Huawei reportedly dragged Shenzhen Transsion Holdings to court over claims of Intellectual Property (IP) Rights theft. The makers of Infinix, Itel and Tecno was slammed with the lawsuit just after debuting on the STAR Market (Nasdaq style board for tech stocks by Shanghai stock exchange). The suit was reportedly filed in a local court in Shenzhen China.
While Transsion Holdings smartphones are very popular in Africa with products like Infinix, Itel and Tecno selling in millions, the company doesn’t have a lot of patents under its belt. The company only has 630 patents and 286 computer software copyrights to its name in China. On the other hand, Huawei has over 100,000 patents to its name.
Transsion Holdings has established its dominance in Africa with extremely cheap smartphones that rely on old technologies whose patents have expired. Its Tecno, iTel, and Infinix brands all individually rank within the top 5 vendors in the African smartphone market. But as competitors like Xiaomi and Huawei are expanding its presence in the African continent, IP rights are going to be very important for Transsion. Also, Africa is slowly modernizing with technologies like 3G and 4G, which will force Transsion to improve its IPR position in the region.
However, this lawsuit hasn’t affected the company’s IPO today. Transsion’s shares opened at RMB 53 ($7.4) which was a strong 50.7% higher than the listing price of RMB 35.15 ($4.93) per share. The company is reportedly valued at around RMB 42.4 billion, which comes to around $5.95 billion.