Interdigital Technology Corporation v Lenovo Group Limited

Interdigital Technology Corporation v Lenovo Group Limited

Interest is awarded on the lump sum of $138.7m at 4% compounded quarterly, as this reflects what a willing licensor and licensee would agree under FRAND and the ETSI IPR Policy. Lenovo is the overall winner of the FRAND trial as the determined rate and lump sum are much closer to Lenovo's position, and InterDigital's comparables and approach were largely rejected. Costs follow the event, with Lenovo recovering costs except for foreign law and interest issues, which are to be assessed separately. No adjustment clause is included in the licence for foreign proceedings. Permission to appeal is granted on defined points of principle only.

Parties
Claimant: InterDigital Technology Corporation; Claimant: InterDigital Patent Holdings, Inc.; Claimant: InterDigital, Inc.; Claimant: InterDigital Holdings, Inc.; Defendant: Lenovo Group Limited; Defendant: Lenovo (United States) Inc.; Defendant: Lenovo Technology (United Kingdom) Limited; Defendant: Motorola Mobility LLC; Defendant: Motorola Mobility UK Limited
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Civil (patents/frand Determination) / Judgment Following Trial on Outstanding Issues (interest, Costs, Licence Terms, Permission to Appeal)
Outcome
Interest awarded on past royalties; costs awarded to Lenovo except for foreign law and interest issues; licence terms settled; permission to appeal granted on points of principle only.
Legal Topics
FRAND Licensing, Standard Essential Patents (seps), Interest on Past Royalties, Costs, Limitation Periods, Global Licence Terms, Discrimination in Licensing, Volume Discounts, Foreign Proceedings Impact
Intellectual Property Patents Competition Law FRAND Licensing Standard Essential Patents (seps) Interest on Past Royalties Costs Limitation Periods +4 more

Case Brief

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Parties

InterDigital Technology Corporation

Claimant

InterDigital Patent Holdings, Inc.

Claimant

InterDigital, Inc.

Claimant

InterDigital Holdings, Inc.

Claimant

Lenovo Group Limited

Defendant

Lenovo (United States) Inc.

Defendant

Lenovo Technology (United Kingdom) Limited

Defendant

Motorola Mobility LLC

Defendant

Motorola Mobility UK Limited

Defendant

Procedural Posture

Civil (patents/frand Determination) / Judgment Following Trial on Outstanding Issues (interest, Costs, Licence Terms, Permission to Appeal)

Legal Issues

  1. 1 Whether interest should be awarded on past royalties and at what rate
  2. 2 Appropriate order as to costs of the FRAND trial
  3. 3 Resolution of issues on the terms of the FRAND licence

Ratio Decidendi

Interest is awarded on the lump sum of $138.7m at 4% compounded quarterly, as this reflects what a willing licensor and licensee would agree under FRAND and the ETSI IPR Policy. Lenovo is the overall winner of the FRAND trial as the determined rate and lump sum are much closer to Lenovo's position, and InterDigital's comparables and approach were largely rejected. Costs follow the event, with Lenovo recovering costs except for foreign law and interest issues, which are to be assessed separately. No adjustment clause is included in the licence for foreign proceedings. Permission to appeal is granted on defined points of principle only.

Court Disposition

Interest awarded on past royalties; costs awarded to Lenovo except for foreign law and interest issues; licence terms settled; permission to appeal granted on points of principle only.

Orders

  • Lenovo to pay InterDigital $184.9m (including $46.2m interest at 4% compounded quarterly) for a FRAND licence from 2007 to end 2023.
  • Lenovo to pay InterDigital's costs of foreign law and interest issues, subject to detailed assessment if not agreed.