ZTE’s Statement on Huawei’s Lawsuits

  ZTE’s Statement on Huawei’s Lawsuits

Business Wire

SHENZHEN, China -- March 18, 2013

ZTE Corporation notifies that Huawei has filed the court petition to the
Mannheim Court against ZTE Deutschland GmbH with respect to the LTE and
terminal patents. On March 15, the Mannheim Court in Germany declared to
dismiss the Huawei’s accusation of ZTE’s infringement on the LTE terminal
patents. With respect to the court’s decision on ‘Key Derivation Function’
patent infringement, ZTE will appeal to the higher court. ZTE is confident
that the ZTE product involved in the lawsuit launched by Huawei doesn’t
infringe Huawei’s patent rights related to this court petition. The court
decision won’t affect any ZTE business operations around the globe including
in Germany.

ZTE also notifies that Huawei has launched several other patent lawsuits
against ZTE Corporation in Germany, France and Hungary. ZTE has the prepared
solutions to all relevant patent lawsuits. These lawsuits won’t affect ZTE’s
business operations around the globe. ZTE will pay close attention to these
cases and guarantee that such lawsuits won’t interfere with the benefits of
both the clients and the company.

Starting from 2011, ZTE has filed 18 patent lawsuits against Huawei in Europe
and China, concerning a portfolio of LTE infrastructure, core network and
terminals. ZTE won a series of lawsuits in China Shenzhen Intermediate Court
and German Patent Courts in 2012. ZTE will pay close attention to these
lawsuits and proactively coordinate with all parties to get the lawsuits well
settled. In terms of those unlicensed product sales, ZTE will take any legal
means including sales bans and compensation to prevent any infringements to
ZTE’s patent rights and protect the benefits of both the clients and the

Regarding the 5 patent lawsuits Huawei launched in Germany, the 1 patent
lawsuit Huawei launched in France and the 4 patent lawsuits that Huawei
launched in Hungary, the situation is as follows:

  *Of the 5 lawsuits in Germany, the Europe Patent Bureau has declared the
    invalidation for 2 of the 5 patents in 2012. ZTE will continue to follow
    the other patent cases and their invalidation process and put the prepared
    solutions into operation
  *The patent family including the rotator data card that Huawei launched the
    lawsuit about against ZTE in France was declared invalid by China Courts
    and Germany Patent Courts. ZTE is confident that this patent will be
    declared completely invalid in France
  *The 4 patent lawsuits that Huawei has launched against ZTE in Hungary were
    stopped based on Hungary Court’s judgment on ZTE’s appeal for invalidation
    on these patents

ZTE is in a high-tech industry densely driven by high-tech innovations. ZTE
takes technology innovation as its DNA planted in the development process,
taking the core patents as its core KPI in driving its technology innovations.
ZTE has kept on investing 10% of the corporate revenue into the R&D ever since
its foundation in 1985. As of 2012, ZTE’s patent applications have reached
48,000, with PCT applications exceeding 12,000. The PCT applications ZTE
submitted to WIPO reached 3918 items in 2012, expected to be ranking World No
1 among the global enterprises. ZTE is expected to possess even more overseas
patent licenses in 2014, highly involving in LTE infrastructure, and
intellectual terminals. Such a large-scale, high-quality patent mass will make
ZTE more forceful and competitive around the globe especially in the European
and American markets.

ZTE respects any rational loyalty demands from other vendors and has been
seeking for cross-licensing and package solutions to the IPR license issues in
the industry. ZTE has to date reached agreements widely with other vendors
like Qualcomm, Siemens and Ericsson. In 2012, ZTE is ranked as one of the top
tier vendors in terms of patent licensing fee in the industry.

ZTE sincerely reminds all who are highly concerned about the lawsuits launched
by Huawei:

  *ZTE is committed to the rational competition in the industry and ready to
    settle any IPR issues through negotiations
  *ZTE will depend on its own established IPR strengths to fight against any
    irrational and malicious IPR competitions in the industry and try every
    means to create a healthy business environment for the whole industry


ZTE Corporation
Margrete Ma, +86 755 26775207
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