Creative Technology awarded S$36m in lawsuit against Huawei

Creative Technology awarded S$36m in lawsuit against Huawei

SINGAPORE: Creative Technology and its subsidiary QMax Communications have been awarded about S$36 million in a legal tussle with Huawei over its failed wireless broadband venture. 

The Singapore technology company said in a SGX filing on Wednesday (Aug 16) that it sought to recover damages and losses suffered from the project against Huawei for "misrepresentation or alternatively, for breach of contract". 

Huawei's counterclaim seeking relief, including damages for alleged wrongly rescission and/or termination of the contract was dismissed.

In its judgement, the court said Huawei was liable for misrepresentation and was "grossly negligent". The High Court judge said Huawei had committed "gross and indefensible mistakes" that "could have been avoided with minimum effort". 

The court also held, in the alternative, that Huawei was liable for breach of contract. 

"Many of Huawei's submissions on mitigation have also centred on arguments that Creative’s losses were not caused by Huawei’s alleged breach of contract and that Creative would have incurred those losses in any event. These submissions are without basis and I find that Creative’s claims were made out," Justice Chan Seng Onn said. 

"Consequently, the Court ordered Huawei to pay the Company and QMax the approximate sums of US$9.3 million and S$15.6 million with interest, such sums totalling approximately S$36 million inclusive of interest to date," Creative said, adding that costs of the legal proceedings were awarded to the company and QMax as well. 

Creative noted that the judgment is open for appeal. "In the event that the judgment is not appealed, the judgment sums will be recognised in the Company’s financial statements for the current quarter ending Sep 30, 2017," it said.

This is not Creative's only win against a tech giant. In 2015, its subsidiary ZiiLabs had settled a patent infringement lawsuit against Apple, resulting in Cupertino having to take a licence for ZiiLabs patents. Apple also paid US$100 million to Creative in 2006 

Source: CNA/dl