Aux Group has filed a lawsuit against MII (Ministry of Information Industry) over the government body's right to grant mobile phone production licenses.

 

The home appliance maker's request to sell handsets under its own brand was rejected earlier by MII, which only allows a limited number of makers to produce branded handsets. Under the current framework, Aux must rent the licenses of other makers.

 

Aux is now challenging that authority, citing that the ministry has violated legislation adopted with China's accession to the WTO, and is charging that the MII has no right to granting such licenses. The law took effect in July 2004.

 

The First Intermediate People's Court of Beijing, where the suit has been filed, has not yet decided whether the case will be heard.