Qualcomm Files Patent Infringement Complaints against Meizu in China

Qualcomm Incorporated (NASDAQ: QCOM) announced that it has filed patent infringement complaints against Meizu for infringing its patents covering a broad range of features and technologies used in smartphones, including those relating to 3G (WCDMA and CDMA2000) and 4G (LTE) wireless communications standards. The complaints were filed in the Intellectual Property Courts in Beijing and Shanghai.

Qualcomm has for more than a year negotiated in good faith with Meizu to sign a patent license agreement consistent with the terms of the rectification plan submitted by Qualcomm to, and accepted by, China’s National Development and Reform Commission (NDRC) in 2015. More than 100 other Chinese companies have already accepted the rectification plan terms, including the largest Chinese mobile device suppliers. However, Meizu has refused to engage in good faith negotiations with Qualcomm, choosing instead to engage only in delay tactics. Meizu did not respond to Qualcomm’s last offer in April 2016.

“Meizu has refused to engage in good-faith negotiations despite admitting that it sells products that infringe Qualcomm’s valuable Chinese patents,” said Don Rosenberg, executive vice president and general counsel, Qualcomm Incorporated. “Meizu is attempting to obtain an unfair and improper cost advantage over its competitors. Regrettably, we must turn to court actions in order to protect our rights, and importantly, to maintain fairness and a level playing field for the more than 100 Chinese companies that are respectful of patent rights and have entered into license agreements in conformance with the resolution reached by Qualcomm with the NDRC.”

These actions are related to the license terms action filed by Qualcomm against Meizu in the Beijing Intellectual Property Court and announced on June 23, 2016.