A China-based company wants Qualcomm to fork over $100 billion for trademark infringement.
Genitop Research said Qualcomm deliberately used the trademarked phrase “Gaotong” in its Chinese company name and product brand. The phrase, which means “high communication”, was purportedly registered to Shanghai-based Genitop Research in 1992. The company sought $16 million in compensation, but has since added a $100 billion “administrative penalty” to the case.
To put things in perspective, Qualcomm’s entire market capitalization is about $100 billion.
Genitop Research’s lawyer Chen Ruojian says his client will file formal application regarding the case shortly.
The Chinese government has taken measures in recent years to make sure foreign companies aren’t stepping out of line.
Qualcomm was fined a record $975 million last year in an anti-monopoly case where it was found guilty of abusing its dominance of wireless technology by charging manufacturers “unfairly high” licensing fees.
In a similar fashion, the Chinese government also fined 12 Japanese auto parts companies nearly $200 million in other anti-monopoly cases.