InterDigital vows to stop discriminatory licensing: China

Source:Xinhua Published: 2014-2-19 11:31:26

US patent licensing company InterDigital Inc. has promised to stop discriminatory licensing practices against Chinese firms, China's anti-trust authorities told Xinhua on Wednesday.

The wireless technology patent holder said it will license patents to Chinese telecom equipment manufacturing enterprises under fair, reasonable and non-discriminatory (FRAND) terms, according to the anti-monopoly bureau under the National Development and Reform Commission (NDRC).

InterDigital will stop charging Chinese companies licensing fees that are discriminatory and exploitative. It will not bundle the licensing of 2G, 3G and 4G mobile phone patents as a sign of respect for Chinese players' right to choose, the NDRC said.

InterDigital has also promised to stop forcing Chinese companies to license some of their patents to it for free.

The NDRC will further study the case before making any decisions, it added.

The latest development came after the NDRC bureau announced on Feb. 10 that InterDigital had filed a commitments request and promised to work with Chinese authorities in the hope that China will suspend its ongoing investigation into the firm.

InterDigital has allegedly charged Chinese telecom firms like Huawei and ZTE higher patent royalty rates than it got from Apple Inc. and Samsung Electronics. It is also suspected of using unfair trade practices to force Chinese companies to accept the offer.

In October last year, a court in south China's Guangdong Province ordered InterDigital to pay Huawei 20 million yuan (3.28 million US dollars) in compensation for monopolistic practices.

On the excuse of fearing its officials being detained or arrested, InterDigital at one point refused to come to China in response to the investigation, before finally attending a meeting with NDRC officials last month, an occasion on which the two sides clarified their stances.

Posted in: Companies

blog comments powered by Disqus