Unwired Planet International Ltd v Huawei Technologies Co. Ltd - 2020

“A global FRAND licence can be imposed by national courts to ensure fair access to standard-essential patents.”

Short Description

This landmark UK Supreme Court decision addressed how Standard-Essential Patents (SEPs) must be licensed on FRAND terms (Fair, Reasonable, and Non-Discriminatory). The Court held that courts of a single country—here, the UK—may set the terms of a global FRAND licence, not just a national one. The ruling strengthened SEP holders’ ability to enforce their rights while ensuring that implementers, like Huawei, cannot delay or avoid licensing obligations through fragmented negotiations.

Facts

Unwired Planet owned several SEPs essential for 2G, 3G, and 4G mobile standards. After acquiring these patents from Ericsson, it sued Huawei, Samsung, and Google in the UK for patent infringement. Huawei did not dispute that the patents were essential but argued that Unwired Planet’s demand for a global licence (covering multiple countries) was not FRAND. Huawei believed only a UK-specific licence should be imposed since the litigation was occurring in the UK. The High Court assessed industry practice and concluded that global licences were widely adopted in telecommunications. The dispute ultimately reached the UK Supreme Court to determine the legality and fairness of imposing a global licence.

Findings / Reasoning

The UK Supreme Court held that:

⦁ SEP licensing in the telecom industry typically occurs on a global basis, and insisting on country-by-country licences would be commercially unrealistic.

⦁ A patentee holding SEPs has the right to seek a global FRAND licence when industry custom supports it.

⦁ An implementer (Huawei) who refuses a global licence when it is FRAND may be considered unwilling, which can justify injunctions.

⦁ FRAND is not a single set of terms — multiple FRAND outcomes may exist.

⦁ The UK courts have jurisdiction to determine global terms if the implementer sells products worldwide and the patents are part of a global standard.

The decision balanced protecting patent holders with ensuring implementers cannot stall or negotiate unfairly by relying on territorial limitations.

Suggestions / Observations

This ruling is a message to all SEP implementers that they must engage in good-faith, timely negotiations and cannot rely on artificially narrow licensing proposals to avoid obligations. It also reassures SEP holders that global licensing strategies remain legally valid. The judgment promotes predictability, reduces fragmentation in SEP disputes, and encourages cooperative FRAND-compliant negotiations. Companies operating internationally must be ready for global-scope commitments rather than piecemeal licences.

Judgment & Date

The UK Supreme Court upheld the lower courts’ rulings and confirmed that a global FRAND licence was appropriate in the dispute between Unwired Planet and Huawei.

Judgment Date : 26 August 2020