When US chipmaker Qualcomm was threatened with a fine of $1bn for violating China’s antitrust law in 2013, it took a novel approach: it decided to defend itself. This was considered an unusual move in a country where foreign companies often simply fold in the face of the Beijing bureaucracy.
“Most just want to pay the fines and move on,” says a Beijing-based lawyer. “Technically they could appeal but, hey, why make things worse for yourself?”
A year later, it is unclear whether the strategy has been a success. With a decision imminent, the closed door proceedings have been the subject of international diplomacy and veiled threats. At one stage the case briefly entered the public arena with state media attacking the company’s star expert. But much is at stake: the case has the potential to reshape the global smartphone patent system.