Huawei Technologies Co. Ltd v ZTE Corp [2015] EUECJ C-170/13 (16 July 2015)

Huawei Technologies Co. Ltd v ZTE Corp [2015] EUECJ C-170/13 (16 July 2015)

The proprietor of a standard-essential patent (SEP) who has given an irrevocable undertaking to grant licences on FRAND terms does not abuse its dominant position under Article 102 TFEU by bringing an action for an injunction or recall of products, provided it has first alerted the alleged infringer of the infringement, made a specific, written FRAND offer, and the alleged infringer has not diligently and in good faith responded. Actions for rendering of accounts or damages for past use do not constitute abuse under Article 102 TFEU in these circumstances.

Citation
[2015] EUECJ C-170/13
Parties
Applicant: Huawei Technologies Co. Ltd; Respondent: ZTE Corp.; Respondent: ZTE Deutschland GmbH
Jurisdiction
European Union
Judgment Date
16 July 2015
Procedural Posture
Preliminary Ruling / Reference From National Court (landgericht Düsseldorf) to Court of Justice of the European Union
Outcome
Preliminary ruling issued; national court to apply guidance.
Legal Topics
Abuse of Dominant Position, Standard Essential Patents (seps), FRAND Licensing, Patent Infringement, Injunctions, Damages, Rendering of Accounts
Competition Law Intellectual Property Law European Union Law Abuse of Dominant Position Standard Essential Patents (seps) FRAND Licensing Patent Infringement Injunctions +2 more

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Parties

Huawei Technologies Co. Ltd

Applicant

ZTE Corp.

Respondent

ZTE Deutschland GmbH

Respondent

Procedural Posture

Preliminary Ruling / Reference From National Court (landgericht Düsseldorf) to Court of Justice of the European Union

Legal Issues

  1. 1 Whether the proprietor of a standard-essential patent (SEP) abuses its dominant position under Article 102 TFEU by seeking an injunction or recall of products against an alleged infringer willing to negotiate a FRAND licence.
  2. 2 Whether Article 102 TFEU prohibits actions for rendering of accounts or damages by an SEP holder who has undertaken to grant FRAND licences.

Ratio Decidendi

The proprietor of a standard-essential patent (SEP) who has given an irrevocable undertaking to grant licences on FRAND terms does not abuse its dominant position under Article 102 TFEU by bringing an action for an injunction or recall of products, provided it has first alerted the alleged infringer of the infringement, made a specific, written FRAND offer, and the alleged infringer has not diligently and in good faith responded. Actions for rendering of accounts or damages for past use do not constitute abuse under Article 102 TFEU in these circumstances.

Court Disposition

Preliminary ruling issued; national court to apply guidance.

Orders

  • Article 102 TFEU does not prohibit an SEP holder from seeking injunction or recall of products if it has fulfilled the specified preconditions.
  • Article 102 TFEU does not prohibit an SEP holder from seeking rendering of accounts or damages for past use.