The Strategist

Samsung sued Huawei for patent violation

07/22/2016 - 14:35

Korean manufacturer of smartphones Samsung filed a lawsuit against Chinese company Huawei. Samsung is accusing its rival of violating patents. The company is demanding a compensation and suspension of production and sale of devices that use technologies protected by the patents. Samsung’s lawsuit continues patent dispute between the two largest Asian manufacturers of smart phones. The debate started in May, when Huawei filed a similar suit.

Kārlis Dambrāns via flickr
Kārlis Dambrāns via flickr
On Friday, Samsung Electronics announced that filing a lawsuit against its Chinese competitor Huawei, accusing the latter of violating six patents owned by the Korean manufacturer. The lawsuit was filed to several Chinese courts. "We have been negotiating in good faith with other patent holders to fairly license the technologies. However, despite all our efforts to solve this problem by mutual agreement, we, unfortunately, have been forced to go to court to protect our intellectual property", - said Samsung in a statement. The company reported that it has filed suit in the Beijing court two weeks ago; other five courts have not been revealed.

Samsung accuses Huawei in violation of patents of wireless communication, digital photography, and other technologies. According to the lawsuit, Huawei used the patented technology in smartphones Mate 8, Honor and other smartphones and tablets. According to the Beijing court for intellectual property, Samsung seeks compensation in the amount of ¥ 161 million ($ 24 million). Samsung also wants the court to ban Huawei and another company, Beijing Hengtongda Department Store, from production and selling these gadgets. Huawei itself reported that it has not yet received an official notification.

This is not the first accusation that these companies impose on each other. In late May, Huawei filed in federal court in California lawsuit against Samsung, accusing the latter of copyright infringement on wireless technology for mobile devices. The lawsuit reads that Samsung and its affiliated companies earned billions of dollars by selling mobile devices, which used Huawei’s technologies. The Chinese company is required to compensate it related to patent infringement damages. Filing a claim to court to protect their intellectual property - not the usual step for Chinese technology companies. According to experts, this indicates that confidence of Chinese producers in the rights to protection of their technology is increasingly growing. In addition, Chinese are increasingly developing their own or acquire patents. As stated by analyst at CIMB Bank Lee Do-hoon: "If you take Apple and Samsung’s patent dispute, it eventually brought significant benefits to Samsung, giving the company a kind of advertising. Huawei may also try to create some buzz around their brand." 

According to forecasts of research firm HIS, total volume of the smartphone market will amount to $ 332 billion this year, Samsung is the smartphones sales leader, and Huawei takes the third place. According to research firm Gartner, Huawei's share last year rose to 8.3% from 5.4% a year earlier, share of Samsung has dropped from 24.1% to 23.2%.