412: Chapter 412 Qualcomm's Complaint - Qualcomm, We Did Not...

Just as Transsion began its expansion into Africa's China Telecom market, a closed-door internal meeting concluded in the United States.

This fourth round of sanctions, which had been dragged out for quite some time, was ultimately passed by a narrow margin of votes.

On December 1st, the United States International Trade Commission officially issued its announcement.

This announcement was posted directly on the homepage of their official website; after all, it had been carefully polished this time, and the wording and justifications were absolutely flawless.

"In response to complaints from Qualcomm and Apple Inc., this Commission has initiated an investigation into Transsion Technology and Huawei Technologies under Section 337 of the Tariff Act of 1930.

The complainants allege that the aforementioned two companies have infringed upon several of the complainants' patent rights in the field of communications technology in the communication products or mobile devices exported to and sold in the United States.

If the investigation finds that infringement has occurred, the products in question will be prohibited from entering the United States market."

After the news was released, it climbed to the top of China's trending topics on Weibo, even in the middle of the night.

#United States 337 Investigation into Transsion and Huawei#

It was followed by a blood-red "Explosive" tag.

The comments section was filled with angry voices, but most people weren't worried about whether this would cause substantial harm to these two companies.

After all, this happened every so often, but surprisingly, Huawei was forced onto the battlefield this time as well.

"What is a 337 investigation? Did the United States invent a new term?"

"To put it simply, the person above, it's a patent infringement investigation. If infringement is determined, the products won't be allowed into the United States market.

Transsion's S series, Huawei's Mate series, and 4G communication base stations... are these all aimed at our high-tech products?"

"Does Huawei have business in the United States?"

"Yes! It does! Its share in both the high-end and mid-range markets is not low, around 7%. The base station business was targeted once a year or two ago, but it was opened up later, accounting for less than 5% of the market. This time, there's still some impact."

"The United States is addicted to sanctions. Do they feel uncomfortable if they don't stir up trouble for three days?"

"Hilarious. Complained by Qualcomm and Apple? Why do I find that hard to believe? Both of them have a common shareholder, which is Huaxin Investment. These are all assets of Shen Fei!"

"That's right! Didn't they already have a patent cross-licensing agreement? Besides, Apple even buys screens from Transsion."

Moreover, what was quite funny was that within the first hour after the United States' announcement was released, their statements were already posted on their official websites.

The content of the statements was simple, but the meaning was clear: it had nothing to do with them.

"Qualcomm has noted the 337 investigation announcement released by the International Trade Commission today.

Qualcomm solemnly declares: Qualcomm has not initiated any patent complaints against Transsion Technology or Huawei Technologies, nor has it authorized any third party to initiate such litigation in Qualcomm's name.

Qualcomm maintains normal commercial cooperation with Transsion and Huawei and has no patent disputes.

Qualcomm reserves the right to pursue legal responsibility for any patent litigation initiated by falsely using Qualcomm's name."

If Qualcomm's statement was a firm denial, then Apple's statement was a stinging mockery.

Apple's Vice President of Global Legal Litigation wrote directly in the statement:

"Apple Inc. did not participate in the 337 investigation complaint, nor did we authorize any manufacturer to file a complaint on our behalf.

We have a long-term cooperation agreement with Transsion Technology and have extensive patent cross-licensing cooperation with Huawei.

We express our dissatisfaction with the International Trade Commission's practice of listing Apple as a complainant without verifying the situation with us. How can someone get married without notifying the actual partner?"

These two statements completely threw the International Trade Commission's public relations team into chaos.

After all, in their view, Qualcomm and Apple would at least give them some face; even if they didn't speak out, they would at least remain silent.

But they didn't expect...

However, reporters were very curious. If the complainants weren't Qualcomm or Apple, then who was the real complainant?

So, the reporters began to investigate.

Soon, the answer surfaced. The real complainant could be classified as a "patent troll company."

Registered in Delaware, it had no factories, no products, and no employees.

At least, it didn't have a single employee intended for actual R&D.

All of their assets were patent documents acquired from a pile of bankrupt companies and the patent market. Most of the patent application dates were around the year 2000, involving technologies such as 2G communication protocols and long-term touch interaction algorithms.

Many patents had already expired.

And this company was named Innovation Science Company, established on November 29, 2013.

Reporters reported one after another: the more impressive the name, the emptier the business—a typical NPE, a patent troll.

"It turns out it's a patent troll. Is the United States standing up for a patent troll?"

"The office address of this Innovation Science Company is a government mailbox, hahahaha!"

"The International Trade Commission accepted an NPE case and investigated China's two largest technology companies. How much do they want to cause trouble?"

"To the person above, is it possible that they specially made dumplings for this vinegar? [Dog Head]"

"To the person above, that goes without saying. Didn't you see that a big shot already said it? And the establishment date of this company was last month... This is clearly intentional targeting!"

"So Qualcomm and Apple were forcibly dragged in by the International Trade Commission as a smokescreen, and they didn't even know about this?"

"Qualcomm's statement has already made it very clear. And considering Transsion's strength, do you think Qualcomm would dare to do this?"

"That's true! After all, if Qualcomm really dared to do that, they would definitely be asking for a beating!"

Transsion's legal department didn't forget to twist the knife, posting a message on Weibo even in the middle of the night.

"Thank you to the United States International Trade Commission for the attention delivered in the middle of the night.

At the same time, we also thank Qualcomm and Apple for their support.

Although Transsion's business in the United States accounts for a very low proportion, it is all high-end business, and we will not give up.

If one party really has no shame and forces us to be banned from entering the United States market, it won't cause us too much impact.

It just means selling a few tens of millions fewer mobile phones. But we will still earn the money we should earn; after all, the supply chain is already mature. You can ban us from entering, but you cannot control our components from entering.

Finally, I would like to tell the other party that we have prepared the response materials. This time we will not settle; we will definitely fight the patent troll to the end."

Theoretically, in the world of "patent trolls," settlement is the default option, and active litigation is what they fear the most.

But the patent troll targeted in this statement by Transsion is not an ordinary patent troll. If they really don't reason, then Transsion has countermeasures here.