Photo: Fulbright

Chinese medical device maker Fulbright Medical Inc.’s plans to list on the Shanghai Stock Exchange (SSE) have been thwarted due to extensive patent litigation. The company's IPO application, which was accepted on June 30, 2023, has now been officially terminated, as announced by the SSE on August 23.

Fulbright’s IPO process was significantly hindered by ongoing patent disputes with Johnson & Johnson. These legal challenges were revealed in the company's first-round inquiry response, completed in January 2024.

The legal troubles began in September 2019, when Johnson & Johnson subsidiaries Ethicon and Johnson & Johnson Shanghai filed four patent infringement lawsuits with the Shanghai Intellectual Property Court. These cases targeted Fulbright’s disposable endoscopic staplers and reload cartridges, with claims totaling nearly RMB 100 million.

Notably, Johnson & Johnson accused Fulbright of infringing on patents ZL200680035337.X and ZL200810131706.6, seeking RMB 35.21 million in each case. For ZL200680035337.X, the court ruled against Fulbright, awarding RMB 5.6 million in damages, a decision upheld by the Supreme People’s Court. In the case involving ZL200810131706.6, however, an initial ruling of infringement was overturned on appeal after the patent was invalidated.

Fulbright also faced mixed outcomes in other related cases. In one instance, the company successfully defended itself, which led Johnson & Johnson to withdraw its appeal. Another case, concerning a claim of RMB 28.16 million related to patent ZL200610126469.5, is currently under appeal after a favorable first-instance ruling for Fulbright.

As Fulbright pursued its IPO, new legal challenges emerged. In August 2023, Cilag GmbH International and Johnson & Johnson Shanghai filed three additional patent infringement lawsuits with the Nanjing Intermediate People’s Court. These lawsuits accused Fulbright’s DSML and DSMM series products of infringing three separate patents, initially demanding RMB 5 million in damages per case. By March 2024, the claim in one case was increased to RMB 16.62 million, and further raised to RMB 53.9 million by June 2024, adding to Fulbright’s legal and financial burdens.

Beyond China, Johnson & Johnson has also targeted Fulbright internationally. In 2018, Johnson & Johnson sued Fulbright in the Netherlands for copyright infringement and product imitation. The Rotterdam Court ruled against Fulbright, and this decision was upheld by the Hague Court of Appeal in 2022. Fulbright settled with Johnson & Johnson Netherlands by paying compensation in June 2023.

Additionally, Johnson & Johnson has filed a lawsuit against Fulbright’s Brazilian client, Scitech, for patent infringement. Although Fulbright is not directly involved in this case, its manufacturing role continues to attract scrutiny.