Vringo-ZTE

Transcription of Meeting with June 3, 2015 NDRC from

approximately 930 am to approximately 11 am

C/M No. 060430/449219

Mr. Cohen, Zhaofeng, Zhou (Bird and Bird, Beijing), Chris Yang (Lawjay Partners), and a translator
hired by Bird and Bird met at the NDRC. The room was more modern and not uncomfortable to sit in.
The general tone was more subdued with few examples of Mr. Xu raising his voice.

There were three NDRC commissioners – Mr. Xu, Mr. Liu and Ms. Wu. There was a photographer
who took at least 4 photos of the participants throughout the meeting, the same translator from the first
meeting and two law clerks.

Mr. Xu Chinese

Translator So, let’s begin this investigation today. I have to announce the investigation
procedure. This is a formal investigation procedure, I have to show my badge to
investigate.

Mr. Xu Chinese

Translator So there are two law, three law enforcers today, Mr. Liu, Ms. Wu and Mr. Xu

Mr. Xu Chinese

Translator And their two additional assistants.

Mr. Xu Chinese

Translator Do you have any opinion of or disagreement with the composition of this
investigation panel

Mr. Xu Chinese

Translator I think I have told you the formal discipline of the NDRC lots of times, so I do not
want to repeat myself.

Mr. Xu Chinese

Translator The first part of today’s investigation is to let Mr. Liu tell you the general
investigation situation so far by NDRC and your refusal to accept the
investigation.

Mr. Xu Chinese

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 Translator And the second part of today’s investigation is that I will announce the possible
punishment for Vringo.

Mr. Xu Chinese

Translator And the third part will be hear from you about your opinions or suggestions on the
first two parts.

Mr. Xu Chinese

Translator So, uh, let’s begin the first part.

Mr. Liu commences reading from a previously prepared printed document in Chinese (which was not
provided to Vringo.

Mr. Liu Chinese

Translator So, that my first point to make that Vringo is uncooperative and refuse to
cooperate with the investigation.

Mr. Liu Chinese

Translator So, my second point is that in the statements last time we find there false
information.

Mr. Liu Chinese

Translator And the third point is the specific allegations of Vringo’s violations of AML,
which we have initially cited.

Mr. Liu Chinese

Translator So, uh, I want to say something detailed about the first allegation that is Vringo
refused to assist in the investigation.

Mr. Liu Chinese

Translator So, in this April we contacted the lawyers entrusted by Vringo to ask Vringo to
come to NDRC to accept investigation several times.

Mr. Liu Chinese

Translator However, Vringo refused our requirement to accept investigation for several
reasons.

Mr. Liu Chinese

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 Translator And on May 13th we actually sent investigations subpoena to the lawyer and I
believe the lawyer has translated it timely and sent it to Vringo.

Mr. Liu Chinese

Translator This request has, this written request has specifically asked Vringo to come for
investigation on May 19th.

Mr. Liu Chinese

Translator In fact, Vringo didn’t come to NDRC for investigation on May 19th and didn’t
make any explanation for us.

Mr. Liu Chinese

Translator So, I think we are nearly one month from our first phone call, our first call to a
lawyer to ask Vringo to come to investigation, until May 19th, it’s almost a month.

Mr. Liu Chinese

Translator Therefore, I believe that we have given Vringo sufficient time to come for
investigation.

Mr. Liu Chinese

Translator My above statement of facts is evidenced by the recording of the phone calls and
the written request.

Mr. Liu Chinese

Translator So, later, after May 19th, Vringo has sent us the explanation about why you didn’t
come for investigation. However, I think considering there has been one month
since our first meeting so I don’t find this reason is valid.

Mr. Liu Chinese

Translator Therefore, we have find Vringo has constituted refusal and corruption of the
investigation under the Chinese AML.

Mr. Liu Chinese

Translator We might decide how we will punish Vringo legally depending on how this case
goes.

Mr. Liu Chinese

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 Translator My second point is about the false information contained in the materials
submitted by Vringo last time.

Mr. Liu Chinese

Translator First, Vringo claimed in the materials that a certain Chinese licensee is a malicious
licensee which failed to negotiate in good faith, therefore Vringo filed a lawsuit
against it.

