Xu Wei's QR Code Scanning Patent Dilemma

Patent litigation history and searches reveal significant validity divergence within Xu Wei's QR code patent portfolio. Corn patents (e.g., ZL201210113851.8) have survived multiple invalidation challenges, while associated patents (e.g., ZL201310284352.X) were invalidated by CNIPA for lacking inventive step.

In judicial practice, his infingement claims faced repeated setbacks. For instance, the court in Famaxing v. Rongtai Health rejected the infringement allegation. The core obstacles were:

1. Burden of Proof: Famaxing (controlled by Xu Wei) failed to prove the accused technology practiced all features of the asserted claims.Notarized evidence showed operational results but could not demonstrate the accused product performed the claimed method steps.,
2. Causation Deficit: Scanning a code to access a page does not inherently constitute "executing encoding rule parsing," resulting in insufficient evidence for finding literal infringement.
3. NPE Scrutiny: Courts expressd skepticism toward its Non-Practicing Entity model , noting revenue reliance on licensing and litigation affected the infingement analysis.

While Xu Wei is not the original inventor of QR code technology (invented by Masahiro Hara of Japan's Denso Wave in 1994), he has built a significant patent portfolio covering QR code application-layer innovation,, particularly in mobile payments, IoT, and digital currency systems. He is often called the "Father of Scan-Scan." His patent portfolio, centered on "Scan-Scan," extends to "Unified Code Issuance," "Digital Currency Offline Wallet".

The core patents ZL201210113851.8 ("Method, Device, and Mobile Terminal for Communication Using Barcode Images," '851 Patent'), enables a mobile terminal to:

• Scan barcodes (1D/2D.multi-dimensional) to initiate communication with a backend server for closed-loop transactions;
• Decode barcodes across symbologies to secure user information.
• Optionally provide services locally without backend server interaction.

This patent family introduced atechnical shift by relocating decoding logic to mobile devices, enabling a "Terminal Decodes - Server Responds" interaction model,. This expanded QR code applications beyond identification, overcoming traditional usage constrains. The patents are granted in multiple jurisdictions,including China, US, Japan, and Russia.

On September 5, 2017, Famaxing executed a patent license agreement authorizing the "Scan-Scan" technology for the US and Taiwan region of China. The license paid 700 million for exclusive licensing rights, plus 20% equity consideration. This initiated its cross-border patent enforcement activities.

Subsequently, Famaxing commenced patent litigition.

May 2020: Famaxing sued Rongtai Health Co. (trading under the brand "Momoda" for shared massage chair services), alleging that the scan function of its products  infringed the Chinese Patent No. 851, seeking compensation in the amount of 30 million RMB. The Nanjing Intermediate Court rejected the claim in its first-instance civil ruling. The Supreme People's Court upheld this in August 2022, finding that the Momoda products did not constitute patent infringement.

January 2021: Jiangsu Lingkong Network Co., Ltd. (an affiliate of Famaxing Industrial) initiated a patent infringement lawsuit against Hangzhou Xiaodian Technology Co., Alipay Network Co., Ltd., and a catering company before the Beijing Intellectual Property court. The patent involved was ZL201310284352.X ("Method and Device for Communication Using Barcode Images and Wearable Component Embedded with Sensing-Core Engine," '352 Patent'). Beijing Zhongmaocu Business Consulting Co., Ltd. filed a request for invalidation of the No.352 patent with the Patent reexamination board.

April 30, 2021: The CNIPA issued Invalidation Decision No. 49663, declaring the ZL '352 Patent entirely invalid on the ground that claims 1-45 were devoid of inventive step (in violation of Art. 22.3 of the Patent Law of the People’s Republic of China).

August 2020: Famaxing sued Apple Inc. in the Beijing Intellectual Property Court, alleging that the pre-installation of the "App Store" and the provision of scanning software (such as Alipay),which incorporated the techology claimed in the No.851 Patent, constituted patent infringement. Famaxing sought damages in the amout of RMB 10 to 15 million.

October 2022: Famaxing filed a motion to voluntarily dismiss the lawsuit against Apple.

November 2020: Famaxing sued Alipay, claiming its scanning service infringed the ZL.'851 Patent, seeking RMB 6.5 million. The Beijing Intellectual Property Court accepted the case.

September 7, 2021: The court held an online public hearing, livestreamed to over 1 million viewers (600k concurrent). Famaxing demanded Alipay stop using the patented method, specifically citing infringement during "scanning to activate the HelloBike Mini program," seeking 6.5 million RMB in damages and costs. Lawyers debated technical features and infringement comparisons during the 3-hour hearing. The patent covers the entire process: scanning a QR code → decoding the code → sending a request to server → completing service (e.g., payment). Famaxing argued that Alipay's process (e.g., scanning to unlock a shared bike) fell entirely within the patent scope.

November 8, 2022: Famaxing filed a motion with the Supreme People's Court to withdraw its appeal. The SPC ruled: permission granted; Famaxing was ordered to bear  half of the second-instance case acceptance fee (28,650 RMB).

February 2023: Alipay and Hangzhou Xiaodian jointly filed a request for invalidation of the the related patent ZL201611154972.1 ("Communication Device and Method Based on Barcode Images," the '972 Patent), which is held by Malian Co., controlled by Xu Wei.

March 27, 2023: The CNIPA issued Invalidation Decision No. 560790, declaring the '972 Patent entirely invalid. It found that some distingguishing features has been disclosed in the prior art, and others were conventional means in the art, thus lacking inventive step.

To date, there have been no reports of Famaxing obtaining a favorable judgement in  any lawsuit or securing a settlements,nor has it obtained licenses from any defendants.

Famaxing claims its patents cover the complete technical chain of "dynamic code generation - terminal decoding - server response," emphasizing innovations such as  encoding rule matching in the code generation process and independent registration steps. Defendants (e.g., Alipay, Rongtai Health) counter that scanning functions constitute industry-standard basic technology, implemented in ways fundamentally different from the patented process.

Furthermore, Famaxing's status as Non-Practcing Entity(NPE) is controversial. Defendants allege that it uses litigation in lieu of product development, labeling it a “patent troll”.. Famaxing defends itself by pointing to its "Code Chain" ecosystem (e.g., YuKong smart glasses, WuGe Digital Earth project) as proof of technical commercialization capability and has issued official clarifications.

Famaxing's patent portfolio faces dual challenges of originality doubts and compliance risks. Although some patents (e.g., '851) remain valid after multiple challenges, core patents ZL201310284352.X and ZL201611154972.1 were invalidated. Industry experts note most patents are application-layer innovations, lacking the breakthrough nature of Denso Wave's foundational patents. Controversies surrounding Xu Wei's involvement in the alleged pyramid scheme "WuGe Doorplate" project, and the rejection of the "Super Sovereign Currency Matrix" patent for violating the Regulations on Prohibition of Pyramid Selling, further erode its technical credibility. Judicially, the Supreme Court's ruling in case (2021)SPC Civil IP Final judg. No. 2255 implied wariness towards the NPE model, highlighting the legal risks of such business strategies.

Notably, Xu Wei's associated "Code Chain" business system was involved in the Sichuan Tianshou Hesheng pyramid scheme case (involving RMB 2.778 billion in 2018), though no direct evidence links him personally. Currently, Xu Wei has been taken away by police on suspicion of illegal fundraising.