According to a Reuters report from Beijing dated August 30, Sharp filed a complaint with the U.S. International Trade Commission (ITC) on Wednesday, seeking an investigation into China's Hisense Group. This move has further intensified the ongoing conflict between the two companies. Sharp claims that Hisense has violated its patents. Previously, Sharp had granted Hisense the right to use its American television brand. However, following Sharp's acquisition by Foxconn, Sharp sought to reclaim the brand rights and filed a lawsuit against Hisense in the U.S. in June of this year, alleging that Hisense had tarnished the Sharp brand image and demanding that Hisense cease using the Sharp trademark. When contacted by the reporter, Hisense declined to comment on the matter, stating that it had not yet received formal notification of the investigation.
Sharp’s request for ITC involvement indicates that the dispute with Hisense has escalated significantly. How do experts view this complex legal situation? The reporter reached out to several industry analysts and legal professionals for their insights.
Experts suggest that Sharp’s litigation may center around intellectual property rights related to WiFi technology. Globally, there are over a dozen organizations holding such patents. Furthermore, this technology involves embedded chip solutions, akin to a black box. Typically, these components are supplied by multiple vendors who ensure compliance with intellectual property agreements.
Industry experts speculate that the underlying cause of the Hisense-Sharp dispute bears the hallmark of Foxconn’s strategy. From questioning product quality to labeling Hisense as a state-owned enterprise allegedly backed by the Chinese government, and now accusing it of patent infringement, Foxconn may be attempting to regain control of Sharp’s television operations.
Currently, Sharp’s position in the global TV market remains weak, with its brand value plummeting. By intensifying criticism of Hisense’s growing success, Sharp aims to disrupt its momentum. Simultaneously, in China, it appears to be employing strategies reminiscent of LeEco’s past price wars to undermine domestic competitors. Internationally, Sharp seems intent on using patent battles to hinder the growth of Chinese companies. As a company with ties to both Taiwan and Japan, Foxconn’s motivations run deep.
In response to the escalating tensions, Hisense stated that it would actively address the situation, emphasizing that integrity and honesty would ultimately prevail—a fundamental principle of global commerce.
While the immediate future remains uncertain, Hisense remains steadfast in its commitment to maintaining its market presence through innovation and ethical practices.
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