Core Viewpoint - The patent dispute between CATL (宁德时代) and Zhongxin Innovation (中创新航) has seen a significant reversal, with the National Intellectual Property Administration declaring two of CATL's patents invalid [1][2]. Group 1: Patent Dispute Details - Zhongxin Innovation announced on August 3 that the National Intellectual Property Administration ruled two of CATL's patents, related to "lithium-ion batteries" and "positive electrode sheets and batteries," as invalid [1]. - Zhongxin Innovation filed for the invalidation of these patents in June of the previous year, stemming from ongoing patent disputes with CATL [1]. - Since July 2021, CATL has filed lawsuits against Zhongxin Innovation for infringing five patents, claiming a total of 647 million yuan in damages, including 108 million yuan for the two invalidated patents [1]. Group 2: Court Rulings and Appeals - In February of this year, the Fuzhou Intermediate People's Court ruled in favor of CATL, ordering Zhongxin Innovation to pay 57.1 million yuan in damages and cease sales of the infringing products [1]. - Zhongxin Innovation has stated its intention to appeal this ruling to the Supreme People's Court and has not yet paid any compensation to CATL [1][3]. - Zhongxin Innovation also referenced a judicial interpretation from the Supreme People's Court, indicating that if a patent is declared invalid, the court can dismiss related infringement lawsuits [2]. Group 3: Market Position and Financials - As of the latest reports, CATL holds a 36.8% market share in the global power battery market, ranking first, while Zhongxin Innovation ranks sixth with a 4.1% market share [4]. - Both companies are leaders in the power battery industry, with CATL and Zhongxin Innovation ranked first and third, respectively, in the domestic market [4]. - As of August 3, CATL's stock closed at 239.14 yuan, up 1.12%, with a market capitalization of 1.05 trillion yuan, while Zhongxin Innovation's stock closed at 17.82 HKD, down 3.57%, with a market capitalization of approximately 29 billion yuan [4].