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Creative wins $36m in lawsuit against Huawei

Singapore sound card maker Creative Technology has scored yet another legal victory against a technology giant - this time against China's Huawei.

Creative yesterday said the company and its subsidiary QMax Communications were awarded $36 million in damages over a failed nationwide wireless broadband project in 2012.

Its suit alleged misrepresentation and breach of contract by Huawei after it pumped around $30 million into the network and then was forced to abandon it.

It sought to recover "wasted" payments made - US$9.4 million (S$13 million) to Huawei and $19.5 million to various third parties for installation, leases and other operating costs, blaming Huawei for miscalculating and misrepresenting the cost of the network.

Huawei, in turn, counter-sued for outstanding payments for services and equipment, and damages for alleged wrongful termination of the contract.

The High Court, in a judgment yesterday, found Huawei "liable for misrepresentation and was grossly negligent".

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

It was ordered to pay US$9.3 million and $15.6 million with interest, totalling $36 million, and its counterclaim was dismissed.

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