Samsung Suffers a Loss in China Patent Lawsuit Against Huawei

Alfred Osborne
January 13, 2018

According to The New York Times, the deal collapsed after a group of US lawmakers voiced concerns about a potential deal between Huawei and an American firm to sell products in the states in a letter to the Federal Communications Commission (FCC).

Huawei reportedly asked Samsung to enter into a cross-licensing deal. This means that in the end, a war will be waged between Samsung Electronics which wants to keep its technological advantages and Huawei which wants to remove its image as an imitator and prove its technological power in overseas markets such as the United States.

The Wall Street Journal, which reported the development Tuesday, gave no reason for AT&T Inc.'s decision.

A Huawei spokesman declined to comment.

Also coming to the US market is the designer version of the Mate 10 Pro - the Porsche Design Huawei Mate 10, which will be priced at $1,225 when it goes on sale February 18.

Huawei presently is the third-largest smartphone manufacturer in the world and the world's largest telecom equipment manufacturer while ZTE is the fifth largest n the world. "We are a company that really cares about cybersecurity and privacy protection". He pointed to the 153 million smartphones Huawei shipped in 2017, saying the company has already earned consumers' trust around the world. It builds on past action against Huawei (the world's top seller of telecom equipment) and ZTE (ranked fifth), which included a ban on ZTE selling products to the US government agencies in 2013.

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"Additional work by the Intelligence Committees on this topic only reinforces concerns regarding Huawei and Chinese espionage", the letter to the FCC reportedly said. "Allowing Huawei, ZTE, and other related entities access to USA government communications would be inviting Chinese surveillance into all aspects of our lives".

Huawei has been flagged by lawmakers before.

In 2012, Huawei and ZTE Corp (000063.SZ) (0763.HK) were the subject of a US investigation into whether their equipment provided an opportunity for foreign espionage and threatened critical USA infrastructure - a link that Huawei has consistently denied.

US officials are also investigating whether the company violated American trade sanctions in countries including Iran and Syria. The Commerce Department is also said to be investigating Huawei's dealings with sanctioned nations.

"Partnering with an innovative brand like Huawei is incredibly exciting for me, and I look forward to playing an integral part of the company's growth in the year ahead", Ms. Gadot said in a statement.

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