[Direct answer]In the Beijing area, utility model patents are not considered "of low value". They belong to the types of patents stipulated in Article 2, Paragraph 3 of the Patent Law of the People's Republic of China (amended on October 17, 2020 and implemented on June 1, 2021), which protect new technical solutions for the shape, structure, or combination of products, with a protection period of ten years (Article 42). They can be authorized after a preliminary review. Their value depends on the quality of the technical solutions and the level of drafting the claims. For infringement compensation, Article 71 stipulates that it shall be calculated based on the rights holder's losses, the infringer's profits, or the royalty fees. For intentional infringement with serious circumstances, punitive damages of one to five times may be imposed. For cases where compensation is difficult to calculate, statutory compensation of no less than 30,000 yuan and no more than 5 million yuan shall apply. Enterprises are advised to combine utility models and inventions in their layout, and conduct stability assessments before protecting their rights. For more details, please refer to the official document.Intellectual property protection and corporate legal services.

I. Problem Background and Typical Scenarios

Utility models are often referred to as "minor patents", and inventors and companies generally worry that they are not valuable: investors question their technical content during financing roadshows, they lose points in bidding because they are not invention patents, and when defending their rights, the other party applies for invalidation on the grounds of "poor stability". Some companies have also been listed in the investigation of abnormal applications for filing a large number of low-quality patents. Typical situations include: product structure improvements can only proceed through utility models (method-based solutions cannot be applied for); applying for both invention and utility models on the same day to seize the priority of the application date; forgetting to pay the annual fee after authorization, resulting in the loss of rights. In Beijing, companies in fields such as smart hardware, new energy equipment, and medical devices often use utility models to quickly secure rights, and then gradually replace them with invention patents to form a combination of protection. Patent layout and R&D compliance can also be combined with each other.Business and contract dispute services for enterprisesCoordinate and arrange everything in an organized manner.

II. Key points of contention

The controversy over utility models focuses on three points. Firstly, the trade-off between stability and speed: authorization without substantive review is fast, but the risk of invalidation is high. In infringement lawsuits, defendants often initiate invalidation declarations simultaneously, and the court may suspend the trial, requiring plaintiffs to complete searches and stability assessments in advance. Secondly, the boundaries of protection objects: only the shape, structure, or combination of a product can be applied for a utility model, while material formulas, production methods, and software algorithms are not included. Claims that are too broad are prone to invalidation, while those that are too narrow are easily circumvented. Thirdly, the burden of proof for compensation: it's difficult to prove the plaintiff's losses and the infringer's profits. In practice, courts often turn to royalty multiples or statutory compensation. At this point, the patent evaluation report, sales data, and infringement comparison opinions are key. Additionally, those who counterfeit others' patents under serious circumstances may face criminal risks, which can be referred to for reference.Criminal defense and criminal case filing servicesEvaluate the border.

III. Professional analysis by Henglue Law Firm

Based on practical observations in handling intellectual property disputes, the value of utility model cases lies in the preparation of application documents and evidence. Henglue Lawyers usually recommend: completing a prior art search and patentability assessment before applying to avoid mistakenly including methodological and functional content in the utility model; applying for both invention and utility model patents on the same day for core products to quickly secure rights to the utility model; conducting stability assessments on key patents after granting and obtaining a patent evaluation report before litigation to reduce the risk of procedural suspension. In terms of protecting rights, first obtain fixed infringement evidence through notarization and complete infringement comparisons, then choose administrative complaints or litigation: administrative handling is quick but does not include compensation, while litigation can claim compensation and reasonable expenses simultaneously. When calculating compensation, priority should be given to fixing the other party's profit evidence, such as sales volume, selling price, financial reports, or e-commerce platform data. For disputes involving sales contracts and licensing terms, follow-up actions can be taken accordingly.Business and contract dispute services for enterprises；胜诉后对方拒不履行的，可通过Creditor-debtor relations and enforcement case servicesAdvance the enforcement process.

IV. Practical suggestions and legal basis

The core basis is the Patent Law of the People's Republic of China (amended on October 17, 2020 and implemented on June 1, 2021): Article 2, Paragraph 3 (definition of utility model); Article 40 (authorization after preliminary review); Article 42 (protection period of ten years, calculated from the date of application); Article 71 (order of compensation calculation, punitive damages of one to five times, statutory compensation of 30,000 to 5 million yuan); In infringement litigation, the court may require the patentee to provide a patent evaluation report in accordance with the relevant provisions of the Patent Law. For foreign-related arrangements, it can also be combined with other relevant provisions.Financial capital and cross-border legal services involving foreign affairsHandle overseas applications and licenses. Practical advice: Conduct a search when initiating R&D projects, and keep experimental records and drawings; arrange the claims in a hierarchical manner when applying for patents; pay annual fees on time after obtaining authorization and monitor competitor products; if infringement is detected, first obtain evidence through notarization and send a warning letter, then decide whether to file a complaint or initiate legal action; when claiming compensation, prepare evidence of losses, profits, and licensing fees.

