Silicon Valley video technology provider PrediWave has been nailed with a $2.8 billion judgment for defrauding a Chinese company and misappropriating funds — in what appears to be the largest legal victory for a Chinese company in a U.S. court.
VentureBeat first mentioned the case last year.
China’s New World TMT said it invested $700 million into Fremont-based PrediWave, but the set-top boxes PrediWave delivered didn’t work. PrediWave’s chief executive Tony Qu allegedly made off with more than $100 million in bonuses, leasing 30 cars and purchasing 19 homes. Other spending included $10,000 in wine purchases. The Mercury News today provides more details about the verdict.
This comes around the same time that a Chinese court honors the validity of drug maker Pfizer’s patent for Viagra, ordering two Chinese companies to stop sales of generic versions of the sexual dysfunction treatment and pay compensation for infringements.
The cases are unrelated, but nice exchange nonetheless, given the U.S. continued concern about China’s policy on IP infringement.