German Court Rules Huawei, ZTE Products Infringe AVC Patents

DENVER–(BUSINESS WIRE)–MPEG LA announced today that the District Court in Düsseldorf, Germany
(“Landgericht Düsseldorf”) has ruled that Huawei Technologies
Deutschland GmbH (“Huawei”) and ZTE Deutschland GmbH (“ZTE”) infringed
patents of two patent holders in MPEG LA’s AVC Patent Portfolio License
(“AVC License”) by using their technologies in mobile phones that
implement the AVC/H.264 (MPEG-4 Part 10) Standard. The court also found
that the license offered by the patent holders under those patents
through the AVC License is fair, reasonable and nondiscriminatory.

“The Landgericht Düsseldorf’s decision confirms the importance of
respect for intellectual property, and offering everyone easy and
affordable access to essential AVC technology under a single license is
a cornerstone of the MPEG LA AVC License’s wide acceptance making that
possible,” said Larry Horn, President and CEO of MPEG LA. “We continue
to welcome Huawei and ZTE to join the nearly 2,000 Licensees who have
entered into our AVC License.”

Verdicts in additional cases brought by AVC License patent holders
against Huawei and ZTE before the Landgericht Düsseldorf are expected to
be handed down in December.

The decisions of the Landgericht Düsseldorf can be appealed by the
defendants. Also, the defendants have filed validity cases against the
patents in suit before the Federal Patent Court in Munich, Germany
(“Bundespatentgericht”).

MPEG LA, LLC

MPEG LA is the world’s leading provider of one-stop licenses for
standards and other technology platforms. Starting in the 1990s, it
pioneered the modern-day patent pool helping to produce the most widely
used standards in consumer electronics history. MPEG LA has operated
licensing programs for a variety of technologies consisting of nearly
20,000 patents in 90 countries with more than 250 patent holders and
more than 6,000 licensees. Approximately 2,000 licensees enjoy the
worldwide one-stop coverage of MPEG LA’s AVC Patent Portfolio License
under essential patents owned by 38 patent holders. By assisting users
with implementation of their technology choices, MPEG LA offers
licensing solutions that provide access to fundamental intellectual
property, freedom to operate, reduced litigation risk and predictability
in the business planning process. For more information, go to www.mpegla.com.

Contacts

MPEG LA, LLC
Tom O’Reilly
Tel: 303-200-1710
Fax:
301-986-8575
toreilly@mpegla.com