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.
Afterwards, ZTE issued an announcement in Shenzhen Stock Exchange Market, by which Ericsson would withdraw the patent lawsuit against it in UK, Germany and Germany, while ZTE would also withdraw the litigation opposing Ericsson in China.
Bridge IP Law Commentary views, being different from Huawei, who have made huge investment both in human and financial resources in patent reservation, and became the largest company with the most PCT application of the world in 2008, ZTE realized the importance of the patent reserve much later, while started the active application after then and now also be the company with the most global PCT application. Actually, with the rapid development in recent years, the advantage of the low human resources in China is fading, which on the other hand enlightens the local companies of the importance of the patent as the technical barrier to maintain the competitive advantage as well as the way to combat the competitors.
Other recommended posts on our website:
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3． The Patent Prosecution Highway is Piloting in China.
4． How to apply for the pre-litigation injunction in China? (I)
5． The First Primary People’s Court with Jurisdiction over Patent Disputes in China
Author: Mr. You Yunting
Founder & Editor-in-Chief of Bridge IP Law Commentary
Partner & Attorney-at-law of Shanghai DeBund Law Offices
Email: Bridge@chinaiplawyer.com, Tel: 8621-5213-4900,
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Bridge IP Law Commentary is a website focus on the introduction of commercial laws in China, especially the intellectual property laws. All the posts here are our original works. And all news or cases referred here are from public reports, and our comments or analysis are of due diligence, neutrality and impartiality, representing our own opinions only and are our original works. You may contact us shall you have any opinions or suggestions.
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