Qualcomm CEO Steve Mollenkopf speaks during a press event at the Mandalay Bay Convention Center for the 2014 International CES on Jan. 6, 2014 in Las Vegas, Nevada. (Photo : Getty Images/Justin Sullivan)
Qualcomm Inc, American multinational semiconductor company, has announced that it has filed a patent suit against Alibaba-backed Chinese tech start-up Meizu in the Beijing Intellectual Property Court. In its complaint, Qualcomm has alleged that Meizu has been using its technology without obtaining proper license.
The complaint seeks rulings that the terms of a patent license proffered by Qualcomm to Meizu abide by the Anti-Monopoly Law of China, as well as the semiconductor manufacturer's fair, logical and unbiased licensing obligations, Qualcomm said in a press release. At the same time, the complaint also requests a ruling that the patent license terms offered should form the basis for a patent license with Meizu.
In fact, Meizu has been using Qualcomm's fundamental technologies patented in China in mobile devices, including 3G (WCDMA and CDMA2000) and 4G (LTE) wireless communications standards. The Qualcomm has extensively negotiated with Meizu to sign a patent license agreement compatible with the rectification plan submitted by the company to the National Development and Reform Commission (NDRC) of China in 2015, but the Chinese start-up was unwilling to comply.
The press release further stated that while Qualcomm preferred to resolve the issue with Meizu without going into litigation, the Chinese tech firm seems to be unwilling to negotiate and sign a license agreement pertaining to the rectification plan terms. On the other hand, allegedly Meizu is expanding its business illegally using Qualcomm's innovations without compensating the company, the press release added.
Meanwhile, Qualcomm's complaint against Meizu is being viewed as strategy of the American company to defend for its licensing business in the largest smartphone market globally. In recent times, Qualcomm faced a number of regulatory challenges in China, including an anti-trust probe by Beijing, the Wall Street Journal reported.
After Qualcomm agreed to a settlement with Chinese authorities last year and even pained a fine, the chip maker has entered into patent-licensing agreements with several Chinese clients, which includes Huawei Technologies Co. and Xiaomi Corp. Qualcomm's complaint mentions that contrary to Meizu's stand, more than 100 other companies have already "accepted the rectification plan terms, including the largest Chinese mobile device suppliers."
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