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98 Huawei Investment & Holding Co., Ltd. 2014 Annual Report
On September 30, 2013, the Administrative Law
Judge of the USITC issued an initial determination
in respect of Flashpoint's complaint with USITC that
Huawei Device and USA Device did not infringe the
asserted patents.
On March 14, 2014, the USITC issued the final
determination deciding that Huawei Device and
USA Device did not infringe the asserted patents.
Flashpoint did not appeal to such final determination,
and the investigation terminated in the Group's
favor. Flashpoint subsequently also dismissed its
infringement assertions against Huawei Device
and USA Device before the United States District
Court for the District of Delaware. The Group could
reasonably conclude that this litigation is terminated,
and there is no possible loss to the Group.
iii) On July 24, 2012, Technology Properties Limited LLC
("TPL") filed a complaint with the USITC, requesting
the Commission to commence an investigation
under Section 337 of the Tariff Act of 1930 into
certain wireless consumer electronics devices and
components manufactured by thirteen companies
and their affiliates by reason of alleged patent
infringement and requested for issuance of an
exclusion order and cease and desist order in relation
to the electronic products concerned. Huawei Tech
was named as one of the thirteen companies. On
August 21, 2012, the USITC decided to institute
Section 337 investigation in relation to the electronic
products concerned. TPL also filed another complaint
before the United States District Court for the
Northern District of California for the same reason.
On September 6, 2013, the Administrative Law
Judge of the USITC issued an initial determination
that the Group did not infringe the asserted patent.
On February 19, 2014, the USITC issued a final
determination that the Group did not infringe
the asserted patent. TPL did not appeal the final
determination within the statutory period, as a
result, the USITC investigation formally terminated.
With the termination of the investigation, the suit
before the United States District Court for the
Northern District of California was reopened. Given
the fact that the suit in the district court remains in
an early stage, the Group is unable to predict the
outcome of the suit, or reasonably estimate a range
of possible loss if any.
26. Operating leases
(a) As lessee
As at December 31, 2014 and 2013, the total future minimum lease payments under non-cancellable operating
leases are payable as follows:
2014 2013
CNY million CNY million
Within 1 year 1,471 1,493
After 1 year but within 5 years 1,935 2,141
After 5 years 341 481
3,747 4,115
The Group leases a number of warehouses, factory
facilities, office premises and staff apartments under
operating leases. The leases typically run for an initial
period of one to five years. None of the leases includes
contingent rentals.
During the year ended December 31, 2014, CNY3,245
million was recognised as an expense in the consolidated
statement of profit or loss in respect of operating leases
(2013: CNY3,458 million).