For the coming “618” shopping festival, what are you going to buy? The air conditioner is on most people’s shopping list, waiting to be paid. Enterprises pulled themselves together, hoping to achieve as much as to share in the market.
Unexpectedly, the competition of air conditioner in the domestic market has reached to an intense and fierce condition.
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GREE VS AUX
The furious fight between GREE and AUX
10 June, AUX was reported by GREE in real name to the official Weibo accounts, China Market Regulation, and National Development and Reform Commission, on account of “unqualified” air conditioners.
AUX: Hey bro, you are really pulling me down, aren’t you? AUX made a response in Weibo immediately, accusing GREE of the inveracious report, which was a vicious mean for competition and AUX would take legal action to protect rights from the judicial authority. GREE: Calm down man. I got the right to report and of course, you have the right to call the police. AUX: Sir, GREE is a liar. I sell qualified products. GREE you liar! GREE: Take it easy. I have reported to local market regulation in Hunan, Hubei, Henan, Guangdong, and other provinces. You’ll see.
GREE VS AUX——Public announcement from official Weibo 2 The secret of the fight between GREE and AUX
Actually, GREE and AUX have been years of “friends in business”.
In August 2015, GREE accused AUX of infringing 3 patents of a series of air conditioner products. Though AUX was not convinced and instituted an appeal, the final instance from Guangdong Higher People’s Court decided that the infringement is available and AUX should withdraw all air conditioner products related to infringement and compensate GREE for 2,300,000 RMB.
© Image | CCTV
In June 2017, GREE has accused AUX of the infringing patent of the Athena series products published by GREE.
In November 2017, GREE has accused AUX of infringing at least 3 patents, water container integration, double air flue, and the indoor unit, related to more than 10 products which produced, sold and used permitted by the third party. The final instance decided that the infringement is available and AUX should compensate GREE for 46,000,000 RMB, which was the highest record of compensation price in patent lawsuits. Information source: data cable&Tianyancha COCO: enterprise should apply for a patent for utility model. In accordance with the regulation of 56 in Patent Law, compensation amount = actual lost + expenditure of rights protection Regulation 20 in relevant provisions about legal questions of patent disputes from Supreme People’s Court stipulates compensation amount=market sales volume of infringed products*profit of single product+expenditure of rights protection.
A patent for a utility model is worth a lot. With the penalty of 46,000,000 RMB and relevant products was banned, the defendant bears more lost. Area chart Information source: national intellectual property administration, PRC 3 The patent war behind GREE and AUX
The lawsuit itself is an act from enterprises, but it is a big step for intellectual property protection.
© Image | Google
From the cases between GREE and AUX, we can realize that, with the update of consumer, electrical appliance enterprises start paying attention to the value and innovation of products and technology research and development, and that the competition level is improved from price, marketing and channel to technology and patent. The patent is becoming a powerful weapon for enterprises to fight.
The principal reason for GREE’s success in the fight with AUX owed to its solid core technology and unique patent.
At present, the China air conditioner market appears “three magnates”, GREE, Midea, and AUX, and this situation has lasted for years. The data shows that in 2018, AUX was the top sales in online air conditioner market; however, it only took 3.8% marker shares offline while CREE owned 37.6% of the total. Information source: ChinaIOL.com, Everbright Securities At present, it is difficult for AUX to replace the position of GREE in air conditioner market and hard to keep achieving increase by lowing products price. After all, innovation in technology and products is the key to develop enterprises and AUX is relatively week in innovation. Any questions, please contact us! Coco 📲 178 4699 7168 ▼
