In a surprising move, Qualcomm has filed a lawsuit against Transsion, the world’s fourth-largest smartphone manufacturer, for allegedly infringing on four of its patents.
Reported by IP Fray on LinkedIn, the lawsuit is about four unspecified non-standard essential patents held by Qualcomm. What makes this case unusual is the fact that Transsion doesn’t use Qualcomm’s Snapdragon chips in any of its current smartphones.
Typically, Qualcomm leverages its dominant position in the mobile chip market to secure licensing deals when its patents are violated. However, this tactic wouldn’t work on Transsion since it primarily relies on MediaTek and Unisoc for its processors, according to WinFuture.
Qualcomm sues Transsion over patent Infringement
Despite not using Qualcomm’s chips, Transsion has a portfolio with popular brands like Tecno, Itel, and Infinix. All these companies focus on catering budget and mid-range smartphone market which has proven to be a success since Transsion as a whole has become the fourth-largest manufacturer globally, behind Samsung, Apple, and Xiaomi, according to Statista.
Their rapid growth has seemingly caught Qualcomm’s attention, leading to this lawsuit over unspecified “non-standard essential patents.” The outcome of the lawsuit remains uncertain, but Transsion could be forced to pay licensing fees that might impact their razor-thin margins on budget devices.
The new lawsuit from Qualcomm comes amidst pressure from other tech giants. According to the Financial Times, Philips has also sued Transsion, and Nokia is seeking licensing fees for its patented technologies used in Transsion’s phones.
Interestingly, a Transsion spokesperson mentioned in that report that the company has signed a “5G standard patent license agreement” with Qualcomm and claims to be fulfilling its obligations under that agreement. It’s strange that Qualcomm decided to file a lawsuit if that is the case.
The resolution of this lawsuit and its impact on Transsion remains to be seen. We will keep you updated on any new developments in this story.
