Huawei対ZTE事件CJEU判決後の判例法
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Updated 10 4月 2019

Huawei 対 ZTE

CJEUの決定
16 7月 2015 - Case No. C-170/13

A. 内容

原告Huawei Technologies Co. Ltd.は、欧州電気通信標準化機構(ETSI)が開発したLTEE無線通信規格(標準必須特許又はSEP)のプラクティスに関して必須のものとして宣言済みの特許を保有している [1] 。2009年3月、原告は、当該特許を実施者が公平、合理的かつ非差別的(Fair, Reasonable and Non-Discriminatory:FRAND)条件で利用できるようにすることをETSIに誓約した [2]

被告ZTE Corp.及びZTE Deutschland GmbHは、LTE規格にかかわる複数のSEPを保有しており [3] 、とりわけ、ドイツにおいては、LTE準拠製品の上市も行っている [4]

2010年11月から2011年3月の間、両当事者は、原告のSEPポートフォリオのライセンス許諾に関し協議していた [4] 。原告が合理的なロイヤルティとみなした金額を示したのに対し、被告は、クロスライセンス契約の締結を求めた [5] 。しかしながら、ライセンス契約の申出は決着しなかった [5]

2011年4月、原告は、被告を相手取り、差止命令、それまでの使用にかかわる計算書の提出、製品のリコール及び特許侵害にかかわる損害賠償を求めて、デュッセルドルフ地方裁判所(地方裁判所)に訴訟を提起した [6] [6]。

地方裁判所は、訴訟手続を停止し、EU機能条約(TFEU)第267条に基づく先決裁定を得るため欧州司法裁判所(CJEU)に付託した。簡潔に言えば、地方裁判所は、SEP保有者がSEP実施者に対する禁止的差止命令を求めて訴訟を提起することが支配的地位の濫用でありTFEU第102条に反するとの問題に関し、ドイツ連邦裁判所と欧州委員会が相反する立場を取っていると見られる点に着目した [7] 。オレンジブック判決において、ドイツ連邦裁判所は、SEPにかかわる権利侵害訴訟において、被告は、ライセンス契約締結にかかわる無条件かつ公正な申出を特許保有者に提示しており、過去の使用行為にかかわる計算書を提出しており、かつ、それにより生じるロイヤルティにつき保証金を支払っている限り、TFEU第102条に基づき防御する(それにより差止命令を回避する)権利を有すると判示した [8] 。これに対し、欧州委員会は、複数のEU加盟国においてサムスンがAppleを相手取り権利行使に関連して提起した訴訟において、特許保有者のFRAND誓約に従いFRAND条件でのライセンス契約について協議する意思を被告が実証している限り、SEPに関し差止命令による救済手段を求める訴訟が原則としてTFEU第102条違反になるとの見解を示した [9]

現在の判決をもって、CJEUは、SEP保有者がTFEU第102条違反を生じることなく特許実施者に対し禁止的差止命令を求める訴訟を申し立てることのできる条件を確立した。とりわけ、CJEUは、SEP保有者がFRAND条件にて特許を実施できるようにする取消不能の引受けを行った場合、訴訟提起前に次の各条件を充足している限り、差止命令又は侵害製品のリコールを求めることにより支配的地位を濫用したことにならないと裁定した。

  • まず実施者に対し、「当該特許を指し示し、何が侵害にあたるのかを明示することにより」特許侵害を通知している。
  • 次に、申立てを受けた侵害者がFRAND条件でライセンス契約を締結する意思をあらわした場合、「当該条件でのライセンス申出について、とりわけ、そのロイヤルティ及び計算方法を明示した上で、当該侵害者に書面で明確に提示している」 [10]

これに対しSEP実施者は、特許保有者が禁止的差止命令又は製品リコールを求めた訴訟について、SEP保有者の申出に遅滞なく回答した場合に限り、当該訴訟の不適切性を訴えることができる [11] 。実施者は、当該申出を拒絶した場合、次の行為をしなければならない。

  • 「FRAND条件に対応する明示的なカウンターオファーを、速やかに、かつ、書面にて」特許保有者に送付し [12] 、かつ、
  • カウンターオファーが拒絶された場合、「銀行保証又は必要な預り金等を差し出す等して」、特許の実施に必要な担保を差し出す [13]

CJEUは、過去の使用行為に関しSEP保有者によりなされる損害賠償請求又は計算書提出の請求に上記の枠組みを適用しないことを明確にした。このような請求にかかわる行為は、標準的な準拠製品の上市又は市販継続が可能かどうかを左右するものでないため、TFEU第102条の侵害にあたらない [14]

B. 判決理由

CJEUは、SEP保有者の基本的な知的財産権(IPR)を司法により有効に保護することと、自由で歪みのない競争における公益との均衡を保つ必要性を強調した [15]

両当事者は、原告の市場における支配的地位の有無については争っていなかったため、裁判所の分析ではTFEU第102条に定める「濫用」の有無に焦点が当てられた [16] 。CJEUによれば、IPRの行使が支配的地位を保有する引受行為であるとしても、「元来」濫用になりえない [17] 。さらには、IPRの行使行為が支配的地位の濫用を構成するのは、「例外的な状況」に限られる [18]

SEPが関係する事例については、他のIPR関連事例と区別する。第一に、特許がSEPにあたる場合、その特許保有者は、「競合会社の製品の上市又は市販継続を妨げ、これにより、問題の製品の製造を留保できる」ことになる [19] 。これに加え、FRAND誓約により、特許保有者は、当該規格を実装する第三者に対しFRAND条件でSEPを利用できるとの「正当な期待」をもたらしている[19]。「正当な期待」がもたらされたことにより、権利侵害を訴えられた特許実施者は、SEP保有者がFRAND条件でのライセンス許諾を拒絶していた場合、原則として、TFEU第102条に依拠して防御することができる [20]

SEP保有者が法的手続を頼ってIPRの保護を求める権利を剥奪されることはないが、CJEUは、FRANDの引受けが、差止命令による救済手段を求めるに際し特定要件を遵守する義務をSEP保有者に負わせる根拠となると判示した [21] 。特に、TFEU第102条違反を回避するには、SEP保有者は、次の条件を満たさなければならない。すなわち、(a) 禁止的差止命令を求める訴訟を提起する前に、「当該特許を指し示し、何が侵害にあたるのかを明示することにより」侵害について実施者に通知しなければならず [22] 、かつ、(b) 実施者が当該ライセンス契約を締結する意思を表明している場合、FRAND条件でのライセンス申出について、「そのロイヤルティ及び計算方法」を明示した上で、当該実施者に書面で明確に提示しなければならない [23] 。この状況において、CJEUは、SEP保有者がそのような申出をするよう期待されうると認めた。これは、原則として、一般向けの規格ライセンス契約は存在せず、また、SEP保有者が第三者と締結した既存契約の条件は公開されていないことから、被疑侵害者に比べ非差別的な条件に従った申出であるかどうか確認する方が有効であるためである [24]

その一方で、(被疑)侵害者は、SEP保有者の申出に対し、注意を払った上で「業界で認められた商慣習に従い、誠実に」対応しなければならない[11]。応じるかどうかは、とりわけ「引き延ばし戦略」が黙示されない「客観的要素」に基づき確証しなければならない。 侵害者は、条件案において特許保有者のFRAND誓約がなされていないとしてSEP保有者のライセンス申出を拒絶することとした場合は、SEP保有者にFRAND条件に基づき書面による明示的なカウンターオファーをSEP保有者に送付しなければならない[12]。当該カウンターオファーが拒絶された場合において、(被疑)侵害者がライセンスを取得せずに当該SEPを既に使用しているときは、当該(被疑)侵害者は、業界で認められた商慣習に従い、銀行保証又は必要な預り金等を差し出す等して、適切な担保を差し出す義務を負う [13] 。担保の算定においては、とりわけ、「過去のSEP使用件数」を含めなければならず、被疑侵害者は、当該使用行為にかかわる計算書を提出できるよう用意しなければならない [13] 。(被疑)侵害者によるカウンターオファーにもかかわらず合意に至らなかった時点で、CJEUは、両当事者が「共通合意」により、「独立の第三者の遅滞なき決定により」ロイヤルティを決定するよう要請するオプションを有することを指し示した [25]

最後に、CJEUは、(被疑)侵害者がライセンス契約の協議と並行してSEP保有者の特許の有効性若しくは必須性又はこれを実際に使用することにつき異議を申し立てるか、将来これを行う権利を留保することができることを明確にした [26]

 

  • [1] Huawei対ZTE、欧州司法裁判所2015年7月6日判決、第22節。
  • [2] 同判決、第22節。
  • [3] 同判決、第40節。
  • [4] 同判決、第24節。
  • [5] 同判決、第25節。
  • [6] 同判決、第27節。
  • [7] 同判決、第29節以下。
  • [8] 同判決、第30節以下。
  • [9] 同判決、第34節以下。
  • [10] 同判決、第77節。
  • [11] 同判決、第65節。
  • [12] 同判決、第66節。
  • [13] 同判決、第67節。
  • [14] 同判決、第72節以下。
  • [15] 同判決、第42節。
  • [16] 同判決、第43節。
  • [17] 同判決、第46節。
  • [18] 同判決、第47節。
  • [19] 同判決、第53節。
  • [20] 同判決、第53節以下。
  • [21] 同判決、第58節以下。
  • [22] 同判決、第61節。
  • [23] 同判決、第63節。
  • [24] 同判決、第64節。
  • [25] 同判決、第68節。
  • [26] 同判決、第69節。

Updated 16 6月 2021

Conversant v Daimler, District Court (Landgericht) of Munich I

LG Munich
30 10月 2020 - Case No. 21 O 11384/19

A. Facts

The claimant, Conversant, holds patents declared as (potentially) essential to the practice of several wireless telecommunications standards (standard essential patents, or SEPs). Conversant has made a commitment towards the European Telecommunications Standards Institute (ETSI) to make patents essential to a standard accessible to users on fair, reasonable and non-discriminatory (FRAND) terms and conditions.

The defendant, Daimler, is a global car company with headquarters in Germany. Daimler manufactures and sells vehicles with connectivity features complying with the LTE standard developed by ETSI.

In October 2018, Conversant joined the Avanci licensing platform, which offers a patent licensing program tailored to connected cars. On 18 December 2018, Conversant made an offer for a bilateral worldwide licence to Daimler and provided information about its SEP portfolio including claim charts concerning several individual patents to the latter.

On 27 February 2019, following a respective reminder sent by Conversant, Daimler replied that it was willing to sign a FRAND licence, highlighted, however, that in the automotive sector it is common that intellectual property rights (IPRs) are licensed to suppliers. Daimler also requested information about existing licensees to Conversant's portfolio as well as an explanation which patents read on which components and why the terms offered were FRAND. Subsequently, Daimler started negotiations for a pool licence with Avanci.

On 5 July 2019, Conversant sent an e-mail to Daimler suggesting a meeting in person on 15 July 2019, since it had been informed by Avanci that the negotiations with Daimler had not been successful. Conversant also pointed out that the car makers participating in the Avanci-programme are licensed under its SEP portfolio and explained the royalty calculation underlying its own bilateral offer -inter alia- by reference to court cases (especially Unwired Planet v Huawei, UK High Court of Justice, judgment dated 5 April 2017). Conversant also intended to provide a full list of patents included in its portfolio to Daimler, the respective document was, however, not attached by mistake to the e-mail sent to Daimler.

On 29 July 2019, Daimler responded and referred to the ongoing negotiations with Avanci. It repeated the view that licensing at supplier level was more efficient and countered that a meeting in person should take place at a later point in time, since Conversant had not shared all necessary information yet.

On 13 August 2019, Conversant filed an infringement action against Daimler before the District Court of Munich I (Court), which did not include a claim for injunctive relief. On 24 August 2019, Conversant informed Daimler about the case filed in Munich and noted that it assumed that Daimler had no actual interest in obtaining a FRAND licence. Conversant also highlighted that for the calculation of royalties the value generated at end-device level should be taken into account.

On 18 September 2019, Daimler reiterated its willingness to obtain a licence and pointed out for the first time that Conversant's e-mail dated 5 July 2019 had not contained the full list of portfolio patents referred to by Conversant. This list was shared with Daimler on 20 September 2019. At the same time, Conversant suggested a meeting in person in the beginning of October 2019. On 8 October 2019, Daimler responded that a meeting could take place only in the end of October, since information needed was still missing.

On 4 December 2019, the parties met in person in Daimler's headquarters. On 15 January 2020, Conversant sent the presentation held in this meeting to Daimler and pointed out that it was willing to establish a licensing programme for Daimler's tier-1 suppliers and that it was prepared to have a meeting with Daimler and all supplier to that end. Conversant had also offered to take recourse to a neutral third party, e.g. in arbitration proceedings, for the determination of the licensing value. On 24 January 2020, Daimler explained that it had already discussed with its suppliers and was willing to organise a meeting.

On 29 January 2020, Conversant additionally raised claims for injunctive relief and the recall and destruction of infringing products against Daimler in the pending proceedings in Munich.

In February and March 2020, the parties discussed about a meeting with Daimler's tier-1 suppliers. Daimler did, however, not organise a meeting with the participation of all suppliers.

On 8 April 2020, Daimler made a counteroffer to Conversant. The counteroffer was based on the value of the Telematic Control Unit (TCU), which is the component enabling LTE-connectivity in cars.

On 30 June 2020, Conversant made a further offer to Daimler that was not accepted. On 10 August 2020, Daimler provided information to Conversant about past vehicle sales and placed security for past uses.

With the present judgment [27] , the Court found in favour of Conversant and – among other things – granted an injunction against Daimler.
 

B. Court's reasoning

The Court found that the patent in suit is essential to the LTE standard and infringed [28] . Consequently, the claims asserted by Conversant were given. The claims for injunctive relief as well as the recall and destruction of infringing products were also to be granted. By initiating infringement proceedings against Daimler, Conversant neither abused a dominant market position in terms of Article 102 TFEU (competition law defence, cf. item 1), nor violated its contractual obligations under ETSI's IPR Policy (contract law defence, cf. item 2.) [29] .
 

1. Competition law defence
Dominant market position

The Court held that Conversant had a dominant market position within the meaning of Article 102 TFEU [30] .

The exclusivity rights arising from a patent do not establish a dominant market position by themselves. [31] A market dominant position is established, when the patent is technically essential for complying with a standard developed by a standardisation body (or a de facto standard) and technical alternatives are not available for products brought on a (downstream) market [32] . In the Court's eyes, this applied to the patent in suit. [33]

Exceptional circumstances that could exclude Conversant's market dominant position here were not present. According to the Court, the sole fact that Conversant had made a FRAND commitment towards ETSI establishing an obligation to grant FRAND licences did not per se exclude market dominance; decisive is, moreover, whether the SEP holder actually meets this obligation. [34] Furthermore, the additional option to get a license from the patent in suit from Avanci did not limit Conversant's market dominant position. [35]
 

No abuse of market dominance

The Court found, however, that Conversant had not abused its dominance by filing an action for injunctive relief as well as the recall and destruction of infringing products against Daimler.

In cases, in which the implementer already uses protected standardised technology, the assessment of the SEP holder's behaviour requires a comprehensive analysis, in which the constitutionally guaranteed strong protection of IPRs, on the one hand, and the interest of users to access the standard, on the other hand, must be balanced against one another. [36] In this context, not only private interests, but also the public interest must be taken into account. [37] The Court highlighted that the public interest is not to be seen as just the 'sole sum of private interests in using standardised technology', but equally includes the substantial interest of the public to protect the integrity of IPRs and secure effective enforcement. [38]

Considering the 'particular nature' of SEPs especially in the telecommunications field, the Court held -in line with the Huawei v ZTE judgment (Huawei judgment) of the Court of Justice of the EU (CJEU) [39] - that it is justified to impose certain conduct obligations on SEP holders. Reason for this is, basically, that -unlike 'regular' patents- SEPs are established in the market through their inclusion in the standard, without further action by the patent holder. [40] Consequently, the need to secure a competitive advantage for the inventor of a patented technology in the market by granting exclusivity rights for a certain period of time is less compelling in relation to SEPs compared to non-standard-essential patents. [41]

Having said that, the Court made, however, clear that the conduct duties imposed on the SEP holder by the Huawei judgement exist only towards an implementer, who 'seriously and not only in words' wants to sign a licence. [42] Accordingly, a defence based on an alleged abuse of market dominance can be successful, only when the implementer that wants to use, or already uses the patent without authorisation is willing to obtain a FRAND licence and refrain from delaying tactics throughout the licensing negotiations with the SEP holder. [43] The Court noted that the key notion underlying the Huawei judgment that parties are best situated to determine FRAND in fair, balanced and swift negotiations relies on a constructive involvement of both parties which is driven by the actual 'sincere motivation' to reach an agreement. [44]
 

Notification of infringement

Looking at the parties' behaviour, the Court held that Conversant fulfilled the duty to notify Daimler about the infringement of its SEPs by sending the letter dated 18 December 2018, which contained sufficient information about its portfolio, including claim charts covering several patents. [45] Whether Conversant had sufficiently explained the royalty calculation underlying the licensing offer that was also attached to this letter, was not relevant, since, at this stage, Conversant had not even been obliged to make an offer to Daimler. [46]
 

Willingness

On the other hand, the Court found that Daimler had not been willing to take a licence from Conversant: On the contrary, the Court identified a 'particularly clear case of missing willingness'. [47]

In terms of content, the implementer must 'clearly' and 'unambiguously' declare willingness to conclude a licence agreement with the SEP holder on 'whatever terms are in fact FRAND' and, subsequently, engage in negotiations in a 'target-oriented' and 'constructive' manner. [48] By contrast, it is not sufficient, in response to the (first) notification of infringement, to just demonstrate willingness to consider signing a licensing agreement or to enter into negotiations about whether and under which conditions taking a licence comes into question. [48]

The Court explained that the assessment of willingness requires a comprehensive analysis of all facts until the end of the oral hearings in the infringement proceedings. [49] Establishing whether willingness is given cannot be a question answered by a 'formalistic snapshot' of the implementer's conduct; what is more, the implementer cannot remain inactive until -in its view- the SEP holder has met its obligations first. [49]

In addition, the Court highlighted that timing in negotiations is a factor, which must be considered in the assessment of willingness as well. [50] Otherwise, implementers would lack motivation to seriously engage in negotiations in a timely manner. [51] Rigid deadlines cannot be set, a case-by-case assessment is needed. [52] An implementer, who has been notified about the infringement, is, however, obliged to legitimize the -unlawful- use of the patent(s) as soon as possible by signing a FRAND-licence with the SEP holder. [52]

Furthermore, the Court reasoned that whether and at which time the implementer made a counteroffer to the SEP holder can also be an 'important indicator' of (un-)willingness. [53] A counteroffer made after the initiation of infringement proceedings will, as a rule, not be acceptable. [54] According to the Court, implementers should not be allowed to engage in negotiations only 'for appearance's shake' and then pull the 'emergency brake' against a potential conviction in infringement proceedings by making a counteroffer. [51] Exceptionally, a counteroffer made during trial could be considered in the assessment of willingness in cases, in which the implementer was willing from the start of the negotiations and always engaged constructively in the discussions with the patent holder. [55]

In line with the above, the Court pointed out that, in general terms, delaying tactics initially applied by an implementer cannot be 'undone' at a later point in time without more ado. [56] Nevertheless, the belated declaration of willingness does not 'automatically' prevent an implementer from raising a 'FRAND-defence' in infringement proceeding: Whether this will be the case or not, shall be decided on a case-by-case basis on grounds of the overall circumstances of the negotiation history. [57]

Against this backdrop and under consideration of Daimler's overall behaviour, the Court reached the conclusion that -although acting in a FRAND-compliant manner would have actually been possible and reasonable [58] - Daimler had chosen to apply delaying tactics [59] .

