Samsung Electronics Lost Patent Lawsuit in China; Ordered to Pay CNY80 Million to Huawei
Yicai Global
/SOURCE : Yicai
Samsung Electronics Lost Patent Lawsuit in China; Ordered to Pay CNY80 Million to Huawei

(Yicai Global) April 6 -- Samsung, South Korean electronics giant, lost a patent lawsuit in China today. Quanzhou Intermediate Court in southeastern Fuzhou province announced that Samsung and several other companies have to pay CNY80 million (USD11.6 million) to the smartphone manufacturer, Huawei Technologies Company, in patent infringement. This was the first case finalized among a number of other lawsuits filed by Huawei.

In July 2016, Huawei filed a suit against Samsung (China) Investment Co., Huizhou Samsung Electronics Co. and Tianjin Samsung Communication Technology Co. under Samsung Group, as well as against two other Chinese enterprises. Huawei thought 16 products including Galaxy S7 and Galaxy S7edge, produced and sold by the above-mentioned companies and subsidiaries have infringed the company's technology patent concerning "a processing method and user equipment which can be applied to the terminal component display."

According to the report of local media Quanzhou net on April 6, The court ruled that the three defendants, including Huizhou Samsung, Tianjin Samsung and Samsung Investment Co. used the technical scheme of the patent during the process of manufacturing and selling multiple models of smartphones and tablets, reported the local media news outlet

In the first instance verdict announced recently, the court ordered the three Samsung subsidiaries to stop the infringement of patent invention involved and to pay CNY80 million to Huawei for economic loss, and pay CNY500,000 for legal costs.

Regarding the amount of compensation, Based on the third party data provided by Huawei, from the third quarter of 2014 to the third quarter of 2016, more than 39 million sets of phones and tablets involving the patent case were sold, amounting to more than USD15.1 billion. The Samsung subsidiaries claimed some products were not involved. During the process of trial, the court has asked three defendants to provide corresponding sales data and profit rate on different occasions, but the companies delayed or refused to provide it.

Huawei has filed a lawsuit in many places around the world. On May 25, 2016, Huawei announced to file lawsuit to Samsung on intellectual property right in California (USA) and Shenzhen (China) at the same time, and required Samsung to compensate Huawei for their infringement of intellectual property. The intellectual property rights involved include the high value patent involving communication technology and software used by Samsung mobile phone.

According to the statistics of international PCT patent application quantity in 2015, released by the World Intellectual Property Organization (WIPO), Huawei Technology Co. applied for 3,898 patents, indicating an increase of 456 over the previous year, ranking first in the world in two straight years.

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