo and VSUN, and any related entities.
It alleges infringement of Topcon technology. Citing the massive amount of its issued patents, JinkoSolar highlighted its intention to safeguard its property, including 462 related patents to Topcon technology.
Key Details of the Lawsuit
The number of patent dispute cases has increased in recent years with the addition of Jinko’s patent infringement lawsuit. Let’s dig deeper into the claims from the company and its counterpart defense to get more valuable insight and take lessons from it.
JinkoSolar’s Claims and Evidence
Jinko stated that VSUN and all of its related entities located in the US have unauthorizedly used one of its patents. VSUN which is a part of Japan’s Fujisolar now received Jinko’s lawsuit in the US District Court, specifically in California.
The company claims that apart from the manufacturing sites located in Asia, it also owns a facility for panel assembly in Florida. That’s why it is considered one of the leaders in the panel industry.
The Chisene manufacturer gave the Topcon technology in January 2024 to some undisclosed solar module companies. These companies may license certain Topcon technologies with an undisclosed fee from Jinko.
Although at that time Jinkosolar stated its ownership of 330 Topcon technology, there were no additional details regarding the costs or specific products. Furthermore, the company explained that it was a win-to-win deal for both companies.
VSUN’s Response and Defense
VSUN is a PV manufacturer based in Japan. It is a vertically integrated manufacturer affiliating with Toyo, another PV manufacturer in Japan. In the meantime, there is still no public information available about VSUN’s response.
Concerning the Topcon technology issue, this company has not stated any legal filings or public statements against Jinkosolar’s lawsuit. However, it is common since legal proceeding cases generally publish only limited information in the early stage.
People are still waiting for up-to-date and accurate information regarding this issue. Monitoring both companies and court records to get their official communications can be a smart way to get valid information.
The Wider Implications of the Case
There might be some potential implications resulting from this case. It affects the future condition of the innovation in the solar industry as well as affecting both companies and customers. Therefore, cooperation with the best law firm is essential.
Potential Outcomes and Consequences for Innovation
In this case, the patent infringement lawsuit helps to strengthen IP protection to promote innovation. Companies will be encouraged to invest in technological developments and protect them with legal rights.
Furthermore, the companies may also prioritize the development of unique innovations to avoid legal risk. This may lead to breakthroughs in solar technology.
However, this case may also create fears for smaller companies to enter the market. They will limit themselves in terms of experimenting with new technologies due to the fear of legal issues.
How Patent Disputes Affect Companies and Consumers?
Some aspects can be affected by patent disputes. It can affect financial, reputation, and customer trust. Both customers and companies need to prepare for the best strategy with a trusted partner to deal with this challenge.
1. Financial
In a patent infringement case, the company that loses can end up with significant legal fees, monetary damages, and other kinds of financial issues. The cost resulting from these problems can be so high that it causes bankruptcy.
2. Reputation
The next thing impacted is reputational damages. Companies who are dealing with these dispute cases, especially those related to dishonesty or allegations will lose trust from the public.
3. Customer Loyalty and Investors
A negative image from the case can influence customers, business opportunities, and decrease the company’s revenue. The same thing applies to their investors. Along with the financial degradation, this really matters.
4. Injunctions and Market Entry
Additionally, after paying the damages, the court may ask the losing party to stop entering the market or sell the infringing products. Causing degradation in their income and also losing their reputable name.
The ongoing legal proceedings in the solar industry are potentially disrupting the market due to the enforcement of rights holders to enforce their patents. Seeing the progress of the disputes can be interesting to know whether or not there will be further litigation.
JinkoSolar and advanced companies have become more aware of the opportunities and risks in the market. Protecting their intellectual property using law firm services like Am Badar & Am Badar’s Patent Opposition can be a smart decision. Visit our insight page or contact us for more details!
References
- https://www.solarpowerworldonline.com/2024/12/jinko-files-topcon-patent-infringement-claim-against-toyo-vsun/
- https://www.prnewswire.com/news-releases/jinkosolar-files-patent-infringement-lawsuit-against-vsun-and-affiliates-302325428.html
- https://www.prnewswire.com/news-releases/jinkosolar-files-patent-infringement-lawsuit-against-vsun-and-affiliates-302325428.html
