- CNTV English - CCTV News

China's communications industry files complaint against Qualcomm

02-10-2014 16:29 BJT

By CCTV reporter Feng Xin

China's Communications Industry Association is filing a complaint against Qualcomm, the world's largest wireless chipset provider. The CCIA alleges that Qualcomm is overcharging Chinese mobile makers on patent fees and boosting sales by tying products. The CCIA says six in ten smart phones in China use chipsets designed by the American company.

The CCIA filed a report with China's top economic regulator in January after visiting two thirds of its 30 member companies. Industry insiders say that for a 1,000-yuan smart phone, five percent of the sale goes to Qualcomm.

"Overseas patent owners charge a lot of dollars and the consequence is that the entire Chinese mobile phone industry is reduced to manufacturers. Their profits are taken by global companies," said Wang Yanhui from China Communications Industry Association.

Qualcomm says it's cooperating with an investigation by the National Development and Reform Commission and it's been asked to not reveal more details about the situation at the moment. Qualcomm says it has invested billions of dollars in research and development and is charging Chinese mobile phone providers reasonable authorization fees.

Chinese experts, however, say whether patent fees are reasonable depends on the company's market position. China's anti-trust law specifies that if a company has more than 50 percent of market share, it can be considered as having a dominant position in the market.

"Qualcomm sells us baseband processors, also known as the baseband processors of cellular communications. It takes over two thirds of the market. There is no doubt that it has a dominant market position," said Ni Guangnan from Chinese Acedemy of Science.

Some experts believe Qualcomm's calculation of patent fees based on the final price of a complete product is problematic. But they also point out that the legal dispute has been partly caused by the fact that Chinese mobile phone producers don't own core technologies.

China's anti-trust law says that Qualcomm could face a fine of more than one billion U.S. dollars if it is ruled liable in the case.


Editor:James |Source:

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program