Wednesday 26 August 2020 3:55 pm

UK Supreme Court dismisses Huawei appeal in mobile patent clash

The UK Supreme Court today unanimously dismissed appeals by China’s Huawei and ZTE in patent disputes over mobile data technology with Unwired Planet International and Conversant Wireless.

The first appeal concerned an action brought by Unwired against Huawei for the infringement of five UK patents, which Unwired had acquired from Ericsson and were said to be essential in mobile telecoms.

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An English court had previously ruled that two of the patents were valid and essential, and in a subsequent trial found Unwired’s licence terms were justified and enforceable.

The second appeal concerned action brought by Conversant against Huawei and ZTE for infringing four of its UK patents, which had been acquired from Nokia and related to LTE standards used by 4G handsets to download and send data.

Huawei and ZTE argued that the English Courts did not have jurisdiction to determine the validity of foreign patents.

But the trial judge had ruled against them, saying the court had jurisdiction under an international patent framework agreed by the mobile industry.

The Supreme Court today said it had unanimously dismissed both appeals.

A Huawei spokesperson said: “Huawei has already made payments to Unwired Planet according to the agreement set by UK court and has settled with Unwired Planet’s parent company, PanOptis. As a result, no additional sums fall due as a result of this ruling.

“With respect to Conversant, this decision was a preliminary ruling on jurisdiction and the proceedings will now continue with the UK Frand [fair, reasonable and non-discriminatory] trial scheduled for February 2021.

“Huawei continues to advocate a balanced position in relation to Frand licenses of standard essential patents, which is critical to the innovation that brings enormous benefits to our society.”

Conversant’s chief executive Boris Teksler said he was “very pleased” by the outcome, which the firm said would have “significant implications worldwide” for standard-essential-patent (SEP) licensing.

“It confirms Conversant Wireless’ approach, that as a holder of cellular standard-essential patents, we can seek proper value for our patents without having to resort to what the UK courts themselves called the ‘madness’ of country-by-country licensing and related litigation,” he said.

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“This helps level the playing field when small companies are trying to license SEP portfolios to global giants with seemingly limitless litigation resources.”

A spokesperson for Unwired Planet said: “We are pleased with the UK Supreme Court’s decision, which fully affirms the rulings of the UK appellate court and Mr Justice Birss.

“Unwired Planet and its other PanOptis related companies believe that global licensing is the most efficient and effective solution for both licensors and licensees. We look forward to continue working with other manufacturers to offer licenses to our patents under this global Frand framework and conclude negotiations in a timely manner.

“We greatly appreciate the efforts our UK counsel: EIP Legal, Osborne Clarke and the UK barristers. The expertise, creativity and determination of the combined legal teams were truly exceptional.”

Arty Rajendra, UK head of IP disputes at Osborne Clarke, said: “We are thrilled for Unwired Planet. The Supreme Court judgment endorses Unwired Planet’s consistent position that a global licence is Frand and ensures it receives fair royalties for its SEP portfolio without having to litigate all over the world.

“Implementers complain this is a high price for access to the UK market, but because the UK court is determining terms of a global Frand licence, implementers can also legally manufacture and sell their products on a worldwide basis without fear of infringing the SEP owner’s multinational patent rights.”

Huawei was contacted for comment.

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