TAIPEI, Taiwan - EZconn Corporation recently defeated a patent challenge brought by PCT International, Inc., a former customer with whom EZconn has done no business since March 2014. In an April 2019 press release, PCT noted that it had filed an action with the Taiwan Intellectual Property Office to cancel EZconn’s Patent No. M416249, which PCT claimed "copied the significant features and claims of a prior PCT patent" and was "based on the misuse of PCT’s trade secrets." In a recent decision, the TIPO upheld EZconn's patent and dismissed PCT's invalidation action.
PCT has been in bankruptcy proceedings in the United States since November 2019. PCT's debts to EZconn arise from prior lawsuits in which PCT alleged that EZconn copied PCT's technology and misused PCT's confidential information.
After reviewing PCT's allegations and evidence, the court not only entered judgment for EZconn but also awarded EZconn’s attorneys’ fees incurred to defend against PCT’s claims, which the court held lacked merit and were not tenable. The court also awarded more than US $9.4 million to EZconn for product that PCT had ordered and accepted but did not pay for. EZconn’s judgments were upheld on appeal.
Allen Chuang, spokesperson and CFO of EZconn, said, "PCT's patent invalidation action was just another baseless effort to falsely accuse EZconn and deflect attention from PCT's self-imposed business failures. We are gratified that the Taiwan Intellectual Property Office sustained the validity of EZconn's patent and rejected PCT's arguments, just as the United States court rejected them. Rather than squandering resources on relitigating meritless allegations against EZconn, PCT should focus on turning its business around and paying its creditors."
