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Legal battle escalates between Samsung, Huawei

[THE INVESTOR] Samsung Electronics has recently filed a suit against Huawei and its key retailer for patent infringements, escalating the legal battle between the two rival smartphone-makers.

According to industry sources on July 22, the Korean tech giant sued Huawei for infringing its six patents, including those on mobile communication systems information control, and the retailer for selling the products. 

They involve Huawei’s key models such as Mate 8 and Honor series phones. 




Samsung asked each of them to pay 80.5 million yuan (US$12.06 billion) as compensation.

“Despite our best efforts to resolve this matter amicably, it has regrettably become necessary to take legal action in order to defend our intellectual property,” Samsung said in a statement.

The latest lawsuit comes about two months after Huawei sued Samsung for infringing its 4G network patents in the US and China saying the Korean firm had used the patents without permission in its flagship Galaxy S phones.

The company asked for compensation worth 80 million yuan (US$12 million) but did not request a sales ban on the affected handsets. 

Samsung fought back immediately, saying it would countersue Huawei.

Samsung and Huawei have continued talks about a royalty-free, cross-license of their Long Term Evolution 4G network technologies, but the talks have been stalled allegedly due to Samsung’s lukewarm reception.

But industry watchers had speculated that it was unlikely for Samsung to file a suit against Huawei, citing no immediate benefits.

“It wouldn’t be difficult for Samsung to find Huawei’s patent infringement cases considering its vast intellectual assets that still outpace those of Huawei,” said an industry source on condition of anonymity.

“But a highly-publicized legal battle with Samsung would only help Huawei strengthen its already dominant market position in China and expand its presence in the US where it is still a minor player.”

Samsung is also expected to file a suit against Huawei in the US, sources said.

By Lee Ji-yoon (jylee@heraldcorp.com)
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