UK Court Orders Samsung to Pay ZTE $392M Lump Sum in Patent Dispute
Details of the Patent Dispute and Court Ruling
Background of the Legal Dispute
LONDON, May 1 (Reuters) - Samsung Electronics must pay a $392 million lump sum for a licence to use ZTE's patents for mobile phones, London's High Court ruled on Friday in the English leg of the companies' global licensing dispute.
ZTE has brought parallel lawsuits against Samsung in China, Germany and Brazil as the two companies battle over the terms on which Samsung can use ZTE's patents, and most importantly the cost.
Importance of the Patents
The patents are needed to ensure smartphones can access networks.
Legal Proceedings in the UK
Samsung sued ZTE in London in December 2024 seeking a determination of the fair, reasonable, and non-discriminatory - or FRAND - terms of a patent licence. Such licences have repeatedly been the subject of global legal battles in the telecom industry.
The Court's Decision
Judge Richard Meade ruled that Samsung pay a lump sum of $392 million after the two companies were unable to agree on the renewal of a previous 2021 deal.
Comparison of Demands
The lump sum is more than the maximum $200 million Samsung had argued for, but less than the $731 million ZTE had sought.
Reactions and Next Steps
Samsung and ZTE did not immediately respond to a request for comment. They both have the right to appeal.
Global Context of Patent Litigation
England is a popular jurisdiction for patent litigation as it can set global FRAND terms, following a landmark 2020 UK Supreme Court ruling. The same is true for courts in China, where ZTE is separately seeking a ruling on FRAND terms.
(Reporting by Sam Tobin; editing by Barbara Lewis)
