A source within ZTE's (0763.HK; 000063.SZ) securities department confirmed today that the Chinese telecom equipment manufacturer has filed a patent suit against rival Huawei in Shenzhen, adding that the court has accepted the suit and has begun legal proceedings. Huawei confirmed the report.
In its lawsuit, ZTE calls for the court to order Huawei to immediately cease the manufacture and use of its TD-LTE systems equipment, and to forbid Huawei from conducting large-scale TD-LTE technology trials.
Industry rumor had previously alleged that China's Ministry of Industry and Information Technology (MIIT) had attempted to mediate the dispute between the two companies. A source close to the case revealed that the MIIT had become involved in hopes of effecting a quiet resolution to the matter and keeping the two companies from seeking legal recourse in their patent battle.
Editor's Note: For more background on this topic, please see "Rumor: ZTE Sues Huawei for TD-LTE IPR Infringemen" MD 6/07/11 issue.