Huawei has filed lawsuits in Germany, France, and Hungary against ZTE Corporation (ZTE) for patent and trade mark infringement. 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’s Chief Legal Officer, Dr. Song Liuping said that these lawsuits were commenced after ZTE failed to respond to cease and desist letters. Huawei CLO also say that the company had also actively invited ZTE on numerous occasions to enter into cross-patent licensing negotiations but was equally unsuccessful.
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).