Mr. Liu Chinese

Translator However, after our investigation we found that Vringo actually sent its first offer
um …. uh, sorry … uh, in September of 2012 and only gave the company ten days
to response, uh, when you filed the ….. I mean the ….

Mr. Cohen Lawsuit

Translator When you filed the lawsuit ten days after you extend the offer.

Mr. Cohen Uh huh.

Mr. Liu Chinese

Translator Also, there is the national holidays within the ten days.

Mr. Liu Chinese

Translator Considering above situations, we find that Vringo didn’t give the licensee
sufficient time to fully consider the offer and just, Vringo just used the situation as
a means to force the licensee to accept the offer.

Mr. Liu Chinese

Translator My second point is that Vringo created that we always license on the FRAND
principle, however, we didn’t find this true.

Mr. Liu Chinese

Translator Vringo never offer this Chinese company a fair opportunity to negotiate the
license.

Mr. Liu Chinese

Translator The offer you sent to the Chinese company fixed a form which Vringo already
used and it doesn’t …

Mr. Cohen [interrupts] I’m sorry can you repeat “and the offer that we sent …. “

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 Translator … the general, the your form the kind the contract used …

Mr. Cohen [interrupts] Oh, I see ...

Translator [interrupts] it doesn’t apply to this company And it doesn’t contain contextual
information about the license.

Mr. Liu Chinese

Translator And Vringo didn’t give sufficient time for the company to reply and we also think
that Vringo actually didn’t plan to wait for the reply from the company.

Mr. Liu Chinese

Translator The application is a means to acquire unreasonable licensing terms.

Mr. Liu Chinese

Translator My third point is that the offer sent by Vringo didn’t contain an SEP list and it
doesn’t have a comparison of the infringement and your patent.

Mr. Liu Chinese

Translator The attachment to the offer does not have a detailed list of the SEPs and doesn’t,
and didn’t point out, which patents of Vringo was, what was infringed by what
kind of products of this company.

Mr. Liu Chinese

Translator And my fourth point was about the pricing, it didn’t contain in this offer, Vringo
didn’t provide visible explanations to this pricing and it is not supported by
sufficient patents.

Mr. Liu Chinese

Translator I understand that you have worked for Nokia before, therefore I think you will
understand that Nokia has announced that the royalty rate for their whole SEPs
will not exceed 2%.

Mr. Liu Chinese

Translator Even though Vringo has acquired a portion of Nokia’s patents, however, I think
the current patents held by Nokia is still multiple times of Vringo’s patents.

Mr. Liu Chinese

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 Translator However, the current royalty rate asked by Vringo for infrastructure products is
1.5% and the royalty rate for handsets is 1%, and the royalty rate for the other unit,
for other units, is 1%.

Mr. Liu Chinese

Translator However, Vringo didn’t provide any reasonable explanations for this excessively
high royalty rates.

Mr. Liu Chinese

Translator And we also asked the Telecommunications Research Institute in China to study
the SEPs claimed by Vringo and they concluded that almost all the SEPs claimed
by Vringo are related to the systems and that they are not related to mobile devices
and terminals.

Mr. Liu Chinese

Translator My fifth point is that, based on the evidence collected by NDRC so far, we also
find that Vringo has filed litigation against uh ASUS … A S U S [spells out]?

Mr. Cohen Yes.

Translator A S U S [spelled out], uh based on the terminal patents held by Vringo, the device.

Mr. Cohen Yes. Yes.

Translator The handset.

Mr. Cohen Yes.

Mr. Liu Chinese

Translator However, we had requested last time that Vringo should submit a list of all of the
companies which Vringo has reached out to or have offered your messaging terms
to, however you didn’t provide information about ASUS to us.

Mr. Liu Chinese

Translator These five points are the main and the partial false statements we have find in your
last, the last, the materials you submit last time.

Mr. Liu Chinese

Translator Such behavior, we find such behavior has constitute a false statement under
Chinese AML.

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 Mr. Liu Chinese

Translator The third part of my announcement would be the alleged violations of AML we
find so far.

