Thursday, June 13, 2019

China's Alchemists Making Gold

When all else fails, sue.  Huawei, which has been mostly on the defensive since the Trump Administration went after them, has decided to bite the hand that feeds them.  Huawei claims Verizon has not paid it for over 200 patents it licenses.  However unlikely such a claim would be, the timing of it would almost certainly come up in any court in the U.S.  With that many involved, this had to have been going on for more than a year or so.  Huawei ignored it when it was in their interest, but now that companies are starting to exit some of their manufacturing, China decides to retaliate with legal action, thinly disguised as legitimate. 

This is a lesson for other companies who are pulling their operations out of China, a warning given by China, without specifics, last week.  Now we know.  They are going to grind all they can out of these companies with phony patents conjured up in the Chinese patent filing system which takes almost any claim and turns it into gold.  This is going to keep most of them in court for long enough to learn their lesson. 

Nobody is looking at the validity of Chinese patents from an intellectual property standpoint.  Many of those patents are stolen technology repurposed into a new use.  They are bogus.  Time for the rest of the world to take action and challenge some of those patents on the basis of their validity.  

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