Qualcomm Encounters Dispute In Chinese market

Genitop, a Chinese company files a lawsuit against Qualcomm

Qualcomm Inc (QCOM) is popular name in the chip making industry that is generally known for its Snapdragon processor. However the company is now undergoing pressure in the Chinese market,

QCOM is facing a fairly tough time in the Chinese market where authorities are making it fairly hard for them to survive. The company has been dealing with a dispute over their local trademark. A local Chinese company is seeking the help of Chinese government to file a lawsuit against Qualcomm for copying their trademark. The company demands $100 billion for infringing their trademark from the United States based chipmaker.

This is not the only problem which the company faced in China but this is one the series of issues which Qualcomm is dealing with since a fairly long time. Previously it was reported that the chipmaker was liable to the Chinese regulators a fine that worth $975 million. They had been accused of establishing a business practice which was monopolistic in nature for its patent licensing business.

Qualcomm uses the name of “Gaotong” in China to facilitate its business practices. However, another Chinese company based in Shanghai named as Genitop also uses the same name to govern its business.

Gatong in the Chinese native language means “high communication”. Genitop claims that it was the first company that used the name Gaotong and now its products are being continuously misinterpreted as being Qualcomm’s. The company stated: “People believe we are the fake Qualcomm, or that we maliciously try to depend on the Qualcomm name.”

Genitop is a popular manufacturer of telecommunication related products and services as well as other gears and chips. The company registered their name as Gaotong in the year 1992 when it was founded back then.

Genitop also accused Qualcomm for being involved in bullying. They believe that the company by law is forced to adhere by the trademark law but so far they have only been infringing it. Moreover, Qualcomm has also tried to buy the trademark rights from Genitop for approximately $326,000.

Thus Genitop has now filed a cased against Qualcomm and if they succeed in proving their stance in front of the jury then the latter has to pay 100 million yuan to the former as compensation. Moreover, the company also wishes to that the authorities take the trademark for 15 years.

Considering the intensity of the notion, Qualcomm is likely to be held accountable for the mishap. If the company does not succeed in making negotiations with Genitop then a huge fine will be payable to them. however, Genitop will enjoy this turmoil whatsoever.