case analaysis
Technomed is a Belgian high-tech company. Technomed developed "E-lab", a device that can be connected to a smartphone in order to perform some basic medical tests at home (blood and urine). After doing the tests the patient receives the results immediately on his smartphone. Huawei, the Chinese telecom company, want to introduce the device on the Chinese market and therefore enters into a sales agreement with Technomed. Huawei buys 100.000 E-labs in order to sell them in China. The product is delivered as agreed and Huawei paid the purchase price. So far so good. Comment on the following 2 scenario’s:
a) Scenario 1: Imagine that a number of Chinese customers, who bought the device at Huawei, discovered that there are some problems with the accuracy of one of the blood tests. They inform Huawei about the problems. You work for Huawei as a lawyer. Please inform the company’s board on all possible remedies under the CISG that Huawei has against Technomed (both Belgium and China are member states to CIGS).
b) Scenario 2: Imagine that the device works perfectly but unfortunately, the device is not a great success on the Chinese market. In order to sell all 100.000 E-labs, Huawei decides to expand its distribution to the Japanese and South- Korean market. In doing so, Huawei is sued for patent infringement in South- Korea. Apparently, a South-Korean company registered a patent for a nearly identical device. (In Japan and China, there were no problems at all with any third party rights based on industrial property). You work for Huawei as a lawyer. Please inform the company’s board on all possible remedies under the CISG that Huawei has against Technomed.