Huawei Technologies Co. filed patent suits against Samsung Electronics Co. in the
United States and China after the two weren't able to reach a licensing
deal over the use of technology fundamental to how mobile networks operate.
In a lawsuit filed Tuesday in federal court in San Francisco, Huawei claims
Samsung infringes as many as 11 patents related to the industry standard
for fourth-generation mobile devices. It's seeking cash compensation.
In the public portion of the complaint, Huawei doesn't seek any order
to block sales of Samsung products in the US.
The public version of the complaint is heavily redacted to mask
confidential information.
The patents cover communications networks and software to operate
LTE networks established through international standard-setting
organizations, Huawei said in the complaint. Huawei, one of the world's
largest makers of networking gear, said it's offered to charge
Samsung a fair and reasonable rate but Samsung refuses to pay.
"We have a good history of licensing and cross-licensing of
our peers," said William Plummer, a Huawei spokesman. "We hope that
Samsung will do the right thing."
Huawei said it spends 15 percent of its revenue on research and is
one of the biggest contributors to the industry standards for
telecommunications so devices can talk to one another.
The case, as well as a suit filed in Shenzhen People's Court in
China where Huawei is based, threatens to become engulfed in a
broader debate over how to value patents that are related to
standardized technology such as mobile communications.
Companies that get together to develop industry standards
pledge to license any patents on "fair, reasonable and non-discriminatory"
terms. Tech companies are split on how to define what exactly
that means, and the issue has led to lawsuits and policy arguments
around the world.
Plummer said that Huawei has "fulfilled all of our obligations" to
make a fair offer to Samsung. He declined to comment further on any negotiations.
Samsung's own standard-essential patents were asserted
against Apple in their smartphone fight. The administration
of President Barack Obama vetoed an import ban Samsung had
won against Apple because of concerns a trade agency hadn't addressed
questions about such patents.
Ericsson, which vies with Huawei for title of top global networking company,
also claimed Samsung refused to pay fair and reasonable rates. The companies
later settled, an outcome Plummer said Huawei is seeking.
Officials with Suwon, South Korea-based Samsung didn't immediately return
queries seeking comment.
