Vringo Sues ZTE's U.K. Unit over Patents

Vringo Inc. (VRNG) filed a lawsuit against ZTE Corp.'s (ZTCOY, 0763.HK, 000063.SZ) U.K. unit for alleged infringement of its patents for handsets, base stations and base station controllers.

Representatives of ZTE weren't immediately available for comment.

Vringo, a video-ringtone and intellectual-property firm, sent a letter to ZTE in late September asking the Chinese telecommunications company to review whether it needs to license any of Vringo's recently acquired Nokia Corp. (NOK, NOK1V.HE) patents, warning that it could take legal action.

"We believe that ZTE is aware that it requires licenses to all patents that are essential to relevant standards," said David L. Cohen, Vringo's head of licensing, litigation, and intellectual property Monday. "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."

Vringo is seeking a declaration that its patents have been infringed by ZTE's activities and that the U.K. High Court of Justice use its injunctive power to stop ZTE's activities.

Vringo is also suing the search company AOL Inc. (AOL), IAC/InterActiveCorp. (IACI) and others, alleging infringement of two of its patents related to advertising placement in search results. A trial is scheduled to start Oct. 16.

Meanwhile, ZTE has come under scrutiny from U.S. agencies, including the Federal Bureau of Investigation, over allegedly supplying equipment to Iran. ZTE said Monday that Cisco Systems Inc. (CSCO) recently severed a strategic cooperation agreement amid the U.S. allegations.

Write to Melodie Warner at [e-mail]

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