Intel Corporation v Via Technologies Inc. & Anor [2002] EWCA Civ 1905 (20 December 2002)

Intel Corporation v Via Technologies Inc. & Anor [2002] EWCA Civ 1905 (20 December 2002)

The Court of Appeal held that VIA's pleadings in both the Chipset Action and the CPU Action were sufficient to raise arguable defences under Article 82 EC and s.18 Competition Act 1998, as the facts pleaded could amount to 'exceptional circumstances' where refusal to license may be abusive. The Court also held that the allegations regarding the Asymmetric Licence and Market Division term were sufficiently pleaded to raise triable issues under Article 81 EC. Summary judgment was therefore inappropriate, and the matters should proceed to trial.

Citation
[2002] EWCA Civ 1905
Parties
Claimant/respondent: Intel Corporation; First Defendant/appellant: VIA Technologies Inc.; Second Defendant/appellant: Elitegroup Computer Systems (UK) Ltd.
Jurisdiction
England and Wales
Judgment Date
20 December 2002
Procedural Posture
Appeal From Chancery Division, Patents Court / Appeal Against Summary Judgment on Competition Law Defences
Outcome
Appeal allowed; permission to appeal granted; summary judgment set aside on competition law defences; matters to proceed to trial.
Legal Topics
Patent Infringement, Abuse of Dominant Position, Refusal to License, Article 81 EC, Article 82 EC, Summary Judgment, Cross Licensing, Market Division
Intellectual Property Law Competition Law European Union Law Patent Infringement Abuse of Dominant Position Refusal to License Article 81 EC Article 82 EC +3 more

Case Brief

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Parties

Intel Corporation

Claimant/respondent

VIA Technologies Inc.

First Defendant/appellant

Elitegroup Computer Systems (UK) Ltd.

Second Defendant/appellant

Procedural Posture

Appeal From Chancery Division, Patents Court / Appeal Against Summary Judgment on Competition Law Defences

Legal Issues

  1. 1 Whether the exercise of patent rights by a dominant undertaking can constitute an abuse under Article 82 EC and/or s.18 Competition Act 1998 in the absence of 'exceptional circumstances'.
  2. 2 Whether proposed licensing terms (Asymmetric Licence and Market Division term) in a draft agreement could, if imposed, infringe Article 81 EC and/or s.2 Competition Act 1998.
  3. 3 Whether it is a defence to patent infringement that enforcement would enable the patentee to act in breach of Articles 81 or 82 EC.

Ratio Decidendi

The Court of Appeal held that VIA's pleadings in both the Chipset Action and the CPU Action were sufficient to raise arguable defences under Article 82 EC and s.18 Competition Act 1998, as the facts pleaded could amount to 'exceptional circumstances' where refusal to license may be abusive. The Court also held that the allegations regarding the Asymmetric Licence and Market Division term were sufficiently pleaded to raise triable issues under Article 81 EC. Summary judgment was therefore inappropriate, and the matters should proceed to trial.

Court Disposition

Appeal allowed; permission to appeal granted; summary judgment set aside on competition law defences; matters to proceed to trial.

Orders

  • Permission to appeal granted to VIA on all competition law defences in both Chipset and CPU Actions.
  • Summary judgment in favour of Intel on competition law defences set aside.