Meizu sued by Qualcomm

Qualcomm, the well-known American chipmaker company has filed a complaint against Meizu for illegal use of intellectual property. Qualcomm claims Meizu uses 3G and 4G technologies patented under their name – but has completely disregarded the royalties. The patent violation complaint was filed in a Beijing court during last week.

Qualcomm’s technologies are used broadly – including such Chinese clients as Xiaomi and Huawei: just two of the many smartphone companies who Qualcomm has signed licensing-agreements with. However, according to Qualcomm, Meizu has completely ignored their responsibility towards royalties and compensations considering the “stolen” technology. “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,” stated Don Rosenberg, executive vice president of Qualcomm.

In the meantime, Meizu had announced an official statement saying they’ve already been trying to negotiate with Qualcomm about their co-operation and wish they could go on with their partnership. Meizu has declined to give any further comments about the incident to the media, while Qualcomm seems to stay open and “transparent”. The companies’ opinions seem to differ a lot – which is not that unusual considering the court case is taking place in China – where copyrights and such hardly exist. Taking that twist into account, we can’t wait to hear what happens to both parties of the conflict as the case goes on.

“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”

Meizu’s earlier conflicts with Apple or ZTE haven’t had such a big effect on Meizu’s result in China, but with such immature attitude towards intellectual/immaterial ownership and rights, expanding to global markets will be a though – if not impossible trip for Meizu. In the other hand Qualcomm also has a lot to fight for after the recent incidents in China – and their weak royalty rate forecast. Technology licensing is bringing more than half of Qualcomm’s profit, and the firm is now appealing to the same Chinese anti-trust authorities who fined it last year.

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