Huawei Initiates Legal Action Against ZTE
SHENZHEN - Huawei filed lawsuits in Germany, France, and Hungary against ZTE Corporation (ZTE) for patent and trade mark infringement. The lawsuits were filed on the basis that ZTE is infringing a series of Huawei’s patents relating to data card and LTE (Long Term Evolution) technologies and illegally used a Huawei-registered trademark on some of its data card products.
Huawei's Chief Legal Officer, Dr. Song Liuping said, "Huawei was compelled to initiate this action in order to protect our innovations and registered intellectual property in Europe. Our objective is to stop the illegal use of Huawei's intellectual property and resolve this dispute through negotiation so that our technology is used in a lawful manner."
These lawsuits were commenced after ZTE failed to respond to cease and desist letters requiring the company to stop carrying out the infringing acts that are the basis for these proceedings. Huawei had also actively invited ZTE on numerous occasions to enter into cross-patent licensing negotiations but was equally unsuccessful. As Huawei has neither received any substantive response nor a commitment from ZTE to stop its infringements, the company has had no alternative but to use legal means to protect its legal interests by requesting that the courts prohibit ZTE's continued infringements of Huawei's trade mark and patent rights.
Huawei has great respect for the rights of intellectual property holders and is equally committed to the protection of its own innovations and intellectual property. The company has signed a series of cross-license agreements with major telecoms vendors and other intellectual property rights holders. In 2010, Huawei paid US$222 million in patent licensing fees to obtain the legal right to use patents and technologies of other leading companies in the industry. Huawei also invests a considerable portion of its annual revenues in research and development. Its R&D expenditure in 2010 alone was RMB 16.556 billion (USD 2.5 billion).
"Intellectual property is among Huawei's most valuable assets. That is why we feel a responsibility to our customers and to our shareholders to do everything possible to protect these assets in any legal jurisdiction worldwide. Where violations are taking place, we will do whatever is required to ensure that the use of Huawei's intellectual property by any company is based on internationally accepted protocols and practices," Dr. Song said.