Yong An Line suspended A shares IPO shared bicycle Achilles heel gradually disappeared

[Global Network Science and Technology reporter Wang Nan] Yong Anxing, which owns the reputation of sharing the first shares in bicycles, was sued for patent issues and suspended its IPO distribution plan.

On the morning of May 5th, Yongan Bank issued an announcement stating that the issuer had negotiated with the sponsor institution (lead underwriter) China International Capital Corporation Limited due to media issues raised by the issuer and decided to suspend the consideration of investors’ interests. Follow-up release work. The estimated issuance schedule disclosed in the original “Issuing Arrangement and Preliminary Inquiry” will be adjusted to suspend the online roadshow originally scheduled to be held on May 5, 2017. The sponsor China International Finance Corporation will seriously check the media to question the issues involved.

The spearhead of the “media questioning phenomenon” mentioned above points to the case of Gu Tailai’s v. Yong’an infringement.

On the evening of March 24, the information disclosed by the official website of the China Securities Regulatory Commission showed that Yongan Bicycles submitted an A-share IPO application and wanted to issue 24 million new shares in public, which accounted for 25% of its total share capital, and a denomination of 1 yuan per share on the Shanghai Stock Exchange. Listed, planned financing of 598 million yuan for project construction. In April, Yong'an Bank’s IPO was approved by the China Securities Regulatory Commission and the industry called it “the first share of shared bicycles”. On April 18, Gu Tailai, the patent holder of the “Bicycle Leasing Operation System without Fixed Points for Restitution,” and approaching the court with the infringement of his invention patent rights. Gu Tailai is the first group of national "thousand person plan" experts and founder of Jiangsu Xianlian Information.

Gu Tailai believes that the technology used in the YongAn line prospectus has infringed on the patent of its "bicycle rental operating system without a fixed point of return and its method." (Patent Application No..8). At present, Nanjing Intermediate People’s Court has accepted the case. In addition, Gu Tailai even reported to the Central Commission for Discipline Inspection on the real name of the China Securities Regulatory Commission’s issuance department, requesting the suspension or suspension of the Yongan Bank’s initial public offering of shares.

On May 4th, Yongan issued a statement in an official statement that the patent involved in the lawsuit and its related businesses were different in terms of technical solutions, functions, methods, etc. Yongan Bank did not infringe the patents involved. At the same time, since the contribution of the patent-related business to its overall operating income was extremely low, it accounted for less than 1% of the total in 2016. Therefore, the business in this litigation does not have a material adverse effect on its business activities. Yong Anxing also stated in the statement that the large amount of information contained in the report letter was seriously inaccurate, and exaggerated the facts, misrepresented relevant laws and regulations, and deliberately misled the public.

Coincidentally, apart from Yong'an Bank, Mobike's bicycles were also caught up in the vortex of two patent disputes.

On March 7 th , Thionine Technology sued Mobye for a case concerning the infringement of patent rights for remote unlocking and was placed on record by the Beijing Intellectual Property Court and the Beijing Intellectual Property Office. The two patents that Tingyun Technology filed for infringement disputes were "Internet Access Temporary User Authorization Device and Method" and "Network Access Identity Identification System and Method".

Cheng Yue, the co-founder of Purkinyan Technology, said in an interview with the media that many companies have infringed on the patent rights of purine cloud technology and hope that through this case other companies that are infringing will be alerted to stop the infringement. If this wins, it will not rule out the next class action against other infringement enterprises.

In addition, according to media reports, at the end of April, the Shanghai Intellectual Property Court had accepted the case of Hu Tao v. Mobis infringing the invention patent right dispute. Hu Tao stated that on June 29, 2013, he applied to the State Intellectual Property Office for an invention patent for “an electric vehicle control system and its operating methods” and was authorized on May 4, 2016. Mobike manufactures, sells, and leases Mobike bicycles. Its technical characteristics have fallen within the protection scope of the plaintiff's patent rights. It has requested that the defendant stop the relevant infringement and compensate the economic loss of RMB 620,000.

"Technology card" has always been regarded as the core weapon in the bicycle sharing battle. While the industry is in full swing, patent disputes are frequent. Some analysts believe that if a science and technology industry that is sought after by capital enthusiasm grows at a high speed, if it does not clarify the historical issues of intellectual property rights, patent disputes will become its Achilles heel.

Tai Yang, a lawyer of Tai He Tai (Beijing) Law Firm, said that the incident of the defendant in the Yong'an line not only had a certain impact on the IPO of Yong'an Bank, but also had a great impact on the entire shared bicycle industry. At present, the patents involved in sharing bicycle locks are relatively narrow, including smart locks, positioning modules and other technologies, so they can be easily copied. It is best for startup companies to research and apply for patents on their own to prevent them from being passive. If you do not have a patent, you can only use cooperative channels or purchase rights.

"Not only Yongan Bank, Mobi, Ofo, Xiaolan Bike, Youbai Bicycle and so on are likely to infringe on the patent in the product. Once the Yongan line loses, other shared bicycle companies can not escape patent litigation or patent compensation." Say.

The core business of Yongan Bank lies in public bicycles. The earliest and only adopting the no-pillar model are Mobi and theo. Mobike began to apply for a patent in June 2015, involving technologies such as “bicycle management system and its control device”, “anti-theft lock”, and “transmission lever transmission”. The ofo started to apply for a patent in March 2016. It was granted two patents on the utility model and appearance of the smart lock.

There are industry analysts, Yongan line today, is likely to be the future of Mobai and ofo.

Although the current shared bike market may still be a contest for capital, but as more and more patent litigations appear to remind many innovative entrepreneurs and investors, the leading shared bike companies are bound to pay more attention to technology. The protection of innovation and patent applications, therefore, when companies enter a new industry, it is even more necessary to strengthen the protection of intellectual property rights.

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