342: Chapter 342 A Powerful Strike!

At 3:00 PM, the Transsion Technology official website issued another statement, just as they had done when dealing with Nokia.

However, this time it wasn't so lighthearted; instead, it directly announced counter-measures.

"Transsion Technology has always respected the intellectual property rights of others, and we continue to strengthen our patent reserves to safeguard our own legitimate rights and interests.

Ericsson has abused its market dominance in the field of standard-essential patents, charging unreasonably high licensing fees and violating the FRAND principles.

Transsion Technology has formally reported Ericsson's monopolistic behavior to the European Commission and China's anti-monopoly law enforcement agencies.

At the same time, the company will actively respond to the lawsuit in United States courts to defend its rights."

After the statement was released, the tech circle realized that Transsion had been targeted again.

"How many is this now? Did Transsion poke a hornet's nest of patents?"

"After fighting Nokia, now they're fighting Ericsson. Are they planning to take on all the giants?"

"Nokia has already knelt. Ericsson, you have to hold on! Don't let these evil forces run rampant!"

"I support Ericsson in defending its legitimate corporate rights. We can't let this trash keep harvesting leeks."

Just as they were discussing this, Digital Chat Station also posted on Weibo.

"Got to eat some gossip today, right?

However, as far as I know, the cards Transsion is playing against Ericsson this time are different from those against Nokia.

Nokia had ulterior motives, but Ericsson doesn't, and they are doing very well in the communications equipment market.

As far as I know, Transsion is currently stabbing at their business lifeline.

If the three major carriers stop purchasing Ericsson's equipment, including projects currently out for tender, the losses to Ericsson will be far greater than the few hundred million in patent fees awarded by the Texas court.

This move is definitely ruthless."

Lan Yangyang Assistant: "This isn't Transsion defending its rights; it's a precision decapitation strike. I estimate a settlement will come even faster than last time.

Don't think that the three major carriers stopping procurement just means not buying equipment.

Wrong! Ericsson's equipment in the country uses a lot of customized firmware. Once supply is cut off, subsequent maintenance, upgrades, and troubleshooting will all come to a standstill.

You might think this isn't a good thing, but actually, it's beneficial for Ericsson.

You just need to remember one thing: if Transsion dares to do this, they definitely have an alternative plan.

Who knows, maybe one day some grey market goods will appear in the international market, cheaper and offering on-site service. By then, Ericsson's revenue..."

"I'm honestly speechless; a bunch of legal laymen are reveling in this.

Patent lawsuits should be settled in court. What's the difference between using these tactics to coerce customers and the administrative suppression of the past?"

"Exactly, this is unfair competition. If Transsion can use these tactics against Ericsson today, can't they do the same to other Chinese manufacturers tomorrow?"

"This exact move is what ruins the reputation of Chinese manufacturers expanding overseas! Sigh..."

Of course, besides these sellouts, there were many people in the comments section just watching the show.

After all, Ericsson's business in the country had already been squeezed by Huawei and ZTE, with its market share falling below 10%.

Transsion's move simply escalated the patent war into a market war, catching Ericsson off guard while simultaneously throwing a punch back at the United States.

However, Ericsson isn't a soft persimmon either. If they are truly pushed to the limit, they might strike back in other markets, which would be another big spectacle.

In any case, they only need to watch the show, right?

This show was indeed worth watching; Ericsson's stock price fell by 4% immediately after the news spread.

Ericsson CEO Hans Müller urgently convened a conference call at the Stockholm headquarters to explain the situation to all investors.

"Please rest assured, Transsion's report has no factual basis. Our patent licensing complies with FRAND principles and can withstand any scrutiny."

But at this moment, a shareholder asked: "If Transsion really pushes for an anti-monopoly investigation in the Chinese market, how much will their business in China be affected?"

"If the European Union also opens a case simultaneously, how large will our losses be?"

Hans Müller instantly shut his mouth. The Chinese market alone is worth at least 400 million US dollars. If they interfere with the subsequent base station maintenance, that figure will reach 1 billion US dollars, or even more.

Meanwhile, in the Chinese market, Shen Fei was reviewing the situation with Deputy General Counsel Zhao Mingyuan.

"Old Zhao, do you think Ericsson will voluntarily settle like Nokia did?"

Nokia was in the middle of a transformation and couldn't afford to delay.

Ericsson's communications business is still doing quite well. Will they fight to the end?"

Shen Fei already had an answer in his mind, but he still wanted to hear this answer.

"Boss, don't you already have the answer to this question in your mind?"

Deputy General Counsel Zhao Mingyuan's answer was equally straightforward.

"Ericsson is smarter than Nokia.

Although they both took the initiative to attack under the instigation of the United States, they both know how to do the math.

Although the Chinese market has been squeezed quite a bit, it is still one of their top five markets and generates several hundred million US dollars in profit.

If they lose the Chinese market because of a patent war, their shareholders won't agree.

Someone will definitely push for it; a settlement is only a matter of time."

Shen Fei smiled: "Since that's the case, we need to make a full show of our stance before the settlement.

Report them to the European Union, push for the anti-monopoly investigation in China, delay in the United States courts—use every available tactic.

Then let's see what other crazy ideas the netizens have given us, and use them all. Let them know that the cost of fighting a patent war against Transsion is far greater than the benefits."

Shen Fei leaned back in his chair with a smile; it seemed the legal team was still insufficient.

Not to mention the legal staff on the ground, even the legal staff in the patent department was not enough.

After all, in the last six months, it's been from Nokia to Ericsson, and there may be more in the future.

He knew this day would come sooner or later, so he had laid out the relevant patents in advance, such as the Motorola patent library, Qualcomm's cross-licensing, and cooperation with MediaTek.

Transsion's patent moat had been dug deep enough, but the moat wasn't wide enough yet, so they needed to keep digging.

"Old Zhao, how is the review of the European Union reporting materials going?"

"Still under review, but here in the country, with Secretary Zhang putting in a word, the process has already begun."

Ericsson's settlement was faster than expected. Before the materials were even approved, Ericsson's Chief Intellectual Property Expert, Gustavo, and two United States lawyers had already arrived here.

The moment Gustavo signed, the lawyers from both sides each took a copy, and they dispersed in less than 10 minutes.

The terms were confidential, but both sides knew the general content.

Transsion paid a licensing fee as requested, the amount of which was far lower than Ericsson's initial asking price, and even lower than the normal market rate.

Ericsson promised to withdraw all lawsuits and not to initiate any new patent lawsuits globally.

Both sides simultaneously withdrew their anti-monopoly reports in the European Union and France, and all grievances were written off.

At the same time, Ericsson also had to pay relevant patent fees to Transsion, and the final price was slightly higher than they had imagined.