Mr. Liu Chinese

Translator First, since Vringo holds some certain SEPs, therefore we find Vringo has a
dominant market position in the relevant markets, the detailed reasonable of the
market definition and the dominance you can find those in the decision of
Qualcomm and IDC, therefore I do not elaborate.

Mr. Liu Chinese

Translator Next, I will announce the alleged abuses of market dominance. There are three.

Mr. Liu Chinese

Translator My first allegation is that Vringo is alleged to ask excessive royalty rates,
royalties.

Mr. Liu Chinese

Translator My reasons are as follows. First is that Vringo didn’t provide a list of SEPs in the
offer and we find that the patents claimed by Vringo include some expired and
invalid patents.

Mr. Liu Chinese

Translator Therefore, royalty requirement based on these patents is unreasonable.

Mr. Liu Chinese

Translator Refusal to provide a list of SEPs and ask for royalties for expired patents is also
one of the reasons that we punished Qualcomm.

Mr. Liu Chinese

Translator My second reason is that we compared the royalty list asked for, asked by Vringo
with some other licensors in the telecommunication industry.

Mr. Liu Chinese

Translator So, I will not give you the full comparisons here, subject to the timing issue. I will
give you example. IDC.

Mr. Liu Chinese

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 Translator Taking IDC as an example, it held about 8,000 patents, among them the SEPs for
telecommunication, which is about 2,000, therefore, more than the number of
patents held by Vringo.

Mr. Liu Chinese

Translator The uh, contract, in the license agreement signed with Apple in 2007, they have
signed a license for seven years and the fee, the licensing fee, for seven years is 56
million U.S. dollar, and which is 8 million for each year.

Mr. Liu Chinese

Translator In the license agreement signed with Samsung, the licensing fee is for four years,
it’s about 1.4 billion USD.

Mr. Liu Chinese

Translator So, we calculate the licensing fees based on the royalty list asked by Vringo and
the volumes of handsets of the Chinese company and the result is that the licensing
fees for this Chinese company for one year is 1 point 1 billion USD.

Mr. Cohen I’m sorry, repeat the number?

Translator 0.1 billion.

Mr. Liu Chinese

Mr. Cohen 100 million.

Translator I’m sorry. It’s easier for me to write out this number.

Mr. Liu Chinese

Translator Therefore, this number is way more than the 8 million US dollars collected by
Apple.

Mr. Liu Chinese

Translator However, the number of patents held by Vringo is fewer than the patents held by
IDC.

Mr. Liu Chinese

Translator We also conducted similar comparisons with other companies, IDC is simply one
of the numbers.

Mr. Liu Chinese

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 Translator Actually, Vringo’s offer means the Chinese companies have no chance to
negotiate due to the injunctions brought by Vringo.

Mr. Liu Chinese

Translator There is no sufficient opportunity for both parties to negotiate licensing terms.

Mr. Liu Chinese

Translator My second allegation is that Vringo also bundled non-SEPs with SEPs in the
licensing activity.

Mr. Liu Chinese

Translator I will not go into too much details on this point because from our published
decision against Qualcomm we have a detailed reasoning and finding of this
conduct.

Mr. Liu Chinese

Translator My third allegation is that Vringo used the allegation and injunction as
unreasonable abuse to force the companies to accept the license.

Mr. Liu Chinese

Translator In the situation where Vringo sent offers with unreasonable terms and leaving the
company no time to negotiate and consider the offer, Vringo filed, initiated
litigations and injunctions in various countries.

Mr. Liu Chinese

Translator There is a common intention of these litigations and injunctions in different

countries, that is, to force and threaten these Chinese companies to accept your
offer.

Mr. Liu Chinese

Translator We find that such conduct has impaired the interest of the Chinese companies and
damaged their ability to participate in competition. We also find this is, this
constitutes abuse of market dominance under AML.

Mr. Liu Chinese

Translator This is our initial finding of Vringo’s violation of AML based on our review of the
file.

Mr. Liu finishes reading from the previously prepared document

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 Mr. Xu Chinese

Translator So, Mr. Liu has announced current situation of the investigation. In summary,
there are two kinds of conducts. The first is refusal to cooperate with investigation
and provide false information.

