3D Glasses Lawsuit in China Could Slow Down iPhone Production
Dou Shicong
/SOURCE : Yicai
3D Glasses Lawsuit in China Could Slow Down iPhone Production

(Yicai Global) Sept. 5 -- Suzhou SLAC Precision Equipment Co. [SHE:300382], a new-type glass processing equipment maker, has filed a lawsuit accusing Shenzhen Create Century Co., which makes 3D glasses for iPhones and other products, of patent infringement.

Janus Intelligent Group Corp. [SHE:300083], based in the southern Chinese province of Guangdong, has owned Shenzhen Create since 2015.

The outcome of the case could have wide-reaching effects for iPhone parts suppliers, such as Shenzhen O-Film Tech Co. [SHE:002456] and Biel Crystal Manufactory Ltd., ahead of the upcoming release of a new series of Apple Inc.'s [NASDAQ:AAPL] iPhone.

SLAC Precision alleges that it owns the patent for a new-type glass processing equipment used by Shenzhen Create and demands the firm immediately ceases production related products. The company is looking for compensation to cover economic losses of CNY20 million (USD3 million), the National Business Daily reported.

O-Film Tech has already purchased 180 sets of the equipment in question and produces 700,000 pieces of glass daily, while Biel Crystal has bought 400 sets and produces 1.56 million pieces a day. Neither company is aware of the litigation, the report said.

If Shenzhen Create is found guilty of infringement, O-Film Tech and Biel Crystal will be caught up in the suit and may need to stop using the devices, which could subsequently affect the production of new iPhones, said Xiao Yuyang, a lawyer involved.

The case will not have much impact on Shenzhen Create's earnings as 3D glass processing only accounts for a small portion of its overall revenue.

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Keywords: IPHONE , 3D-Glass , Shenzhen O-Film Tech , Bielcrystal