Qualcomm caught in patent wars in China

The mobile patent wars are heating up in China.

Qualcomm sued a Chinese smartphone maker backed by billionaire Jack Ma's Alibaba shopping site, accusing it of using its technology without a license. The Chinese smartphone brand, Meizu, which is offering high-end features at bargain prices, denies it is flouting copyright laws.

Qualcomm is in a tight spot after tangling with Beijing authorities in recent months over antitrust rules, resulting in a fine of nearly $1 billion. Even worse, Qualcomm was forced in a settlement to take lower royalty rates in China, which accounts for more than half its profits.

China's smartphone makers "have a huge home-field advantage over foreign companies" when using Qualcomm parts for China-bound smartphones, said Erick Robinson of law firm Rouse & Co., who is also a former Qualcomm exec.

"They get Qualcomm chips for a huge discount compared to what Qualcomm charges non-Chinese companies," Robinson said.

Meizu's operating without a license from Qualcomm is "not only unlawful, but is unfair to other licensees that are acting in good faith and respectful of patent rights,"

Qualcomm's general counsel Don Rosenberg said in a statement.

The tiff comes amid growing tensions between US manufacturers and China's patent courts. Apple lost a Beijing ruling last week over sales of its iPhone 6 and 6 Plus after a challenge by Shenzhen Baili — a Chinese firm whose very existence has been questioned.

Source: Qualcomm caught in patent wars in China