Qualcomm Incorporated (NASDAQ: QCOM) announced that it has filed a complaint against Meizu in the Beijing Intellectual Property Court. The complaint requests rulings that the terms of a patent license offered by Qualcomm to Meizu comply with China’s Anti-Monopoly Law, and Qualcomm’s fair, reasonable and non-discriminatory licensing obligations. The complaint also seeks a ruling that the offered patent license terms should form the basis for a patent license with Meizu for Qualcomm’s fundamental technologies patented in China for use in mobile devices, including those relating to 3G (WCDMA and CDMA2000) and 4G (LTE) wireless communications standards.
Qualcomm has negotiated extensively and in good faith with Meizu to sign a patent license agreement consistent with the terms of the rectification plan submitted by Qualcomm to, and accepted by, China’s National Development and Reform Commission (NDRC) in 2015. Although Qualcomm would have preferred to reach a resolution with Meizu without the need for litigation, Meizu, unfortunately, has been unwilling to negotiate in good faith and enter into a license agreement on the rectification plan terms while unfairly expanding its business through the use of Qualcomm’s innovations without compensating Qualcomm for the use of Qualcomm’s valuable technologies. In contrast, more than 100 other companies have already accepted the rectification plan terms, including the largest Chinese mobile device suppliers.
“Qualcomm’s technologies are at the heart of all mobile devices. Meizu is choosing to use these technologies without a license, which is not only unlawful, but is unfair to other licensees that are acting in good faith and respectful of patent rights, and ultimately damaging to the mobile ecosystem and consumers,” said Don Rosenberg, executive vice president and general counsel of Qualcomm Incorporated. “We are, and have been, a good partner in China, and we are pleased to see how China’s mobile ecosystem is thriving. Chinese smartphone suppliers are succeeding both domestically and globally, and we are pleased to help drive that growth. Qualcomm looks forward to continuing to increase its level of commitment to, and investment in, China across both the wireless and semiconductor ecosystems.”