Qualcomm Inc. (NASDAQ: QCOM) is filing a lawsuit against China’s smartphone maker, Meizu Technology Co. in a Beijing court over the payment of licensing fees.
The U.S. chipmaker is trying to protect its right to charge fees for the use of its intellectual properties in China. In 2015, the company had sighed agreement with the Chinese government for charging Chinese companies for the use of technology.
Qualcomm said that 100 other Chinese companies, including Huawei Technologies Co. and Xiaomi Corp., have already accepted to pay licensing fees. Only Meizu refuses to do that.
“Meizu is choosing to use [Qualcomm’s] technologies without a license, which is not only unlawful, but is unfair to other licensees that are acting in good faith and respectful of patent rights, and ultimately damaging to the mobile ecosystem and consumers,” said Don Rosenberg, executive vice president and general counsel of Qualcomm, in a statement.
Meizu is one of the smartphone makers in China, competing with Huawei and Xiaomi with low price. Last year, Alibaba invested $590 million in Meizu.
“Meizu has always been staying in close communication with Qualcomm on the patent issue, and has conducted several in-depth discussions with them. We respect Qualcomm’s right to take legal action if they’re not satisfied with the business negotiation,” Meizu Vice President Li Nan wrote on his official page on the WeChat messaging application.