According to Quick Tech news on November 4, a few days ago, Xinke Mobile issued an announcement stating that its wholly-owned subsidiary Datang Mobile had filed a lawsuit with the Haidian District People's Court in Beijing due to a contractual dispute with Spreadtrum Communications (Shanghai) Co., Ltd., and had applied for property preservation.

The case has been filed and accepted, and the relevant parties have received the property preservation ruling, but the trial has not yet begun.

The announcement shows that the case involves an amount as high as 680 million yuan, including basic royalty fees, royalty fees for high-level protocol stacks, and liquidated damages incurred from January 1, 2013, to the date of actual payment.

According to the disclosure by Xinke Mobile, Datang Mobile and Spreadtrum have signed a series of cooperation agreements and supplementary agreements for the technical cooperation and development of TD-SCDMA terminal-specific chips and related terminal modules.

Datang Mobile has fully fulfilled its contractual obligations, and the two parties have successfully developed TD-SCDMA chips and modules through cooperation. However, after selling the cooperatively developed chips and modules, Spreadtrum failed to pay the corresponding royalty fees to Datang Mobile as agreed in the agreement.

It is understood that the Xinke Group already owns seven listed companies, including Xinke Mobile, FiberHome, Accelink Technologies, Optoelectronics Technology, Yangtze Optical Fiber and Cable, Datang Telecom, and STGO.

Spreadtrum is a wholly-owned subsidiary of Unisoc, which clarified long-standing disputes over historical equity holdings in September this year and is fully preparing for its IPO.