China Daily

Chipmaker’s complaint not good for tech industry

- By ZHONG NAN zhongnan@chinadaily.com.cn

Experts warned on Wednesday that US chip manufactur­er BiTMICRO’s filing of a complaint against other global tech companies for infringing intellectu­al property rights would be counterpro­ductive and goes against the trend of globalizat­ion.

The Virginia-based semiconduc­tor producer, which makes solid-state drives (SSD), stacked electronic­s components and other products, filed the complaint late last month against more than a dozen global tech companies including Dell, Samsung Electronic­s, Lenovo, SK Hynix Inc and VAIO Corp.

It claimed that the 17 proposed respondent­s violated Section 337 of the US Tariff Act of 1930 by importing and selling products that infringe the asserted patents. The complaint specifical­ly refers to various computers, mobile phones, tablets, watches, and components thereof, as infringing products.

The press office of Lenovo Group Ltd did not respond to China Daily on Tuesday. Lenovo and its North Carolina-based subsidiary Lenovo (United States) Inc is the only company in the Chinese mainland that has been targeted by this move.

Cheng Zhiwei, a business professor at Nankai University in Tianjin, said as BiTMICRO’s complaint involved many major companies in the world including those US manufactur­ers, the US government will handle it carefully and it will put pressure on US policymake­rs to respond to the complaint.

“For BiTMICRO, targeting its competitor­s will not resolve its difficulti­es on sales and the company should be aware that the rapid growth of the flows of technology, informatio­n, data, know-how and knowledge has existed for long time within and across borders, thanks to the power of globalizat­ion,” said Cheng.

Li Guanghui, vice-president of the Chinese Academy of Internatio­nal Trade and Economic Cooperatio­n in Beijing, said this move is intended to subvert both BiTMICRO’s domestic and foreign rivals, as the US firm, once a leader in the SSD market between 2000 and 2008, has been losing ground to other companies.

“Giant companies such as Intel Corp, Samsung Electronic­s Co and SanDisk Corp currently have the majority of the SSD market. As China’s largest personal computer manufactur­er, Lenovo’s core business is not SSD. It will not have a big impact on the company’s commercial operations,” said Li.

Launched by the United States Internatio­nal Trade Commission, Section 337 investigat­ions are related to claims involving intellectu­al property rights. It declares the infringeme­nt of a US patent, copyright, registered trademark, or mask work to be an unlawful practice in import trade.

The US Internatio­nal Trade Commission normally decides on whether to launch an investigat­ion within 30 days of receiving a complaint.

Samsung Electronic­s said on Tuesday that the company would “respond after thoroughly reviewing the case”.

South Korea’s Trade-Investment Promotion Agency has also warned of the growing number of complaints related to US trade laws.

For BiTMICRO, targeting its competitor­s will not resolve its difficulti­es on sales...” Cheng Zhiwei, a business professor at Nankai University

 ?? PROVIDED TO CHINA DAILY ?? A Lenovo employee fixes internal cables onto a laptop in Whitsett, the US.
PROVIDED TO CHINA DAILY A Lenovo employee fixes internal cables onto a laptop in Whitsett, the US.

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