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12/22/2024 11:31:08 am

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Qualcomm Sues Alibaba-Backed Meizu Technology

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(Photo : Getty Images) Qualcomm CEO Steve Mollenkopf speaks during a press event at the Mandalay Bay Convention Center for the 2014 International CES on January 6, 2014 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs from January 7-10 and is expected to feature 3,200 exhibitors showing off their latest products and services to about 150,000 attendees.

Chipmaker Qualcomm Inc. is suing Chinese smartphone maker Meizu Technology Co. in the Beijing court over the tech company's violation of intellectual property. 

Alibaba-backed Meizu reportedly refused to pay the American multination semiconductor company licensing fees and to negotiate in good faith, according to the statement released by Qualcomm.

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"We're asking the court to assist us and get them in compliance," Don Rosenberg, Qualcomm's executive vice president and general counsel, said.

"Meizu is choosing to use [Qualcomm's] 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," he added.

According to the Wall Street Journal, Qualcomm's dispute is its attempt to protect its licensing business, which is where most of its profits come from. In the recent years, the company has faced regulatory problems including Beijing's antitrust investigation.

In fact, Qualcomm announced that it paid $975 million in 2015 to settle the case filed by China's National Development and Reform Commission, accusing the company of abusing its dominant position.

After the company and Chinese authorities reached an arrangement, Qualcomm inked a patent-licensing agreement with its other Chinese clients, including Huawei Technologies Co. and Xiaomi Corp.

The US company has reportedly been in talks with Meizu to sign the licensing agreement, which the latter refused to do, thus prompting Qualcomm to file a complaint.

Meizu Vice President Li Nan wrote on his official WeChat page that the Chinese firm has "always been staying in close communication with Qualcomm on the patent issue, and has conducted several in-depth discussions with them."

"We respect Qualcomm's right to take legal action if they're not satisfied with the business negotiation," he said. However, he also noted that Meizu is open for discussions if Qualcomm wants to sit down and talk.

Meanwhile, Alibaba refused to comment.

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