Vringo Infrastructure Inc, a unit of mobile phone software maker Vringo Inc (New York, USA), filed a patent infringement lawsuit against the UK unit of Chinese telecommunications equipment maker ZTE Corp (Shenzhen, China), driving up Vringo's shares by as much as 21 percent in early trading.
"ZTE has elected not to take a license to patents in Vringo's portfolio relevant to certain international standards," David Cohen, head of licensing, litigation, and intellectual property at Vringo, said in a statement.
The lawsuit, filed in the UK High Court of Justice, Chancery Division, Patents Court, alleges infringement of certain European patents that Vringo had bought.
Vringo, in a letter dated September 25, had asked ZTE to buy licenses to the patents for the equipment the Chinese company has been making and selling since at least 2002.
Vringo's shares were up 17 percent at $5.30 on Monday morning on the American Stock Exchange. The stock jumped 35 percent last week after a judge denied Google Inc (Mountain View, USA) a motion for summary judgment in a patent dispute filed by Innovate/Protect Inc, which was acquired by Vringo.
(Reporting By Aurindom Mukherjee in Bangalore; Editing by Don Sebastian)