Netgear takes legal action against Huawei in United States antitrust case over patent licensing By Reuters

© Reuters. SUBMIT PICTURE: Individuals stroll past a Huawei shop with ads for the Mate 60 series mobile phones, at a mall in Beijing, China August 30, 2023. REUTERS/Yelin Mo/File Image

By Blake Brittain

( Reuters) – Computer system networking business Netgear (NASDAQ:-RRB- has actually taken legal action against Huawei in California federal court, declaring the Chinese tech giant broke U.S. antitrust law by declining to certify its patents on sensible terms.

The grievance, submitted late on Tuesday, likewise implicated Huawei of scams, racketeering and other offenses for presumably keeping patent licenses for innovation that Netgear’s routers need in order to abide by global Wi-Fi networking requirements.

San Jose, California-based Netgear stated Huawei misuses patent-infringement claims to increase its licensing rates, requiring other business to “participate in pricey lawsuits and face exemption from the marketplace or pay Huawei’s inflated needs.”

The grievance follows violation claims submitted by Huawei versus Netgear in Germany and China.

Agents for Huawei did not right away react to an ask for talk about Wednesday. A Netgear lawyer decreased to talk about the claim.

Standard-essential patents cover innovations that are required to abide by global technical requirements like Bluetooth and 5G. Standards companies need patent owners to certify the patents on reasonable and sensible terms.

Huawei initially implicated Netgear of infringing its patents in a 2020 letter, according to the claim. Netgear informed the court that Huawei submitted violation claims versus the business and required “substantial” licensing charges before offering crucial background details or determining particular appropriate patents.

Huawei’s “‘ take it or leave it’ method was meant to draw out supracompetitive rates from Netgear under the installing risk of serial claims,” the grievance stated.

Netgear stated Huawei has actually utilized the exact same technique versus other business consisting of Verizon (NYSE:-RRB-, L3Harris and T-Mobile.

The claim implicated Huawei of monopolizing standard-essential innovation and participating in racketeering by utilizing a “around the world plan” to “control worldwide markets by unlawfully taxing effective requirements” at anti-competitive rates.

Huawei reported in 2015 that it made $560 million from patent royalties in 2022.


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