The Court found that by directing Conversant to its suppliers, Daimler had not expressed willingness to take a licence on 'whatever terms are in fact FRAND', but rather made clear that it was not prepared to take a licence from Conversant itself. [60] Indemnification clauses regarding third-party IPRs potentially agreed between Daimler and its suppliers played insofar no role, as Daimler infringed Conversant's patents independently and must, therefore, be held accountable for that. [60]

A further indication of Daimler's unwillingness was the fact that it took Daimler more than two months to inform Conversant that it had not received a list of portfolio patents that was unintentionally not attached to the e-mail sent by Conversant on 5 July 2020. [61] The Court equally criticized the fact that Daimler had at no point in time posed questions to Conversant on the claim charts provided by the later, but raised concerns against the quality of the patents only in the pending infringement trial. [62]

The Court saw an additional 'substantial' indication of unwillingness in Daimler's response dated 27 July 2020, in which the latter had expressly limited its willingness to sign a licence to products, which were either not licenced yet or purchased by suppliers unwilling to take a licence from Conversant themselves. [63] The Court particularly objected Daimler's choice to define the 'unwillingness' of its suppliers as a condition for signing an own licence with Conversant. [64]

The fact that Daimler had not responded to the proposal to use alternative dispute resolution methods and particularly arbitration for the determination of FRAND-royalties, which Conversant had made at the parties' meeting on 4 December 2019, was also considered as a sign of unwillingness on the side of Daimler. [65]

An additional 'clear' indication of unwillingness and delaying tactics was -according to the Court- the fact that, following the discussion of 4 December 2019, Daimler did not organise a meeting with all tier-1 suppliers, in order to discuss a potential direct licensing option with Conversant, despite having implied that this option had already been discussed with its suppliers. [66]
 

Counteroffer

Subsequently, the Court noted that Daimler's counteroffer dated 8 April 2020 could not remedy the missing willingness which Daimler had displayed until then. [67] Moreover, it rather served as an 'alibi'. [58]

In the eyes of the Court, the counteroffer was belated, since it was made more than 1 year and 4 months after Conversant's offer. [67] What is more, Daimler made the counteroffer during the pendency of the infringement proceedings, which was not acceptable, given that until that point it had been clearly unwilling to take a licence. [68] The Court also explained that Daimler could not excuse the delay by claiming that Conversant had not provided necessary information, since the counteroffer was based on generally known and available data without an underlying detailed analysis; accordingly, it could have been made earlier, that is shortly after receipt of Conversant's initial offer. [69]

Besides that, the Court found that Daimler's counteroffer was, in terms of content, 'evidently not FRAND'. [70] Based on a summary analysis, the licensing fees offered by Daimler were considered to be evidently too low. [71]

The Court noted that FRAND is a range and that there are several methods for calculating FRAND royalties. [71] The Court relied on the so-called 'top-down'-approach (which both Conversant and Daimler had used). [72] Looking at Daimler's 'top-down'-calculation, the Court held that taking the number of all patents declared as standard-essential towards ETSI as the basis for determining Conversant's share of LTE-related SEPs was not in line with FRAND-principles. [73] Considering that not all declared patents are actually standard-essential (a phenomenon described as 'over-declaration'), the use of the total number of declared patents benefits Daimler: Conversant's share of SEPs would per se be higher, if the (lower) number of actually standard-essential LTE patents would be used as basis for the calculation. [73]

In addition, the Court pointed out that the average purchase price of the TCU is no adequate royalty base under FRAND principles. [74] The value of a SEP is reflected by a royalty, which is adequately in proportion to the value of the service provided. [75] According to the Court, in the present case, economic value is created by the offering of LTE-enabled functionalities in Daimler's cars and the use of such functionalities by Daimler's customers. [75] As a consequence, relevant is the value, which Daimler's customers attach to the LTE-based features in a car. [75] The purchase price of TCUs paid by Daimler to its suppliers does not mirror this value. [75]
 

FRAND defence raised by suppliers / licensing level

The Court further explained that Daimler could not invoke the (alleged) willingness of its suppliers to take a licence from Conversant for establishing a FRAND defence. [76]

If an implementer, along with its own declaration of willingness, expresses the wish that licensing takes place at supplier level, it is obliged to comprehensively disclose in writing, which standard-compliant components are integrated in its products and which suppliers provide such components. [77] If this information and disclosure duty is not met, as it was the case here, a request for licensing at supplier level contradicts the implementer's declaration that it is willing to sign an own licence with the SEP holder, and is, therefore, a sign of bad faith (Sec. 242 German Civil Code). [78] In this context, the Court made clear that the implementer is obliged to still pursue bilateral negotiations with the SEP holder in a timely and target-oriented manner, even if -after having provided the aforementioned information to the latter- it is in parallel actively engaged towards facilitating the establishment of a licensing regime at supplier level. [79] In the bilateral negotiations with the SEP holder, the implementer could, however, insist that a clause excluding double payments for components already licensed to suppliers is included in the agreement. [79]

In line with the above, the Court confirmed that by seeking to license Daimler, Conversant did not act in an abusive or discriminatory way. [80]

In the view of the Court, the fundamental question whether the so-called 'license-to-all' or 'access-to-all' approach should be followed with respect to SEP licensing in a supply chain, did not need to be answered here. [81] In legal disputes between a SEP holder and an end-device manufacturer it is sufficient from a competition law angle that the objectives pursued by the SEP holder in the proceedings do not exclude suppliers from the market; this is true, when suppliers are granted access to the standardised technology through 'have-made' rights established by the licence signed by the end-device manufacturer, as Conversant had offered. [81] Whether suppliers have individual claims for being granted a licence is a distinct question, that could be potentially raised in separate proceedings between the SEP holder and the supplier. [82]

The Court added that the SEP holder is free to decide against which infringer within a supply chain court proceedings will be initiated. [83] The respective right of choice is derived from the constitutionally guaranteed protection of property as well as the very nature of patents as exclusionary rights. [84]

According to the Court, the common practice in the automotive field that components are sold to car manufacturers free of third-party rights does not render Conversant's pursuit to license Daimler abusive in antitrust terms. [85] Respective agreements between end-device manufacturers and suppliers have only bilateral (contractual) effects and cannot impair the legal position of third parties. [85] In particular, they cannot limit the SEP holder's right to choose the level of the value chain for the assertion of its patents. [86] The Court noted that the need to abandon existing practices in the automotive sector is of no importance from an antitrust angle, given that the integration of additional technologies serves Daimler's economic interest to access new markets and customer groups. [86]

In this context, the Court also explained that the SEP holder is not obliged to perform duties under the Huawei judgment towards suppliers, as far as infringement proceedings are initiated only towards the end-device manufacturer. [87] Accordingly, a supplier joining such proceedings cannot invoke that the SEP holder abused its market dominance e.g. by omitting a separate notification of infringement addressed to the supplier. [88] The Court denied such comprehensive notification duty of SEP holders, since in multi-level supply chains it is neither feasible nor reasonable to identify all suppliers involved. [89]

In the Court's view, the question whether the SEP holder has abused its market dominance by denying a direct licence to a supplier is subject to general competition law principles. [90] In the present case, the Court did not see sufficient grounds for such abuse. [90] It was not convinced that -absent an own bilateral licence- suppliers are left without rights or face legal uncertainty. [91] The fact that an individual bilateral licence would give suppliers broader freedom to operate than 'have-made' rights might serve their commercial interests, is, however, not of relevance with respect to proceedings between SEP holders and end-device manufacturers, as long as adequate access to the standard is provided to suppliers through 'have-made' rights. [92] Insofar, the Court noted that co-operation within a supply chain on basis of 'have-made' rights is wide-spread and common in practice and also supported by EU law (Commission notice of 18 December 1978 concerning its assessment of certain subcontracting agreements in relation to Article 85 (1) of the EEC Treaty, OJ C 1, 3 January 1979). [92]

Finally, the Court dismissed the argument, that Conversant had allegedly colluded with other members of the Avanci platform to specifically discriminate implementers by excluding access to the relevant standards. [93] The Court saw no indication that this was the case here, but rather highlighted the pro-competitive effects which patent pools are generally recognised to have, not least by EU law (para. 245 of the Guidelines on the application of Article 101 TFEU to technology transfer agreements; 2014/C 89/03). [93]
 

2. Contract law defence

The Court further found that Daimler could not defend itself against the claim for injunctive relief by invoking a contractual claim against Conversant for being granted a FRAND licence, since such claim did not exist. [94] Daimler had argued that Conversant's FRAND commitment towards ETSI prevented the latter from asserting claims for injunctive relief before court.

The Court found that the ETSI FRAND undertaking does not establish duties or rights different than those established by European competition law (especially Art. 102 TFEU), which Conversant had met in the present case. [95] In legal terms, the ETSI FRAND undertaking is a contract for the benefit of a third party under French law ('stipulation pour l'autrui'), containing a binding promise of the SEP holder to grant a FRAND licence at a later point in time. [96] The content and the extent of the corresponding obligation to negotiate a licence is, however, to be interpreted in line with the Huawei judgment, which has defined a standard of conduct based on Art. 102 TFEU. [96] The fact that the ETSI FRAND commitment materialises the requirement to provide access to the standard stipulated by Art. 101 TFEU speaks also in favour of applying a uniform standard of conduct. [96] In the eyes of the Court, French law cannot establish further going conduct duties, since it must be interpreted within the spirit of EU law. [96]
 

C. Other important issues

Finally, the Court took the view that there are no grounds for a limitation of Conversant's claim for injunctive relief due to proportionality considerations. [97] Under German law, proportionality is a general principle of constitutional rank to be considered also with respect to injunctive relief, if a respective objection is raised by the defendant in trial. [97] The Federal Court of Justice (Bundesgerichtshof) has also recognised that an injunction might not be immediately enforceable in exceptional cases, in which the implementer would suffer hardships not justified by the patent holder's exclusionary right in violation of the principle of good faith ('Wärmetauscher'ruling dated 10 May 2016, Case No. X ZR 114/13). [97] In the eyes of the Court, Daimler had, however, not pleaded any relevant facts in the present proceedings. [97]

  • [27] Conversant v Daimler, District Court of Munich I, 30 October 2020, Case-No. 21 O 11384/19 (cited by juris).
  • [28] Ibid, paras.122-265.
  • [29] Ibid, para. 285.
  • [30] Ibid, para.286.
  • [31] Ibid, para.288.
  • [32] Ibid, paras.287 et seqq.
  • [33] Ibid, paras.291 et seqq.
  • [34] Ibid, para.295.
  • [35] Ibid, para.296.
  • [36]  Ibid, para. 299.
  • [37] Ibid, para. 300.
  • [38] Ibid, para.300.
  • [39] Huawei v ZTE, Court of Justice of the EU, judgment dated 16 July 2015, Case No. C-170/13.
  • [40] Conversant v Daimler, District Court of Munich I, 30 October 2020, Case-No. 21 O 11384/19, para.301.
  • [41] Ibid, para.301.
  • [42] Ibid, para.307.
  • [43] Ibid, para.308.
  • [44] Ibid, paras.302 and 308.
  • [45] Ibid, paras. 323 et seqq.
  • [46] Ibid, para.324. The Court expressed, nevertheless, doubts that the sole reference to the calculation method used by the UK High Court in Unwired Planet v Huawei would prove sufficient for the explanation of the rates offered by Conversant to Daimler.
  • [47] Ibid, para. 309.
  • [48] Ibid, para. 310.
  • [49] Ibid, para. 316.
  • [50]  Ibid, para. 311.
  • [51] Ibid, para. 312.
  • [52] Ibid, para. 320.
  • [53] Ibid, para. 311.
  • [54] Ibid, paras. 312 and 316.
  • [55] Ibid, para. 315.
  • [56] Ibid, paras.317 et seqq.
  • [57] Ibid, para. 321.
  • [58] Ibid, para.357.
  • [59] Ibid, paras.322 and 358.
  • [60] Ibid, para.328.
  • [61] Ibid, paras.331 and 336.
  • [62] Ibid, para.332.
  • [63] Ibid, paras.334 and 336.
  • [64] Ibid, para.335.
  • [65] Ibid, para.337.
  • [66] Ibid, para.338.
  • [67] Ibid, para.339.
  • [68] Ibid, para.340.
  • [69] Ibid, paras.355 et seq.
  • [70] Ibid, paras.341 and 354.
  • [71] Ibid, para.341.
  • [72] Ibid, paras.341 and 348.
  • [73] Ibid, para.352.
  • [74] Ibid, para.353.
  • [75] Ibid, para.353
  • [76] Ibid, para.360.
  • [77] Ibid, para.362.
  • [78] Ibid, paras.362 and 364.
  • [79] Ibid, para.363.
  • [80] Ibid, para.365.
  • [81] Ibid, para.366.
  • [82] Ibid, para.367.
  • [83] Ibid, paras.368 and 382.
  • [84] Ibid, para.368.
  • [85] Ibid, para.370.
  • [86] Ibid, para.372.
  • [87] Ibid, paras.373 and 376-378.
  • [88] Ibid, para.373.
  • [89] Ibid, paras.373 and382.
  • [90] Ibid, paras.373 and 379.
  • [91] Ibid, para.374.
  • [92] Ibid, para.375.
  • [93] Ibid, para.380.
  • [94] Ibid, para.384.
  • [95] Ibid, paras.384 et seqq.
  • [96] Ibid, para.385.
  • [97] Ibid, para.269.

Updated 3 2月 2020

Philips v Wiko

OLG Karlsruhe
30 10月 2019 - Case No. 6 U 183/16

A. Facts

The Claimant, Philips, holds patents declared as (potentially) essential to the practice of wireless telecommunications standards (Standard Essential Patents or SEPs) developed by the European Telecommunications Standards Institute (ETSI), including SEPs reading on the UMTS and LTE standards. Philips committed towards ETSI to make its SEPs accessible to standard users on Fair, Reasonable and Non-Discriminatory (FRAND) terms and conditions.

The Defendant is the German subsidiary of the Wiko group of companies, which has its headquarters in France (Wiko). Wiko sells mobile phones implementing the LTE standard in Germany.

In October 2014, Philips informed the parent company of the Wiko group about its SEP portfolio, but did not receive a response. In July 2015, Philips shared a draft licensing agreement for its SEP portfolio as well as claim charts referring to several of its SEPs with the parent company of the Wiko group, which again did not react at all. In September 2015, Philips shared further technical details regarding its SEPs.

On 19 October 2015, Philips brought an infringement action against Wiko before the District Court of Mannheim based on one of its SEPs, requesting for injunctive relief, information and rendering of accounts, destruction and recall of infringing products from the market as well as a declaratory judgment confirming Wiko’s liability for damages on the merits.

On the next day, 20 October 2015, Wiko sent a letter to Philips, in which it declared its willingness to enter into negotiations with the latter for a licence covering ‘valuable’ patents. In August 2016, during the course of the pending infringement proceedings, Wiko made a counteroffer to Philips. Philips did not accept this offer. Subsequently, Wiko provided security to Philips for the use of its patents, calculated on basis of its counteroffer.

By judgment dated 25 November 2016 [98] , the District Court of Mannheim granted Philips’ claims almost to the full extent. Wiko appealed the District Court’s judgement. In addition, by way of a counterclaim, Wiko requested disclosure of existing licensing agreements signed by Philips with similarly situated licensees (comparable agreements).

With the present judgment [99] , the Higher District Court of Karlsruhe (Court) overturned the ruling of the District Court in part. In detail, the Court confirmed Philips’ claims for information and the rendering of accounts as well as Wiko’s liability for damages on the merits. The Court, however, rejected Philips’ claims for injunctive relief, destruction and recall of infringing products from the market.

Apart from that, the Court also rejected Wiko’s counterclaim regarding the production of comparable agreements in the proceedings.


B. Court’s reasoning

The Court confirmed that Wiko’s products infringe the patent in suit [100] .

Contrary to the view taken previously by the District Court, the Court found, however, that Article 102 of the Treaty for the Functioning of the EU (TFEU) prevents Philips from enforcing the claims for injunctive relief as well as the recall and destruction of infringing products asserted in the infringement proceedings for the time being [101] . In the Court’s eyes, Philips had failed to meet the conduct obligations established by the Court of Justice of the EU (CJEU) in the matter Huawei v ZTE [102] (Huawei framework or obligations) [103] .

