Intel charged with tech monopoly (China Daily) Updated: 2005-04-05 09:00
The world's largest chipmaker Intel has been charged with illegal technology
monopoly and impeding technology development by a Chinese firm.
Beijing Donjin Xinda Technology Co Ltd, a wholly owned subsidiary of Shenzhen
Donjin Communication Technology Co Ltd, has sued Intel for allegedly violating
relevant Chinese laws including the TRIPS (trade-related aspects of intellectual
property rights) agreement of the World Trade Organization and the Contract Law.
The case was accepted on April 1 by the Beijing No.1 Intermediate People's
Court, which has served a summons on Intel's headquarters in the United States.
The Chinese company's argument centres on an allegation that the protocol of
Intel's Inter Dialogic Systems Release 5.1.1 software (SR5.1.1) has strictly
restricted its users by binding the software to the company's own hardware
products. In other words, Intel's customers cannot use hardware produced by a
third party.
Zhang Suzhen, marketing director of Shenzhen Donjin, said Intel's alleged
action has formed a technology monopoly, going against the interests of
consumers and stifling fair competition.
"We are seeking a judgment that Intel's monopolistic protocol is invalid,"
said Zhang.
The firm's lawyer, Jiang Hongyi, said the result of legal action against
Intel will directly affect the verdict of a running lawsuit brought by Intel in
December 2004.
Intel has accused Donjin of allegedly copying the patented header files from
its software SR5.1.1 used in circuit boards running touch-pad telephone systems
at the Shenzhen Intermediate People's Court.
This case hinges on a dispute over the compatibility of some of Donjin's
products with Intel's software, and over whether users of Intel's communications
cards can switch to Donjin's products without needing to alter their existing
programs.
Intel condemned this as illegal and has requested that the court slap a
permanent injunction on Donjin prohibiting it from either the manufacture or
sale of the products in question as well as compensation of US$7.96 million.
Donjin denied all Intel's allegations, defending their move as an act for the
convenience of its customers.
The company said while continuously focusing on research and development,
Donjin will pursue the legal route to protect itself.
Chinese legal professionals believe these lawsuits will be a valuable lesson
for China's fledgling intellectual property rights (IPR) system and
anti-monopoly regulation, which is currently in the pipeline.
Zhang Ping, an associate professor of IPR protection at Peking University,
was quoted by Beijing Youth Daily as saying that cases involving compatibility
that are often encountered by high-tech enterprises in China should serve as a
warning to relevant departments to implement anti-monopoly laws as soon as
possible.
Zhang argued that to avoid being damaged by multinationals, Chinese high-tech
companies should speed up technology innovation, creating more products with
their own intellectual property rights.
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