Chinese telecommunication manufacturer ZTE Corporation is facing a patent infringement lawsuit from ContentGuard, which alleges ZTE used digital rights management solutions in its products sold in the United States that infringed upon ContentGuard's patents.
"ZTE’s ongoing infringement leaves us no alternative but to resort to the courts to defend our intellectual property rights," said Eddie Chen, chief technology officer for ContentGuard. "This is the first time ContentGuard has had to initiate litigation against a company for infringement. ContentGuard is committed to protecting its rights and the interests of its customers, copyright owners and content distributors."
Patent infringement lawsuits such as this one can weigh heavily on the financial stability of companies like ContentGuard. This is why investing in a professional liability insurance policy is smart, as the coverage can help companies deal with the high costs of patent infringement lawsuits.
According to ContentGuard's website, the company's intellectual property includes more than 260 patents, with hundreds more pending.