CHINA BUSINESS NEWS reports Chief Lawyer Xu Xinming: ZTE Corporation challenges the U.S. Court infringement judgment, overseas patent disputes intensi

Abstract: Zhongxing Telecommunication Equipment Corporation(hereinafter as“ZTE”) expresses that they will appeal against two of the judgments, and file a patent invalid request to United States Patent and Trademark Office(USPTO) against one of the judgments which has been accepted.

ZTE and InterDigital Communications patent disputes have subsequent contents.

Delaware Federal District Court judges ZTE infringes 3 patent rights of InterDigital Communications, and the other patent will make a decision after the technology test.

However, the United States International Trade Commission(ITC) had made a final decision on the above two infringement patents and ZTE won.

ZTE told the reporter that they would appeal against two of the judgments, and filed a patent  invalid request to USPTO against one of the judgments which has been accepted.

“If they can't appeal successfully, ZTE has to pay patent fees. ”chief lawyer Xu Xinming of China Intellectual Property Lawyers Net expressed his opinion.

The waves of “infringements” start again

InterDigital Communications charged ZTE infringe their 3G/4G mobile terminals patent in both ITC and Federal District Court in January 2013. After 337 surveys in one and a half years, the ITC made the final decision that ZTE didn't infringe InterDigital Communications patents right in August 2014.

According to InterDigital Communications announcement, Federal District Court heared the case involving the U.S. patent number 7190966, 7286847, 8380244, 7941151. The first three patents were considered effective, and ZTE infringed. The court thought there was doubt in the U.S. patent number 7941151, and they would make the judgment after the test in “a later date”.

The reporter understands from ZTE, the Federal District Court does not support for issuing an injunction. Delaware Federal District Court judgment only involves the infringement cognition and the compensation trial is expected in the next year.

After the failure in the ITC, President of InterDigital Communications, William J. Merritt is very satisfied with the Federal District Court judgment. In its website notice, William J. Merritt says InterDigital Communications has decades of basic researches in the wireless technology, and suggests they can make patent license agreements with ZTE on the "value" of patents.

“The ITC and the Federal District Court belong to different trial systems. The ITC adduces the direct legal basis is the Section 337 of the US Tariff Act , and he Federal District Court judges according to the U.S. Patent Law and other adjective laws. They does not conflict, and the losing party can appeal to United States Court of Appeals for the Circuit. The losing party in the Federal District Court judgment also can appeal to the same Court. The final ruling mechanism is unified. ” Lawyer Xu Xinming said to the reporter.

Xu X inming thinks the different judgments between the ITC and the Federal District Court are not surprise.“ITC is more professional and the judgment of the Federal District Court is made by the 'jury'. ”

Overseas patent disputes intensify

Global “patent war” is coming. Chinese enterprises, are you ready?

Statistics show that Chinese enterprises applying patents quantity is 629,612 last year, more than 200,000 of United States. However, Chinese enterprises patents applications in overseas still have a gap compared with developed countries.
 
“Chinese companies form a big challenge to foreign enterprises. As long as the means permitted by laws, competitors are likely to use, including patent litigation.” Xu Xinming said. Because of the long time and high cost overseas patent lawsuits, many small and medium-sized domestic enterprises are hard to undertake. Once the foreign enterprises start the patent litigation, they will hit on the competitor.

“Enterprises like ZTE, not the first time to face the overseas lawsuit, will not give up easily. But start the program will impact their business more or less. ” Xu Xinming said. If a foreign court judged Chinese enterprises infringement, Chinese enterprises will exit the overseas market, otherwise, succumb to the plaintiff, and pay high royalties for the legitimate sales abroad.