Mr. Xu Chinese

Translator The other aspect of Mr. Liu’s announcement is the specific violation of AML by
Vringo.

Chinese

Translator First, as to the refusal to accept investigation, I personally feel very angry about
that.

Mr. Xu Chinese

Translator I do not think the US government or investment authorities will allow this kind of
behavior.

Mr. Xu Chinese

Translator Refusal to report about, certain information about Vringo and refusal to contact
NDRC.

Mr. Xu Chinese

Translator It is a disrespect towards NDRC.

Mr. Xu Chinese

Translator I think you will pay for this, this behavior.

Mr. Xu Chinese

Translator About the second aspect, which is the allegations.

Mr. Xu Chinese

Translator I think Mr. Liu has very specifically explained how we got to these allegations.

Mr. Xu Chinese

Translator Therefore, I will not speak about them.

Mr. Xu Chinese

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 Translator You might find you don’t have any fixed assets in China.

Mr. Xu Chinese

Translator Even, you might find you hate this country.

Mr. Xu Chinese

Translator And I … you might think that you can, uh, it is possible for you never to come to
China again.

Mr. Xu Chinese

Translator However, as I have told to IDC, I have to tell you, that you have, you own Chinese
patents here.

Mr. Xu Chinese

Translator So therefore, if we conclude the decision and actually enter into the enforcement
procedure, if Vringo didn’t cooperate with us, we might auction the patents, the
Chinese patents of Vringo, and my initial starting point of the auction price is one
cent for them.

Mr. Xu Chinese

Translator And would forbid the members of the company to enter into China, ever.

Mr. Xu Chinese

Mr. Xu And if you didn’t, if he doesn’t take the punishment, pay the fines, we will count
interest on those fines, continuing.

Mr. Xu Chinese

Translator So, there is a Chinese saying that, uh …..

Mr. Xu Chinese

Translator Please do not use it as excuse, use it as excuse, like I didn’t know that, you didn’t
notify me, so do not use that afterward as an excuse.

Therefore, please [unintelligible due to loud rustling noises].

Mr. Xu Chinese

Translator So, please do not perceive my speech just now as a threat to Vringo, because it is
not. I hope you understand my meaning in my speech.

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 Mr. Xu Chinese

Translator Also, I have to warn your lawyers here not to misinterpret my intention and
provide false information to your client.

Mr. Xu Chinese

Translator Please do not underestimate the NDRC and overestimate yourself.

Mr. Xu Chinese

Translator I have been in AML for over five years, however, you are the most disrespectful
company and law firm I ever met.

Mr. Xu Chinese

Translator If you continue this attitude of not, not to cooperate with the NDRC.

Mr. Xu Chinese

Translator I have to tell you that under Article 52 of ML, actually your behavior might
warrant criminal punishment.

Mr. Xu Chinese

Translator Maybe in last meeting I told you that we do not use criminal enforcement very
easily, however I hope you do not misunderstand that we cannot use this method
of enforcement.

Mr. Xu Chinese

Translator I think that your behavior and your attitude so far has almost reached the boundary
of the law.

Mr. Xu Chinese

Translator I don’t know whether you understand me or not.

Mr. Cohen I understand what you’re saying.

Mr. Xu Chinese

Translator Therefore next I want to hear from you about opinion about this

Mr. Cohen Sure.

Mr. Cohen I’m sorry that you feel angry and upset and you’ve drawn the conclusion that
we’re not wanting to cooperate. I disagree with that conclusion – I think the facts

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 are what they are and you can draw your own conclusion about the facts – but the
point is that we were given some time to respond, and we did. We understood in
the letter we received that Vringo should send a representative to meet with you on
the 19th; we didn’t understand that it had to be an employee.

Mr. Xu. Chinese

Translator So why didn’t you ask your lawyers?