Huawei framework

The Court explained that SEP holder’s failure to meet its Huawei obligations will – as a rule – render an infringement action resulting in an exclusion of the implementer from a downstream market (action for injunctive relief and/or recall and destruction of products) abusive in terms of Article 102 TFEU [104] . This will, however, not be the case, when the implementer himself fails to fulfil its duties under the Huawei framework; if the implementer acts in bad faith as an ‘unwilling’ licensee, then SEP holder’s Huawei obligations are ‘suspended’ [104] . As a result, asserting the rights to injunctive relief and/or the destruction and recall of infringing products in court could then be considered as a justified reaction of the SEP holder to the implementer’s unwillingness to enter into a FRAND licence [104] .

Having said that, the Court expressed the view that the parties can remedy potential flaws in their conduct under the Huawei judgment and/or even fulfil their Huawei obligations for the first time during the course of pending infringement proceedings [105] . The Court noted that in Huawei v ZTE, the CJEU did not require that the parties fulfil all conduct obligations established prior to the initiation of court proceedings [106] . In the Court’s eyes, denying the parties such possibility is not compatible either with the general principle of proportionality known to European law, nor with the German civil procedural law, according to which courts need to consider all facts relevant for their decision-making raised in the proceedings until the end of the oral arguments [107] .

Accordingly, an infringement action that did not give rise to any antitrust concerns at the time it was filed, can be considered as abusive at a later point in time, if the situation significantly changed, e.g. the implementer fulfilled its Huawei obligations in the meantime [108] . Vice versa, an action of an abusive nature can later on be ‘corrected’, if the patent holder performs its duties under the Huawei framework during the course of the pending proceedings [108] .

In the Court’s view, a SEP holder seeking to remedy (or fulfil for the first time) obligations under the Huawei framework after the initiation of infringement proceedings must make sure that pressure-free licensing negotiations between the parties are enabled, as required by the CJEU in Huawei v ZTE [109] . For this, the patent holder must use procedural tools available under German law, particularly a motion for suspension of the trial [109] . The SEP holder can also propose a consensual stay of the proceedings, especially when a parallel nullity action against the patent in suit is pending before the Federal Patent Court [109] . In case such a motion is filed, the Court expects that a ‘willing’ implementer will consent to a suspension of the proceedings [109] .

On the other hand, the Court pointed out that fulfilment of Huawei obligations by the implementer after the beginning of infringement proceedings does not necessarily lead to a dismissal of the claims asserted by the SEP holder [110] . Indeed, if the implementer meets its Huawei duties at a very late point in time in the proceedings (e.g. shortly before the closing of the oral arguments), the Court could eventually neglect this fact in its decision [111] . This way, delays can be avoided. In this context, the Court also made clear that the implementer is not in a position to cause a unilateral suspension of the proceedings; in contrast to the opposite case (that is cases, in which a stay of the proceedings is suggested by the claimant), the SEP holder will usually not be required to agree to a suspension of the proceedings proposed by the implementer, in order to allow pressure-free negotiations to take place [111] . Insofar, the implementer bears the risk that the fulfilment of its obligations under the Huawei framework in the course of a pending infringement trial will have no impact [111] .

Notification of infringement

Looking at the specific conduct of the parties in the present case, the Court found that Philips had fulfilled its obligation to notify Wiko about the infringement of the SEP in suit prior to the commencement of the infringement proceedings.

The Court confirmed that a notification addressed to the parent company within a group of companies will usually be sufficient under the Huawei framework [112] . In terms of content, the Court was satisfied by the fact that Philips’ letter from July 2015 named the patent in suit as well as the relevant part of standard document implementing the technical teachings of this patent [113] . The Court explained that the notification does not have to contain (further) information required for a final assessment of the validity and essentiality of the patent in suit [113] . Accordingly, the SEP holder is not obliged to share claims charts customarily used in SEP licensing negotiations with the implementer along with the notification of infringement [113] .

Willingness to enter into a licence

The Court further found that Wiko had sufficiently met its obligation to express its willingness to negotiate a licence with Philips [114] .

The Court agreed with the assessment of the District Court that Wiko’s initial reaction to Philips’ notification in July 2015 by letter dated 20 October 2015 was belated. According to the Court, the time available to the implementer for expressing its willingness to enter into negotiations for a licence will – as a rule – not exceed two months [115] . This period of time will usually be sufficient: since by declaring its willingness to enter into negotiations the implementer does not waive any rights (especially the right to contest the validity and/or infringement of the patents in question), it shall not be given more time than the time needed for an ‘initial overview’ of the SEP holder’s claims [115] . Delaying tactics potentially applied by the implementer must be prevented [115] . Against this background, Wiko’s letter dated 20 October 2015 was sent to Philips too late.

Nevertheless, the Court found that Wiko had remedied the belated response after the beginning of the infringement proceedings. On the one hand, Wiko’s letter dated 20 October 2015 had reached Philips at a very early stage of the proceedings, namely just some days after the action was filed [116] . In addition, Wiko had confirmed its willingness to enter into negotiations with Philips expressed in said letter during the course of the proceedings, by making a counteroffer, rendering accounts and providing security to Philips [116] .

SEP holder’s offer

On the other hand, the Court held that Philips had failed to comply with its obligation to make a FRAND licensing offer to Wiko. In particular, the Court took the view that Philips did not provide sufficient information to Wiko with respect to its licensing offer dated July 2015 [117] .

The Court argued that the ‘fairness’ element of the FRAND commitment establishes an ‘information duty’ (‘Informationspflicht’) of the SEP holder with respect to the content of its licensing offer to the implementer [118] . This duty exists besides the patent holder’s duty to make a FRAND licensing offer to the implementer [119] .

In terms of scope, the Court found that the information duty is, basically, not limited to the calculation of the offered royalty but also covers (objective) facts showing that the ‘contractual compensation factors’ (‘vertragliche Vergütungsfaktoren’) are not discriminatory [120] . The extent of the information to be shared depends on the circumstances of the specific ‘licensing situation’ [120] .

In case that the patent holder has already granted licences to third parties, the information duty will extend also towards its ‘licensing practice’, including comparable agreements [121] .

If the SEP holder uses exclusively a standard licensing programme, then it will be sufficient to show that said programme has been accepted in the market and that the offer made to the implementer corresponds with the standard licensing agreement used [121] .

On the other hand, if the SEP holder has concluded individual licensing agreements with third licensees, then it would be obliged to disclose – at least – the content of the key contractual terms in a way that would allow the implementer to identify whether (respectively why) the offer it received is subject to dissimilar conditions [121] . The Court made, however, clear that – contrary to the approach adopted by the Duesseldorf courts – the SEP holder is not obliged in any case to disclose the full content of all existing comparable agreements [121] . In the eyes of the Court, the information duty serves only the purpose of facilitating good will licensing negotiations. A full disclosure of comparable agreement is, however, uncommon in practice [121] .

In this context, the Court pointed out that the patent holder will have to adequately substantiate the content of ‘justified confidentiality interests’ that might hinder the disclosure of comparable agreements [121] . Furthermore, the SEP holder would need to facilitate the conclusion of a Non-Disclosure Agreement which would allow sharing further information with the implementer [121] .

Based on the above considerations, the Court found that Philips had not fulfilled its information duty at any time [122] . In particular, the Court criticized that Philips did not adequately explain the reasons for choosing to agree on a lump sum payment (instead of a running royalty) in an existing agreement with a third licensee [123] . The fact that companies of different size were affected did not relieve Philips from its information duty; according to the Court, the mere fact that two competitors in a downstream market are of different size does not per se offer sufficient ground for different treatment [124] .

Since the Court assumed that Philips had failed to meet its information duties, it did not examine whether Philips’ licensing offer to Wiko was FRAND in terms of content [125] . In this respect, the Court seemed to agree, however, with the notion that FRAND is a range providing parties with a degree of flexibility [126] .

Implementer’s claim for disclosure of comparable agreements

Referring to the counterclaim for full disclosure of Philips’ comparable agreements raised by Wiko in the appeal proceedings, the Court clarified that a respective right of Wiko does not exist [127] .

Such a right does not arise either from German civil law (Articles 809 and 810 German Civil Code) [127] or Article 102 TFEU [128] . Furthermore, a right for disclosure of comparable agreement can neither be extracted by the SEP holder’s FRAND commitment to ETSI [129] . The Court saw no indication that French law (which is applicable to the ETSI FRAND undertaking) establishes such a right in favour of standards implementers [130] .

C. Other important issues

The Court pointed out that the claims for damages as well as information and rendering of accounts also asserted by Philips in the present proceedings are not subject to the Huawei framework [131] . Moreover, the Court explained that the non-fulfilment of the Huawei obligations by the patent holder poses no limitations on these rights in terms of content [132] . This is particularly true with respect to SEP holder’s claim to request information about expenses and profits from the implementer5 [133] .

  • [98] Philips v Wiko, District Court (Landgericht) of Mannheim, judgment dated 25 November 2016, Case No. 7 O 44/16.
  • [99] Philips v Wiko, Higher District Court of Mannheim, judgment dated 25 November 2016, Case No. 7 O 44/16, cited by http://lrbw.juris.de.
  • [100] Ibid, paras. 37-87.
  • [101] Ibid, para. 88.
  • [102] Huawei v ZTE, Court of Justice of the European Union, judgment dated 16 July 2015, Case No. C 170/13.
  • [103] Philips v Wiko, Higher District Court of Mannheim, judgment dated 25 November 2016, para. 108.
  • [104] Ibid, para. 107.
  • [105] Ibid, paras. 117 et seqq.
  • [106] Ibid, para. 119.
  • [107] Ibid, paras. 120 et seq.
  • [108] Ibid, para. 120.
  • [109] Ibid, para. 125.
  • [110] Ibid, para. 126.
  • [111] Ibid, para. 127.
  • [112] Ibid, para. 111.
  • [113] Ibid, para. 112.
  • [114] Ibid, paras. 115 and 117.
  • [115] Ibid, para. 115.
  • [116] Ibid, para. 129.
  • [117] Ibid, paras. 131 et seqq.
  • [118] Ibid, paras. 132 et seq.
  • [119] Ibid, para. 135.
  • [120] Ibid, para. 133.
  • [121] Ibid, para. 134.
  • [122] Ibid, paras. 136 et seqq.
  • [123] Ibid, para. 136.
  • [124] Ibid, para. 138.
  • [125] Ibid, para. 131.
  • [126] Ibid, para. 106.
  • [127] Ibid, paras. 157 et seqq.
  • [128] Ibid, paras. 162 et seqq.
  • [129] Ibid, paras. 160 et seq.
  • [130] Ibid, para. 161.
  • [131] Ibid, para. 143.
  • [132] Ibid, para. 144.
  • [133] Ibid, paras. 145 et seqq.

Updated 7 4月 2021

Sisvel v Wiko

OLG Karlsruhe
9 12月 2020 - Case No. 6 U 103/19

A. Facts

The claimant, Sisvel, holds patents declared as (potentially) essential to the practice of the UMTS and LTE wireless telecommunications standards, which are subject to a commitment to be made accessible to users on fair, reasonable and non-discriminatory (FRAND) terms and conditions (standard-essential patents or SEPs). Sisvel also administrates a patent pool, comprising patents of several SEP holders, including Sisvel's own SEPs (patent pool).

The defendants are two companies that are part of the Wiko group (Wiko). [134] Wiko sells mobile phones complying with the LTE standard - among other markets- in Germany.

In June 2015, the patent pool informed Wiko for the first time about the need to obtain a licence. On 1 June 2016, Sisvel (as the patent pool's administrator) offered Wiko a portfolio licence, which also covered the patent in suit. Agreement was, however, not reached.

On 22 June 2016, Sisvel brought an action against Wiko before the District Court (Landgericht) of Mannheim in Germany (District Court) based on one patent reading on the LTE standard (infringement proceedings). Sisvel requested a declaratory judgment confirming Wiko's liability for damages on the merits, as well as information and rendering of accounts.

On 23 June 2016, Sisvel made an offer for a bilateral licence limited to its own SEP portfolio to the German subsidiary of Wiko. This offer was not accepted. Moreover, Wiko filed a nullity action against the SEP in suit before the German Federal Patent Court (nullity proceedings).

In October 2016, Sisvel extended the lawsuit. Claims for injunctive relief as well as the recall and destruction of infringing products were added to the other claims initially asserted.

On 11 November 2016, Wiko made a counteroffer to Sisvel. Some days prior to the oral hearing in the infringement proceedings, Wiko informed the Court that it had provided information to Sisvel and had also deposited a security amount for past uses.

On 8 November 2017, Sisvel made a new offer to Wiko with reduced royalty rates. Wiko did not immediately react to this offer.

On 22 December 2017, Sisvel asked the District Court to order a stay of the infringement proceedings, until the decision of the Federal Patent Court in the parallel nullity proceedings. Wiko agreed with Sisvel's motion. On 30 January 2018, the infringement proceedings were stayed.

On 9 February 2018, Sisvel sent a reminder to Wiko regarding the offer made on 8 November 2017. Wiko responded on 16 February 2018, requesting further claim charts and more time to examine the patents covered by the offer.

On 26 June 2018, during the stay of the infringement proceedings, Sisvel made another licensing offer to Wiko based on a new restructured licensing program (2018 offer). Along with the 2018 offer, Sisvel provided Wiko with claim charts regarding 20 selected patents and a list of existing licensees of both its new licensing program and two pre-existing programs. The list contained the date of the conclusion of each agreement as well as the agreed licence fees. The names of the licensees were, however, redacted.

Wiko did not react to the 2018 offer for more than three months. On 15 October 2018, following a respective reminder sent by Sisvel on 14 September 2018, Wiko replied, without, however, commenting the 2018 offer; it just referred back to its counteroffer dated 11 November 2016. Wiko also criticized the fact that Sisvel did not disclose the names of the existing licensees so far.

In response to that claim, Sisvel shared a draft Non-Disclosure Agreement (NDA) with Wiko on 22 October 2018, based on which it would be willing to disclose the names of the existing licensees. Wiko refused to sign the NDA proposed by Sisvel.

In October 2018, the Federal Patent Court upheld the SEP in suit in part. Subsequently, the District Court moved on with the infringement proceedings. After the end of the oral hearings in July 2019, Wiko made a new counteroffer to Sisvel and provided the latter with additional information. However, Wiko did not increase the amount of security deposited after its first counteroffer dated 11 November 2016.

In the beginning of September 2019, Sisvel set up an electronic data room containing redacted versions of Sisvel's existing licensing agreements with third parties and granted Wiko respective access rights. Wiko did not make use of this data room at any point in time.

On 4 September 2019, the District Court granted an injunction against Wiko and ordered the removal and destruction of infringing products from the market. It also confirmed Wiko's liability for damages on the merits and ordered Wiko to provide Sisvel with information required for the calculation of damages. Wiko appealed the decision of the District Court.

Shortly after the District Court rendered its decision, the term of the patent-in-suit expired. Sisvel, however, enforced the injunction granted by the District Court.

With the present judgment [135] (cited by http://lrbw.juris.de/cgi-bin/laender_rechtsprechung/list.py?Gericht=bw&GerichtAuswahl=Oberlandesgerichte&Art=en&sid=2b226ea73cc9637362d8e1af04a34d05), the Higher District Court (Oberlandesgericht) of Karlsruhe (Court) predominantly upheld the judgment of the District Court [136] .
 

B. Court's reasoning

The Court found that Wiko could not successfully raise a so-called 'FRAND-defence' based on an alleged abuse of market dominance (Article 102 TFEU) against the claims for injunctive relief and the recall and destruction of infringing products asserted by Sisvel. [137]

This question was still decisive in the present case, despite the fact that the patent-in-suit expired before the start of the appeal proceedings. The Court explained that the expiration of a patent affects only future acts of use (which, then, no longer constitute infringement): On the contrary, claims that had arisen prior to expiration based on acts of use during the lifetime of the patent are not impaired. [138] Whether claims were given before the expiration of the patent-in-suit is of particular importance, especially when the patent holder has enforced a (first-instance) judgment delivered in proceedings conducted within the term of protection of the patent, as it was the case here. [139]
 

Dominant market position

Having said that, the Court agreed with the finding of the District Court that Sisvel had a market dominant position in terms of Article 102 TFEU with respect to the patent-in-suit in the relevant time period prior to its expiration. [140]

The Court followed the District Court also insofar, as it confirmed that, by filing an infringement action, Sisvel had not abused its market dominance.
 

