Samsung Electronics Co., Ltd & Anor v ZTE Corporation & Ors

Parties

Procedural Posture

Patents/frand Dispute / Interim Application for Declaratory Relief

Legal Issues

1. 1 Whether ZTE breached good faith obligations under ETSI by pursuing injunctive relief and insisting on Chongqing as forum for FRAND determination
2. 2 Whether interim declaratory relief should be granted to Samsung
3. 3 Whether granting declarations would serve a useful purpose

Ratio Decidendi

ZTE acted in bad faith by launching unnecessary injunctive proceedings in multiple jurisdictions to pressure Samsung into accepting Chongqing as the forum for FRAND determination, rather than engaging with the English proceedings in good faith. A willing licensor would have proceeded to the FRAND trial in the English court without such tactics. The declarations sought by Samsung serve a useful purpose and are not contrary to comity or jurisdictional principles. Interim declaratory relief is granted.

Court Disposition

Interim declaratory relief granted to Samsung

Orders

• Declaration that ZTE are in breach of their obligations of good faith under ETSI
• Declaration that a willing licensor in ZTE's position and a willing licensee in Samsung's position would enter into an interim licence on terms determined by the English court, subject to adjustment after the UK FRAND trial