Beijing time at 10:00 on June 16th or so, SHARP has officially withdrawn in the United States on Hisense's right to use the brand lawsuit. In 2015, SHARP will adjust due to the operation, North American TV business to brand licensing sold to Hisense, according to the agreement the two sides agreed at the time, SHARP authorized Hisense to use the SHARP brand sales of television sets to 2020 in the United states.
But as Hon Hai entered SHARP, relations between the two sides became tricky. Earlier this month, SHARP in California San Francisco officially filed a lawsuit to the court, hope through legal means to recover from the hands of Hisense North America brand licensing, and at least $100 million compensation. The reason is that the production of the SHARP brand Hisense TV in violation of the Federal Communications Commission (Federal Communications Commission) standard, the size and brightness of television to provide consumers with the information deceptive, also in violation of the other federal standard.
It is reported that, in fact, as early as April 2017 SHARP has unilaterally notified Hisense termination brand licensing agreement, but did not get Hisense's response.
For Hisense, access to SHARP brand in North America, whether it is for its overall shipments growth, enhance brand influence, have important strategic value. Hisense in recent years in North America has also invested a lot of resources for brand, channel, marketing promotion, at this time, if the loss of SHARP brand use rights, will have a major impact on its global layout.
Although SHARP has previously in other regions have successfully recovered the brand licensing experience (Hon Hai December 2016 through the acquisition of shares from UMC (Universal Media Corporation) group in the hands of back in the European region of the right to use the brand), but in the face of Hisense's size and scale, eventually chose the way through the legal.
According to industry analysis, SHARP sued Hisense in a short period of time to choose the initiative to withdraw, it should be encountered when previously launched plans have not been expected of the negative evidence, conscious of a weak probability, will choose to withdraw the initiative. But no matter how, this is temporarily dormant, the two sides will also in future products, brands, channels can continue to expand the field of fight hand to hand with the contest.