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ZTE spent over $1B for R&D in 2012

Posted: 19 Mar 2013 ?? ?Print Version ?Bookmark and Share

Keywords:R&D? telecommunications? patent applications?

ZTE Corporation filed applications for 1,184 patents last year, lifting the telecommunications equipment firm up from 43rd spot to tenth in the European Patent Office's list. ZTE backed these applications by ramping up its spending on research and development to about $1.43 billion in 2012.

Shenzhen-based ZTE has ploughed a combined total of more than $4.77 billion on R&D and the company is among the telecommunication equipment industry's heaviest spenders on cross-licensing of intellectual property, when measured on a spending to revenue ratio. Since 2005, ZTE had reached cross-licensing agreements with companies including Qualcomm, Siemens and Ericsson.

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It generally takes between two to three years for patents in Europe to be granted, after applications are filed. The cost of each patent is over $15,000.00. ZTE expects a large number of the company's patents, mainly on LTE technology and smart terminals, will be granted in Europe in 2014. "Our rapidly growing patent portfolio will help strengthen the company's position in the European market, and reduce risks of anti-competitive litigations," said Wang Haibo, ZTE's Director of Legal Affairs. Wang also emphasized that ZTE is strongly against 'patent harvesting.'

Last July, ZTE won a contract with China Mobile Hong Kong to construct an LTE-TDD network in the territory. The agreement covers LTE-TDD solutions such as SDR BTS, terminals, network planning, integration and network optimisation, spanning Hong Kong Island and Kowloon. (See ZTE, China Mobile HK build LTE-TDD network.)

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