5. Henglu Law Firm's Reminder

A utility model patent is not an "inferior" patent. The quick granting of authorization is itself a systemic advantage. What truly reduces its value are applications that lack technical contributions. Enterprises should pay annual fees on time. Although there are recovery procedures for overdue payments, they still need to pay the fees and provide justifications. Licensing, transfer, and pledge financing can all monetize patents, with the evaluation report and contract terms determining their value. Be cautious of claims such as "guaranteed authorization" and "ensured authorization". The quality of an agent should be judged by their writing skills rather than verbal promises. If you discover infringement, pay attention to the three-year statute of limitations (Article 188 of the Civil Code of the People's Republic of China, implemented on January 1, 2021). It's better to obtain evidence through notarization as soon as possible. If you need to evaluate the stability of a patent or develop a protection plan, you can refer to the following resources for guidance:Special services and other case servicesObtain cross-team support.

VI. Frequently Asked Questions

Q1: Is there a high chance of winning a lawsuit against someone for infringement using a utility model patent?

The likelihood of winning a lawsuit depends on three factors: patent stability, the conclusion of the infringement comparison, and evidence of compensation. Utility models that have not undergone substantive review are likely to be invalidated by the defendant. If the claims cover existing technologies, they may be invalidated entirely, leading to a failure of rights protection. Therefore, before suing, it is necessary to conduct a search and stability assessment and obtain a patent rights evaluation report. If the infringement facts are clear and the claims are valid, the court will usually support the cessation of infringement and reasonable compensation. No one can guarantee the outcome in advance. An objective assessment is more reliable than verbal promises.

Q2: If you claim that a utility model patent has been infringed, what evidence do you need to prepare?

The core evidence includes: patent certificates and annual fee payment receipts (to prove the validity of the rights), patent evaluation reports (to prove stability), physical samples or photos of the products under complaint, notarized purchase records, infringement comparison analyses (to demonstrate that the products fall within the scope of protection of the patent claims), evidence of the defendant's sales volume and selling prices (for calculating damages), and records of exchanges of warning letters. The organization of the evidence revolves around the four steps of "validity of rights - infringement by the defendant - falling within the scope of protection - amount of damages", and the completeness of the materials directly determines the amount of compensation.

Q3: How much does it cost to protect a utility model patent?

There are three main costs: First, litigation fees, which are calculated according to the amount of the claim and accumulated in stages, and shall be borne by the losing party, in accordance with the "Measures for the Payment of Litigation Costs" (implemented on April 1, 2007); Second, if the defendant initiates a request for invalidation, they will need to bear the official fees and agency fees for the rights confirmation procedure; Third, attorney fees, which are usually charged on a contingency basis or as a percentage of the claim amount, subject to the terms of the contract. In the event of a victory, reasonable expenses (including some attorney fees and notarization fees) can be claimed simultaneously. It is recommended to first assess the expected compensation and costs, and then determine the scale of legal protection.

Q4: How long does it take from applying for a utility model patent to obtaining authorization and then defending against infringement?

Applications stage: Utility models implement a preliminary review system, and authorizations are typically granted within four to eight months, which is significantly faster than the two to three years required for invention patents. Defense stage: First-instance ordinary procedures are completed within six months, and simplified procedures within three months; if the defendant initiates an invalidation declaration, the rights protection process will take several additional months, and the case may be suspended, extending the overall timeframe. Overall, utility models are granted authorizations quickly, but the defense process takes a moderate amount of time. It is recommended to complete the application layout before the product is launched to reserve a time window for potential rights protection.

Q5: How should enterprises make good use of utility model patents?

Here are the four suggestions: 1. When developing a project, conduct a patent search to determine whether the innovation is suitable for an invention or a utility model. Method-based solutions can only be pursued as inventions. 2. For core structural innovations, file applications for both inventions and utility models on the same day to balance the speed of authorization and long-term protection. 3. After authorization, pay annual fees on time and conduct regular stability assessments to eliminate low-value patents. 4. If infringement is detected, promptly obtain evidence through notarization. You can first file an administrative complaint to quickly stop the infringement and then initiate litigation for compensation as needed. Those with the means can simultaneously apply for overseas patents to form an integrated protection network both domestically and abroad.

The above Q&A is mainly based on the judicial practice in the Beijing area. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit.Intellectual property protection legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.