A Chinese court ruled in favor of Huawei against Samsung, saying that Samsung had infringed on patents held by Huawei. The two patents involve fourth-generation phone technology.
This ruling restricts Samsung from selling any products using the patent it violated.
Huawei Victory
As a result of the ruling, Samsung will also have to pay a small court fee. The court also dismissed Huawei's other claims, and Samsung will be able to appeal the decision.
Both companies have been filing lawsuits against each other in both the United States and China. Huawei also filed a lawsuit against Samsung in the United States for violating patents on cellular technology and software.
Huawei and Samsung have a long history of litigation against each other. Huawei initially sued Samsung, seeking a cross-licensing deal instead of requesting damages. Samsung responded with a countersuit. In April of last year, another Chinese court in Quanzhou ruled against Samsung and was ordered to pay $11.6 million.
Samsung said that it would review the decision to determine the appropriate response to the outcome of the lawsuit.
The decision came from a court in Shenzhen, where Huawei is headquartered.
In September, Huawei surpassed Apple to become the second largest smartphone maker in the world but still sits behind Samsung.
Rivalry
Huawei has been trying to grow in recent years. Its recent attempt to enter the U.S. market stalled when AT&T reneged at its deal to be the first American carrier of Huawei's flagship Mate 10.
The company is still going to be selling the Mate 10 in the United States despite its deal with AT&T falling through at the last second. Huawei kicked off a marketing campaign before the Consumer Electronics Show, where it hoped to announce its deal with AT&T. Gal Gadot was hired as its new Chief Experience Officer. Gadot was the highest grossing actress last year.
During Huawei's keynote at CES this week, chief executive Richard Yu went off script to slam U.S. phone carriers for backing out of the deal, calling it a "big loss."
"We win the trust of the Chinese carriers, we win the trust of the emerging markets ... and also, we win the trust of the global carriers, all the European and Japanese carriers," said Yu. "We are serving over 70 million people worldwide. We've proven our quality. We've proven our privacy and security protection."