China is proving to be an unexpectedly high hurdle to cross as Microsoft strives to purchase Nokia’s handset division.
In the run up to approving the deal, China’s Ministry of Commerce held a seminar on the 3rd March to hear the Nokia-Microsoft case.
At the event many smaller Chinese OEMs petitioned the Ministry of Justice to prevent Microsoft and Nokia from charging significant fees for the use of their patents.
21st century business Herald reporter was informed that on March 3, the Chinese anti-trust authorities for Microsoft to buy Nokia’s review of the case, held a seminar, participants included local Chinese mobile phone companies in the industry, as well as relevant experts and professional associations.
Participants in China’s mobile phone industry voiced many demands which core includes, first, the Nokia license rates and conditions of FRAND, bans use of additional restrictions to avoid unreasonable use of patents and patent the assignee and, secondly, additional restrictions against Microsoft, calling Microsoft for Android licensing fees and ban on the use of patents has qualified.
Given Nokia’s low smartphone market share worldwide, this level of scrutiny and punitive restrictions seems rather out of order, and with Nokia and Microsoft both expected to make royalty license fees in the billion dollars per year range from their patent portfolio, it raises the unthinkable spectre of the deal not closing in the end.
Do our readers think Chinese OEMs are making unreasonable demands? Let us know below.