The US District Court for the Eastern District of Texas holds that FRAND commitment does not require licensing at chip level (HTC / Telefonaktiebolaget / Ericsson)

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SUMMARY On January 7, 2019, in HTC Corp. v. Telefonaktiebolaget LM Ericsson, [1] Judge Rodney Gilstrap of the U.S. District Court for the Eastern District of Texas held, “as a matter of French law,” that the FRAND commitment embodied in the ETSI (a standard-setting organization) intellectual property rights policy does not require a FRAND license to be based on the “smallest salable patent practicing unit” (“SSPPU”) of HTC cell phones. [2] In reaching this conclusion, Judge Gilstrap relied on the express terms of the ETSI policy, as well as evidence regarding prevailing industry practice “to base FRAND licenses on the end-user device and not on the SSPPU.” [3] Judge Gilstrap’s decision is contrary to a decision of the Northern District of California regarding other standard-setting

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  • Sullivan & Cromwell (New York)
  • Sullivan & Cromwell (Palo Alto)
  • Sullivan & Cromwell (New York)
  • Sullivan & Cromwell (New York)

Quotation

Adam Brebner, Nader Mousavi, Garrard R. Beeney, Marc De Leeuw, The US District Court for the Eastern District of Texas holds that FRAND commitment does not require licensing at chip level (HTC / Telefonaktiebolaget / Ericsson), 7 January 2019, e-Competitions January 2019, Art. N° 96824

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