HPE sues China’s Inspur Group for server patent infringement

Hewlett Packard Enterprise (HPE) has filed a lawsuit against Chinese tech conglomerate Inspur Group for infringing upon several of its server patents.

The case, lodged in the Northern District of California, also implicates several of Inspur’s subsidiaries, including Inspur Electronic Information Industry Company, Aivres Systems Inc., Betapex Inc., Inspur USA Inc., and KAYTUS Singapore Pte. Ltd. The complaint centers on allegations of widespread patent infringements that purportedly extend across multiple Inspur products.

HPE’s Allegations

HPE has accused Inspur and its associated entities of infringing on more than 10,000 active patents, specifically those related to its server technologies, such as general-purpose servers, rack servers, high-density servers, and AI servers.

The lawsuit details how Inspur’s products, notably the Inspur NF5280M5 server and the Aivres KR2280 server, incorporate patented technologies that HPE claims to have developed over years of research and innovation. Furthermore, HPE has alleged that Inspur has engaged in deceptive practices to conceal its infringement activities, including removing Inspur branding from products distributed within the US.

The filing also points to Inspur’s addition to the Department of Commerce Bureau of Industry and Security trade blocklist, suggesting that Inspur’s business activities pose a risk to the national security and foreign policy interests of the United States. This listing has allegedly led Inspur to undertake measures to conceal its association with the infringing products sold in the US market.

According to the lawsuit, HPE claims that despite making multiple attempts to contact Inspur about the alleged infringement, it did not receive a response. As a result, HPE is seeking unspecified monetary damages and a court order to prevent Inspur from continuing to infringe on its patents.

“Inspur has infringed numerous HPE patents and HPE has the obligation to file this lawsuit to defend HPE’s leadership position resulting from its substantial R&D investments,” an HPE spokesperson said. “This lawsuit is part of HPE’s ongoing efforts to enforce its patent rights against anyone who may infringe on those rights.”

Representatives for Inspur and Aivres Systems did not immediately respond to a request for comment on the lawsuit.

Impact on HPE

The legal documents highlight that Inspur’s alleged infringement has not only illegally utilized HPE’s patented technologies but has also negatively impacted HPE’s market position, business relationships, and profitability.

HPE asserts that these actions have undermined its reputation and led to significant financial losses, given the unlawful competitive advantage gained by Inspur through reduced R&D costs and expedited product development.

HPE’s lawsuit is comprehensive, detailing specific instances of patent infringement and seeking a jury trial to resolve these disputes. HPE has demanded injunctive relief to prevent Inspur from continuing to sell the infringing products and monetary damages for the losses incurred due to these alleged infringements.

The outcome of this trial could potentially lead to substantial financial liabilities for Inspur and may also necessitate changes to its product lines and manufacturing processes.

Broader Industry Implications

This lawsuit is indicative of the larger competitive and legal battles that define the global technology landscape, where patent rights are increasingly becoming tools for both competitive advantage and corporate strategy. The case also highlights the growing tensions between US and Chinese technology companies amidst broader geopolitical conflicts involving trade and technology transfer.

As the case progresses, it will likely attract significant attention from stakeholders in the technology, legal, and international trade communities. The results could influence future US policy decisions regarding intellectual property protections and trade relations with China. For now, the technology world watches as one of its major players seeks to defend its innovations against alleged international infringement.