A court in the eastern Chinese city of Hangzhou has decided that South Korea's Samsung nicked technology from a local phone outfit.

According to the official organ of the Glorious People's Republic of China, the official Xinhua News Agency, Samsung will have to pay  $7.3 million to Holley Communications. The technology in question enabled mobile phones to work on both GSM and CDMA networks.

Samsung is refusing to comment, saying it has not received the official notification from the court.  However, the South Korean press claims that the phone company will appeal. Holley patented the technology in 2002 in China.  It claimed that Samsung sold more than 700,000 mobiles in China.

The Hangzhou court began hearing the case in May, after China's State Intellectual Property Office declared Holley's patent valid. However, Holley is financially backed by the Chinese government, which is pushing 3G in its glorious five-year plan. 

It is likely that other foreign companies will also face court action from Holley.