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Sharp is suing business partner Hisense, claiming the company is putting its name on low quality TVs

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Subject: Sharp is suing business partner Hisense, claiming the company is putting its name on low quality TVs

Excerpt: English text from the archived bilingual edition · Chinese edition

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Sharp is suing business partner Hisense, claiming the company is putting its name on low quality TVs

Hisense can make TV sets using the Sharp name thanks to a deal it signed with the company in 2015

Sharp said the TVs bearing its name broke US rules on electromagnetic emissions and that Hisense had made false claims about picture quality

Hisense said it "categorically" denied the claims made in Sharp’s court papers and it would defend itself

As well as accusing the Hisense-made TV sets of breaking emission guidelines, Sharp said the devices also broke Federal Trade Commission rules on pictures sizes and did not meet wider industry standards covering device safety

Sharp’s legal papers said its brand was at risk of being "destroyed" by the "shoddily manufactured" TV sets by the time the five-year deal ended

The legal action is believed to be linked to Sharp’s efforts to rebuild itself after a long period of turmoil

Sharp signed the deal with Hisense to raise cash when it was facing financial problems

Soon after, Taiwanese electronics company Foxconn bought a controlling stake in Sharp and has injected cash into the business to re-invigorate it

Regaining control of its brand in the US would aid this rebuilding effort

In a statement shared with the Wall Street Journal, Hisense said it was looking forward to presenting its case in court

It added that it was in "full compliance" with the agreement signed in 2015 and the attempt to end the deal would have no effect

"Hisense will continue to manufacture and sell quality televisions under the Sharp licensed brands," it said

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