The US chipmaker Qualcomm has filed a patent infringement case against the Chinese smartphone maker Meizu, says a press release from the company.
According to the release, Qualcomm said that the case is filed in Beijing Intellectual Property Court against Meizu, in which Alibaba holds a stake. Meizu is said to have refused to negotiate “in good faith” to license a particular patent relating to 3G and 4G communications standard.
“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.
Qualcomm recently faced regulatory challenges including an antitrust investigation by Beijing. In 2015, the country’s National Development and Reform Commission issued Qualcomm a $975 million fine. The company settled the cases with the authorities and agreed to pay the fine. The fine was issued on the grounds that Qualcomm is making unlawful patent demands on smaller entities in the market.
Qualcomm’s current claim against Meizu is appearing in the same court that fined it last year. Currently, Qualcomm blames Meizu for its unwillingness to enter a license agreement on the rectification plan terms. The company said that Meizu is expanding its business through the use of Qualcomm’s innovations without compensating Qualcomm for the use of Qualcomm’s technologies. It seems 100 other companies have accepted the terms.
Meizu, the company based in Zhuhai, focuses on offering high-end devices at bargain prices. Last year, Alibaba invested $590 million in Meizu. The company has not issued an official statement in response to the new case with Qualcomm.