Feb 15, 2012 06:05 PM

Ericsson and ZTE Settle Patent Disputes


(Beijing) – ZTE Corp. signed a dispute settlement with Ericsson Co., on February 14, ending a nearly year-long battle over several patent infringement disputes.

In April 2011, Ericsson initiated legal proceedings on ZTE Corp. in the U.K., Germany and Italy. Ericsson accused ZTE of infringing on its patents in GSM and 3G/UMTS wireless technology. In the same month, ZTE took legal action against Ericsson and rebuked the latter for infringing on its patents in GSM and 4G mobile phone technology.

Rumors about ZTE losing a lawsuit abounded on January 19, with speculation that a 500 million euros compensation would be paid by ZTE.

The stock price of ZTE slumped under the impact of the rumors the same day. Later in the same day, ZTE released an announcement to clarify the rumors were inconsistent with the facts.

According to the most recent announcement, ZTE and Ericsson conducted negotiations on their patent lawsuits and both sides agreed that they will withdraw patent infringement lawsuits against each other.

On January 20, ZTE and Ericsson signed a patent agreement. Kasim Alfalahi, chief intellectual property rights officer of Ericsson, publicly expressed that Ericsson has already signed over 90 patent agreements with companies worldwide, including with ZTE.

ZTE will pay royalties to Ericsson, but the specific amount was not released by either side.


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