The EU Court of Justice sets out specific requirements with which an SEP holder needs to comply to be able to seek an injunction without abusing its dominant position (Huawei / ZTE)

Standards lie at the heart of the digital economy – without standards, we would not have smartphones, tablets and other key parts of modern life. Europe’s highest court recently delivered a judgment in Huawei v. ZTE explaining when EU competition law will prevent holders of patents that are essential to comply with a standard (SEPs) from seeking an injunction against a willing licensee. According to the judgment, an SEP holder cannot seek an injunction to bar a competitor from making or selling a product infringing an SEP, unless the SEP holder: 1) alerts a potential infringer of the infringement; and 2) presents a specific, written offer for a licence on FRAND terms, including precise details on the royalty. An injunction can be issued only if the infringer does not respond in a serious

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