Lenovo Group Ltd & Ors v Telefonaktiebolaget LM Ericsson (PUBL) & Anor [2025] EWCA Civ 182 (28 February 2025)

Lenovo Group Ltd & Ors v Telefonaktiebolaget LM Ericsson (PUBL) & Anor [2025] EWCA Civ 182 (28 February 2025)

The Court held that the reasoning in Panasonic v Xiaomi applies more broadly and is not confined to its facts. A willing licensor in Ericsson's position would grant Lenovo an interim cross-licence pending the Patents Court's determination of FRAND terms, given Lenovo's unconditional undertaking to enter into a licence on those terms. The declaration serves a useful purpose by facilitating resolution and reducing risk of injunctive relief in key markets. The ETSI IPR Policy, as interpreted under French law, requires good faith negotiation and avoidance of hold-up. The Court ordered that Lenovo's undertaking be formally incorporated into the order.

Citation
[2025] EWCA Civ 182
Parties
Claimant/appellant: Lenovo Group Limited; Claimant/appellant: Lenovo (United States) Inc.; Claimant/appellant: Lenovo Technology (United Kingdom) Limited; Claimant/appellant: Motorola Mobility LLC; Claimant/appellant: Motorola Mobility UK Limited; Defendant/respondent: Telefonaktiebolaget LM Ericsson (Publ); Defendant/respondent: Ericsson Limited
Jurisdiction
England and Wales
Judgment Date
28 February 2025
Procedural Posture
Appeal / Court of Appeal Judgment Following Expedited Appeal From Patents Court
Outcome
Appeal allowed
Legal Topics
Standard Essential Patents, FRAND Licensing, Patent Infringement, Cross Licensing, Interim Licensing, Jurisdiction, Declaratory Relief
Intellectual Property Contract Law Competition Law Standard Essential Patents FRAND Licensing Patent Infringement Cross Licensing Interim Licensing +2 more

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Parties

Lenovo Group Limited

Claimant/appellant

Lenovo (United States) Inc.

Claimant/appellant

Lenovo Technology (United Kingdom) Limited

Claimant/appellant

Motorola Mobility LLC

Claimant/appellant

Motorola Mobility UK Limited

Claimant/appellant

Telefonaktiebolaget LM Ericsson (Publ)

Defendant/respondent

Ericsson Limited

Defendant/respondent

Procedural Posture

Appeal / Court of Appeal Judgment Following Expedited Appeal From Patents Court

Legal Issues

  1. 1 Whether a willing licensor in Ericsson's position would grant Lenovo an interim cross-licence pending FRAND determination
  2. 2 Applicability of Panasonic v Xiaomi reasoning to the present facts
  3. 3 Interpretation and enforcement of ETSI IPR Policy under French law

Ratio Decidendi

The Court held that the reasoning in Panasonic v Xiaomi applies more broadly and is not confined to its facts. A willing licensor in Ericsson's position would grant Lenovo an interim cross-licence pending the Patents Court's determination of FRAND terms, given Lenovo's unconditional undertaking to enter into a licence on those terms. The declaration serves a useful purpose by facilitating resolution and reducing risk of injunctive relief in key markets. The ETSI IPR Policy, as interpreted under French law, requires good faith negotiation and avoidance of hold-up. The Court ordered that Lenovo's undertaking be formally incorporated into the order.

Court Disposition

Appeal allowed

Orders

  • Declaration granted that a willing licensor in Ericsson's position would grant Lenovo an interim cross-licence pending FRAND determination by the Patents Court.
  • Lenovo's unconditional undertaking to enter into a licence on terms determined to be FRAND to be formally incorporated into the Court's order.