ZTE Comments on Huawei Lawsuit

SHENZHEN, China -- ZTE Corporation advises that rulings have been made regarding court petitions filed by HuaWei with the Mannheim Court against ZTE Deutschland GmbH with respect to LTE and terminal patents. On March 15, the Mannheim Court dismissed Huawei’s accusation that ZTE had infringed on its LTE terminal patents. With regard to the court’s decision that ZTE had infringed on HuaWei’s ‘Key Derivation Function’ patent, ZTE will appeal to the higher court. ZTE is confident that the ZTE product involved in the lawsuit launched by Huawei does not infringe Huawei’s patent rights. The court decision will not affect any ZTE business operations around the globe including in Germany.ZTE also advises that Huawei has launched several other patent lawsuits against ZTE Corporation in Germany, France and Hungary. ZTE has prepared technical solutions to all relevant patent lawsuits to ensure that customers are not affected in any way, so these lawsuits will not affect ZTE’s business operations anywhere around the globe.In response to these and other court actions, 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 the China Shenzhen Intermediate Court and German Patent Courts in 2012. ZTE continue to pursue these lawsuits and will proactively coordinate with all parties to achieve a suitable settlement. In terms of the sale of products using unlicensed ZTE technologies, ZTE will take any legal means including sales bans and compensation to prevent infringements on ZTE’s patent rights and to protect the benefits of both the clients and the company.Regarding the five patent lawsuits launched by Huawei in Germany, one in France and four in Hungary, the situation is as follows: