Koninklijke Philips N.V. v Asustek Computer Incorporation & Ors

Koninklijke Philips N.V. v Asustek Computer Incorporation & Ors

The definition of CDMA Wireless Industry Standard in the 1998 Agreement is reasonably susceptible to both parties' interpretations, but extrinsic evidence, especially the absence of royalty payments to Philips and commercial purpose, supports Philips' construction that the covenant not to assert is restricted to pure CDMA standards and does not cover HTC's alleged acts of infringement or products using third-party chipsets.

Parties
Claimant/respondent: KONINKLIJKE PHILIPS N. V.; Defendant: ASUSTEK COMPUTER INCORPORATION; Defendant: ASUSTEK (UK) LIMITED; Defendant: ASUS TECHNOLOGY PTE. LTD; Defendant/appellant: HTC CORPORATION; Defendant/appellant: HTC EUROPE CO. LTD
Jurisdiction
England and Wales
Judgment Date
11 October 2017
Procedural Posture
Civil Appeal / Appeal From High Court Decision After Trial of Preliminary Issue
Outcome
Appeal dismissed
Legal Topics
Patent Licensing, Third Party Beneficiaries, Contract Interpretation, Telecommunications Standards
Intellectual Property Contract Law Patent Licensing Third Party Beneficiaries Contract Interpretation Telecommunications Standards

Case Brief

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Parties

KONINKLIJKE PHILIPS N. V.

Claimant/respondent

ASUSTEK COMPUTER INCORPORATION

Defendant

ASUSTEK (UK) LIMITED

Defendant

ASUS TECHNOLOGY PTE. LTD

Defendant

HTC CORPORATION

Defendant/appellant

HTC EUROPE CO. LTD

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Decision After Trial of Preliminary Issue

Legal Issues

  1. 1 Whether the covenant not to assert in the 1998 Agreement covers HTC's alleged acts of patent infringement
  2. 2 Interpretation of 'CDMA Wireless Industry Standard' in the 1998 Agreement
  3. 3 Scope of the proviso excluding TDMA equipment or systems

Ratio Decidendi

The definition of CDMA Wireless Industry Standard in the 1998 Agreement is reasonably susceptible to both parties' interpretations, but extrinsic evidence, especially the absence of royalty payments to Philips and commercial purpose, supports Philips' construction that the covenant not to assert is restricted to pure CDMA standards and does not cover HTC's alleged acts of infringement or products using third-party chipsets.

Court Disposition

Appeal dismissed

Orders

  • HTC's appeal on Issues 1, 2, and 4 is dismissed
  • HTC does not have the benefit of the covenant not to assert for the alleged acts of infringement