Reconciliation in Patent Dispute between Ericsson and ZTE: While No Release of the Actual Compensation

According to the report (in Chinese) of Donews, a tech website in China, Ericsson (NASDAQ:ERIC) and ZTE (SEHK: 0763, SZSE: 000063) have signed a global cross license agreement and agree to withdraw all the lawsuits against each other, while, on the other hand, no disclosure on the patent fee paid by ZTE to Ericsson.

In April of 2011, Ericsson filed a lawsuit against ZTE in Germany, UK and Italy, claiming the infringement against its patent of GSM and 3G/UMTS wireless technology. After that, there saw a heavy fall of the stock price both in A and H market of ZTE, which was the new lowest price then. And until closing on Wednesday then (19th, January), the price of it in the A stock market was encountered a decline limit and a plunge of 7% in H stock market. According to the stock agent, that mainly resulted from the possible influence of the lawsuit initiated by Ericsson on the achievement in 2011 of ZTE.