{"id":1944,"date":"2025-02-28T12:09:13","date_gmt":"2025-02-28T12:09:13","guid":{"rendered":"https:\/\/ipfray.com\/?p=1944"},"modified":"2025-02-28T12:12:04","modified_gmt":"2025-02-28T12:12:04","slug":"uk-court-of-appeal-declaration-lenovo-is-entitled-to-an-interim-cross-license-with-ericsson","status":"publish","type":"post","link":"https:\/\/ipfray.com\/staging1\/uk-court-of-appeal-declaration-lenovo-is-entitled-to-an-interim-cross-license-with-ericsson\/","title":{"rendered":"UK Court of Appeal declaration: Lenovo is entitled to an interim cross-license with Ericsson"},"content":{"rendered":"\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"border-width:1px\">\n<p><strong>Context:<\/strong> In November, after approximately a year of litigation, Mr Justice Jonathan Richards of the High Court of Justice for England &amp; Wales (EWHC) denied Lenovo\u2019s request for a declaration that it is entitled to an interim license from Ericsson (<a href=\"https:\/\/ipfray.com\/uk-court-denies-lenovo-interim-license-in-ericsson-dispute-partly-dissuaded-by-itc-staffs-frand-opinion-but-doesnt-draw-clear-line\/\">November 19, 2024 <strong>ip fray<\/strong> article<\/a>). At the time, he was particularly unconvinced of Ericsson seeking injunctions in bad faith, given that a neutral third party \u2013 the U.S. International Trade Commission\u2019s (USITC) Office of Unfair Important Investigations (OUII) \u2013 deems Ericsson to have discharged its FRAND licensing obligation while raising concerns over Lenovo\u2019s demands for a license to its own patents. Lenovo appealed against this ruling and a hearing was held in the England &amp; Wales Court of Appeal (EWCA) last week (<a href=\"https:\/\/ipfray.com\/interim-license-appeal-the-uk-could-end-up-violating-the-border-of-the-united-states-of-america-for-the-first-time-since-the-war-of-1812\/\">February 18, 2025 <strong>ip fray<\/strong> article<\/a>).<\/p>\n\n\n\n<p><strong>What\u2019s new: <\/strong>In a judgment handed down remotely today (PDF below), Lord Justice Newey, Lord Justice Arnold, and Lady Justice Falk of the EWCA revoked the lower court\u2019s decision, siding with Lenovo. They declared that Lenovo is in fact entitled to an interim license and that, in seeking injunctions against the licensee around the globe, Ericsson is in breach of its obligation of good faith FRAND obligations. It is using such tactics to \u201ccoerce\u201d Lenovo to accept terms that may exceed what is FRAND in English courts, they held.<\/p>\n\n\n\n<p><strong>Direct impact: <\/strong>This is not an order for Lenovo and Ericsson to enter into an interim license agreement per se, so it does not formally obligate the licensor to grant a license on any particular terms. But it is still a significant development \u2013 and one that has swung the pendulum back in Lenovo\u2019s favour in its global SEP dispute against Ericsson (in the UK anyway).&nbsp;<\/p>\n\n\n\n<p><strong>Wider ramifications: <\/strong>However, as reported earlier this month, there are several ways in which the Unified Patent Court (UPC), German and other national courts could respond to this declaration (and effectively protect their jurisdiction) (<a href=\"https:\/\/ipfray.com\/upc-german-and-other-courts-should-thwart-uk-interim-license-imperialism-with-ex-parte-preliminary-injunctions-over-any-affected-patents\/\">February 4, 2025 <strong>ip fray<\/strong> article<\/a>). We explore them more in detail in the article, but a decision as massive as this could lead to any (or a combination) of the following responses: ex parte preliminary injunctions against infringement in response to interim license requests; analogous application of anti-antisuit injunctions; sanctions; or non-recognition of forcible licenses and even of withdrawals of complaints.<\/p>\n<\/div>\n\n\n\n<p>This is the full judgment:<\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/ipfray.com\/wp-content\/uploads\/2025\/02\/Lenovo-v.-Ericsson.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of Lenovo v.  Ericsson.\"><\/object><a id=\"wp-block-file--media-1d1b0c41-5a36-446f-84ba-2e5ae560346c\" href=\"https:\/\/ipfray.com\/wp-content\/uploads\/2025\/02\/Lenovo-v.