Notification of infringement

In the eyes of the Court, Sisvel had sufficiently notified Wiko about the infringement of the patent-in-suit prior to filing a court action. [141] The purpose of the notification of infringement is to draw the implementer's attention to the infringement and the necessity of taking a license on FRAND terms and conditions. [142] In terms of content, the notification must identify the patent infringed, the form of infringement and also designate the infringing embodiments. [142] Detailed technical or legal analysis of the infringement allegation is not required. [142] The production of so-called 'claim charts', which is common in practice, will, as a rule, suffice, but is not mandatory. [142] If the patent holder offers a portfolio licence, respective extended information duties occur. [142]

In the present case, it was not disputed that Sisvel had notified Wiko about the patent-in-suit prior to litigation. [143] As far as Wiko complained that no claim charts were presented before trial, the Court reiterated that no respective obligation of Sisvel existed. [144] What is more, the Court held that the court action initially filed by Sisvel, which did not include claims for injunctive relief and the recall and destruction of infringing products, could also be seen as an adequate notification of infringement. [143]
 

Willingness to obtain a licence

The Court then found that Wiko behaved as an unwilling (potential) licensee both prior and during the infringement proceedings [145] . The Court agreed with the assessment of the District Court that Wiko delayed the licensing negotiations between the parties with the goal to avoid taking a licence for as long as possible, in order to gain economic benefits. [146]

According to the Court, the 'expression of a general willingness to license' is not sufficient for assuming that an implementer is a 'willing licensee'. [147] Moreover, the implementer must 'clearly and unambiguously' declare willingness to conclude a license agreement on FRAND terms, 'whatever FRAND terms may actually look like" [147] . The respective declaration must be 'serious and unconditional'. [147]

The Court highlighted that for the assessment of willingness the overall facts and the particular conduct of the implementer shall be taken into account. [147] Willingness is not 'static': the finding that an implementer was willing (or unwilling) at a certain moment in time does not remain unchanged henceforth. [147]

The implementer must always be willing to obtain a licence and participate in negotiations in a 'target-oriented manner'; since implementers might be inclined to delay negotiations until the expiration of the patent-in-suit, there is a need to make sure that their behaviour in negotiations will not lead to delays. [148] Moreover, it should be expected that a willing implementer would seek a license as soon as possible, in order to shorten the period, in which it makes use of the patent-in-suit or the SEP holder's portfolio without authorisation and without paying licensing fees. [149] Accordingly, a willing licensee would not consider the 'negotiation obligations' of the SEP holder primarily as a means to defend itself against a court action, but as a means to utilize in order to reach a FRAND agreement, if needed. [149]

In the view of the Court, the above requirements are in line with the Huawei v ZTE judgment (Huawei judgment or Huawei) [150] of the Court of Justice of the EU (CJEU). [151] In Huawei, CJEU focused on the will of the infringer to conclude a license agreement on FRAND terms and emphasized that the latter must not pursue 'delaying tactics'. The Court explained that, although in Huawei the requirement to refrain from 'delaying tactics' is expressly mentioned only with respect to the duty of the implementer to react to a licensing offer of the SEP holder, it applies 'at all times' as long as the implementer uses the patents without a licence; otherwise, the suspension of SEP holder's right to the injunctive relief cannot be justified. [152]

In this context, the Court pointed out that not every 'reluctant involvement' of the implementer in licensing discussions will necessarily allow for the assumption of unwillingness. [153] Such behaviour could be justified in individual cases, especially when the SEP holder does not act in a 'target-oriented' manner itself. [153] Nevertheless, implementers must, as a rule, react timely even to a belated action of the SEP holder. [153] Furthermore, implementers must, in principle, inform the SEP holder of any objections at an early stage and should not wait to raise those much later in court proceedings. [153]

Looking at Wiko's conduct, the Court criticized especially the fact that it became active mostly as a reaction to new developments in the pending infringement proceedings. [154] A willing implementer would have, however, sought a licence independently of the initiation of legal steps and independently of the course of litigation. [155] As an example, the Court highlighted the fact that Wiko's counteroffer dated 11 November 2016 was made only shortly after Sisvel extended the infringement suit by adding a claim for injunctive relief. [156] Wiko also provided information on past acts of infringement only a few days prior to the first oral hearing in February 2017 (and refrained from constantly updating this information afterwards, as it would be expected by a willing licensee). [157]

The Court identified also further facts that indicate that Wiko engaged in delaying tactics. [158] Wiko reacted to Sisvel's licensing offers made during the course of the proceedings always belatedly and only after a reminder by Sisvel (for instance, it took Wiko more than three months to react to the 2018 offer) [159] . It also demanded further claim charts in February 2018, years after the action was filed. [160]

Wiko's refusal to sign the NDA offered by Sisvel -despite multiple reminders of the latter- without providing any reasons was also considered as a sign of unwillingness. [161] According to the Court, it should be expected by a willing licensee, who is not interested in delaying negotiations, to swiftly raise any criticisms regarding an NDA proposed by the SEP holder in writing or by e-mail, and not wait to raise any concerns several months later in the infringement proceedings, as Wiko had done here. [162] The Court also considered the fact that Wiko did not access the electronic data room set up by Sisvel containing redacted versions of Sisvel's third party agreements as an additional indication of unwillingness. [163]

Furthermore, the Court clarified that -contrary to Wiko's view- school holidays and/or staff shortages cannot provide sufficient justification for delays in negotiations. [164] Even if such circumstances occur, a willing implementer would have communicated any obstacles immediately. [164] Wiko failed to do so.
 

SEP holder's offer

Since Wiko was found to have been an unwilling licensee, the Court explained that the question whether Sisvel fulfilled its duty to make and adequately elaborate a FRAND licensing offer, was no longer decisive. [165] In fact, no such duty had arisen in the present case, due to Wiko's unwillingness to obtain a licence. [165] Notwithstanding the above, the Court provided guidance on the content and extend of the respective obligation of the SEP holder.

The Court first explained that FRAND is a 'range', which leaves room for flexibility. [166] As a rule, FRAND is determined in bilateral good faith negotiations between SEP holders and implementers, taking into account the specific circumstances of each individual case [166] ; indeed, parties are best situated to determine the exact content of FRAND in a specific setting. [166]

In order to meet its obligation, an SEP holder must present an offer to a willing licensee, which 'in general' complies with FRAND requirements and is fair, reasonable and not discriminatory with respect to the 'average licensee'. [167] The SEP holder shall further explain its offer in a way that permits the licensee to understand the assumptions, on which the offered rate and further conditions are based. [168] The rationale behind this obligation is to create a sufficient basis of information for the implementer for assessing the offer and eventually formulating a counteroffer. [169]

In this context, the Court made clear that implementers should not expect that the SEP holder individually adapts its (first) offer to the specific circumstances of each particular case. [170] The SEP holder's FRAND commitment does not give rise to such obligation. [170] The (first) offer is intended to launch the negotiations and provide an adequate information basis to the implementer, who will then be in a position to suggest necessary amendments by means of a counteroffer. [170] Accordingly, it will regularly be acceptable that the SEP holder's offer is 'not clearly and evidently' non-FRAND and sufficient information was provided to the implementer. [171]

The Court dismissed the notion that the implementer is obliged to negotiate (and eventually) make a counteroffer, only when the SEP holder's offer was fully FRAND-compliant. [171] This would bring the negotiations to a stand-still and, therefore, conflict with the spirit of the Huawei judgment, which is to encourage the parties to reach agreement on the licensing terms. [172] Moreover, the Court explained that –irrespective of whether the offer triggers an obligation of the implementer to submit a counter-offer– the latter will be regularly required, at least, to analyse the SEP holder's offer in due course and express any objections and queries without delay. [173]

Against this background, the Court found that none of the offers made to Wiko during the infringement proceedings was 'clearly and evidently' non-FRAND. [174] The fact that the offers did not define the start of the contract or the amount of royalties payable for past uses was not considered problematic. [175] The Court also found that the royalty rates offered were not 'evidently non-FRAND', since they were sufficiently substantiated by reference to existing licensing agreements and calculated on basis of a 'top-down' method. [176] A need to calculate royalties on grounds of the costs that incurred for the creation of the patented invention (cost-based approach) was not given, since this factor was not relevant for establishing value. [177]

In addition, the Court did not raise any concerns against the fact that Sisvel's offer concerned a worldwide portfolio licence: On the one hand, agreements with such scope are common in the telecommunications industry. [178] On the other hand, Wiko had worldwide activities, so that a licence with a limited scope would not provide sufficient coverage. [178]

The fact that some of the patents included in Sisvel's portfolio were -allegedly- not standard-essential did not render the offers 'un-FRAND'. [179] The Court stressed that, for the purpose of licensing negotiations and the conclusion of a licence, it is not necessary to conclusively clarify whether each portfolio patent is standard-essential. [180] Implementers can reserve the right to challenge the validity and essentiality of affected patents even after the conclusion of a licensing agreement. [180]

Similarly, the Court had no objections against a clause placing the burden of proof with regard to the exhaustion of licenced patents on Wiko. [181] This rule corresponds with the common allocation of the burden of proof under German law and does not place unreasonable weight on the licensee, since it will be better situated to trace the licensing chain by engaging with its suppliers. [182]

The question whether an adjustment clause is necessary for an offer to be considered FRAND was left unanswered by the Court. [183] Such clause would allow the implementer to adapt the agreed royalties, in case that patents fall out of the scope of the licence (e.g. due to expiration or invalidation). The Court saw no need for a respective contractual provision, since the licences offered by Sisvel would expire and, therefore, be re-negotiated after five years. [183] The Court did not express any concerns against the term of the offered licence or the termination clauses contained therein, either. [184]

Furthermore, the Court made clear that Sisvel had adequately elaborated the licensing rates offered to Wiko. [185] In the infringement proceedings, Sisvel responded to the 'top-down' calculation of Wiko in detail and made relevant clarifications. [186] According to the Court, Sisvel was under no circumstances obliged to elaborate on a cost-based calculation of royalties, as requested by Wiko; such demand was considered just another means to delay negotiations. [187]
 

Implementers' counteroffer

The Court also found that the counteroffers made by Wiko during the course of the first instance infringement proceedings were not FRAND. [188]

The Court highlighted that the obligation of the implementer to submit a FRAND counteroffer to the SEP holder is already triggered, when the previous licensing offer of the latter is not 'clearly and evidently' non-FRAND and sufficient information was provided, enabling the implementer to formulate its counteroffer. [189]

Having said that, the Court took the view that the royalty rates which Wiko offered were very low and, thus, not FRAND-compliant. [190] The Court criticized especially the fact that the rates were significantly lower than the rates which were considered to be adequate in previous court decisions. [191] Notwithstanding the above, the Court explained that, even if Wiko's counteroffer had been FRAND, this would not change the conclusion that Wiko had acted as an unwilling licensee. [192] According to the Court, a willing licensee would not have submitted a counteroffer around one year after receipt of the SEP holder's offer, as Wiko did. [193]
 

C. Other important issues

The Court stressed that for generating pressure-free licensing negotiations during pending infringement proceedings, it will, as a rule, be sufficient, if the proceedings are stayed with a view to parallel nullity proceedings concerning the patent-in-suit. [194] This is particularly true, when the SEP holder takes the respective initiative, as it was the case here. [194] Nevertheless, even if a pressure-free negotiation situation is not given, the infringers is not released from the obligation to act in good faith and engage in licensing negotiations, for instance by analysing a licensing offer of the SEP holder. [194] The refusal of the infringer to act accordingly could, in the eyes of the Court, allow the conclusion that it is an unwilling licensee. [194]

Apart from that, the Court confirmed that Wiko had no legal ground for requesting full disclosure of Sisvel's third party agreements [195] . Even if one would recognize a duty of the SEP holder to share information about the core content of existing licensing agreements (that are still in force), it is questionable whether this duty would also extend to agreements signed by previous patent holders. [196] The Court expressed particular doubts that this applies in cases in which a portfolio was assembled from patents acquired from different patent holders, since the relevance of bilateral or pool licensing agreements of the former patent holder can be limited in this case. [197]

Furthermore, the Court expressed the view that under German law a so-called 'covenant not to sue' does not have the effect of a (royalty-free) licence: such agreements will, as a rule, have only a procedural effect in terms of a pactum de non petendo, excluding only the initiation of court proceedings. [198]

Finally, the Court denied Wiko's motion to order a stay in the appeal proceedings due to the recent referral of several questions regarding the interpretation of the Huawei framework to the CJEU by the District Court of Düsseldorf in the matter Nokia v Daimler [199] . [200] According to the Court, it appears unlikely that the CJEU will establish criteria, by which SEP-based court actions against implementers engaging in delaying tactics would amount to an abuse of market dominance. [201]
 

  • [134] The action was extended to a third defendant, an individual person, who had served as a managing director for both aforementioned companies.
  • [135] Sisvel v Wiko, Higher Regional Court Karlsruhe, judgment dated 9 December 2020, Case-No. 6 U 103/19
  • [136] The claims for injunctive relief, rendering of accounts and damages asserted against the former managing director of the two Wiko companies were limited to the period of time until the end of its tenure; ibid, paras. 265-288.
  • [137] Ibid, para. 289.
  • [138] Ibid, paras. 284 et seqq.
  • [139] Ibid, para. 287.
  • [140] Ibid, paras. 290 et seq. Insofar, the Court made clear that a market dominant position ceases to exist after the expiration of the relevant patent.
  • [141] Ibid, paras. 292 et seqq.
  • [142] Ibid, para. 293.
  • [143] Ibid, para. 297.
  • [144] Ibid, paras. 297 et seq.
  • [145] Ibid, para. 299.
  • [146] Ibid, para. 299 and paras. 320 et seqq.
  • [147] Ibid, para. 301.
  • [148] Ibid, para. 302.
  • [149] Ibid, para. 303.
  • [150] Huawei v ZTE, Court of Justice of the EU, judgment dated 16 July 2015, Case-No. C-170/13.
  • [151] Sisvel v Wiko, Higher Regional Court of Karlsruhe, judgment dated 9 December 2020, para. 304.
  • [152] Ibid, para. 304.
  • [153] Ibid, para. 305.
  • [154] Ibid, paras. 321 et seqq.
  • [155] Ibid, para. 321.
  • [156] Ibid, para. 322.
  • [157] Ibid, paras. 323 et seq.
  • [158] In addition, the Court found that Wiko’s lack of willingness to obtain a license is also manifested in the fact that it (i) attempted to impede the enforcement of the first instance ruling of the District Court by questionable means (para. 335) and (ii) did not accept the offer of the District Court of The Hague, in which proceedings between the parties were pending in parallel, to engage in settlement negotiations (para. 336).
  • [159] Ibid, paras. 325, 328 and 331.
  • [160] Ibid, para. 327.
  • [161] Ibid, paras. 333 et seqq.
  • [162] Ibid, paras. 334 and 338.
  • [163] Ibid, paras. 337 and 341 et seqq.
  • [164] Ibid, para. 330.
  • [165] Ibid, para. 342.
  • [166] Ibid, para. 307.
  • [167] Ibid, para. 308.
  • [168] Ibid, paras. 308 and 310.
  • [169] Ibid, para. 309.
  • [170] Ibid, para. 310.
  • [171] Ibid, paras. 311 et seqq.
  • [172] Ibid, paras. 311 and 313 et seqq.
  • [173] Ibid, paras. 316 et seqq.
  • [174] Ibid, para. 352.
  • [175] Ibid, para. 353.
  • [176] Ibid, paras. 354 et seqq.
  • [177] Ibid, para. 358.
  • [178] Ibid, para. 359.
  • [179] Ibid, para. 360.
  • [180] Ibid, para. 361.
  • [181] Ibid, para. 362.
  • [182] Ibid, para. 363.
  • [183] Ibid, paras. 365 et seqq.
  • [184] Ibid, paras. 367 et seqq.
  • [185] Ibid, para. 366.
  • [186] Ibid, para. 344.
  • [187] Ibid, para. 346.
  • [188] Ibid, paras. 379 et seqq.
  • [189] Ibid, para. 311.
  • [190] Ibid, paras. 379 et seqq.
  • [191] Ibid, para. 380.
  • [192] Ibid, para. 378.
  • [193] Ibid, para. 384.
  • [194] Ibid, para. 348.
  • [195] Ibid, para. 389.
  • [196] Ibid, paras. 389 et seq.
  • [197] Ibid, para. 391.
  • [198] Ibid, paras. 260 et seqq.
  • [199] Nokia v Daimler, District Court of Düsseldorf, order dated 26 November 2020, Case No. 4c O 17/19.
  • [200] Sisvel v Wiko, Higher Regional Court of Karlsruhe, judgment dated 9 December 2020, para. 395.
  • [201] Ibid, para. 395.

Updated 20 10月 2020

Sisvel v Wiko

LG Mannheim
4 9月 2019 - Case No. 7 O 115/16

A. 内容

原告Sisvelは、公平、合理的かつ非差別的(FRAND)な条件にて規格実施者に利用を認めるとの約束に基づき、UMTS及びLTE無線通信の規格に必須である(と見込まれる)と宣言された特許を保有している(標準必須特許又はSEP)。Sisvelは、自らのSEPを含め、複数のSEP保有者の特許で構成されるパテントプールを管理している(パテントプール)。

被告は、Wikoグループのフランスに所在する親会社及びドイツに所在する子会社(Wiko)である。Wikoは、LTE規格を実施する携帯電話を特にドイツにおいて販売している。

2015年6月、Sisvelは、パテントプールの存在及びライセンス取得が必要である旨をWikoに通知した。両当事者は、ライセンス契約の協議に入った。Sisvelは、パテントプールに含まれるSEPの情報について、その複数の特許の規格必須性を示したクレームチャートを添えてWikoに提出した。2016年6月1日、Sisvelは、当該パテントプールを対象とするライセンスについてWikoに申出を行ったが、合意には至らなかった。

2016年6月22日、Sisvelは、1つの特許がLTE規格に抵触していることに基づき、Wikoを相手方として、ドイツのマンハイム地方裁判所(本裁判所)に訴訟を提起した(権利侵害訴訟)。Sisvelは、実体的事項に関するWikoの損害賠償責任を確認する宣言的判決とともに、情報及び計算書の提出を求めた。 2016年6月23日、Sisvelは、Wikoのドイツ子会社に対して自己のSEPのみを対象とする双務的ライセンスをオファーしたが、このオファーは、承諾されなかった。さらにWikoは、SEPの無効確認を訴えて、ドイツ連邦特許裁判所に訴訟を提起した(無効確認訴訟)。

2016年10月4日、Sisvelは、侵害訴訟での訴えを変更し、差止命令による救済手段、並びに侵害性を有する製品の市場からの排除及びその後の破棄を追加的に求めた。

2016年11月11日、WikoはSisvelにカウンターオファーを申し出た。その後、Wikoは、当該カウンターオファーに従い、保証金及び情報をSisvelに提供した。

訴訟手続中に、Sisvelは、プールライセンスに関し、ロイヤルティ料率を含めた新たな申出をWikoに行った。Wikoはこれについても拒絶した。2017年12月22日、Sisvelは、並行して行われていた特許の無効確認訴訟においてドイツ連邦特許裁判所によるSEPの有効性にかかわる判断が下るまで、権利侵害訴訟手続の停止を命じるよう本裁判所に申し立てた。Wikoは、Sisvelの申立てに同意した。2018年1月30日、権利侵害訴訟手続の停止が本裁判所により命じられた。

2018年6月26日、権利侵害訴訟手続の停止中に、Sisvelは、自らが策定した、新たな内容のライセンスプログラムに基づき、あらためてWikoにライセンスオファーを申し出た(2018年オファー)。

2018年オファーと同時に、Sisvelは、―とりわけー選定した20件の特許に関するクレームチャート及び新規ライセンスプログラムと既存の2つのプログラム双方の既存のライセンシーのリストをWikoに提供した。当該リストには、各契約の締結日と合意されたライセンス料が記載されていた。しかし、ライセンシーの名は黒塗りされていた。

