The joint-venture will see 3Com inject US$160 million in cash and its assets in China and Japan, while China-based Huawei will contribute enterprise networking business assets, including LAN switches, routers, engineering, sales/marketing resources and personnel, and licenses to its related IP. The name of the joint venture will be 3Com-Huawei in English and Huawei-3Com in Chinese.
Earlier this year Cisco filed a lawsuit against Huawei claiming at least five patent-infringements, identified partly by common bugs in the software. Huawei responded saying they "have always respected intellectual property rights and have attached importance to safeguarding its own intellectual property rights".
As part of the joint venture, 3Com will have the right to sell the products under the 3Com brand everywhere in the world, except China and Japan, where they will be sold under the joint-venture brand. In China and Japan the joint venture will sell all the products, as well as the existing 3Com product line based on an OEM agreement between the joint venture and 3Com.
