UK Court upholds Lenovo's SEP rights in landmark ruling

Lenovo vs Ericsson SEP Litigation

The UK Court of Appeal has delivered a significant ruling in favour of Lenovo amid ongoing litigation with Ericsson over a cross-licence pertaining to standard essential patents (SEPs). The decision marks a pivotal moment in SEP disputes and reinforces the critical importance of adhering to Fair, Reasonable, and Non-discriminatory (FRAND) obligations.

In its judgment, the Court determined that Lenovo is entitled to an interim cross-licence. This move is seen as a direct rebuke to Ericsson’s conduct, with the judges unanimously concluding that Ericsson’s pursuit of injunctions and similar remedies against Lenovo globally contravenes its FRAND commitments. The Court criticised Ericsson for what it described as bad-faith tactics designed to "coerce" Lenovo into accepting terms that could surpass the limits of FRAND.

This landmark ruling not only validates Lenovo’s status as a willing licencee but also underscores the company’s dedication to promoting transparency and fairness in global FRAND licensing, as Laura Quatela, Lenovo’s Chief Legal Officer, has expressed her thoughts about the decision, saying:

Lenovo is grateful for the Court’s 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 licencee but strengthens and reaffirms our commitment to advocating for transparency and fairness in global FRAND licensing on behalf of our customers and the industry.

Lenovo has reiterated its openness to resolving the dispute with Ericsson and has invited the latter to engage with the multiple FRAND offers already put forward.

The case, identified as Case No: CA-2024-002821, was heard before Lord Justice Newey, Lord Justice Arnold, and Lady Justice Falk. The full judgment is available for review. This ruling is a noteworthy development in the technology sector, potentially setting a precedent for future SEP-related disputes.