Wikoは3か月超にわたり2018年オファーに対応しなかった。2018年10月15日、WikoはSisvelに回答したが、2018年オファーの内容に対しては意見を述べず、2016年11月11日付のカウンターオファーを引用するにとどまった。さらにWikoは、Sisvelが2018年オファーの際に提出したリストの中で既存のライセンシーの名を開示しなかったことを批判した。

この主張に応じ、Sisvelは、2018年10月22日、Wikoに秘密保持契約(NDA)の草案を送付した。Sisvelは、WikoがNDAに署名する時点で既存のライセンシーの名を開示するつもりであった。しかしながら、Wikoは、Sisvelから提案されたNDAに署名することを拒否した。

2018年10月、ドイツ連邦特許裁判所は、係争中のSEPを部分的に認めた。爾後、本裁判所は、権利侵害訴訟手続に取り掛かり、特にFRAND関連問題について協議した。

2019年7月の口頭審理終了後、WikoはSisvelに新たなカウンターオファーを申し出、追加情報をSisvelに提供した。しかしWikoは、2016年11月11日付の初回のカウンターオファー後には、保証金額を増額しなかった。

本判決において [202] 、本裁判所は、Wikoに差止命令を下すと共に、侵害性を有する製品を市場から排除し、滅失させるよう命じた。さらに本裁判所は、実体的事項に関するWikoの損害賠償責任を確認し、損害額の算定に必要な情報をSisvelに提供するようWikoに命じた。


B. 判決理由

本裁判所は、Wikoの製品が係争中の特許を侵害していると認めた [203] 。係争中の特許の必須性は、両当事者間で争われなかった [204]

さらに本裁判所は、EU機能条約(TFEU)第102条により、Sisvelが差止命令による救済手段及び権利侵害訴訟において侵害性を有するとされる製品のリコール及び破棄を求める請求権の行使を妨げられるものではないと判示した。Wikoは現訴訟の申立てにより、SisvelがTFEU第102条に反して市場での支配的な地位を濫用していたと異議を申し立てた。

本裁判所の見解によれば、SisvelはHuawei対ZTE事件 [205] においてEU司法裁判所(CJEU)が定めた行動義務(Huaweiフレームワーク又は義務)を履行していたため、本件は支配的な地位の濫用にあたらない。これに対しWikoは、Huaweiフレームワークを遵守していなかった。

Huaweiフレームワーク

これまでの判例法から外れて、本裁判所は、権利侵害訴訟手続の過程で両当事者がHuawei義務を是正することが可能であるとの見解を示した [206] 。しかしながら、これには、CJEUにより要請される通り、両当事者間で圧力のない協議ができるようになることが必要である。このため、両当事者は、並行する無効確認訴訟において連邦特許裁判所の決定がなされるまで、審理停止の申立て [207] 又は同意を得た上での手続停止等の利用可能な手続文書を使用して、訴訟手続の一時停止を求めなければならない [208]

上記を背景に、本裁判所は、権利侵害訴訟手続開始後Huaweiフレームワークに基づき情報開示義務の是正を求めるSEP保有者に対し、審理停止を申し立てるよう求めた [208] 。当該申立てがなされた場合には、「誠実意思を有する実施者は訴訟手続停止に同意するであろう」と本裁判所は期待している [208]

本裁判所は、係争中の権利侵害訴訟手続の過程でHuawei義務の欠点を是正する機会を両当事者に与えることは、英国控訴院(Unwired Planet対Huawei) [209] とハーグ控訴裁判所(Philips対Asus) [210] の双方で採用された「セーフハーバー」方式に準じていると述べた。上記裁判所はいずれも、Huaweiフレームワークについて厳密に実施すべき強制的な正式手続とみなしておらず、したがって、CJEUにより定められた協議の枠組みから逸脱したとしても、必ずしも、特許保有者による差止命令の請求を排除する濫用的な行動にはあたらない [211] 。さらに、これに該当するかどうかは、ケースバイケースで評価する必要がある [212]

権利侵害通知

その上で本裁判所は、Sisvelが係争中のSEPの侵害について権利侵害訴訟手続開始前にWikoに通知するHuawei義務を履行していたと認めた。

SEP保有者の各通知の内容に関し、本裁判所は基本的に、従前の決定と同じ要件を適用した。本裁判所は、当該通知において (1) 係争中の特許についてその特許番号を含めて記載し、(2) 当該特許が規格に必須として関連標準化機関に宣言されていることを通知し、(3) どの規格について当該特許が必須であるのかを示し、かつ、(4) 実施者の製品又はサービスのうち当該規格を実施する技術的機能を説明しなければならないと認めた [213] 。適切とする詳細の水準については、ケースバイケースで判断する [213] 。本裁判所は、原則として、特許保有者が、SEPライセンス許諾の交渉において慣習的に用いられるクレームチャートを実施者に提供することにより、その通知義務を履行したことになる旨を確認した [213] 。本裁判所はさらに、企業グループの親会社に通知が送付された場合、通常、Huaweiフレームワークにおいて十分であることを再確認した [213]

SEP保有者の申出

本裁判所は、SisvelがまたWikoに対して書面による明確なFRAND条件でのライセンスの申出を行うHuawei義務を履行していたことも認めた。各評価に関し、本裁判所は、権利侵害訴訟手続停止中にSisvelからWikoに対してなされた最後の申出である2018年オファーのみを検討した [214]

まず、本裁判所は、どの具体的なライセンス料や追加的な契約条件がFRANDの「客観的側面に該当する」のかについて、侵害を管轄する裁判所がこれを判断する義務を負うものではないとする自らの立場を重ねて強調した [215] 。カールスルーエ高等地方裁判所(superior Higher District Court of Karlsruhe)が以前に示した見解に反し、本裁判所は、CJEUが差止命令及び製品リコールに関する訴訟手続についてFRAND条件の「正確な数量的判断(precise mathematical determination)」を「負わせる」つもりはなかったとの考えを支持した [216] 。さらに、FRANDへの該当が見込まれる条件には「幅」があるため、差止命令の要求がTFEU第102条に抵触するのは、特段の交渉状況及び市況に鑑みて、SEP保有者の申出が「搾取的な濫用」にあたるような場合に限られる [215] 。すなわち、本裁判所の認識は、英国控訴院のUnwired Planet対Huaweiと共通であった [209]

上記にかかわらず、本裁判所は、権利侵害を管轄する裁判所がSEP保有者のライセンスの申出がFRANDに適合するか否かにつき、単なる「表面的」な評価ではなく、それ以上の評価を行うべきであることを明確にした。権利侵害を管轄する裁判所は、具体的な申出の全体的な内容について、両当事者の交渉上の立場における典型的な当初の違いにかかわらず、誠実に行為する実施者に対し当該申出に応じることを要求するものであるか否かを検討しなければならない [217] 。原則として、このような義務は、SEP保有者が自らの申出がFRAND条件での申出であると判断する理由を立証する方法でロイヤルティの算定を説明する場合に生じる [218] 。プールライセンシングプログラム又は標準ライセンシングプログラムが存在する場合は、通常、各プログラムが市場で受け入れられていることを立証すれば十分である。プールごとに十分な数のライセンスが許諾されている場合、特許保有者は、当該プールに包含される特許に言及した適切な数量のクレームチャートを提示して、当該プールの構成を概説すれば良い [219]

この状況において、本裁判所は、特許保有者の申出がFRANDに適合するか否かに関し実施者が申立てをする場合、原則として、個別の契約条項の違法性(の主張)を根拠として申立を行うことができない旨を指摘した。さらに、申出がFRANDに適合しているか否かについては、包括的な契約の概要に基づき評価しなければならない [220] 。例外が適用されるのは、特定の条項が「容認できない効果(unacceptable effect)」を有する場合に限られる [220] 。本件において、本裁判所は、2018年オファーのいずれの条項にもこのような効果がないと判断した [220] 。 とりわけ、本裁判所は、ライセンシー(ここではWiko)に申し出がなされたライセンスの対象たる特許の消尽に関する立証責任を定めた条項が許容されると判断した [221] 。同様の事件におけるデュッセルドルフ地方裁判所の見解とは対照的に、本裁判所は、ライセンシーがサプライヤーを関与させることによりライセンス網を追跡しやすい立場にあることから、関連の事実を確証するようライセンシーに要請することが適切であると論じた [221]

また、本裁判所は、提示されたライセンスの期間を5年に制限する条項が反トラストの観点から「容認できない効果(unacceptable effect)」を有するとは判断しなかった。本裁判所は、その5年の期間について、急速な技術の発展を特徴とする無線通信業界において実勢的な慣行に準じたものであると判示した [222]

さらに本裁判所は、ライセンシーによる報告義務の違反や30日を超える支払遅延が生じた場合のライセンス契約の例外的な終了を求める権利を定めた条項について、上記の「容認できない効果(unacceptable effect)」がないことを指摘した [222]

本裁判所は、2018年オファーにおいて、契約期間中、対象特許の数に変更が生じた場合に合意済みロイヤルティ料率の調整について定めた条項が含まれていなかったことに異議を唱えなかった。本裁判所の見解によれば、FRAND条件でのライセンスに当該条項を含めることは求められていない [222] 。しかしながら、プールを構成する特許の多数がライセンス期間締結後間もなく満了する場合には、例外が認められるべきである [222] 。一般的に、ライセンスの申出において、契約目的の履行不能性を理由にライセンスの調整を要請する両当事者の制定法上の権利(ドイツ民事法典第313条1項)が制限又は排除されていない場合には特に、「調整」条項がなくとも問題にならない [222]

非差別性/秘密保持

FRANDライセンスの申出の非差別的要素に関して、本裁判所は、TFEU第102条においては、係争中の権利侵害訴訟手続において、被告に対する申出が同様の状況に置かれた競業者に比べて被告を差別するものでないことを証明する特許保有者の義務(二次的な)が定められているとの見解を示した [219]

上記にかかわらず、本裁判所は、いかなる事例においても上記の義務が法的に「全面的な透明性」を伴うわけではないことを明確にした [219] 。SEP保有者の反トラスト義務により、法的保護に値する被告の秘密保持上の権利が常に重視されるものではない。さらに言えば、個々の事例の特別な状況により、秘密性を保護しなければならない可能性がある [219]

本裁判所は、SEP保有者と同様の状況に置かれた第三者たるライセンシーとの間の既存のライセンス契約(類似契約)に定められた情報を特段に参照した上で、当該契約を開示する特許保有者の義務については、侵害を管轄する裁判所により、訴訟手続における両当事者の訴答を考慮した上で、ケースバイケースで判断されるべきであるとの見解を示した [219]

本裁判所によれば、特許保有者は、保護されるべき秘密保持上の権利の存在を確立しなければならない。類似契約に秘密保持条項が適用されるというだけでは、本来的には、特許保有者の開示義務の範囲を制限する根拠とはならない [223] 。これに対し被告は、特許保有者のライセンスの申出がFRANDに該当するか否かを評価するに際し、要請した情報が必要であった理由を説明しなければならない [223] 。被告は、SEP保有者の差別的と見られる行動を示し、具体的な事実を確証しなければならない [224]

この点を考慮し、本裁判所は、いかなる場合においてもSEP保有者が権利侵害訴訟手続において既存の類似契約書すべてを提出する義務を負うとのデュッセルドルフ裁判所の見解に異議を申し立てた [225] 。とりわけ、特許保有者が実施者との間で標準的なライセンス契約のみを締結している場合、当該契約の条件が公開されているのであれば、本裁判所には、訴訟手続において(膨大な)同一の契約書を提出する義務を特許保有者に負わせる理由がない。すなわち、それまでに締結した(標準的な)ライセンス契約の件数を開示すれば十分である [225]

したがって、本裁判所は、2018年オファーに際しSisvelからWikoに提出された既存ライセンシーのリストについて、ライセンシーの名が黒塗りされていたとしても、当該オファーのFRAND該否の確証に十分であったと認めた。本裁判所の見解において、Wikoは、2018年オファーのFRAND該否を評価するために既存ライセンシーの身元情報が必要であった理由を説明していなかった [226] 。さらに本裁判所は、Wikoが既存ライセンシーの身元開示を目的として訴訟手続が停止されている間、Sisvelから提示されたNDAの締結を拒絶していた事実も考慮した [227] 。2018年オファーのFRAND該否に異議がなかったため、本裁判所は、WikoによるNDAの締結の拒絶がHuaweiフレームワークを準拠する意思のないこととみなされるかどうかについて判断を下さなかった。しかしながら、本裁判所は、実施者が適切なNDAの締結を拒絶した場合は原則としてこれをSEP保有者の申出の評価に関連して検討すべきとの、この点に関しデュッセルドルフ裁判所が示した見解に同意した [227]

さらに、本裁判所は、ドイツ民事訴訟手続法(Zivilprozessordnung, ZPO)第142条に従い管轄裁判所により発せられた文書提出命令を通じ、権利侵害訴訟手続において類似契約の使用を促す可能性についても検討した [224] 。このオプションは、特に、類似契約に定められた秘密保持条項により、裁判所命令が発せられた場合に限り契約の開示が認められる個別の事例において侵害を管轄する裁判所により検討される。本裁判所によれば、当該秘密保持条項は、それ自体では反トラスト法に反するものでないことから、特許保有者が訴訟手続において保護に値する秘密保持上の利益を確証できない場合を除き、尊重されるべきである [224] 。特許保有者が、秘密保持条項の拘束を受け、審理に際し類似契約書を提出する意思がある場合には、侵害を管轄する裁判所は、各案件の具体的な状況に基づき、ZPO第142条に従い文書提出命令を発する [224] 。特許保有者が当該命令に従わない場合、当該裁判所は、Huaweiフレームワークにおける両当事者の行為を全体的に評価する上で、その行動を不誠実さの顕れであると判断する場合がある [224] 。ZPO第142条に従い発せられた裁判所命令に基づき類似契約書の閲覧が認められた後、実施者が訴訟手続停止に同意しない場合も、同様に適用される [224]

実施者のカウンターオファー

本裁判所は、WikoがSisvelに対し、正当な過程でFRAND条件の対案(カウンターオファー)を行うHuawei義務を履行していなかったと認めた。各評価に関し、本裁判所は、2018年オファーに対するWikoの対応に注目した [228]

本裁判所は、申出がFRANDに該当するとみなしているか否かにかかわらず(通常はあてはまる)、実施者が具体的な事実に基づき、SEP保有者のライセンスオファーに対応する義務を負っていると明言した [224] 。さらに、実施者は、各事例の事実、特定分野での業界慣行及び誠実な原則を検討の上、可能な限り早急に対応しなければならない [208]

Wikoが3か月を超える期間、2018年オファーに一切対応しなかったことに鑑み、本裁判所は、Wikoが上記の義務に違反すると判示した [204] 。本裁判所の見解では、Wikoは時間の引き延ばし戦術をとったとされる [204] 。本裁判所は、フランスの休校期間や、(Wikoの陳述によれば)ライセンス関連業務を担当した従業員がわずか2名であったという事実が、Wikoによる対応の遅延の十分な根拠になるとは認めなかった [228] 。国際的な業務に携わる会社として、Wikoは、今後、各問題に対処できるよう十分な人材を確保すべきである [228]


C. その他の重要事項

差止命令並びに侵害性を有する製品の市場からの排除及び破棄を求めたSisvelの請求とは別に、本裁判所は、実体的事項に関するWikoの損害賠償責任を認め、宣言的判決を下した [229]

本裁判所は、Wikoが係争中の特許を著しく侵害したと判断した。とりわけ、Wikoは、少なくとも過失的行為をなした [229] 。Wikoは、極めて複雑な標準化技術(特に、規格に組み込まれる膨大な数の特許)が極めて複雑であるため、知的財産権に関する状況を評価することが困難になった(よって、過失を除外すべき)と主張した。しかしながら本裁判所は、基盤となる技術がより一層複雑になったために、実施者側に対するデューディリジェンス要件がさらに拡大したことを明言した [230]

  • [202] Sisvel対Wiko、マンハイム地方裁判所2019年9月4日、事件番号7 O 115/16。
  • [203] 同判決、17~31頁。
  • [204] 同判決、46頁。
  • [205] Huawei対ZTE、EU司法裁判所2015年7月16日判決、事件番号C-170/13。
  • [206] Sisvel対Wiko、マンハイム地方裁判所2019年9月4日、事件番号7 O 115/16、42頁。
  • [207] 同判決、43頁及び51頁以下。
  • [208] 同判決、42頁。
  • [209] Unwired Planet対Huawei、英国控訴院2018年10月23日判決、[2018] EWCA Civ 2344、第282節。
  • [210] Philips対Asus、ハーグ控訴裁判所2019年5月7日、事件番号200.221 .250/01。
  • [211] Sisvel対Wiko、マンハイム地方裁判所2019年9月4日、事件番号7 O 115/16、44頁。
  • [212] 同判決、44頁。
  • [213] 同判決、37頁。
  • [214] 同判決、47頁及び53頁。
  • [215] 同判決、38頁。
  • [216] 同判決、37頁。以下。
  • [217] Sisvel対Wiko、マンハイム地方裁判所2019年9月4日、事件番号7 O 115/16、39頁。
  • [218] 同判決、39頁。
  • [219] 同判決、40頁。
  • [220] 同判決、53頁。
  • [221] 同判決、54頁。
  • [222] 同判決、55頁。
  • [223] 同判決、40頁及び49頁。
  • [224] 同判決、41頁。
  • [225] 同判決、49頁。
  • [226] 同判決、50頁。
  • [227] 同判決、51頁。
  • [228] 同判決、47頁。
  • [229] 同判決、35頁。
  • [230] 同判決、35頁以下。

Updated 12 3月 2019

Fraunhofer-Gesellschaft (MPEG-LA) v ZTE

LG Düsseldorf
9 11月 2018 - Case No. 4a O 15/17

A. Facts

The Claimant, Fraunhofer-Gesellschaft zur Förderung der Angewandten Forschung, holds a patent essential to the practice of the AVC/H.264 standard concerning the compression of video data (Standard Essential Patent of SEP) [231] . The patent holder committed towards the relevant standardization body to make this patent accessible to users on Fair, Reasonable and Non-Discriminatory (FRAND) terms and conditions. The Claimant contributed the SEP in question to a patent pool administered by MPEG LA LLC (MPEG LA), comprising more the 5,000 patents referring to the AVC/H.264 standard (MPEG LA pool) [232] .

