Lenovo will win an appeal in the UK that will let it go for an interim licence to use the patents of Ericsson. On Friday, the Court of Appeal issued a key ruling in Lenovo’s case against Ericsson over the latter’s 5G wireless technology patents.
These cases are being kicked off in different parts of the world by Lenovo and Ericsson. Other suits related to the Lenovo patent licence have taken place in Brazil, Colombia and the US, which shows that the fight is not localized.
The Core Issue: FRAND Licensing
At the core of this dispute is the issue of FRAND—terms that are fair, reasonable, and non-discriminatory—for licensing the patents. Lenovo and Ericsson have been fighting in courts over the fairness of the terms for licensing the use of their patents. The issue over FRAND terms has been widely public and has seen various lawsuits around the world.
To the London court, Lenovo sought a declaration that Ericsson would agree to a short-term licence as a willing licensor during the determination of the final FRAND terms, as part of their ongoing negotiation over the Lenovo patent licence. Last year, the High Court rejected Lenovo’s request. But, in a surprising turn of events, the Court of Appeal has now sided with Lenovo.
Court Ruling and Lenovo’s Response
Judge Richard Arnold wrote a ruling in which he said that a willing licensor such as Ericsson should enter an interim licence with Lenovo. The judge hopes that Ericsson will comply with this ruling and enter into the license, potentially resolving the Lenovo patent licence issue temporarily.
Lenovo’s top lawyer, Laura Quatela, praised the ruling. She further noted that the ruling confirmed Lenovo’s status as a willing licensee and reinforced Lenovo’s position on the need for global FRAND licensing to be fair and transparent. Lenovo will continue to ensure that licensing, including the Lenovo patent licence, is transparent and fair to all parties involved.
So far, Ericsson has not given a reaction to the ruling or any comments on the Lenovo patent licence. The two companies are likely to continue to litigate as the case unfolds.
Conclusion
Lenovo recently won an appeal in the UK court that is a part of the ongoing global legal war with Ericsson. As the telecom industry struggles with the FRAND licensing issue, this case, specifically regarding the Lenovo patent licence, may have broader implications for patent disputes in the tech industry. Moreover, many other companies facing similar issues down the road will closely monitor this legal battle.
