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Huawei, Samsung embroiled in patent infringement suit


08-02-2016 16:38 BJT

A legal battle between tech giants Samsung and Huawei is hotting up. The companies have been embroiled in tit for tat patent disputes dating back several months now, but beyond the battle over intellectual property between the two, there could be much wider implications on market share in an increasingly competitive space.

It's a legal battle between world's number one and number three smartphone giants. China’s Huawei and South Korea’s Samsung are locked in legal battles. Both suing each other…

Samsung claiming just over 24 million dollars in damages in the Beijing courts

"I think the one reason they are doing this in China first - in Beijing first - is because they want to make this effective and threatening," said Tom Kang, managing director, Counterpoint.

The South Korean tech giant Samsung has been losing market share in the Chinese market, but some believe suing China's number one in its home turf will not prove to be a game changer, and could make things even worse.

"With the S7 and S7 Edge, they have been helpful for Samsung. It's helped them to gain footing back in the Chinese market, but I think it's still going to be hard for Samsung irrespective of the outcome here," said Kiranjeet Kaur, research manager, IDC.

"And with this patent litigation in case of Huawei, if Huawei wins, it would pose more challenges for Samsung in the Chinese market."

For Huawei however, the legal battle could lead to a victorious win despite the court ruling. It could cement Huawei’s brand firmly on a global stage, as seen in a similar case between Samsung and Apple.

"The Samsung vs. Apple case was meaningful because it made global users realize that Samsung's products are equal to Apple. It was great marketing… Huawei must have learnt a lot while watching this case," said Jun Dong-Joon, representative patent attorney, Su Intellectual Property.

"If you pick a fight with the number one, you kind of gain status similar to the number one player," Tom Kang said.

Experts believe the two parties will eventually settle with a cross-licensing agreement. But it won't be happening soon… as many think Samsung could expand the legal battle further, heading for the US courts.

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