HUAWEI Resurgence &Nbsp; EU Three Counter Investigation Is The Fuse.

"Litigation, counterlitigation", a patent war between the global communications equipment giants, was staged between two Chinese companies, HUAWEI and ZTE.

Together from Shenzhen, together to enter the overseas market, and broke into the world's top five communications market.

As the two giants of China's communications equipment industry, HUAWEI and ZTE are targeting the other side this time.

Reporters in recent days found that the fuse of the incident was actually the "three anti" investigation launched by the European Union last year. When HUAWEI and ZTE as a multinational company, it seemed inevitable that the competition in the overseas market was becoming more and more coincided.

Litigation and counterlitigation

At 7 pm on April 28th, HUAWEI announced that it would infringe on the company's data cards, LTE patents and

Just 20 hours later, in the afternoon of April 29th, ZTE announced a counterclaim that it had submitted a petition in April 29th against a number of important patents against HUAWEI Technology Co., Ltd., which infringed the fourth generation mobile communication system of ZTE.

Over the past two years, it has occurred in the global telecommunications industry.

In the past, the two opponents of litigation and counterlitigation were two Chinese companies.

Wang Jianping, general manager of Zhongxing public relations, said HUAWEI launched the lawsuit "premeditated for a long time". It wanted to take advantage of Ericsson's lawsuit against ZTE at the beginning of this month, so that ZTE could be attacked by the enemy and prevent its development in Europe.

HUAWEI said HUAWEI has repeatedly invited ZTE to carry out the patent cross licensing negotiations, but efforts have not been successful.

ZTE and HUAWEI started together in Shenzhen, together to enter the overseas market, and broke into the top five in the world communications market.

Insiders pointed out to reporters that, ultimately, the two fuse against the court is the EU's "three anti" incidents last year.

HUAWEI has always believed that it promotes the prosperity of the European data card market.

Before 2005, the annual sales of the old network cards based on PCMCIA interface were less than 1 million 500 thousand in the global market, including Europe. In 2006, HUAWEI launched the world's first USB data card. According to the ABIResearch report, the growth rate of European Mobile Broadband Market shipments in 2007 was about 406%, and HUAWEI shipped 4 million 800 thousand pieces in that year.

Since then, with the launch of HUAWEI rotary head USB data cards and mobile WIFI data cards and other star products, the European data card market has increased significantly.

But since 2007, ZTE's "low price strategy" has upset the market. By the second quarter of 2010, ZTE's lowest Internet card price was only 17 euros, which was already below the cost.

In 2007, the price of the product was still around 150 euros.

ZTE's low price not only caused HUAWEI headache but also affected some other producers in the market.

In the third quarter of last year, after the European Option company launched a complaint, the European Union put forward a "three anti" investigation against China's wireless Internet card manufacturers (anti dumping, anti security measures and countervailing investigations).

The European LTE data card (next generation wireless communication) market will start soon. If the two countries fail to implement the cross licensing agreement successfully, ZTE will continue to compete in the European market at low prices. This behavior is likely to cause a new "three anti" investigation again, and once again "catch fish in the pond". Therefore, HUAWEI filed a lawsuit and hoped that ZTE could pay cross patent costs.

But insiders pointed out that HUAWEI has been spending more on patents, and the lawsuit is more sought after "cost fairness".

"In 2010, our investment in R & D was 16 billion 556 million yuan (US $2 billion 500 million).

HUAWEI attaches importance to its intellectual property rights and respects other people's intellectual property rights.

We have signed a series of cross licensing agreements with major manufacturers and intellectual property holders in the telecommunications industry.

In 2010, we paid a patent license fee of US $222 million to obtain the right to use the patent and technology of other leading companies in the industry, "HUAWEI stressed in a media statement.

"Working together" is inevitable.

If the European Union's "three anti" incidents are the fuse of the lawsuit, it is easy to find that the "HUAWEI" and "ZTE" market position are inevitable.

Recently, the top five manufacturers of global communications equipment are Ericsson, HUAWEI, Alan, noxi and ZTE.

HUAWEI and ZTE rely heavily on overseas markets.

HUAWEI reported that last year, HUAWEI achieved sales revenue of 120 billion 400 million yuan in overseas markets, an increase of 33.8% over the same period last year, contributing 65% to total revenue, while ZTE achieved 29 billion 870 million yuan in overseas market last year, accounting for 42% of its total revenue.

The two parties often have disagreements in the overseas market.

In April 28th, when HUAWEI launched a lawsuit, ZTE won the 4G contract for 5000 HSPA+/LTE sites deployed by the European operator Telenor (Malaysia Telecom) in Norway. The contract is not only likely to lead to the relocation of the network previously deployed by Ericsson and HUAWEI, but also may affect the cooperation between HUAWEI and Telenor in other European projects in the future.

"What business do you do, what business you enter? Which country do you enter?"

But fighting is not necessarily a bad thing.

Hou Weigui, chairman of ZTE, once looked at the competition between the two companies. "In essence, we have been competing for more than 20 years from the beginning to the present, and the two enterprises have rapidly improved in strength, capability and enterprise quality through competition, which is the mainstream.

I think this is thanks to competition, otherwise why foreign counterparts are getting worse than us? "