The licensing issue which started in US market had turned into a scoop. MNC like Qualcomm had filed 17 complaints against Chinese mobile maker Meiju. The complaints are filed in Beijing against the Chinese handset supplier, Meiju. Charges of patent infringement are being pressed against the handset maker. An intellectual property right of the US giant is violated and is culpable as a serious offence.
Qualcomm is also in soup with some dispute with the National Development and Reform division, China. The company has agreed to make a settlement of around $ 975 million, an enormous fine in corporate world.
Most of the complaints are linked to wireless communication technology. These features were used in smart phones for 3G and 4 g technologies. The Chinese firm is blamed for using unfair costing benefits over its rivals. On the contrary, the officials of Chinese firm are stating the allegations are improper and baseless. Even the patent license offered by US tech giant are unfair.
Qualcomm has a major revenue share in Chinese markets which accounts to nearly 53 % and many royalties earned from licensing policies. According to IDC report, Meiju is ranks eight as a smart phone maker in Chinese market, exporting more than 20 million gadgets.
The California based company is having a bitter struggle even though it shares licensing policies with many handset makers in China. Such disputes may bring bad reputation to both the firms involved in legal battle. Even the US giant is ready to change few of it’s strategies to stay afloat in Chinese market.
