Huawei Photo: VCG

Huawei Technologies Co, one of the major subsidiaries of Huawei Investment & Holding Co, is suing Amazon.com and electronic products manufacturer Compal Electronics over alleged infringement of patent rights for invention, according to corporate data provider Tianyancha.

The lawsuit also covers Amazon.com Service and its subsidiary in Beijing, and Compal Electronics’ three subsidiaries in Kunshan, East China’s Jiangsu Province. The court date was set for December 8, 2022. 

Compal is one of the world’s largest laptop manufacturers, with orders from PC brands including Dell, HP and Lenovo, and was the manufacturer of Amazon’s Kindle e-reader, which quit the Chinese market in June 2022, according to media reports. 

The three companies did not respond to the Global Times’ request for comment as of press time on Thursday.

Liu Dingding, a veteran analyst in the technology industry, told the Global Times on Thursday that Huawei’s move may further secure its leading position in the global information and communications technology area, and is an example for Chinese companies to defend their legal rights in global commercial competition. 

According to the annual report of Huawei Investment & Holding Co, Huawei has one of the largest patent portfolios in the world with a total of over 110,000 active patents, across over 45,000 patent families. 

In terms of the number of patents granted in 2021, Huawei ranked No. 1 at both the China National Intellectual Property Administration and the European Patent Office, and No. 5 at the United States Patent and Trademark Office, said the company.

Liu noted that patent right disputes are common in global commercial competition. “Patent royalties are part of the revenue for some large enterprises, and also an approach to restrain the development of rivals,” he said.

Huawei’s CEO Ren Zhengfei had stated in an internal meeting that Huawei’s patents were used to defend itself, and the current “right of speech” generated by accumulated patents will help the company to make reasonable standards for patent royalties, according to an article published on Huawei’s online community Xinsheng in April 2022. 

Ren also stressed that the patent royalty standard is not for making profit, but for stimulating invention. 

“Huawei’s move sets an example for Chinese companies to defend their rights in disputes with foreign companies, and it also encourages positive competition among market participants, which will create a healthy environment for industry development,” Liu noted. 

Global Times