SINGAPORE (May 25): Huawei International has been ordered to pay Creative Technology and its subsidiary, QMax communications, an additional sum of US$2.3 million ($3.1 million), after the Singapore Court of Appeal today ruled in favour of the latter.

This is in addition to the US$9.3 million and $15.6 million with interest that the High Court had earlier awarded to Creative and QMax.

The Court of Appeal, whose judgment is final and non-appealable, has also awarded costs of the legal proceedings to Creative and QMax.

See: Stay tuned for more Creative suits

Following the judgment today, Creative says it expects to recognise an income arising from the legal proceedings of approximately US$32 million in the quarter ending June 30, 2018.

In the 3Q18 ended March, Creative had posted a 19% drop in earnings to US$3.8 million, and guided that it expects to report an operating loss in 4Q18.

Creative posts 19% drop in 3Q earnings to $5.1 mil

Creative and its subsidiary QMAx had initiated legal proceeding in early 2012 against Huawei, which was the vendor of equipment for its wireless broadband project.

Creative had sought to recover damages and all losses suffered in relation to the wireless broadband project against Huawei for misrepresentation, or alternatively, for breach of contract.

Huawei responded by filing a counterclaim seeking relief which included damages for the alleged wrongful rescission and/or termination of the contract.

The Court in August 2017 held that Huawei was liable for misrepresentation and was grossly negligent. It also held, in the alternative, that Huawei was liable for breach of contract.

Huawei’s counterclaim for wrongful rescission and/or termination was dismissed.

Huawei had then filed an appeal against most of the orders made in the judgment. In turn, Creative had filed a cross-appeal to preserve their legal position.

See: Creative Tech awarded $36 mil in legal proceedings against Huawei

As at 4.10pm, shares of Creative are trading 23 cents higher, or up 4.0%, at $6.04.