Samsung Electronics Co, Ltd v ZTE Corporation

Samsung Electronics Co, Ltd v ZTE Corporation

The FRAND lump sum for the renewal cross-licence (CDL) between Samsung and ZTE is $392 million. The only appropriate comparable is ZTE-Apple 2020, but it was severely affected by non-FRAND factors (sanctions, first licence discount, undervaluation of 5G, and heavy past sales discount). The court made specific...

Source-derived case information.

Parties
Claimant: Samsung Electronics Co., Ltd; Claimant: Samsung Electronics (UK) Limited; Defendant: ZTE Corporation; Defendant: ZTE (UK) Limited; Defendant: Nubia Technology Co., Ltd; Defendant: Livewire Telecom Limited; Defendant: Efones.com Limited
Jurisdiction
England and Wales
Judgment Date
01 May 2026
Procedural Posture
Patents/frand Determination / Judgment After Trial
Outcome
FRAND lump sum for the renewal cross-licence (CDL) set at $392 million in favour of ZTE, with non-royalty terms as in the 2021 PLA.
Legal Topics
FRAND Licensing, Standard Essential Patents (seps), Patent Portfolio Cross Licensing, Non Discrimination in Licensing, Royalty Calculation Methodologies
Intellectual Property Competition Law Contract Law FRAND Licensing Standard Essential Patents (seps) Patent Portfolio Cross Licensing Non Discrimination in Licensing Royalty Calculation Methodologies

Source-derived case record

Summary, issues, holding and outcome

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Parties

Samsung Electronics Co., Ltd

Claimant

Samsung Electronics (UK) Limited

Claimant

ZTE Corporation

Defendant

ZTE (UK) Limited

Defendant

Nubia Technology Co., Ltd

Defendant

Livewire Telecom Limited

Defendant

Efones.com Limited

Defendant

Procedural Posture

Patents/frand Determination / Judgment After Trial

Legal Issues

  1. 1 What is the FRAND lump sum royalty for a global cross-licence between Samsung and ZTE?
  2. 2 Are the ENI, NDDS, or ZTE's own licences appropriate comparables for determining FRAND?
  3. 3 What adjustments are required for non-FRAND factors in prior licences?

Ratio Decidendi

The FRAND lump sum for the renewal cross-licence (CDL) between Samsung and ZTE is $392 million. The only appropriate comparable is ZTE-Apple 2020, but it was severely affected by non-FRAND factors (sanctions, first licence discount, undervaluation of 5G, and heavy past sales discount). The court made specific upwards adjustments to the lump sum and past sales discount to reflect the value that would have been achieved absent those factors. The ENI and NDDS licences were rejected as comparables due to portfolio and bargaining differences, and the top-down cross-check was found unreliable. Samsung's construction of the 2021 PLA was preferred, and the non-royalty terms from the 2021 PLA are...

Court Disposition

FRAND lump sum for the renewal cross-licence (CDL) set at $392 million in favour of ZTE, with non-royalty terms as in the 2021 PLA.

Orders

  • Samsung to pay ZTE $392 million as the balancing payment under the CDL.
  • The CDL to include all SEPs (cellular and non-cellular) and NEPs as in the 2021 PLA.