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ZTE’s Intellectual Property Defenses Strengthened by U.S. ITC Ruling in TPL Case

ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment, network solutions and mobile devices, welcomes the final determination of the United States International Trade Commission rejecting the claims of Technology Properties Limited LLC (“TPL”), which strengthened ZTE’s defenses against other intellectual property-related complaints.

The ITC terminated an investigation into TPL’s complaints alleging violations of Section 337 of the Tariff Act of 1930, after rejecting TPL’s claims of patent infringement. TPL initially filed the complaints in July 2012 against more than 10 respondents including ZTE, Samsung, HTC, LG and Huawei. The decision in the TPL case followed the ITC’s decision in December 2013 to reject the patent claims made by InterDigital Inc. against ZTE and other respondents.

“We are pleased by the ITC’s decision, as ZTE has refuted claims by the complainants for more than a year,” said Shen Jianfeng, Chief Intellectual Property Officer of ZTE. “We face an increasingly complex market environment, prompted by rapid changes in the global telecommunications industry and the intellectual property landscape. ZTE is committed to our principles of openness and mutual benefit as we continue to work with all stakeholders to promote benign competition and development of a healthy industry ecosystem.”

In recent years, some patent holders have been demanding unreasonable licensing fees, and have used litigations as negotiating tactics. Investigations related to Section 337 of the Tariff Act of 1930 are protracted, and may result in export exclusion orders and cease and desist orders that will prevent the shipments of affected products to the U.S. market.

ZTE’s multi-billion investment in research and development has resulted in an industry-leading pool of intellectual property assets. ZTE has filed applications for more than 50,000 patents globally, with more than 14,000 granted. ZTE is a global leader in holdings of essential patents related to 4G LTE. ZTE ranked No. 1 globally in international patent applications in 2011 and 2012, according to the World Intellectual Property Organization. ZTE will continue to strengthen its portfolio of patents to attain globally-leading positions in core areas such as smart terminals, optical networking, cloud computing, big data and 4G LTE, and invest in next-generation technologies such as 5G. Such investments will be key to enhance ZTE’s competitiveness and intellectual property capabilities to help the company cope with changes in the technology landscape and market environment.

About ZTE

ZTE is a publicly-listed global provider of telecommunications equipment and network solutions with the most comprehensive product range covering virtually every telecommunications sector, including wireless, access & bearer, VAS, terminals and professional services. The company delivers innovative, custom-made products and services to over 500 operators in more than 160 countries, helping them to meet the changing needs of their customers while growing revenue. ZTE commits 10 per cent of its annual revenue to research and development and has leadership roles in several international bodies devoted to developing telecommunications industry standards. ZTE is committed to corporate social responsibility and is a member of the UN Global Compact. The company is China’s only listed telecom manufacturer that is publicly traded on both the Hong Kong and Shenzhen Stock Exchanges (H share stock code: 0763.HK / A share stock code: 000063.SZ). For more information, please visit www.zte.com.cn.

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