The mobile giant almost lost its ability to create and sell phones throughout the country. However, their rights were preserved after a judge ruled in the company’s favor in a patent fight against Huawei.
The two tech giants are fighting in court because Huawei believes that Samsung is infringing on two of its patents that deal with their ETSI LTE protocol. The protocol is a big deal because it is essential to all phones that use LTE.
In the past, a Chinese court sided with Huawei. After the ruling, Samsung was ordered to stop selling and manufacturing 4G LTE smartphones throughout China. However, the ruling was overturned and Samsung was able to hold onto its stronghold in China.
If Samsung is denied permission to manufacture and sell phones in the country, it would suffer tremendously. Court filings suggest that the company’s manufacturing hubs in China have the second-largest output of any company in the world. Fortunately, Samsung won the reprieve in US District Court and are allowed to continue their businesses throughout China while the dispute is handled in the United States.
Judge William Orrick also noted that rulings made in a Chinese court could make the United States case meaningless. He also criticized both of the tech giants for their inability to compromise.
“I will not recount the history of their failure to reach agreement in the ensuing years, since all of the information has been filed under seal, except to wonder aloud how it can be in the interest of these important multinational corporations to slog through unending litigation around the globe rather than figure out a process to resolve their differences if agreement is impossible,” Orrick said.