Chongqing - Transsion Holdings, known as the "King of Phones in Africa," is currently involved in a patent dispute in India. On July 12, Qualcomm filed a lawsuit in an Indian court against Transsion Holdings, accusing them of infringing on four non-essential standard patents.

In response, Transsion Holdings stated that it has signed a 5G standard patent license agreement with Qualcomm and is currently complying with it. The company is also negotiating with third parties to establish fair licensing fees.

Transsion Holdings, known for brands like TECNO, Itel, and Infinix, has a strong presence in Africa, South Asia, and Southeast Asia. Its subsidiary, Chongqing Transsion Technology Co., Ltd., supports this global expansion through its R&D and manufacturing capabilities.

In light of the patent dispute, He Yuheng, a lawyer at Chongqing Jingsheng Law Firm, explained to Bridging News that national or international standards do not cover non-essential standard patents. This means other companies can either work around these patents using technical solutions or use them by paying the required fees.

He Yuheng, a Chongqing Jingsheng Law Firm lawyer, accepted an exclusive interview with Bridging News last week. (Photo/He Yuheng)

In this case, Transsion Holdings contends that Qualcomm's patent fees are excessively high and do not consider different regions' varying economic development levels and market conditions. The main issue in the dispute is whether a uniform global rate should apply across all regional markets.

"Based on this case, I believe that licensing fees should vary according to the characteristics of different markets and regions," said He. "This approach is both more understandable from a market perspective and fairer, as it accounts for the differing economic conditions across regions."

Given the current situation, a global standard rate has not yet been established. However, in December 2023, the Chongqing No. 1 Intermediate People's Court issued a first-instance judgment in the 5G patent license dispute between Nokia and OPPO. This decision set a global precedent by establishing that the mobile phone industry's cumulative royalty rate for 5G standards should range from 4.341% to 5.273%, serving as an important reference worldwide.

In 2023, Transsion Holdings experienced notable growth across various markets. According to IDC data, the company held a 14.0% share of the global mobile phone market, ranking third overall. Transsion led the African smartphone market with over 40% share and was the top player in South Asia, holding over 40% in Pakistan and more than 30% in Bangladesh. In India, the company had an 8.2% share, ranking sixth.

Boosting global expansion through quality branding and intellectual property

He noted that Chongqing, a key railway hub in the New International Land-Sea Trade Corridor (ILSTC), is enhancing global connections to support the international expansion of local and national enterprises. Transsion Holdings' success is due to its strong presence in emerging markets like Africa and South Asia, covering over 70 countries. However, building a brand also involves maintaining high product quality and a strong brand image.

For example, Chongqing-based Loncin Motorcycle once held 80% of the Vietnamese market but was eventually surpassed by Japanese brands due to neglecting product quality and brand building. Companies must prioritize quality and brand development in international markets to avoid price wars that can degrade quality and harm user experience.

He emphasized that before venturing abroad, Chinese enterprises should thoroughly understand and learn the brand protection policies and intellectual property laws of their target markets. This preparation is crucial for solidifying brand protection and avoiding unnecessary legal risks.

Furthermore, manufacturing and OEM enterprises must focus on intellectual property issues, ensuring foreign clients have the necessary trademark, patent, and copyright documentation. For instance, applying for customs intellectual property protection is an effective way to prevent importing or exporting goods that infringe on protected intellectual property rights.

He added that Chinese enterprises should also draw from the successful experiences of foreign companies in overseas patent strategies to support high-level, stable international expansion.