The Defendant, a German subsidiary of a Chinese group of companies, sells – among other things – mobile phones manufactured by its parent company (parent company) which practise the AVC/H.264 standard in Germany [233] .

MPEG LA uses a standard licensing agreement, which is publicly available at its website [234] . It has signed licensing agreements with approx. 1,400 implementers [234] .

By e-mail dated 8 September 2011, MPEG LA sent a copy of its standard licensing agreement to the Defendant’s parent company and informed the latter that its “mobile handset and tablet products” infringe patents included in its “AVC patent portfolio” (without indicating, however, either the concrete patent numbers or the specific infringing products) [235] .

On 15 September 2011, the parent company asked MPEG LA to send any relevant documents by mail to its IPR Manager [236] . A copy of MPEG LA’s standard licensing agreement reached the parent company in late September 2011 [237] .

In 2012, the parent company acquired patents included in the MPEG LA pool [232] .

Since MPEG-LA and the parent company could not reach an agreement on a licence covering the MPEG LA pool [238] , the Claimant brought an action against the Defendant before the District Court of Düsseldorf in Germany (Court), requesting for injunctive relief, information and rendering of accounts, the destruction and the recall of infringing products as well as for a declaratory judgement confirming Defendant’s liability for damages on the merits [239] .

During the proceedings, the Defendant declared its willingness to obtain a licence for the patent in suit and other SEPs of the Claimant referring to the AVC/H.264 standard [240] . Moreover, the Defendant sent to MPEG LA two signed copies of MPEG LA’s standard licensing agreement, along with a statement of accounts of its past sales and a bank guarantee [241] . MPEG LA did not countersign this agreement. It insisted, instead, on a licence that would cover all companies belonging to the same group as the Defendant [242] .

With the present judgment, the Court granted Claimant’s requests.


B. Court’s reasoning

The Court held that the mobile phones sold by the Defendant in Germany infringe Claimant’s SEP in suit [243] . It also found that by filing the present suit the Claimant did not abuse its dominant market position in violation of Article 102 of the Treaty for the Functioning of the EU (TFEU), since it had fully complied with the conduct obligations stipulated by the Court of Justice of the EU (CJEU) in the matter Huawei v ZTE [244] (Huawei obligations or framework) with respect to dominant undertakings [245] .

1. Dominant market position

The Court found that the Claimant holds a dominant market position in terms of Article 102 TFEU [246] .

The Court defined the relevant market for the assessment of dominance as the market for licences for any given patent [247] . A dominant market position can further also exist, when the patent holder can hinder competition in downstream markets for standard-compliant products and services [247] .

The Court made, however, clear that ownership of a SEP does not per se establish market dominance [248] . A dominant market position is given, when the use of the SEP is required for entering the market [248] . The same is true, if the patent user could not market competitive products or services, without access to the respective SEP [248] .

Based on these considerations, the Court saw no ‘reasonable’ doubt that the Claimant was a dominant undertaking: It was undisputed that almost all mobile phones available worldwide use the AVC/H.264 standard and that no “realistic” alternative to the MPEG LA pool existed in the licensing market for patents essential to this standard [249] .

2. Huawei framework

The Court found, however, that the Claimant did not abuse its dominant position by suing the Defendant in the present case, since its conduct was in line with the Huawei framework [250] . The Huawei framework establishes mutual conduct obligations for both SEP holders and SEP users, which need to be fulfilled step by step and one after another (meaning that each party’s obligation to act arises only after the other party has fulfilled its own obligation) [251] . Subject to the Huawei framework is not only the patent holder’s claim for injunctive relief, but also the claim for the destruction of infringing products [252] .

In this context, the Court pointed out that the Huawei framework applies, irrespective of whether a ‘well-established’ licensing practice concerning the asserted patents already existed before the CJEU delivered the Huawei judgment, or not [253] . The Claimant had argued that, in the present case, the Court should apply the (German) legal standard that preceded the Huawei framework (which was based on the so-called ‘Orange-Book-Standard’ ruling of the Federal Supreme Court [254] ), since with respect to the SEP in suit a ‘routine’ practice already existed prior to the Huawei judgement [255] . The Court explained that the Huawei judgment does not contain either an explicit or an implicit limitation of its scope of application [256] . Furthermore, even if a ‘well-established’ licensing practice existed, the need to apply the Huawei framework will still be given, in order to bridge the nevertheless existing information gap between patent holder and implementer concerning the (potential) infringement of SEPs [257] . Finally, it would be very challenging for courts to distinguish whether a ‘well-established’ licensing practice excluding the application of the Huawei framework is at hand, or not [258] . Notwithstanding the above, according to the Court, the actual licensing practice of the patent holder could be of ‘particular significance’ when assessing the compliance of the latter with the Huawei obligations: Such practice could, for instance, serve as an indicator of the appropriateness of SEP holder’s licensing offer to the implementer [259] .

Having said that, the Court found no flaws in Claimant’s conduct. In the Court’s view, the Claimant had met its Huawei obligation to notify the Defendant about the infringement of its patent as well as the obligation to present the Defendant with a written licensing offer covering also the patent in suit. The Defendant, on the other hand, adequately expressed its willingness to enter into a licence, failed, however, to make a FRAND counter-offer to the Claimant. Since an adequate counter-offer was missing, the Court did not take up the question whether the bank guarantee provided by the Claimant to MPEG LA constitutes an adequate security in terms of the Huawei framework [260] .

Notification of infringement

The Court ruled that the Claimant had adequately notified the Defendant about the infringement of the SEP in suit through the e-mail sent by MPEG LA to the parent company on 8 September 2011 [261] .

The fact that this e-mail was not addressed to the Defendant, but to the parent company, did not raise any concerns as to the compatibility of the notification with the Huawei framework. The Court explained that a notification of infringement addressed only to the parent company of a group of companies is sufficient, as far as it can be assumed that the notification will be forwarded to the subsidiaries con­cerned [262] . The sole fact that a company belongs to a group justifies such an assumption, unless indications to the contrary exist [262] . This was, however, not the case here.

Besides that, the Court did not consider it inappropriate that the aforementioned e-mail was not sent to the parent company by the Claimant, but by MPEG LA (which is not the holder of the SEP in suit) [263] . The Court held that MPEG LA is entitled to perform legal actions in connection with the licensing of the MPEG LA pool on behalf of the Claimant [264] . The Defendant could not contest that this was not the case, since MPEG LA’s standard licensing agreement, which it is aware of, contains an indication about MPEG LA’s respective capacity [265] . In addition, the Defendant’s parent company was also aware of MPEG LA’s capacity to act on behalf of the Claimant, since it joined the MPEG LA pool as a patent holder in 2012 [266] .

The Court further ruled that, in terms of content, a notification of infringement must – at least – name the patent in suit (including the patent number) and indicate the contested embodiments as well as the (allegedly) infringing acts of use [267] . A detailed (technical and/or legal) explanation of the infringement is not required; the implementer needs just to be put in the position to assess the infringement allegations, if necessary, by seeking expert advice [268] . A notification of infringement is, therefore, not necessary, when it constitutes just a ‘pointless formality’ [268] . This is true, when according to the overall circumstances of the case, one can safely assume that the implementer is aware of the infringement, so that claiming that the SEP holder failed to provide adequate notification prior to the initiation of court proceedings would appear to be abusive [268] . The respective test is, however, subject to strict conditions [268] .

Based on the above considerations, the Court found that MPEG LA’s e-mail to the parent company dated 8 September 2011 should be considered – as an exception – to constitute a sufficient notification of infringement, although it did not contain the minimum information required (particularly the patent number and a reference to the specific infringing embodiments) [269] . The overall circumstances of the case (especially the fact that the parent company acquired patents included in the MPEG LA pool in 2012 and had also previously been in contact with MPEG LA regarding a standard licensing agreement) [270] , give rise to the assumption that the parent company had already been aware of the MPEG LA pool and the fact that AVC/H.264-compliant products need to be licensed [271] .

Willingness to obtain a FRAND-licence

The Court held that the parent company had adequately expressed its willingness to obtain a FRAND-licence through the e-mail sent to MPEG LA on 15 September 2011 [272] .

In the eyes of the Court, this e-mail indicates the parent company’s intention to deal with issues concerning the licensing of patents referring to the AVC/H.264 standard. This is sufficient under the Huawei framework [273] . The implementer is not required to refer to a specific licensing agreement [273] .

SEP holder’s licensing offer

The Court further found that the standard licensing agreement sent by MPEG LA to the parent company presents an offer accountable to the Claimant which is in line with the Huawei framework in terms of both form and content [274] .

The fact that the offer was addressed to the parent company and not to the Defendant was not relevant, since the parties were discussing about a licensing agreement on group level and the parent company had itself requested to receive the draft agreement [275] .

Furthermore, the fact that the draft agreement sent to the parent company did not directly provide for the licensing of all subsidiaries (including the Defendant) was also not considered as harmful [276] . Insofar, the Court held that under the Huawei framework it is, as a rule, acceptable that the patent holder enters into licensing negotiations only with the parent company within a group of companies [277] . Whether subsidiaries can (or should) also be licensed, will be the object of these negotiations [278] . An exception would apply only then, when it is made clear already at the beginning of the licensing negotiations that the offer made to the parent company cannot include its subsidiaries [279] . This was, however, not the case here, since the standard licensing agreement sent to the parent company indicates MPEG LA’s willingness to grant licences also to the subsidiaries of the former [280] .

Besides that, the Court did not consider the fact that the standard licensing agreement sent to the parent company did not cover the sale of licensed products to wholesalers and retailers (but regarded only sales to end users) to be in conflict with the Huawei framework, although the Defendant was engaged also in this business [281] . According to the Court, sales to wholesalers and retailers would be covered by the effects of patent exhaustion, even without an express provision in a potential licensing agreement [282] .

The Court further ruled that the Huawei requirement, according to which the SEP holder’s licensing offer must specify the royalty calculation, was met, although the draft standard licensing agreement sent to the parent company does not contain detailed explanation of the way the royalties were calculated [283] . In the Court’s view, the respective explanation does not require a ‘strict mathematical derivation’ of the royalty; moreover, it will, as a rule, suffice to demonstrate that the (standard) royalty rates offered have been accepted in the market by presenting existing licensing agreements with third parties (comparable agreements) [284] . If a sufficient number of comparable licences is presented, then the SEP holder will usually not be required to provide further information regarding the appropriateness of its licensing offer [284] . It will need, however, to provide information on all essential comparable agreements, in order to rule out the risk that only agreements supporting the offered royalty level are presented [284] . In this context, the Court noted that it cannot be required from the SEP holder to present all comparable agreements along with the licensing offer to the implementer; a respective industry practice does not exist [285] .

Against this background, the Court did not consider it to be harmful that the standard licensing agreement sent to the parent company by MPEG LA did not include a detailed explanation of the royalty calculation in the above sense [286] . On the one hand, the parent company was aware that this (standard) agreement had been accepted in the market by a great number of licensees [286] . On the other hand, the parent company was also adequately aware of the way the offered royalties were calculated, since it held patents included in the MPEG LA pool itself [287] .

Apart from the above, the Court held that the standard licensing agreement offered to the parent company was FRAND also in terms of content.

According to the Court, a licensing offer cannot be considered as fair and reasonable, if the patent holder requests royalties that go significantly beyond the (hypothetical) price that would have been formed in an effectively competitive market, unless there is a commercial justification for the royalty level requested [288] . Particularly in connection with the licensing of SEPs, an offer can lie outside the FRAND-scope, if the cumulative royalty burden imposed on the implementer would not be tenable in commercial terms [288] . The Court made clear that in this context, no exact mathematical derivation of a FRAND-conform royalty rate is required; moreover, an approximate value is to be determined based on assessments and estimations [288] . In this respect, comparable agreements can serve as an ‘important indicator’ of the fair and reasonable character of the offered royalty rates [288] .

Regarding to the non-discriminatory element of FRAND, the Court pointed out that it applied only to similar situated cases; an unequal treatment is allowed, as long as it is objectively justified [289] . Limitations in this context may especially occur, when the implementation of the patent is necessary for entering a downstream market or when a product becomes competitive only when it uses the patent’s teachings [289] . As a rule, the burden of proof with respect to the discriminatory character of a licensing offer rests on the implementer. Since the latter will usually not be aware of the existence or the content of comparable agreements of the patent holder, it may seem appropriate to request the patent holder to provide the implementer with respective details, as far as this is reasonable [290] . The information to be shared should cover all existing licensees and include which (concretely designated) company with which importance in the relevant market has obtained a licence on which conditions [290] .

Looking at the standard licensing agreement sent to the parent company, the Court observed that the fact the MPEG LA sought for a licence covering all companies within the group, to which the Defendant belonged, was not violating FRAND principles [291] . In the electronics and mobile communications industries, licences covering a group of companies are in line with the industry practice [292] . Patent holder have a special interest in concluding such licences particularly in cases, in which – as in the present case – the parent company manufactures products which are sold worldwide by its subsidiaries. This is because licences at group level makes sure that patent holders can enforce their rights effectively, without having to distinguish between licenced and unlicenced products within a group of companies [293] .

In addition, the Court made clear that pool licences, as the one offered to the parent company, are appropriate under the Huawei framework [294] . An offer for a pool licence cannot per se be seen as abusive (Article 101 TFEU) [295] . On the contrary, such licences usually serve the interest of potential licensees to be granted access to the whole standard on uniform conditions under one roof, without having to seek a licence from every single patent holder separately [295] .

Implementer’s counter-offer

The Court found that the Defendant failed to make a FRAND counter-offer [296] .

Sending signed copies of MPEG LA’s standard licensing agreement back to MPEG LA can be regarded as a counter-offer [297] . The fact, however, that this offer concerned a licence limited to the Defendant and, thus, not covering the parent company (and all further companies belonging to the same group) was not FRAND conform [298] . The Court accepted that licences at group level mirror the industry practice in the field in question; accordingly, no objections can be raised when a patent holder contributing its patents to a pool is willing to grant only licences covering all group companies [299] .

Since the counter-offer was not FRAND in terms of content, the Court did not have to decide, whether it was made in due time, or not [300] .

  • [231] Fraunhofer-Gesellschaft (MPEG-LA) v ZTE, District Court of Düsseldorf, judgement dated 9 November 2018, cited by www.nrwe.de, para. 56.
  • [232] Ibid, para. 58
  • [233] Ibid, para. 57
  • [234] Ibid, para. 59
  • [235] Ibid, paras. 61 et seqq. and 340
  • [236] Ibid, para. 65
  • [237] Ibid, para. 66
  • [238] Ibid, para. 73
  • [239] Ibid, para. 42
  • [240] bid, para. 74
  • [241] Ibid, paras. 75 et seq
  • [242] Ibid, para. 75
  • [243] Ibid, paras. 127 – 254
  • [244] Huawei v ZTE, Court of Justice of the European Union, judgment dated 16 July 2015, Case No. C-170/13
  • [245] Fraunhofer-Gesellschaft (MPEG-LA) v ZTE, District Court of Düsseldorf, judgement dated 9 November 2018, cited by www.nrwe.de, Ibid, para. 280
  • [246] Ibid, para. 283 and paras. 291 et seqq
  • [247] Ibid, para. 286
  • [248] Ibid, para. 287
  • [249] Ibid, paras. 291 et seqq
  • [250] Ibid, para. 296
  • [251] Ibid, para. 300
  • [252] Ibid, para. 302
  • [253] Ibid, para. 308
  • [254] Under the ‘Orange-Book-Standard’ regime, in order to avoid an injunction, the implementer was required to make a licensing offer to the patent holder, which the latter could not refuse without acting in an anticompetitive manner; see Federal Supreme Court (Bundesgerichtshof), judgment dated 6 May 2009, Case No. KZR 39/06
  • [255] Ibid, para. 305
  • [256] Ibid, paras. 306 et seqq
  • [257] Ibid, para. 310
  • [258] Ibid, para. 311
  • [259] Ibid, para. 312
  • [260] Ibid, para. 421
  • [261] Ibid, para. 314
  • [262] Ibid, para. 320
  • [263] Ibid, para. 318
  • [264] Ibid, para. 329
  • [265] Ibid, paras. 336 et seq
  • [266] Ibid, para. 338
  • [267] Ibid, para. 198
  • [268] Ibid, para. 315
  • [269] Ibid, paras. 340 et seq
  • [270] Ibid, paras. 342 et seqq
  • [271] Ibid, para. 344
  • [272] Ibid, para. 346
  • [273] Ibid, para. 348
  • [274] Ibid, para. 352
  • [275] Ibid, para. 367
  • [276] Ibid, para. 369
  • [277] Ibid, para. 370
  • [278] Ibid, para. 378
  • [279] Ibid, para. 371
  • [280] Ibid, para. 374
  • [281] Ibid, para. 376
  • [282] Ibid, para. 377
  • [283] Ibid, para. 380
  • [284] Ibid, para. 381
  • [285] Ibid, para. 386
  • [286] Ibid, para. 382
  • [287] Ibid, para. 387
  • [288] Ibid, para. 391
  • [289] Ibid, para. 392
  • [290] Ibid, para. 393
  • [291] Ibid, para. 397
  • [292] Ibid, para. 398
  • [293] Ibid, para. 399
  • [294] Ibid, para. 402
  • [295] Ibid, para. 404
  • [296] Ibid, para. 410
  • [297] Ibid, para. 413
  • [298] Ibid, para. 416
  • [299] Ibid, para. 417
  • [300] Ibid, para. 411

Updated 4 6月 2020

Sisvel v Xiaomi, Court of Appeal of The Hague

オランダ裁判所の決定
17 3月 2020 - Case No. C/09/573969/ KG ZA 19-462

A. Facts

Sisvel International S.A. (Sisvel) is the parent company of the Sisvel group [301] . In 2012, Sisvel acquired EP 1 129 536 B1 (EP 536) [302] . EP 536 relates to the EGPRS technology, which forms part of a GSM telecommunications standard that implements EDGE [303] .

Xiaomi is a manufacturer of mobile phones with headquarters in China [304] .