Mr. Cohen I asked my lawyers. We understood that, we talked about it and it said “our
representative, so that’s why we had them – [interrupted]

Vringo translator Chinese

Mr. Cohen So, in any event, I understand that there was an inquiry but in my view the issue is
I don’t believe we’ve been refusing to cooperate. Maybe we did not come at the
ideal time for the NDRC and for that I apologize. We are a small company, we
don’t have a large staff, and we all have multiple commitments, including the fact,
I know for my own sake, that my uncle was at death’s door, and he died last
Wednesday, and I had to attend his funeral. And I am now missing the secondary
mourning period because of this meeting. So we all have multiple obligations, and
as important as the NDRC is, there are other obligations that are more important.

Vringo translator Chinese

Mr. Cohen So – and look, I don’t think that we are not cooperating, and we will try to
cooperate. There’s a lot of points that were raised just now by Mr. Liu and it’s
always very hard to understand in advance what someone is thinking to prepare
them, and so now we have a better understanding of what the NDRC is thinking so
we can better respond to points and hopefully change your mind. We, as you
know, we did not know very much about your complaint until we met you last
time. And now we have more information and we will be supplying that in due
course, I hope.

But let me address the specific points.

Vringo translator Chinese

Mr. Cohen OK. So. I think there’s a lot of points and a lot of facts that are complicated and
difficult to rebut. But the one thing that stands out in my mind is that you call the
document, you say that we made misrepresentations. I don’t think we made
misrepresentations. The facts are what they are. We may have drawn conclusions
about those facts that you disagree with, and that is a fair statement. I don’t think
we said anything wrong, and the one point of omission, which you criticize about
Asus, I grant that point, we did not mention Asus in our materials; however, Asus,
we only asserted are not standard essentials, so we have not litigated any standard
essential patents against Asus. And the question, when we wrote to them notifying

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 them that we have standard essential patents, there have been no discussions,
communications, nothing at all. So when the question was about when those SEPs,
it did not occur to me to list Asus on that list because there are no SEPs being
asserted against them and there are no discussions at all, no discussions about
anything with Asus, but there are no discussions about SEPs with Asus.

Mr. Xu Chinese

Translator But you did not answer our questions, it was all patents, not just SEPs. Also with
the condition that you have filed litigation with Asus, it is not possible that you
have had no contact with them.

Mr. Cohen There was one meeting, and that didn’t go very well, and that was that.

Vringo translator Chinese

Mr. Cohen OK, so then, continuing, I think the first point that has to be made is that ZTE, the
company that we’re talking about here, is not operating in a vacuum, and it’s been
Vringo’s position that when we purchased the assets from Nokia, we stood in their
shoes with respect to the negotiations between – with respect to the SEPs we
purchased from Nokia vis-à-vis ZTE.

Vringo translator Chinese

Mr. Cohen It’s my understanding, and we have proof, and there’s discussion of it in the Dutch
decision – that Nokia has been negotiating with ZTE since roughly 2002. And they
haven’t really had any opportunity to engage in any discussions until 2007 or
2008, and then there were some discussions but no license. And we learned
subsequently from ZTE that they reviewed our portfolio that we purchased from
Nokia when it was owned by Nokia. And they didn’t feel they needed a license.
And so we felt that we were justified in spending a short amount of time which –
we did spend a short amount of time – before we filed suit.

Vringo translator Chinese

Mr. Cohen Now, the facts are very – there are a lot of facts in the interactions between Vringo
and ZTE, and it’s very easy to get lost. And I think it would be a useful thing – I’ll
talk with my lawyers when we’re done here – to provide a summary of Vringo’s
understanding of the facts. The timeline. Because it’s a rather complex – lots of
interactions. Vringo feels, as you may expect, that our actions are justified based
on that timeline. And we have to convince you of that, and I understand and
appreciate that it’s confusing to look at all these facts and make sense of that.

Vringo translator Chinese

Mr. Xu Chinese

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 Translator And so we will leave the details about the timeline and the facts for after this
meeting and what I’m trying to say is just notify you of the situation of our mutual
findings and notify you about the possible punishment you might face. However, I
did not want you to feel I would use this harsh punishment, it is not NDRC’s
intention.

Mr. Xu Chinese

Translator Ever since the case of IDC and Qualcomm, this punishment is not our intention.

