Huawei uses AML to fight back

On October 28 2013, the Guangdong Higher People's Court (Guangdong Court) fined US based Inter Digital (IDC) for abusing its dominant market position in relation to the licensing of standard-essential patents (SEPs) for 3G wireless communication devices. This is the first case relating to SEPs in China. The court decision highlights the role that anti-monopoly litigation in China can play in international patent disputes. The issues raised in this case, such as extra-territorial jurisdiction and appropriate royalty rates, are worth exploring. Due to the fact that this case is subject to commercial confidentiality, the court decisions have not been published. This means that the information used in this article is based on the articles written by the judges involved in this case and various media reports.

Huawei Technologies is a Chinese telecommunications equipment and services company headquartered in Shenzhen, Guangdong. It is the largest telecommunications equipment maker in the world. IDC is a US-based licensor of SEPs for 2G, 3G and 4G mobile communication devices and accessories. Its business model is for patent licences only and it does not engage in any real production.