The UK Court of Appeal has issued a ruling in favour of Lenovo in a high-profile litigation concerning standard essential patents (SEPs), which are critical to the implementation of 4G and 5G wireless technologies. This case is part of a broader series of legal actions between Lenovo and Ericsson, which have been unfolding in multiple countries, including Brazil, Colombia, and the US.
In the UK, the dispute has centred on the terms under which Lenovo could license Ericsson’s patents, specifically whether such terms meet the Fair, Reasonable, and Non-discriminatory (FRAND) criteria.
Lenovo’s initial approach to the London High Court was to secure a declaration that would enable a temporary licence while the definitive FRAND terms were being established. This application was previously denied, but the Court of Appeal has now reversed the earlier decision, allowing Lenovo an interim cross-licence.
The Court of Appeal’s verdict also addressed Ericsson’s global pursuit of injunctions against Lenovo, labelling it a breach of Ericsson’s FRAND obligations. It suggested that such actions were intended to ‘coerce’ Lenovo into agreeing to terms that might not align with FRAND standards.
The judgment was delivered by the three Court of Appeal judges, Richard Arnold, Guy Newey, and Sarah Falk, in ten days after the case hearing. This decision aligns with a 2020 UK Supreme Court ruling that affirmed the jurisdiction of English courts to set global FRAND rates, Reuters reported. It also mirrors recent legal trends permitting parties to seek interim patent licences while awaiting a trial verdict, a strategy also seen in the patent dispute between Amazon and Nokia.
Lenovo invites Ericsson to resolve patent dispute
Following the ruling, Lenovo has reiterated its willingness to find a resolution with Ericsson and has invited the company to consider the various FRAND proposals it has put forward. In a statement, the company noted that the outcome of the case highlights Lenovo’s efforts to secure fair and transparent licencing conditions for SEPs.
“Lenovo is grateful for the Court’s careful and objective analysis of the issues related to this case, and welcomes this landmark ruling and its broader implications for global SEP licencing and the technology industry,” said Lenovo chief legal officer Laura Quatela. “This judgment not only confirms that Lenovo is a willing licensee but strengthens and reaffirms our commitment to advocating for transparency and fairness in global FRAND licencing on behalf of our customers and the industry.”
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