Thursday, November 30 2023   \  Published by China IP Law Update.

China’s Supreme People’s Court Again Affirms Right to Set Global Licensing Rates for Standard Essential Patents

China’s Supreme People’s Court Again Affirms Right to Set Global Licensing Rates for Standard Essential Patents

On September 4, 2023, China’s Supreme People Court’s (SPC) affirmed that Chinese courts have jurisdiction over global licensing rates for standard essential patents (SEPs) belonging to InterDigital. In case (2023) 最高法知民辖终282 号, the SPC upheld case (2022)粤73民初195号 where OPPO requested that the Guangzhou Intellectual Property Court rule that the determination of global fair, reasonable, and non-discriminatory (FRAND) licensing terms for SEPs held by Inter Digital (IDT) are subject to Chinese jurisdiction. This follows similar rulings in OPPO vs. Sharp and OPPO vs. Nokia.

On January 13, 2022, the Guangzhou IP Court ruled for OPPO holding that: (1) The subject matter of the license involved several Chinese patents, and OPPO manufactures or otherwise implements the patents in China. Therefore, the courts of China, whether as the courts at the places where the patent right was granted, at the places where the patent is implemented, or at the places where the license was negotiated, have jurisdiction over this case according to law. (2) Dongguan City is the main place of research and development and production of OPPO, and is the main place of patent exploitation, and this Court has jurisdiction according to law. (3) The patent infringement lawsuit filed abroad is obviously different from the lawsuit in this case, and therefore this case does not constitute duplicative litigation. InterDigital appealed to China’s Supreme People’s Court, which rejected InterDigital’s appeal. Read more

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