Hisense sued Sharp for patent infringement

[Global Network Technology Reporter Chen Jian] The ongoing legal battle between Hisense and Sharp has escalated dramatically. Following a series of lawsuits initiated by Sharp in the United States, Hisense finally decided to take a firm stand. It has been reported that Hisense Electric, the listed subsidiary of Hisense Group, has officially filed lawsuits in courts in Beijing and Qingdao, accusing Sharp of infringing on its invention patent rights with more than a dozen TV models sold across over a dozen provinces and cities in China.

The patents involved in this case are primarily two: “A backlight control method, device, and LED TV” and “Backlight drive circuit and television,” both of which are still within their valid periods. In its lawsuit, Hisense is seeking a court order to compel Sharp to immediately cease all infringing activities, including manufacturing, selling, and offering for sale the infringing products, as well as destroying all such items. Both courts have formally accepted the case, signaling the seriousness of the matter.

In 2015, Sharp, facing financial difficulties, transferred its Mexican plant in North America to Hisense. At the same time, it also granted Hisense the five-year right to use the Sharp trademark in the American market, excluding Brazil. After acquiring the assets, Sharp’s business in North America gradually improved. However, when Sharp acquired Foxconn in 2016, it allegedly violated a contract clause that required termination of the brand rights. Hisense rejected the unreasonable demand, citing the validity of the original agreement. Sharp then publicly threatened to "take destructive action" and reclaim the Sharp brand. Since the beginning of this year, the dispute over the brand rights has intensified, with Foxconn, the actual controller behind the move, attempting to reacquire the Sharp brand through legal means. This led to a series of U.S. lawsuits and even a Section 337 investigation by the U.S. government. The situation has drawn comparisons to the old saying “Wei Wei rescues Zhao,” highlighting the complex dynamics at play. However, Sharp's lawsuits against Hisense in the U.S. have faced repeated setbacks. First, the case was dismissed immediately, and later, on November 13, the U.S. District Court for the District of Columbia approved Hisense’s request to dismiss Sharp’s motion, rejecting the application for an injunction.

This time, Hisense chose not to remain silent in the face of Sharp’s provocations. Instead, it took a proactive approach, using legal tools to defend its interests. This patent litigation marks a stronger voice from Chinese companies when dealing with foreign intellectual property barriers. Both sides are now engaging in legal battles on both sides of the Pacific, and the dispute has escalated into a broader trade conflict, drawing significant attention from the legal community. Li Wenyu, director of the Intellectual Property Center at the China Institute of Information and Communication Technology, commented: “As Chinese companies accelerate their global expansion, more and more of them are protecting their interests through high-value patent portfolios. This shift shows how Chinese companies are becoming more mature in managing and utilizing patents, reflecting a growing respect for intellectual property rights.”

However, Sharp’s challenges in China extend beyond corporate disputes. Its low-cost strategy and associated quality issues have drawn criticism from Chinese consumers. According to public reports, consumers have filed lawsuits against Sharp over product quality issues more than ten times this year alone.

In response, Sharp issued three statements on November 30. First, it claimed that it had invalidated some of Hisense’s patents. Second, it emphasized that its technical capabilities and patent portfolio are extensive and robust. Third, it declared that it would take strong legal actions against any party infringing on its intellectual property rights and would not tolerate such violations.

Currently, patent disputes are common among major technology companies, including Apple and Qualcomm. However, Hisense stands out as a representative of domestic TV brands. The patent conflict between the two companies reflects the broader challenges in the global television industry, which is currently experiencing a downturn. Both companies are likely to benefit from the North American market, making the outcome of this legal battle highly significant.

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