Dispute in the field of communication chips! Datang Mobile sues Spreadtrum Communications: claims 680 million yuan

On November 4, Xinke Mobile recently issued an announcement stating that its wholly-owned subsidiary Datang Mobile filed a lawsuit with the Haidian District People's Court of Beijing due to a contract dispute with Spreadtrum Communications (Shanghai) Co., Ltd. and applied for property preservation.

At present, the case has been accepted and the relevant parties have received the property preservation order, but the trial has not yet begun.

The announcement shows that the case involves an amount of up to RMB 680 million, including basic commission fees, high-level protocol stack commission fees and liquidated damages generated from January 1, 2013 to the date of actual payment.

According to Xinke Mobile, Datang Mobile and Spreadtrum have signed a series of cooperation agreements and supplementary agreements for technical cooperation and development of TD-SCDMA terminal dedicated chips and related terminal modules.

Datang Mobile has fully fulfilled its obligations under the agreement. The two parties have successfully developed TD-SCDMA chips and modules through cooperation. However, after Spreadtrum sold the jointly developed chips and modules, it did not pay Datang Mobile the corresponding commission fees as agreed in the agreement.

It is understood that Xinke Group already owns seven listed companies, including Xinke Mobile, Fiberhome Communications, Accelink Technologies, Ligong Optics, Changjiang Communications, Datang Telecom, and ST Gaohong.

Spreadtrum is a wholly-owned subsidiary of Unigroup Spreadtrum, which also sorted out the long-standing historical equity holding dispute in September this year and is making full preparations for its listing.