ZTE’s 2012 R&D Spending Increased to RMB 9 Billion

  ZTE’s 2012 R&D Spending Increased to RMB 9 Billion

  First Chinese company to rank among European Patent Office’s Top-10 Patent

Business Wire

SHENZHEN, China -- March 14, 2013

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code:
000063.SZ), a publicly-listed global provider of telecommunications equipment,
network solutions and mobile devices, is pleased to be the first Chinese
company to be ranked inside the Top-10 for patent applications by the European
Patent Office, as technology innovation generates new business opportunities
for the company.

Based on data from the European Patent Office, ZTE filed applications for
1,184 patents in 2012, lifting the company to 10th position in the annual
table, from 43rd place a year earlier. Amid challenges in the global economy
in 2012, ZTE nevertheless increased spending on research and development to
about RMB 9 billion last year, 3% more than in 2011. Over the past four years,
ZTE has ploughed a combined total of more than RMB 30 billion on R&D, and the
company is among the telecommunication equipment industry’s heaviest spenders
on cross-licensing of intellectual property, when measured on a spending to
revenue ratio.

“ZTE’s efforts on technology innovation will take the company to the next
level, and we expect a large number of our patent applications in Europe will
be granted in the next two to three years,” said Wang Haibo, ZTE’s Director of
Legal Affairs. “Our rapidly growing patent portfolio will help strengthen the
company’s position in the European market, and reduce risks of
anti-competitive litigations.”

It generally takes between two to three years for patents in Europe to be
granted, after applications are filed. The cost of each patent is over
RMB100,000. Patents are among the most valuable intellectual property assets
at a company, and it’s increasingly important to leverage them for competitive

ZTE expects a large number of the company’s patents, mainly on LTE technology
and smart terminals, will be granted in Europe in 2014. The addition of these
high-quality patents will generate very significant competitive and commercial
advantages for ZTE against competitors in the European market.

In line with the company’s strong commitment to technology innovation, ZTE
fully respects the intellectual property of others. Since 2005, ZTE had
reached cross-licensing agreements with companies including Qualcomm, Siemens
and Ericsson, greatly helping ZTE’s technology research and overseas
operations. In the future, ZTE will leverage its rapidly-growing patent
portfolio to seek new cross-licensing agreements with other companies,
building partnerships of equals.

“The global technology industry has seen an escalation in disputes over
patents – ZTE believes that behavior such as “patent harvesting” is
detrimental to the healthy development of the industry, and against the
interests of consumers,” Mr. Wang said. “ZTE advocates an open and win-win
model based on sharing.”

ZTE is actively participating in pan-industry efforts to build patent pools,
leveraging the advantages of the “one-stop” licensing model to lower the costs
of licensing, which will in turn reduce R&D costs for innovators and promote
the healthy development of the technology industry.

About ZTE

ZTE is a publicly-listed global provider of telecommunications equipment and
network solutions with the most comprehensive product range covering virtually
every telecommunications sector, including wireless, access & bearer, VAS,
terminals and professional services. The company delivers innovative,
custom-made products and services to over 500 operators in more than 140
countries, helping them to meet the changing needs of their customers while
growing revenue. ZTE commits 10 per cent of its annual revenue to research and
development and has leadership roles in several international bodies devoted
to developing telecommunications industry standards. ZTE is committed to
corporate social responsibility and is a member of the UN Global Compact. The
company is China’s only listed telecom manufacturer that is publicly traded on
both the Hong Kong and Shenzhen Stock Exchanges (H share stock code: 0763.HK /
A share stock code: 000063.SZ). For more information, please visit


ZTE Corporation
Margrete Ma, +86 755 26775207
Edelman PR
Diana Pong / Andres Vejarano, +852 2837 4734 / 2837 4735
diana.pong@edelman.com / andres.vejarano@edelman.com
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