On June 12, 2025, a spokesperson from the Munich District Court in Germany confirmed that Datang Mobile had initiated three patent infringement lawsuits against Xiaomi in a German court. The patents involved—EP2237607 (method and apparatus for cell handover), EP3713313 (uplink power control method and mobile communication terminal), and EP2315369 (method and apparatus for adaptive modulation and coding)—are fundamental to LTE/4G technology and play a significant role in the advancement of 5G technology.
Background and Context of Overseas Patent Disputes Among Chinese Companies
This case is part of a broader trend rather than an isolated incident. For example, in 2024, Lenovo filed a lawsuit against ZTE in the UK concerning licensing fees, which sparked considerable discussion within China. In recent years, the frequency of Chinese companies litigating against each other in foreign jurisdictions has increased, drawing widespread attention. Several factors contribute to this development, including legal environment considerations, market strategies, competitive dynamics, and international reputation management. Key reasons include:
Favorable International Legal Environments and Judicial Efficiency
Many Chinese companies perceive foreign courts—particularly in the U.S. and Europe—as offering more professional, efficient, and influential handling of intellectual property cases. Stronger IP protection laws and higher compensation standards in these regions also encourage companies to pursue litigation abroad.
Enhancing Market Influence and Deterrence
Litigating overseas enables companies to showcase their intellectual property strength on a global stage, boosting their international reputation and competitiveness. For instance, Datang Mobile’s lawsuit against Xiaomi in Germany aims not only for financial redress but also to assert technological leadership internationally. Additionally, injunctions obtained through foreign courts can shift negotiation leverage, compelling opposing parties to make concessions.
Addressing International Competition and Market Expansion
As Chinese firms expand globally, overseas litigation has become a strategic tool to manage international competition. Lenovo’s lawsuit against ZTE in the UK, for example, partly sought to protect its global business interests. Filing suits abroad helps companies defend their rights worldwide while deterring competitors.
Limitations Within the Domestic Judicial System
Despite ongoing improvements, some companies find China’s domestic legal system less satisfactory in terms of applicable laws, judicial efficiency, or enforceability of judgments. Concerns about enforcement challenges or the perceived greater authority of foreign court rulings lead some firms to prefer litigation in overseas jurisdictions.
Complex Corporate Relationships and Strategic Litigation Choices
Traditionally, patent disputes in sectors like telecommunications were resolved domestically. However, recently, some Chinese companies have opted to litigate abroad, reflecting their adaptability to international legal frameworks and strategic self-interest. For example, Lenovo collaborated with foreign companies in its UK lawsuit against ZTE to strengthen its position and send a clear message to the global market. When selecting litigation venues, companies also consider their opponents’ market presence and business priorities.
Managing International Public Opinion and Corporate Image
Overseas litigation extends beyond legal disputes to influence international public perception and corporate branding. By initiating lawsuits abroad, companies can proactively shape their global image. However, this approach may provoke domestic debate, as it can be viewed as undermining unity among Chinese enterprises on the international stage.
In summary, the growing tendency of Chinese companies to sue each other overseas is driven by a combination of legal, strategic, competitive, and reputational factors. While this trend highlights the rising global stature of Chinese enterprises, it also invites reflection on the domestic judicial system and international competition strategies. Moving forward, Chinese companies are encouraged to carefully assess the advantages and disadvantages of litigation venues, and continued enhancements to the domestic legal framework will be vital to strengthening their overall competitiveness in the global market.