Chinese semiconductor company seeks $100 billion from Qualcomm for trademark infringement

Chinese semiconductor company Genitop is seeking $100bn in retribution pay from Qualcomm for trademark infringement.

The case follows Beijing’s decision to fine the US firm nearly $1bn for monopoly offenses just last month.

Genitop, which is based in Shanghai, claims Qualcomm infringed on its China-registered trademarks by using “Gaotong” — a Chinese phrase that means “high communication” — in its Chinese company name and product brand. Genitop goes on to say that it registered the phrase in 1992. 

In the company’s original suit, which was filed last year, Genitop was seeking $16 million in compensation. As the case has not yet been decided, Genitop’s lawyer Chen Ruojian said his company will now ask the Chinese government to probe Qualcomm’s trademark infringements in the country, with the goal being to see Qualcomm pay an “administrative penalty” of $100 billion. 

Ruojian explained that under Chinese law, penalties of this type and extent can be set at three times a firm’s sales. Genitop arrived at the figure by combining three years of Qualcomm’s turnover in China. 

“We will file a formal, written and open application with the State Commerce and Industry Administration for investigations and a penalty against Qualcomm,” Chen told reporters.

This case is the latest complaint to go against the California giant in China. Last month, Qualcomm agreed to pay 6.088 billion yuan and modify its business practices in China to end the country’s anti-trust investigation. The aforementioned agreed-upon fine was equal to 8% of the company’s 2013 sales in China. 

In the past few years, China has increased its scrutiny of foreign firms, launching several investigations into malpractices ranging from clothes to pharmaceuticals to technology, and more. And the focus has not been solely on American enterprises: in August 2014, the Chinese government levied a 1.24 billion yuan fine on a dozen Japanese auto parts firms.

At the time, this was biggest ever fine administered in an anti-monopoly case. 

Via Phys.org