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11/22/2024 03:52:07 pm

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U.S. Licensing Company to Cooperate with NDRC in Investigation

InterDigital was charged of having supposedly charged higher patent royalty fees from Chinese telecom firms like ZTE and Huawei compared to fees they collected from Samsung Electronics and Apple Inc

(Photo : blog.sina.com.cn) InterDigital was charged of having supposedly charged higher patent royalty fees from Chinese telecom firms like ZTE and Huawei compared to fees they collected from Samsung Electronics and Apple Inc

InterDigital Inc., the U.S. patent licensing company that has been charged of monopolistic practices by a court in Guangdong last October, has pledged to cooperate with China's anti-trust authorities who are at present conducting an investigation on the U.S. firm.  

A confirmation of the American company's commitment to cooperate with Chinese authorities to resolve the matter was given by the anti-monopoly bureau of the National Development and Reform Commission (NDRC) on Monday. This recent move of InterDigital could mean a suspension of the ongoing investigation.

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A final decision on the matter still has to be arrived at by the NDRC after it has done a close review of the case.

InterDigital was charged of having supposedly charged higher patent royalty fees from Chinese telecom firms like ZTE and Huawei compared to fees they collected from Samsung Electronics and Apple Inc.  The company was also accused of unjust trade practices perpetuated to compel Chinese companies to take their offer. 

InterDigital was ordered to pay Huawei 20 million yuan (US$ 3.28 million) as compensation for alleged monopolistic acts by a court in Guangdong Province last October.

Prior to last month's meeting with the NDRC, officials of InterDigital had previously refused to come to China for the investigation for fear of possible arrest or detention. Last month's meeting gave both parties the opportunity to clarify their stands on the matter. 

Representatives of InterDigital said that they will further cooperate with the NDRC officials conducting the investigation until all issues and concerns are fully resolved.

According to the anti-monopoly laws of China, companies found guilty of violating its provisions and of not cooperating in investigations will be ordered to pay fines equivalent to a minimum of 1 percent of their total revenue in the preceding year to a maximum of 10 percent.

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