Published: 4/12/17
Publication: Lexology
“In this long awaited decision (Unwired Planet v Huawei 2017 EWHC 711 (Pat)), the question of what is a “Fair, Reasonable and Non-Discriminatory” (FRAND) licence to work a Standards Essential Patent (SEP) has been addressed for the first time by a judge in Europe. The English High Court held that it had jurisdiction to determine and enforce the FRAND undertaking in question and, significantly, the Court held that there is only one set of licence terms which are FRAND in a given set of circumstances. In its decision, the Court determined the FRAND royalty rates for a worldwide licence to Unwired’s portfolio of SEPs, which in earlier decisions the Court had held were valid, infringed and essential to the GSM (2G), UMTS (3G) and LTE (4G) standards. In doing so, the Court considered the legal effect of the FRAND undertaking and the nature of FRAND as not only characterising the terms of a licence but also the process by which a licence is negotiated. The decision provides useful guidance to both patentees and implementers as to how to deal with the process of FRAND, including using a benchmark rate and comparable licences to determine a FRAND royalty, and competition law concerns.” — [READ MORE]