Huawei files three patent infringement lawsuits against ZTE

According to Huawei Technologies Co, China's largest phone-network equipment maker, it has filed  lawsuits in three European countries against rival ZTE Corp for alleged patent and trade-mark violations.

Both Huawei and ZTE are Chinese entry-level phone makers.

Huawei said today that it had filed lawsuits in Germany, France and Hungary over a series of patents related to data card and high-speed mobile internet technology.

"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 said in a public statement.

According to chief legal officer Dr Song Liuping, Huawei was compelled to initiate the action in order to protect its innovations and registered intellectual property in Europe. He added that Huwei aimed to resolve the issue through negotiation.

Both ZTE and Huawei are based in Shenzen. The companies have expanded beyond China into Asia and Africa and Huawei, the world's second-largest maker of equipment for mobile-phone networks behind Ericsson AB, was looking to boost sales in Europe and the US to further close the gap with its Swedish rival.

According to Huawei, it paid $222 million in 2010 in patent licensing fees to use the technology of other companies.

This month it settled a technology-secrets dispute with Motorola Solutions Inc over the use of its technology.

The company also accused ZTE of illegally using a Huawei-registered trademark on some of its data card products.

The staement said, "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)."

Dr. Song said in the statement, "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."