On 10 April 2013, Sisvel submitted to the European Telecommunication Standards Institute (ETSI) a declaration under which it committed to make a list of patents, including EP 536, accessible to standard users under Fair, Reasonable and Non-Discriminatory (FRAND) terms and conditions (FRAND commitment) [305] .

On 15 October 2013, Sisvel notified Xiaomi about its Wireless Patent Portfolio [303] . On 16 July 2014, Sisvel sent a letter to Xiaomi, inviting Xiaomi to contact Sisvel regarding to the conclusion of a licence [303] . Further e-mails were sent to Xiaomi on 3 December 2014, 4 December 2014 and 5 March 2015 [303] .

In an article dated 29 March 2019 published on nu.nl [306] and ad.nl [306] , Xiaomi announced that it would enter the Dutch market with online shops and physical stores [307] .

On 23 April 2019, Sisvel initiated legal proceedings against Xiaomi before the English High Court of Justice in London (English proceedings) [308] . Sisvel requested the court to declare that the terms and conditions of the MCP Pool Licence, under which EP 536 as part of the Wireless Patent Portfolio is licensed [309] , are FRAND or alternatively, to determine FRAND licensing terms and conditions and find three patents (including EP 536) to be valid and infringed [308] .

On 30 August 2019, Xiaomi filed two legal actions against Sisvel in Beijing [310] . Xiaomi asked, in one of the cases, the court to determine FRAND terms and conditions for a licence limited to China and, in the other case, to declare that Sisvel had abused its dominant position [303] .

In the Netherlands, Sisvel requested a preliminary injunction against Xiaomi, until Xiaomi accepts Sisvel’s offer to go to arbitration, as well as the recall and destruction of products, information over profit made and additional documentation with respect to resellers, a penalty fee, and – as a subsidiary motion – the removal of the EGPRS/EDGE extension of the GSM functionality [311] . With judgment dated 1 August 2019, the Court of The Hague rejected Sisvel’s claims in first instance and sentenced Sisvel to the process costs, in view of the balance of interests between the parties and the complexity of the case [312] .

Sisvel appealed the first instance decision on 29 August 2019 [313] . During the course of the appeal proceedings, on 22 January 2020, Xiaomi deposited funds [314] on an escrow account held by Intertrust [315] . With the present judgment, the Court of Appeal of The Hague (Court) rejected Sisvel’s appeal and sentenced Sisvel to higher process costs [316] .

B. Court’s reasoning

The Court focused on the balance of interests between the parties.

Injunction

The Court considered that the harm caused to Sisvel by the infringement of EP 536 was limited, taking into account only infringing uses in the Netherlands, as well as the fact that EP 536 is only one out of many patents held by Sisvel, and almost expired [317] . Considering that Sisvel’s business model is to conclude licences, Sisvel did not have to fear damages caused by free riding on the cellphone market, but only damages resulting from denied profits under a license [318] . Therefore, only financial damages could incur which the Court considers to be relatively simply compensated at a later point in time [319] . Additionally, Xiaomi had provided security [319] . The security addresses the problem raised by Sisvel, i.e. Xiaomi becoming insolvent and unable to pay damages for patent infringement [303] .

With respect to Xiaomi’s interest, the Court noted that an injunction would force Xiaomi to stop sales, close shops in the Netherlands and stop its distribution contracts with customers [320] . The consequences would thus be severe and could hardly be undone, even if Xiaomi could resume sales again after the expiration of EP 536 [303] . The only way for Xiaomi to avoid those consequences would be to take a license, which also brings important consequences. Indeed, the MCP license offered by Sisvel is not only for EP 536 but for more than 1000 patents in all countries worldwide [321] . By accepting a licence Xiaomi would be irrevocably bound to comply with it, including with its rate [322] . The stop of sales in the Netherlands would create loss of profits for Xiaomi and worsen its relationships with its customers [303] . The Court highlighted such damages are difficult to evaluate as Xiaomi is still building its market position and there are many other players on the market [303] .

The Court further argued that the case was complex for a preliminary decision, because it required an opinion on the validity and scope of a patent protecting a complex technology as well as an assessment of Xiaomi’s FRAND defence, for which parties have arguments over many facts and the principles to determine a FRAND rate [323] . Additionally, the court that would be entrusted with the main proceedings could have a different opinion on the validity of the technology and the FRAND defence [303] . Therefore, the Court concluded there was no reason, even if the patent was valid and the FRAND defence had to be rejected, to force Xiaomi to leave the Dutch market or to take a licence from Sisvel [303] . The Court found that Xiaomi’s interest to reject the request for a preliminary injunction was stronger than Sisvel’s interest to stop the continuation of the infringement [323] .

The Court also rejected Sisvel’s claim that Xiaomi was an unwilling licensee [324] . Such claim could be used to invalidate Xiaomi’s FRAND defence, but the Court stated that the examination of Xiaomi’s FRAND defence had to be separated from the balance of interests’ assessment in preliminary proceedings [303] .

Reviewing Sisvel’s request based on the EU enforcement directive 2004/48 and Article 9 of such directive did not lead the Court to another conclusion: in light of the enforcement directive, the injunction would not be proportionate in this case, therefore the Court had no obligation to use Article 9 of the EU enforcement directive [325] .

Even in combining the application of Article 3 of the EU enforcement directive, Article 5, 17 and 47 of the European Charter of Fundamental Rights the Court came to the same interpretation: an injunction for the limited remaining time of EP 536 would not help [326] . The lack of an injunction would not unreasonably delay the case as the Court argued that the effective remedy would be compensation for the damages in main proceedings [303] . Additionally, the Court found this conclusion to be supported by the fact that Sisvel had only initiated main proceedings against other parties in the Netherlands and abroad [303] .

Sisvel’s claim that the lack of an injunction would create an unfair playing field between market participants was also rejected by the Court [327] . The Court stated that Xiaomi’s security and the possibility for Sisvel to get compensation for damages in main proceedings created an equal playing field [303] . Sisvel had relied on a decision of the Dutch Supreme Court, according to which a patent can only be effectively protected if there is a quick stop to further infringement [328] . The Court explained that this is the case only when the damages for patent infringement are difficult to determine; this was, however, not the case here [303] .

Security

The Court rejected Sisvel’s claim that the deposit on the escrow account had been made in such a way that it would be impossible for Sisvel to get paid [329] . Indeed, the Court underlined that Sisvel can unilaterally reclaim payment, especially if a FRAND rate is determined in the English proceedings [303] . Moreover, Xiaomi declared itself to be ready to adapt the amount placed on the escrow account in close cooperation with Sisvel, if Sisvel wishes to do so or has requests about the escrow account [303] . The Court noted it did not seem Sisvel made use of this possibility to adapt the amount [303] .

The amount deposited for fees under Sisvel’s MCP Patent Licence was considered as sufficient by the Court for the products sold in the Netherlands for the lifetime of EP 536 [330] . The Court added that this would still be the case even in the event that Sisvel wanted to increase the licensing rate for non-compliant users or to account for profits based on the infringement [303] . The Court underlined that in the Huawei v. ZTE decision of the CJEU [331] , the security had to be “appropriate”, which depends on the context of the FRAND defence [303] .

Recall and destruction of products

Sisvel’s request to have infringing products recalled and destroyed, as well as all mentions about those products removed, resellers informed and profits provided was rejected by the Court [332] . Sisvel had asserted the same urgent interest as for the preliminary injunction to support this request: stopping and preventing infringement of EP 536. Since the request for a preliminary injunction failed, the further claims asserted by Sisvel had to follow the same fate [303] . The Court stated that there was no urgent interest to have Xiaomi disclosing its profits, or at least that was more important than having Xiaomi keeping this information confidential [303] . Sisvel did also not explain why profits data should be disclosed in advance of the main proceedings [303] .

C. Other important issues

The Court also denied Sisvel’s request to grant a preliminary injunction, as long as Xiaomi did not agree to initiating arbitration procedures [333] . The Court argued that if Xiaomi would be forced to have an arbitration tribunal determining the terms and conditions for all patents of the MCP Patent Licence for the whole world, this would deprive Xiaomi of its fundamental right of access to a court [303] . The acceptance of such arbitration proposal without conditions would have drastic consequences on Xiaomi’s position [303] .

  • [301] Court of Appeal of The Hague, judgement dated 17 March 2020, page 2, par.2.2.
  • [302] Court of Appeal of The Hague, judgement dated 17 March 2020, page 2, par.2.4.
  • [303] Ibidem
  • [304] Court of Appeal of The Hague, judgement dated 17 March 2020, page 2, par.2.8.
  • [305] Court of Appeal of The Hague, judgement dated 17 March 2020, page 2, par.2.5.
  • [306] Dutch newspaper.
  • [307] Court of Appeal of The Hague, judgement dated 17 March 2020, page 4, par.2.11.
  • [308] Court of Appeal of The Hague, judgement dated 17 March 2020, page 4, par.2.12.
  • [309] Court of Appeal of The Hague, judgement dated 17 March 2020, pages 3 and 4, par.2.7 and 2.12.
  • [310] Court of Appeal of The Hague, judgement dated 17 March 2020, page 4, par.2.13.
  • [311] Court of Appeal of The Hague, judgement dated 17 March 2020, page 4, par.2.14.
  • [312] Court of Appeal of The Hague, judgement dated 17 March 2020, pages 4 and 5, par.3.3.
  • [313] Court of Appeal of The Hague, judgement dated 17 March 2020, page 2, par.1.
  • [314] Amount has been redacted.
  • [315] Court of Appeal of The Hague, judgement dated 17 March 2020, page 5, par.3.5.
  • [316] Court of Appeal of The Hague, judgement dated 17 March 2020, pages 10 and 11, par. 4.24 and following.
  • [317] Court of Appeal of The Hague, judgement dated 17 March 2020, page 5, par.4.3.
  • [318] Court of Appeal of The Hague, judgement dated 17 March 2020, pages 5 and 6, par.4.3.
  • [319] Court of Appeal of The Hague, judgement dated 17 March 2020, page 6, par.4.3.
  • [320] Court of Appeal of The Hague, judgement dated 17 March 2020, page 6, par.4.7.
  • [321] Court of Appeal of The Hague, judgement dated 17 March 2020, pages 6 and 7, par.4.8.
  • [322] Court of Appeal of The Hague, judgement dated 17 March 2020, page 7, par.4.9.
  • [323] Court of Appeal of The Hague, judgement dated 17 March 2020, page 7, par.4.11.
  • [324] Court of Appeal of The Hague, judgement dated 17 March 2020, page 7, par.2.12.
  • [325] Court of Appeal of The Hague, judgement dated 17 March 2020, page 8, par.4.14.
  • [326] Court of Appeal of The Hague, judgement dated 17 March 2020, page 8, par.4.15.
  • [327] Court of Appeal of The Hague, judgement dated 17 March 2020, page 8, par.4.16.
  • [328] Court of Appeal of The Hague, judgement dated 17 March 2020, pages 8 and 9, par.4.17.
  • [329] Court of Appeal of The Hague, judgement dated 17 March 2020, page 6, par. 4.5.
  • [330] Court of Appeal of The Hague, judgement dated 17 March 2020, page 6, par. 4.6.
  • [331] Court of Justice of the European Union, Huawei Technologies Co.Ltd. v. ZTE Corp. and ZTE Deutschland GmbH, 16 July 2015.
  • [332] Court of Appeal of The Hague, judgement dated 17 March 2020, page 9, par. 4.2.1.
  • [333] Court of Appeal of The Hague, judgement dated 17 March 2020, page 9, par.4.18.

Updated 2 8月 2019

Tagivan (MPEG-LA) v Huawei

LG Düsseldorf
15 11月 2018 - Case No. 4a O 17/17

A. Facts

The Claimant, Tagivan II LLC, holds a patent essential to the practice of the AVC/H.264 standard concerning the compression of video data (Standard Essential Patent, or SEP). The patent in question is subject to a FRAND commitment (FRAND stands for Fair, Reasonable and Non-Discriminatory terms and conditions) made towards the relevant standardisation body. It was included into a patent pool administered by MPEG LA LLC (MPEG LA), comprising more the 5,000 patents referring to the AVC/H.264 standard (MPEG LA pool) [334] .

The Defendant, a German subsidiary of a Chinese group of companies, sells – among other things – mobile phones in Germany that practise the AVC/H.264 standard [335] .

MPEG LA uses a standard licensing agreement, which is publicly available at its website [336] . Since 2004, MPEG-LA has signed approx. 2,000 agreements with implementers [337] , 1,400 of which are still in force [336] .

In 2009, MPEG LA and the Defendant’s parent company (parent company) started discussions about a potential licence covering other standards, especially the MPEG-2 standard. On 6 September 2011, MPEG LA informed the parent company about the possibility to obtain a licence also regarding the AVC/H.264 standard, by sending PDF-copies of its standard licensing agreement to the parent company via email [338] . On 15 September 2011, the parent company suggested to arrange a call on this issue [339] . In February 2012, MPEG LA sent the pool’s standard licensing agreement for the AVC/H.264 standard to the parent company also by mail [340] .

In November 2013, the discussions between MPEG LA and the parent company ended without success [341] . The parties resumed negotiations in July 2016; again, no agreement was reached [341] .

The Claimant then brought an action against the Defendant before the District Court of Düsseldorf in Germany (Court), requesting for injunctive relief, information and rendering of accounts, the destruction and the recall of infringing products as well as for a declaratory judgement confirming Defendant’s liability for damages on the merits [342] .

In November 2017, during the course of the present proceedings, the Defendant made a counteroffer to the Claimant for a licence, which – in contrast to MPEG LA’s standard licensing agreement – was limited to the Claimant’s patent portfolio and established different royalty rates for different regions, in which the Defendant sold products [343] .

In March and September 2018 (again during the proceedings), the Defendant provided bank guarantees to the Claimant covering past and future sales of (allegedly) infringing products. The security amounts were calculated based on the Defendant’s counteroffer dated November 2017 [344] . Furthermore, the Defendant made a second counteroffer to the Claimant shortly after the last oral hearing before the Court [345] .

With the present judgment, the Court granted Claimant’s requests.

B. Court’s reasoning

The Court found that the patent in suit was valid [346] , standard essential [347] and infringed by the products sold by the Defendant in Germany [348] . Furthermore, the Court held that by filing the present suit the Claimant did not abuse its dominant market position in violation of Article 102 of the Treaty for the Functioning of the EU (TFEU), since it had fully complied with the conduct obligations stipulated by the Court of Justice of the EU (CJEU) in the matter Huawei v ZTE [349] (Huawei obligations or framework) with respect to dominant undertakings [350] .

Dominant market position

The Court found that the Claimant holds a dominant market position in terms of Article 102 TFEU [351] .

The Court defined the relevant market for the assessment of dominance as the market, in which licences for any given patent are offered [352] . A dominant market position can further also exist, when the patent holder can hinder competition in downstream markets for standard-compliant products and services [352] .

The Court made clear that ownership of a SEP does not per se establish market dominance [353] . A dominant market position is given, when the use of the SEP is required for entering the market [354] . The same is true, if the patent user could not market competitive products or services, without access to the respective SEP [355] .

Based on these considerations, the Court saw no ‘reasonable’ doubt that the Claimant was a dominant undertaking: It was undisputed that almost all mobile phones available worldwide use the AVC/H.264 standard and that no ‘realistic’ alternative to the MPEG LA pool existed in the licensing market for patents essential to this standard [356] .

Huawei framework

The Court found, however, that the Claimant did not abuse its dominant position by suing the Defendant in the present case, since its conduct was in line with the Huawei framework [357] . The Huawei framework establishes mutual conduct obligations for both SEP holders and SEP users, which need to be fulfilled step by step and one after another (meaning that each party’s obligation to act arises only after the other party has fulfilled its own obligation) [358] . Subject to the Huawei framework is not only the patent holder’s claim for injunctive relief, but also the claim for the destruction of infringing products [359] .

In this context, the Court pointed out that the Huawei framework applies, irrespective of whether a ‘well-established’ licensing practice concerning the asserted patents already existed before the CJEU delivered the Huawei judgment, or not [360] . The Claimant had argued that, in the present case, the Court should apply the (German) legal standard that preceded the Huawei framework (which was based on the so-called ‘Orange-Book-Standard’ ruling of the Federal Supreme Court [361] ), since with respect to the SEP in suit a ‘routine’ practice already existed prior to the Huawei judgement. The Court explained that the Huawei judgment does not contain either an explicit or an implicit limitation of its scope of application [362] . Furthermore, even if a ‘well-established’ licensing practice existed, the need to apply the Huawei framework will still be given, in order to bridge the, nevertheless, existing information gap between patent holder and implementer concerning the (potential) infringement of SEPs [363] . Finally, it would be very challenging for courts to distinguish whether a ‘well-established’ licensing practice excluding the application of the Huawei framework is at hand, or not [363] . Notwithstanding the above, according to the Court, the actual licensing practice of the patent holder could be of ‘particular significance’ when assessing the compliance of the latter with the Huawei obligations: Such practice could, for instance, serve as an indicator of the appropriateness of SEP holder’s licensing offer to the implementer [364] .

Having said that, the Court found no flaws in Claimant’s conduct. In the Court’s view, the Claimant had met its Huawei obligation to notify the Defendant about the infringement of its patent as well as the obligation to present the Defendant with a written FRAND licensing offer covering also the patent in suit. The Defendant, on the other hand, adequately expressed its willingness to enter into a licence, failed, however, to make a FRAND counteroffer to the Claimant. Since an adequate counteroffer was missing, the Court did not take up the question whether the bank guarantees provided by the Defendant constitute an adequate security in terms of the Huawei framework.

Notification of infringement

The Court ruled that the Claimant had adequately notified the Defendant about the infringement of the SEP in suit through the email sent by MPEG LA to the parent company on 6 September 2011 [365] .

The fact that this email was not addressed to the Defendant, but to the parent company, did not raise any concerns as to the compatibility of the notification with the Huawei framework. The Court explained that a notification of infringement addressed only to the parent company of a group of companies is sufficient, as far as it can be assumed that the notification will be forwarded to the subsidiaries concerned [366] . The sole fact that a company belongs to a group justifies such an assumption, unless indications to the contrary exist [367] . This was, however, not the case here.

