The Texas District Court declares that a licensing offer based on end device is compliant with FRAND commitments (HTC / Ericsson)

Standard-essential patent holders and implementers may face uncertainty regarding licensing practices following a May 23 Texas court ruling. In the ruling, a Texas federal judge reached a conclusion different from a recent California court decision — FTC v. Qualcomm — on the question of whether an SEP holder must base its royalty rates on the “smallest salable patent-practicing unit” in order to comply with a fair, reasonable and non-discriminatory royalty commitment.

In Depth On May 23, a Texas federal judge entered a declaratory judgment that Ericsson, a standard-essential patent (SEP) holder, did not breach its obligation to offer HTC, an end-device manufacturer, a license to its SEPs on fair, reasonable and non-discriminatory (FRAND) terms. The decision follows a jury verdict finding that Ericsson did not breach its FRAND commitment. The judge rejected HTC’s argument that Ericsson must base the royalty rate for its SEPs on the value of baseband chips within smartphones rather than on the phones themselves. This ruling stands in tension with the recent decision in FTC v. Qualcomm, where a California court concluded that it was unreasonable for Qualcomm to base the royalty rates for its SEPs on the price of an entire phone rather than on the

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Authors

  • McDermott Will & Emery (Washington)
  • McDermott Will & Emery (Washington)
  • McDermott Will & Emery (Washington)

Quotation

Stefan M. Meisner, Anthony S. Ferrara, Lisa A. Peterson, The Texas District Court declares that a licensing offer based on end device is compliant with FRAND commitments (HTC / Ericsson), 7 November 2018, e-Competitions Bulletin November 2018, Art. N° 90829

Visites 30

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues