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Vringo (VRNG) Unit Files Suit Against ZTE in Germany

November 15, 2012 11:03 AM EST Send to a Friend
Vringo, Inc. (AMEX: VRNG) announced that its wholly-owned subsidiary, Vringo Germany GmbH, filed a patent infringement lawsuit against the ZTE Corp, China and its German subsidiary, ZTE Deutschland GmbH (ZTE). ZTE describes itself as "a leading global provider of telecommunications equipment and network solutions," with recently reported annual revenue of US $13.7 billion (RMB 86.254 billion), according to filings with the Hong Kong Stock Exchange. According to ZTE's public filings, the company generates its revenue primarily from the sale of telecommunications equipment and handsets.

"The filing of this action in Germany is the next step in Vringo's global licensing and enforcement program in the telecommunications sector. ZTE has elected not to take a license to patents in Vringo's portfolio relevant to certain international standards, despite manufacturing and selling devices and equipment for a number of years that are said by ZTE to be compliant with those standards," said David L. Cohen, Head of Licensing, Litigation, and Intellectual Property at Vringo. "We believe that ZTE is aware that it requires licenses to all patents that are essential to relevant standards. Further, we believe that ZTE is familiar with systems for declaring patents to standards-setting organizations and the relevant intellectual property rights policies for those organizations, having itself declared hundreds of patents to international standards."

The lawsuit, filed in the District Court of Mannheim, alleges infringement of the German part of European Patent 1,212,919. Declarations have been filed at the European Telecommunications and Standards Institute (ETSI) that cover the patent. ZTE's accused devices are believed to fall within the scope of the patent. Vringo’s complaint brief is to be served on ZTE.

According to the complaint, Vringo is seeking injunctive relief, rendering of accounts, recall and destruction of allegedly infringing products as well as damages.

"As we have said before, ZTE's liability will continue to increase as long as the issue remains unresolved. We hope that ZTE will work with us to resolve this matter in a positive and productive manner," said Alexander R. Berger, Chief Operating Officer at Vringo.




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