ZTE Ranked World No. 1 in Patent Applications for Second Straight Year

  ZTE Ranked World No. 1 in Patent Applications for Second Straight Year

   Power of intellectual property boosts ZTE’s business in Europe and North
 America; ZTE’s 3,906 patents greatly exceed other telecommunications vendors

Business Wire

SHENZHEN, China -- March 20, 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, was ranked first in international patent
applications by World Intellectual Property Organization (WIPO) in 2012, the
second consecutive year the company achieved top position in the annual gauge
of the world’s most prolific innovators.

According to WIPO’s data, ZTE filed applications for 3,906 patents under the
Patent Cooperation Treaty (PCT) in 2012, 37 percent more than a year earlier,
making it the first company from China to top the tables for two successive
years. ZTE’s patent applications in 2012 were more than double the total of
Huawei Technologies(1801), and greatly exceeded other companies in the
telecommunications equipment industry such as Ericsson(1197), Nokia
Siemens(326) and Alcatel-Lucent(346). Japan’s Panasonic, ranked second by
WIPO, filed for 2951 patents, almost one thousand fewer than ZTE.

ZTE’s PCT filings in 2012 were 37 percent more than a year earlier, according
to the data from WIPO. In 2011, ZTE was also ranked top by WIPO with a total
of 2,826 filings. At the end of 2012, ZTE has filed applications for more than
11,000 PCTs, covering markets including the United States, the United Kingdom,
France and Germany. More than 60% of ZTE’s filings were related to new
technologies such as 4G/LTE, cloud-computing, the Internet of Things, and
smart devices.

“It is a landmark achievement for ZTE, which is a standard-bearer for Chinese
companies with international operations and a culture of innovation,” said Mr.
Zhao Tianwu, Director of Intellectual Property Center at the Ministry of
Industry and Information Technology. “Faced with pressure in its operations
last year, ZTE’s unwavering commitment to research and development showed the
company’s courage. We need to foster more Chinese ICT companies to emulate
ZTE, and collectively accelerate China’s development as an innovative nation.”

“In the past two years, ZTE experienced explosive growth in PCT filings,” said
Mr. Guo Xiaoming, Chief Legal Officer at ZTE. “As a relative late-starter, we
still have a lot of room to improve in our intellectual property strategy. The
tremendous growth in ZTE’s patent applications has been important in
safeguarding the development of our operations in Europe and North America.”

It generally takes between two to three years for patents to be granted after
applications are filed, and the cost for each patent is over RMB100,000. A
company’s portfolio of PCTs represents its most valuable intellectual
property. By 2015, it is expected that thousands of ZTE’s PCTs will be granted
in Europe and North America. ZTE’s portfolio of PCTs has become a powerful
resource as the company’s international operations grow.

Following the practice of our international counterparts, ZTE will explore
avenues such as patent pools and licensing to generate increased value from
our rich portfolio of domestic and international patent assets. The company
will work with intellectual property exchanges, intermediaries and industry
organizations to promote healthy competition and development in the sector.

ZTE has a long-held commitment to technology innovation, devoting 10% of
annual revenue on research and development each year. In the face of pressure
in its business operations, ZTE nevertheless increased its R&D spending by 3%
to 9 billion RMB last year. In the past four years, ZTE has committed more
than 30 billion RMB on R&D. At present, ZTE has 18 R&D centers globally,
employing more than 50,000 engineers and technical staff. ZTE has also set up
innovation facilities jointly with internationally leading telecommunications
operators to further strengthen its R&D resources.

ZTE is one of the leading patent holders among vendors in the
telecommunications industry internationally, having filed applications for
48,000 patents globally, with more than 13,000 patents granted. More than 90%
of ZTE’s patents are invention-related, including a large number of basic
patents covering international telecommunications technical standards and core
patents covering essential telecommunications technologies. ZTE is the
most-decorated company in China in technology innovation, capturing national
awards including four China Patent Gold Awards, 12 China Patent Awards of
Excellence, and four Major Invention Awards.

Contact:

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