Samsung Electronics Co., Asia’s top smartphone manufacturer, has filed a lawsuit in China against Huawei Technologies Co. Samsung is accusing Huawei Technologies, the third largest Asian smartphone manufacturer, of infringing on six of Samsung’s mobile technology patents.
Samsung issued a statement stating, “At all times we have faithfully negotiated with other patent holders for the fair licensing of technology in order to ensure fair competition and continued growth in the industry. However, 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.”
The lawsuit was filed in an intellectual property court in Bejing and is alleging$24 million in damages caused by Huawei’s unlicensed use of their technology.
A spokesperson for Huawei stated that the company has not received a formal complaint but would defend itself as necessary. The spokesperson when on to state “In the absence of a negotiated settlement, litigation is often an efficient way to resolve [such disputes].”
This lawsuit marks the latest in the ongoing legal battle between the two smartphone conglomerates. In May of 2016, Huawei filed lawsuits against Samsung in China and the United States. In those suits, Huawei alleged Samsung violated 12 of Huawei’s mobile device and network patents, specifically, fourth-generation (4G) cellular communications technology, operating systems, and user interface software.
CIMB analyst Lee Do-hoon said the companies are not likely to be motivated by monetary compensation in regard to this legal battle. For example, a company may utilize litigation to provide a marketing boost to their particular smartphone. “If you look at the patent battle with Apple and Samsung … it ultimately created a lot of benefits for Samsung in a kind of an advertisement,” he said. “Huawei might also be trying to create some noise marketing for itself,” Do-hoon stated, adding that he expected the two firms would eventually reach a deal such as a cross-licensing agreement. This theory should be taken with a grain of salt given the expense of patent lawsuits. One has to wonder whether litigating a patent suit is truly more economically efficient than just purchasing ad space.