Qualcomm asks for Chinese court help

qualcomQualcomm wants a Chinese court to get a local smartphone maker, Meizu, to agree to licensing terms for patents that the company broadly agreed to with the Chinese government last year.

The chip company s has asked the Beijing Intellectual Property Court for a ruling that the terms of a patent licence it offered Meizu comply with China’s Anti-Monopoly Law, and the US company’s “fair, reasonable and non-discriminatory licensing obligations.”

Qualcomm alleges that Meizu in Zhuhai is refusing to sign the patent agreement although over 100 players, including top Chinese phone makers, have accepted the terms under a new rectification plan agreed with China’s National Development and Reform Commission (NDRC) last year.

Meizu has more than 1,000 employees and sells its smartphones through 600 retail stores. It claims a global presence in Hong Kong, Russia, Israel and Ukraine, according to its website.

Last year, Qualcomm paid a $975 million fine to Chinese authorities for alleged monopolistic business practices relating to its patent licensing business. It also agreed to modify its business practices.

The outfit has been doing its best building its bridges in China, including by setting up a server chipset design and sales unit with the Guizhou provincial government.

The company has also announced other collaborations in the country that would help it gain access to the local market, including for the local production of its Snapdragon mobile processors by Semiconductor Manufacturing International Corporation.

Qualcomm charged Meizu with “unfairly expanding its business through the use of Qualcomm’s innovations without compensating Qualcomm for the use of Qualcomm’s valuable technologies.” It added that Meizu’s move to use the technologies without a license was also unfair to other licensees.