Vringo Inc. (VRNG), the patent monetization company run by CEO Andrew Perlman, said it plans to file motion for contempt against ZTE Corp. in the Federal and State Courts of Rio de Janeiro seeking punitive measures stemming from the Chinese telecommunications giant’s violation of an injunction against selling products at issue in a long running infringement dispute.
New York-based Vringo didn’t respond to a request for comment on what punitive measures it would be seeking against ZTE. Shares of Vringo fell 1.21 cents to 65 cents in trading today. They’ve traded between 46 cents and $3.69 over the past year.
The two companies are locked in a multi-jurisdictional infringement dispute in the U.S., the United Kingdom, Germany, India, Malaysia, China and Brazil.
Vringo announced its plans to seek punitive measures after court appointed experts released a report that uncovered 977 components of infringing products following a raid of ZTE’s warehouse in Brazil.
The company said a court officer, under the supervision of ZTE’s employees, put these components under seal, preventing their movement out of ZTE’s warehouse.
The company said the Brazilian officials obtained more than 7,000 ZTE invoices and, after an exhaustive investigation, determined that ZTE sold at least 360 components in violation of the injunction since April 2014.
Vringo said the Brazilian officials also noted that ZTE failed to produce several accounting and tax documents that ZTE had been specifically ordered to produce during the raid.
“ZTE’s flagrant violation of the court-ordered injunction in Brazil is yet another example of its refusal to play by the rules,” said David Cohen, Vringo’s chief legal and intellectual property officer in a statement. “Courts around the world have taken notice of ZTE’s lack of respect for intellectual property and the rule of law,” he said.
Officials of ZTE couldn’t be reached for comment.
Vringo received a preliminary injunction against ZTE on April 15, 2014, prohibiting ZTE from manufacturing, using, offering for sale, selling, installing, testing, or importing any 3G, 4G, or LTE infrastructure equipment in Brazil. The Federal and State Courts of Rio de Janeiro have, six times, denied ZTE’s appeal of this injunction.
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