Mr. Xu Chinese

Translator So before I issue the formal investigation decision, I want to ask you whether you
want to solve this problem sincerely.

Mr. Cohen Should I respond?

Translator Yeah.

Mr. Cohen I would like to solve this problem, and I am happy to tell you about my attempts to
do so. And I think –

Vringo Chinese speaker interrupts, then another

Translator

Mr. Xu Chinese

Translator So the intention of our investigation is to let Vringo have the right to collect
royalties our general principle all the time is not to let you have free use of the
patents. We protect intellectual property; however, we will fight against abuse of
patents to limit our competition.

As I told to many Chinese companies, if you should pay, you have to pay. There is
no free lunch.

The intention of our investigation is not to free use of the patents.

Mr. Xu Chinese

Translator So I want to affirm that you really want to solve the problem and that you agree
with me that our common intention and our common aim of this procedure is to let
Vringo collect royalties; also to protect against unfair competition.

Mr. Xu Chinese

Translator I would like to give you ten days to negotiate with the Chinese company.

LEGAL02/35615604v1 15
 Mr. Xu Chinese

Translator I want to hear if you agreement with my plan

Mr. Cohen So…I agree in principle, but let me tell you a little bit of a history here, which is
why I’m skeptical. We have been talking with ZTE, and I’m happy to tell you
about that if you would like me to – if you want me to – because I think it would
shed some light as to why I’m skeptical. And there’s a lot of the discussion which
is covered by an understanding of confidentiality, but if you want to know, I’m
happy to tell you.

Mr. Xu Long conversation in Chinese

Translator I want to tell you about this obligation that does not stand on the administrative
obligation based on AML. If you refuse to provide information based on this
obligation between you and these companies, actually that is a refusal to
cooperate.

Mr. Cohen So, to be clear, we don’t refuse. But as we understand our obligations, you have to
ask; I can’t just tell you.

Mr. Xu Long speech in Chinese

Translator So what I’m understanding is that you agree with my plan generally, however
skeptical about ZTE, I mean it’s difficult to deal with ZTE, so I was wondering
what is your proposal to solve this problem. Also, I want to mention the fact that
you have asked the US court to collect information about the NDRC, and Mr. Liu
had to write a letter to a US court to explain the investigation; however, I think
that, since you are being investigated, therefore you have sufficient access to
information about the investigation, so you didn’t have to ask a US court to ask the
Chinese government to provide information for information about a Chinese
investigation.

Mr. Xu Chinese

Translator So I’ve got a proposal, I mean it’s just my personal opinion, my proposal is that I
will ask Vringo and ZTE to first come to the NDRC and withdraw their
complaints and your … and both of your withdraw your complaints and come to
the NDRC for this negotiation to see whether they can manage any settlement or
not.

Mr. Cohen I have to think about that; there’s a lot of challenges with that approach, one of
which is that I have a lot of difficulty trusting ZTE. The two agreements we had
with them, they breached. And the mechanics I’m a little concerned about
mediation. I mean, I understand what you’re suggesting and I think it might work,
but we have made a lot of progress with ZTE in settlement discussions. And I
thought we were very close. In fact, I thought we would have settled in April. But

LEGAL02/35615604v1 16
 then something happened, and things changed, and I don’t know where we are
now. And ZTE told me to get back to them around now. Let me see where they
are, because I was told not to talk to him, and to come back around now – around
mid-June or so. So, I’d like to understand where his head is before I say one way
or the other that it makes sense to involve the NDRC. But I understand the
principle, and I need to talk about it with my superiors before I can give it an
informed opinion.

Translator So I was wondering who is your superior.

Mr. Cohen Uh, well, I have two levels of superiors – [interrupted]

Translator Except you only have ten people?

Mr. Cohen Yes. There’s my boss, who is the CEO, Andrew Perlman, and there is the board of
directors of the company. And because engaging in a settlement discussion under
the auspices of the NDRC is likely to be a material event for Vringo, I would need
to get their approval.

Vringo translator Chinese

Mr. Xu Chinese

Translator So I will give you 10 days to discuss this investigation with your superiors and I
will also give you a list of request materials

[N.B. this list was handed to Mr. Zhou after the meeting]

Mr. Cohen What kind of materials?

