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China's Ministry of Industry and Information Technology (MIIT) has stepped in to arbitrate the intellectual property right lawsuit between Chinese telecommunication equipment providers Huawei Technologies Co. and ZTE Corporation, the Nanfang Daily reported on Wednesday.
The ministry has arranged talks with Huawei's board director Chen Lifang in an attempt to negotiate a settlement, the newspaper said.
Huawei announced on April 28 that it had filed lawsuits against its rival ZTE for patent and trademark infringement in Germany, France and Hungary. A day later, ZTE fought back with a domestic lawsuit against Huawei for patent infringement over its fourth-generation mobile internet technology.
"Patent barriers have become an important means of competition in the international market, and no company can get around it," said Wang Yuquan, director of China operations at business consultancy Frost Sullivan.
It's just a matter of time before Huawei and ZTE "pick a fight" with each other because the two companies are highly alike in terms of products and services, Wang said. But in the end, they will probably reach a settlement, he said.
OF OVER 20 THOUSAND CHINESE “DIAMOND” PATENTS, 60% BELONG TO THE TWO COMPANIES
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