A Chinese court has already previously ruled on the case that Huawei filed against Samsung and has ordered the latter to stop manufacturing and selling smartphones in the country, However, a US federal judge in San Francisco is now blocking Huawei from enforcing that ruling, saying it won’t take effect until he has made a decision on an ongoing breach of contract clause that has been filed in the city. So this means Samsung is still free to sell their ware in China, the world’s biggest smartphone market.
Huawei filed patent royalty claims against Samsung and in January of this year, the Intermediate People’s Court of Shenzhen ruled in favor of the Chinese company. Under that ruling, Samsung will not be allowed to manufacture and sell their 4G LTE devices in China. The Korean tech giant argued that if that is the case, they will have to close their factories in China. While Huawei is the country’s biggest manufacturer of phones and network gear, Samsung is the world’s largest maker of smartphones and semiconductors.
According to U.S. District Court Judge William H. Orrick, if they implement this order from China, then the proceedings in this breach of contract case in the San Francisco court may be rendered meaningless and that it could cause harm to Samsung’s operations in China. So basically, he is blocking the implementation of the Chinese court’s ruling in China until he is able to make a ruling in the case in the US.
There is no reaction yet from Huawei in the US judge’s ruling. But expect them to appeal this decision just like Samsung is still in the process filing their appeal in the Chinese court.
VIA: Bloomberg