Besides that, the Court did not consider it inappropriate that the aforementioned e-mail was not sent to the parent company by the Claimant, but by MPEG LA (which is not the holder of the SEP in suit) [368] . The Court held that MPEG LA is entitled to perform legal actions in connection with the licensing of the MPEG LA pool on behalf of the Claimant. The Defendant could not contest that this was not the case, since MPEG LA’s standard licensing agreement, which it is aware of, contains an indication about MPEG LA’s respective capacity [369] . In addition, the Defendant’s parent company was most likely aware of MPEG LA’s capacity to act on behalf of the Claimant, since it had entered into direct negotiation with MPEG LA already in 2009, that is almost two years prior to the notification of infringement [370] .

The Court further ruled that, in terms of content, a notification of infringement must – at least – name the infringed patent (including the patent number) and indicate the contested embodiments as well as the (allegedly) infringing acts of use [371] . A detailed (technical and/or legal) explanation of the infringement is not required; the implementer needs just to be put in the position to assess the infringement allegations, if necessary, by seeking expert advice [371] . A notification of infringement is, therefore, not necessary, when it constitutes just a ‘pointless formality’ [371] . This is true, when according to the overall circumstances of the case, one can safely assume that the implementer is aware of the infringement, so that claiming that the SEP holder failed to provide adequate notification prior to the initiation of court proceedings would appear to be abusive [371] . The respective test is, however, subject to strict conditions [371] .

Based on the above considerations, the Court found that MPEG LA’s email to the parent company dated 6 September 2011 should be considered – as an exception – to constitute a sufficient notification of infringement, although it did not contain the minimum information required (particularly the patent number and a reference to the specific infringing embodiments) [372] . The overall circumstances of the case (especially the fact that the parent company had been in negotiations with MPEG LA already since 2009 and, therefore, should have been aware that MPEG LA has granted licences for the AVC/H.264 standard to the implementers mentioned at its website), give rise to the assumption that the parent company had been conscious of the fact that AVC/H.264-compliant products need to be licensed [373] .

Willingness to obtain a licence

The Court held that the parent company had adequately expressed its willingness to obtain a FRAND-licence through the email sent to MPEG LA on 15 September 2011 [374] .

In the eyes of the Court, this email indicates the parent company’s intention to deal with issues concerning the licensing of patents referring to the AVC/H.264 standard, especially if it is seen in the context of the negotiations between MPEG LA and the parent company that had commenced in 2009 [374] . This is sufficient under the Huawei framework: A general, informal statement suffices [375] . The implementer is not required to refer to a specific licensing agreement (on the contrary, this could be considered harmful under certain circumstances) [375] .

SEP holder’s offer

The Court further found that the standard licensing agreement sent by MPEG LA to the parent company in February 2012 presents an offer accountable to the Claimant which is in line with the Huawei framework in terms of both form and content [376] .

The fact that the standard licensing agreement was not tailored to the parent company but was designed for use towards a large number of (potential) licensees (the name of the licensee ought to be added in each case separately), was not criticized by the Court. MPEG-LA had made clear that the documents sent by mail in February 2012 would serve as the basis for negotiations and a future agreement with the parent company [377] .

In addition, the Court did not take an issue with the fact that the offer was addressed to the parent company and not to the Defendant, since the parties were discussing about a licensing agreement on group level and the parent company had been involved in the communications from the beginning [378] .

The Court further ruled that the Huawei requirement, according to which the SEP holder’s licensing offer must specify the royalty calculation, was met, although the draft standard licensing agreement sent to the parent company did not contain a detailed explanation of the way the royalties were calculated [379] . The Court found that, in the present case, it was sufficient that the parent company was aware that the (standard) agreement presented to her had been accepted in the market by a great number of licensees [380] . In the Court’s view, the explanation of the royalty calculation does not require a ‘strict mathematical derivation’ of the royalty; moreover, it will, as a rule, suffice to demonstrate that the (standard) royalty rates offered have been accepted in the market by presenting existing licensing agreements with third parties (comparable agreements) [381] . If a sufficient number of comparable licences is presented, then the SEP holder will usually not be required to provide further information regarding the appropriateness of its licensing offer [381] . It will need, however, to provide information on all essential comparable agreements, in order to rule out the risk that only agreements supporting the offered royalty level are presented [381] . In this context, the Court noted that it cannot be required from the SEP holder to present all comparable agreements along with the licensing offer to the implementer; a respective industry practice does not exist [382] .

Apart from the above, the Court held that the standard licensing agreement offered to the parent company was FRAND also in terms of content [383] .

According to the Court, a licensing offer cannot be considered as fair and reasonable, if the patent holder requests royalties that go significantly beyond the (hypothetical) price that would have been formed in an effectively competitive market, unless there is a commercial justification for the royalty level requested [384] . Particularly in connection with the licensing of SEPs, an offer can lie outside the FRAND-scope, if the cumulative royalty burden imposed on the implementer would not be tenable in commercial terms [384] . The Court made clear that, in this context, no exact mathematical derivation of a FRAND-conform royalty rate is required; moreover, an approximate value is to be determined based on assessments and estimations [384] . In this respect, comparable agreements can serve as an ‘important indicator’ of the fair and reasonable character of the offered royalty rates [384] .

Non-discrimination

Regarding to the non-discriminatory element of FRAND, the Court pointed out that it applied only to similar situated cases [385] . Even then, an unequal treatment is allowed, as long as it is objectively justified [385] . Limitations may, nevertheless, occur, especially when the implementation of the patent is necessary for entering a downstream market or when a product becomes competitive, only when it uses the patent’s teachings [385] . As a rule, the burden of proof with respect to the discriminatory character of a licensing offer rests on the implementer. Since the latter will usually not be aware of the existence or the content of comparable agreements of the patent holder, it may, however, seem appropriate to request the patent holder to provide the implementer with respective details, as far as this is reasonable [386] . The information to be shared should cover all existing licensees and include which (concretely designated) company with which importance in the relevant market has obtained a licence on which conditions [386] .

Against this background, the Court found that the offer made by MPEG LA to the parent company was not discriminatory. The Defendant had argued that seeking a licence also covering sales in China violated FRAND, since not every other competitor in the Chinese market was licensed by MPEG LA [387] . The Court observed that the selective assertion of patents against only a part of the competitors in a downstream market might, in principle, be discriminatory [388] . This was, however, not the case here, because the Claimant had already sued another company active in China and was attempting to persuade other companies to obtain a licence [389] . Due to the high cost risk associated with court proceedings, the patent holder is not obliged to sue all potential infringers at once; choosing to assert its patents against larger implementers first was considered by the Court as reasonable, since a win over a large market player could motivate smaller competitors to also obtain a licence (without litigation) [390] .

Furthermore, the Court did not consider the fact that the offered standard licensing agreement contained a cap for the annual licensing fees payable to the MPEG LA pool to be discriminatory [391] . The Defendant had argued that the respective cap disproportionally favoured licensees with high volume sales which offered not only mobile phones, but also other standard compliant products in the market. The Court made, however, clear that Art. 102 TFEU does not establish a ‘most-favoured-licensee’ principle (meaning that the patent holder must offer the same conditions to all licensees) [392] . It is not per se discriminatory to use sale volumes as a criterion for discounts, especially if a company has managed to open up a larger market than its competitors [393] . Discounts can further hardly be discriminatory, if they are offered to every (potential) licensee under the same conditions [393] .

Besides that, the Court dismissed the Defendant’s argument that MPEG LA’s standard licensing agreement is discriminatory, because it is offered to both MPEG LA pool members and third licensees. The Court found that the share of the licensing income paid to pool members, who have also signed a MPEG LA licence, reflects their contribution to the pool and, therefore, does not discriminate the latter against third licensees (who have not contributed any patents to the pool) [394] . In this context, the Court also pointed out that the clauses contained in MPEG LA’s standard licensing agreement, providing for deductions or instalment payments are not discriminatory, particularly because they are offered to all licensees [395] .

The Court was further not convinced that the parent company was discriminated by MPEG LA’s offer, because the MPEG LA pool had refrained from requesting a licence at group level from a competitor, but had only granted a licence to a subsidiary within the respective group, instead. In the Court’s eyes, the Claimant had managed to establish that this exception was objectively justified, since only the subsidiary granted a licence had activities concerning the patents included in the pool [396] .

Fair and reasonable terms

With respect to the assessment of whether MPEG LA’s offer to the parent company was also fair and reasonable, the Court placed particular emphasis on the existing licensing agreements between the MPEG-LA pool and third licensees. The Court took the view, that existing licences can establish the actual presumption that the terms offered (as well as the scope of the licence) are fair and reasonable [397] . Moreover, the fact that licences regarding the same patent portfolio have already been granted for similar products prima facie suggests that the selection of the patents included in the pool was adequate [397] .

Based on these premises, the Court found that the approx. 2,000 standard licensing agreements concluded by the MPEG LA pool provide a ‘strong indication’ (‘erhebliche Indizwirkung’) that the underlying licensing terms are fair and reasonable [398] . In the Court’s view, the Defendant had failed to show sufficient facts that could rebut this indication.

In particular, the Court did not accept Defendant’s claim that, as a rule, licences for products sold in the Chinese market are subject to special conditions. On the contrary, the Court found that the existing MPEG LA pool licences allow the assumption that setting worldwide uniform licence fees corresponds to industry practice [399] . Accordingly, the Court rejected Defendant’s argument, that the royalties offered by MPEG LA to the parent company would hinder the Defendant from making profits with its sales in China, since the overall licensing burden (including licences needed from third parties) would be too high. The Court noted that the price level for Defendant’s sales in China does not significantly differ from the price level in other regions [400] . What is more, the Defendant did not show that further licences are needed with respect to the AVC/H.264 standard [401] . The Court further did not recognise a need to apply special conditions for the Chinese market, because – compared to patents from other regions – a lower number of Chinese patents is contained in the MPEG LA pool. According to the Court, the number of patents in a specific market should not be ‘overestimated’ as a factor for assessing the FRAND conformity of an offer, since even a single patent can block an implementer from a market, generating, therefore, the need for obtaining a licence [402] .

Apart from the above, the Court did not criticise that MPEG LA’s standard licensing agreement did not contain an adjustment clause. Such clauses can secure that the agreed licensing fees remain reasonable, in case that the number of patents contained in the pool changes during the term of the licensing agreement. They are, however, in the Court’s view, not the only mean to reach this goal: Moreover, the clause contained in MPEG LA’s standard licensing agreement, according to which the agreed royalties will not be adjusted either when more patents are added to the pool or when patents are withdrawn from the pool, offers an adequate balance of risk and is, therefore, FRAND compliant [403] . This assumption is also confirmed by the fact that all existing licensees have accepted this clause [404] .

In addition, the Court made clear that pool licences, as the one offered to the parent company, are, in general, appropriate under the Huawei framework. An offer for a pool licence cannot per se be seen as abusive (Article 101 TFEU) [405] . On the contrary, such licences usually serve the interest of potential licensees to be granted access to the whole standard on uniform conditions under one roof, without having to seek a licence from every single patent holder separately [405] .

An offer for a pool licence can, nevertheless, violate FRAND in ‘special circumstances’ [406] , for instance, if not all patents included in the pool are used by the licensee [407] . According to the Court, the fact that the Defendant – as well as mobile phone manufacturers in general – usually use only one of four available profiles of the AVC-Standard does not, however, render the standard licensing agreement offered by MPEG LA unreasonable [408] . This is particularly the case, since Defendant’s products – and especially its latest smartphones – have the technical capability to implement more than one available profile [409] . Besides that, it is reasonable to offer one single licence covering all profiles, since modern products incorporate functionalities of several types of devices (e.g. smartphones offer also digital television functionalities) [409] .

In this context, the Court dismissed Defendant’s arguments that the licence offered by MPEG LA was not FRAND, because it allegedly covered both standard-essential and non-essential patents. The Court recognised that the ‘bundling’ of essential and non-essential patents in a patent pool could, in principle, be incompatible with FRAND, if it is done with the intention to extract higher royalties from licensees by increasing the number of patents contained in the pool [410] . The Defendant failed, however, to present any reliable evidence that this was the case with the MPEG-LA pool [411] .

In the Court’s eyes, the Defendant also failed to establish that the rates offered by MPEG LA would lead to an unreasonably high total burden of licensing costs (‘royalty stacking’) [412] . The theoretical possibility that the Defendant might need to obtain licences also for patents not included in a pool does not per se lead to royalty stacking; the Defendant would have been obliged to establish that the total amount of royalties actually paid does not allow to extract any margin from the sale of its products [413] .

The Court further pointed out that MPEG-LA’s offer did not violate FRAND principles, because it referred to a licence covering all companies within the group, to which the Defendant belonged [414] . In the electronics and mobile communications industries, licences on a group level are in line with the industry practice and, therefore, FRAND-compliant [415] .

Implementer’s counteroffer

Having said that, the Court found that the Defendant failed to make a FRAND counteroffer [416] .

In particular, the counteroffer made in November 2017 after the commencement of the present proceedings violated the FRAND principles in terms of content, because it was limited to a licence covering solely the Claimant’s patent portfolio and not all patents included in the MPEG LA pool [417] . Furthermore, the counteroffer established different licensing rates for different regions (especially for China) without factual justification [418] .

Furthermore, the second counteroffer made by the Defendant after the end of the last oral hearing was belated and, therefore, not FRAND. The Court held that the Claimant was not given sufficient time to respond to that counteroffer, so that there was no need for any further assessment of its content [345] . On the contrary, the Court expressed the view that the purpose of this counteroffer was most likely to delay the infringement proceedings [345] .

Provision of security

Since Defendant’s counter-offers were not FRAND in terms of content, the Court did not have to decide, whether the security provided in form of bank guarantees was FRAND or not. The Court noted, however, that the amounts provided were insufficient, since they were calculated on basis of Defendant’s counteroffer from November 2017, which itself failed to meet the FRAND requirements [419] .

  • [334] Tagivan (MPEG-LA) v Huawei, District Court of Düsseldorf, 9 November 2018, para. 36.
  • [335] Ibid, para. 35.
  • [336] Ibid, para. 37.
  • [337] Ibid, para. 453.
  • [338] Ibid, para. 39.
  • [339] Ibid, para. 43.
  • [340] Ibid, para. 44.
  • [341] Ibid, para. 53.
  • [342] Ibid, para. 2.
  • [343] Ibid, para. 54.
  • [344] Ibid, para. 65.
  • [345] Ibid, para. 716.
  • [346] Ibid, paras. 143-208.
  • [347] Ibid, paras. 209-293.
  • [348] Ibid, paras. 295-302.
  • [349] Huawei v ZTE, Court of Justice of the European Union, judgment dated 16 July 2015, Case No. C-170/13.
  • [350] Tagivan (MPEG-LA) v Huawei, District Court of Düsseldorf, 9 November 2018, paras. 304 et seqq.
  • [351] Ibid, para. 307.
  • [352] Ibid, para. 310.
  • [353] Ibid, para. 310. In this respect, the Court pointed out that – vice versa – also a non-essential patent might confer a dominant position, if the patented invention is superior in terms of technological merit and/or economical value, para. 312.
  • [354] Ibid, paras. 310 et seq.
  • [355] Ibid, para. 311.
  • [356] Ibid, paras. 315 et seqq.
  • [357] Ibid, para. 321.
  • [358] Ibid, para. 326.
  • [359] Ibid, para. 327.
  • [360] Ibid, para. 330.
  • [361] Under the ‘Orange-Book-Standard’ regime, in order to avoid an injunction, the implementer was required to make a licensing offer to the patent holder, which the latter could not refuse without acting in an anticompetitive manner; see Federal Supreme Court (Bundesgerichtshof), judgment dated 6 May 2009, Case No. KZR 39/06.
  • [362] Ibid, paras. 331 et seqq.
  • [363] Ibid, para. 335.
  • [364] Ibid, para. 337.
  • [365] Ibid, para. 339.
  • [366] Ibid, para. 343.
  • [367] Ibid, para. 345.
  • [368] Ibid, para. 356.
  • [369] Ibid, paras. 357 et seqq.
  • [370] Ibid, paras. 366 et seqq.
  • [371] Ibid, para. 340.
  • [372] Ibid, para. 341.
  • [373] Ibid, paras. 395 et seqq.
  • [374] Ibid, paras. 400 et seqq.
  • [375] Ibid, para. 399.
  • [376] Ibid, para. 405.
  • [377] Ibid, paras. 411-417.
  • [378] Ibid, para. 419.
  • [379] Ibid, para. 421.
  • [380] Ibid, para. 425.
  • [381] Ibid, para. 422.
  • [382] Ibid, paras. 426 et seqq.
  • [383] Ibid, para. 429.
  • [384] Ibid, para. 431.
  • [385] Ibid, para. 432.
  • [386] Ibid, para. 433.
  • [387] Ibid, para. 438.
  • [388] Ibid, para. 443.
  • [389] Ibid, para. 444.
  • [390] Ibid, para. 445.
  • [391] Ibid, para. 579.
  • [392] Ibid, para. 582.
  • [393] Ibid, paras. 583 et seqq.
  • [394] Ibid, para. 564.
  • [395] Ibid, paras. 568 et seqq.
  • [396] Ibid, paras. 573 et seqq.
  • [397] Ibid, para. 451.
  • [398] Ibid, para. 449.
  • [399] Ibid, para. 454.
  • [400] Ibid, paras. 487 et seqq.
  • [401] Ibid, para. 491.
  • [402] Ibid, para. 495.
  • [403] Ibid, paras. 591 et seqq., particularly para. 596.
  • [404] Ibid. para. 597.
  • [405] Ibid. para. 504.
  • [406] Ibid. para. 508.
  • [407] Ibid. para. 514.
  • [408] Ibid. paras. 511 et seqq.
  • [409] Ibid. para. 524.
  • [410] Ibid, para. 528.
  • [411] Ibid, paras. 531-543.
  • [412] Ibid, paras. 545 et seqq.
  • [413] Ibid, para. 546.
  • [414] Ibid, para. 599.
  • [415] Ibid, para. 600.
  • [416] Ibid, para. 603.
  • [417] Ibid, paras. 605 et seqq.
  • [418] Ibid, paras. 617 et seqq.
  • [419] Ibid, para. 625.