Qualcomm has filed a lawsuit against Transsion Holdings, the parent company of popular smartphone brands Infinix and Tecno, for alleged patent infringement. The lawsuit, filed in India, claims that Transsion has violated Qualcomm’s intellectual property rights by failing to secure necessary licenses for the majority of its mobile products. This legal action is not confined to India alone; Qualcomm has also pursued similar lawsuits in Europe and China.
Qualcomm’s Stance and Legal Actions
Ann Chaplin, Qualcomm’s general counsel, emphasized that the lawsuit aims to protect Qualcomm’s patent rights and ensure fair competition among its licensees. According to Qualcomm, Transsion has refused to accept licensing agreements despite repeated efforts to engage with the company. This forced Qualcomm to take legal action to uphold its intellectual property rights.
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Qualcomm’s decision to sue Transsion is significant because Transsion does not use Qualcomm’s chips in its devices. Instead, Transsion primarily uses MediaTek and Unisoc chips in its smartphones. This situation complicates Qualcomm’s typical strategy of leveraging its chipset dependency to craft licensing deals. As a result, Qualcomm is focusing on enforcing its non-standard essential patents, an uncommon move for the company.
Transsion’s Response and Ongoing Negotiations
In response to the lawsuit, a Transsion spokesperson stated that the company respects other companies’ intellectual property rights and is open to negotiating licensing agreements. The spokesperson mentioned that Transsion has already signed a 5G patent license agreement with Qualcomm and is working to meet its terms. This suggests that some disputes might be resolved through ongoing negotiations.
Transsion’s legal troubles are not new. In 2019, Huawei filed a lawsuit against Transsion in China for similar intellectual property violations. Additionally, Philips has pursued legal action against Transsion in India, further complicating the company’s efforts to expand its market presence.
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Transsion, known for its strong market presence in Africa, where it holds 48% of the smartphone market, has been expanding its reach to other regions. The legal disputes with Qualcomm, Philips, and pressure from Nokia to secure licensing agreements for patented technologies could impact Transsion’s strategy. The company’s focus on budget and mid-range devices means any additional costs from licensing fees could affect its profit margins and pricing strategy.