Translator The requested materials

Mr. Xu Chinese

Translator So I hope our next meeting will be conducted on June 15 at 9:30 a.m.

Mr. Cohen June 15, let’s see, what day is that?

Translator Monday.

Mr. Cohen I am a solo parent for that week, but we can figure out scheduling [interrupted]

Mr. Xu Chinese

Translator You must not halt investigations like this, if you don’t come we will start our
investigation and you will not be able to leave the United States, ever

LEGAL02/35615604v1 17
 Mr. Xu. Long conversation in Chinese

Translator So I will give you ten days for you to have your discussion with your superiors
and your lawyers, however, personally I don’t think litigation or injunction are
sufficient to solve base problem, because even you win the case, you can, it is
possible you cannot collect money from ZTE. So my offer I thinking is the way to
solve the problem. So I hope you…

Mr. Cohen No, I appreciate it. Look, let me put it this way. We were talking about the number
of patents we have and comparing us with Interdigital, etc. And I think that’s
misguided, but I will give you a quick example. We have the only SEP ever found
to be valid and infringed in the United Kingdom. Ever. The United Kingdom is
very tough for patent holders. And we thought that that would be something
significant to address ZTE’s concerns about our portfolio. And it appeared to be.
And there seemed to be movement. But now there is none. And so I fully
appreciate your help to try to get them to be reasonable. Because they’re telling
me numbers for settlement that are below – they’re not even nuisance value;
they’re almost insulting.

Vringo Chinese
Translator

Mr. Zhou Chinese [untranslated]

Mr. Xu Chinese

Translator I fully understand your situation the history of the negotiation with ZTE. However,
I also find it’s very insulting for Vringo to ask a US court to ask a Chinese
government authority to provide such information. I also find that action is very
insulting to me.

Mr. Xu Chinese

Translator So I hope you fully understand the position of NDRC. NDRC is not a shareholder
of ZTE. It is not our company. Therefore actually I hope you do not… I hope you
cooperate with NDRC investigation and do not do anything insulting, like ask
information through a US court or something like that. So I hope you can show
some respect to NDRC, and…

Mr. Xu Chinese

Translator So I hope you can cooperate NDRC and understand if we initiate investigation and
publish a punishment decision and it is not only about finance, it is also about
Vringo practicing all the allegations we made so far, for example in Qualcomm’s
case we made all kinds of reputation matters so it is not just about finance. Also I

LEGAL02/35615604v1 18
 have to remind you about criminal offenses contained in the AML, you might face
this punishment only in the event you don’t leave the United States, ever.

Mr. Xu Chinese

Translator Therefore I hope you can come on June 15, 9:30 a.m., to continue this
investigation. So during the ten days, if you want to show your sincerity in solving
this problem, you can submit your plans or proposals to NDRC. Or if you want to
talk to ZTE, you are free to contact them. Also if you want to talk to ZTE with
NDRC present, it is also possible.

Mr. Xu Chinese

Translator So I hope you to understand that before we investigated that this might be very
intense, this [investigation may require meetings] once a week. So I hope you are
prepared for that.

Mr. Xu Chinese

Mr. Cohen Are we going to do the record now? No?

Mr. Xu Chinese

Translator No official record

Mr. Cohen Oh, OK.

Meeting formally concludes, after papers are gathered, Mr. Xu comes over to shake hands with Mr.
Zhou and Mr. Cohen

Mr. Xu Chinese

Vringo We are sorry for your loss

Translator
(translating Mr.
Xu)

Mr. Xu Chinese

Vringo We hope you can personally demonstrate your sincerity to solve the problem
Translator
(translating Mr.
Xu)

Mr. Xu Chinese

LEGAL02/35615604v1 19
 Vringo We know you are having a difficult time for the company and it is hard flying
Translator back and forth and also cost to the company
(translating Mr.
Xu)

Mr. Cohen And it is my personal life too

Mr. Xu I hope we can work together to solve the problem

Mr. Cohen I hope so, I hope so. Thank you

LEGAL02/35615604v1 20