Qualcomm could face another regulatory headache in China,
this time over a trademark dispute with a Chinese company that is asking the
local government to intervene and fine the U.S. company US$100 billion for
alleged infringement.
Last month, the chip company agreed to pay Chinese
authorities a US$975 million fine for alleged monopolistic business practices
relating to its patent licensing business.
Both Shanghai-based Genitop and Qualcomm have been battling
over the trademark "Gaotong", which the two companies use as their
Chinese brand names.
Genitop claims that it owned the trademark first in China and
its products are continually mistaken for Qualcomm's. "People believe we
are the fake Qualcomm, or that we maliciously try to depend on the Qualcomm
name," Genitop said in a statement. In Chinese, Gaotong means "high
communication".
Genitop develops telecommunications gear and chips, and first
registered for the Gaotong trademark back in 1992, the year it was founded, it
said Tuesday.
Qualcomm has allegedly "bullied" Genitop by
refusing to respect the trademark laws, and has instead tried to buy from the
Chinese company the trademark rights to Gaotong for 2 million yuan
(US$326,000).
Genitop has already filed a trademark infringement lawsuit
against Qualcomm in Shanghai, demanding 100 million yuan in compensation. But
it will also ask China's State Administration for Industry and Commerce to
penalize the U.S. chip vendor for 15-years of trademark infringement.
Qualcomm did not respond to a request for comment.
It's not the first time a U.S. technology company has faced a
trademark dispute in China. Back in 2012, Apple agreed to pay a company US$60
million for ownership of the iPad trademark, following a prolonged legal
dispute. This came after the Chinese company wanted a $400 million settlement.
http://www.cio.in/news/qualcomm-faces-dispute-in-china-over-its-local-trademark