-Ericsson.pdf\">Lenovo v.  Ericsson<\/a><a href=\"https:\/\/ipfray.com\/wp-content\/uploads\/2025\/02\/Lenovo-v.-Ericsson.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-1d1b0c41-5a36-446f-84ba-2e5ae560346c\">Download<\/a><\/div>\n\n\n\n<p>In summary, the judges concluded that Ericsson\u2019s conduct, including the way it aimed to \u201ccoerce\u201d Lenovo into accepting non-FRAND (according to English courts) terms should be \u201cunequivocally and publicly condemned.\u201d In so doing, \u201cEricsson are in breach of their obligation of good faith\u201d, the judges stated.<\/p>\n\n\n\n<p>They added that a willing licensor \u201cin the position of Ericsson\u201d would enter into an interim license with Lenovo pending that determination, and FRAND terms for that license would be those set out in the preceding paragraph:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201c&#8230;the sum payable by Lenovo by way of royalty should be the mid-point Judgment Approved by the court for handing down. The sum paid under the interim licence should be adjustable in accordance with the Patents Court\u2019s determination of FRAND terms for the final cross-licence.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>In a statement today, Lenovo\u2019s Chief Legal Officer, Laura Quatela, said:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cLenovo is grateful for the Court\u2019s careful and objective analysis of the issues related to this case and welcomes this landmark ruling and its broader implications for global SEP licensing and the technology industry. 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 licensing on behalf of our customers and the industry.\u201d<\/p>\n<\/blockquote>\n\n\n\n<h4 class=\"wp-block-heading\">Counsel<\/h4>\n\n\n\n<p>Lenovo was represented by <a href=\"https:\/\/www.kirkland.com\/\">Kirkland &amp; Ellis<\/a>\u2019s <a href=\"https:\/\/www.kirkland.com\/lawyers\/d\/dagg-nicola\">Nicola Dagg<\/a>, <a href=\"https:\/\/www.kirkland.com\/lawyers\/o\/ooi-jin\">Jin Ooi<\/a>, <a href=\"https:\/\/www.kirkland.com\/lawyers\/p\/pereira-peter\">Peter Pereira<\/a>, <a href=\"https:\/\/www.kirkland.com\/lawyers\/r\/robinson-oscar\">Oscar Robinson<\/a>, <a href=\"https:\/\/www.kirkland.com\/lawyers\/g\/grant-ashley\">Ashley Grant<\/a>, and <a href=\"https:\/\/www.kirkland.com\/lawyers\/m\/marks-andrew\">Andrew Marks<\/a>.<\/p>\n\n\n\n<p>Ericsson was represented by <a href=\"https:\/\/www.taylorwessing.com\/en\/\">Taylor Wessing LLP<\/a> and <a href=\"https:\/\/www.pinsentmasons.com\/\">Pinsent Masons LLP<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The England &amp; Wales Court of Appeal (EWCA) today revoked an earlier judgment that denied Lenovo\u2019s request to declare that the company is entitled to an interim cross-license with Ericsson. Instead, it held, Ericsson is \u201cin breach of [its] obligations of good faith\u201d by pursuing claims for injunctions in foreign courts despite Lenovo having undertaken to enter into a licence on FRAND terms.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[59,13,159,27,86,28,12,15,17,110],"tags":[],"class_list":["post-1944","post","type-post","status-publish","format-standard","hentry","category-ericsson","category-ericsson-v-lenovo","category-interim-licenses","category-ip-license-agreements","category-lenovo","category-l-icensors-licensees","category-patent-litigation","category-standard-essential-patents","category-usitc-itc-international-trade-commission","category-united-kingdom"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/comments?post=1944"}],"version-history":[{"count":10,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1944\/revisions"}],"predecessor-version":[{"id":1956,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/posts\/1944\/revisions\/1956"}],"wp:attachment":[{"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/media?parent=1944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/categories?post=1944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipfray.com\/staging1\/wp-json\/wp\/v2\/tags?post=1944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}