Ericsson, the world’s largest mobile network equipment maker, is suing ZTE, a Chinese rival, over alleged infringements of the Swedish group’s technology patents.
Ericsson has accused ZTE of refusing to sign a patent licensing agreement under which the Chinese telecoms equipment maker would pay royalties to the Swedish group. The move by Ericsson underlines how Chinese companies led by Huawei Technologies and ZTE have emerged as strong rivals to the Swedish group. But it is the first time Ericsson has taken legal action against a Chinese competitor over alleged patent infringements.
ZTE, which is state-controlled and has a Hong Kong listing, has become one of the world’s top five mobile network equipment makers over the past five years. It is also enjoying rapid growth by manufacturing handsets.