The U.S. Court of Appeals for the Fifth Circuit today affirmed an Eastern District of Texas court’s judgment for Ericsson, finding no error in the district court’s jury instructions, declaratory judgment or evidentiary rulings, and rejecting HTC Corporation’s allegations that Ericsson had breached its contractual obligation to offer a license on fair, reasonable, and non-discriminatory (FRAND) terms. The case stems from HTC’s refusal of a 2016 licensing deal in which Ericsson proposed a rate of $2.50 per 4G device to license its standard essential patents for mobile devices. Although HTC had previously paid Ericsson about $2.50 per device for the patents under a 2014 licensing agreement, in 2016 the company independently assessed the value of Ericsson’s patents and ultimately proposed a rate of $0.10 per device in 2017, which was based on the “smallest salable patent-practicing unit.” According to the Fifth Circuit, Ericsson considered this “so far off of the norm” that negotiations stopped, and a few days later, HTC filed suit in the U.S. District Court for the Eastern District of Texas, alleging breach of FRAND terms.
Recent Posts
- Other Barks & Bites for Friday, July 26: New Group Registration for Frequently Updated News Websites, Trade Secret Claims Against TikTok Survive Dismissal, and USPTO’s Estoppel Provisions in IPR Proceedings Upheld
- Call Off Chicken Little: The Sky is Not Falling for Skinny Labeling After GSK v. Teva
- CAFC Committee Recommends Another Year of Sanctions Against Newman
- Massie Tells House IP Subcommittee Witnesses He’s ‘Appalled’ By Proposals to Rein in ITC’s Patent Powers
- CAFC Invalidates Remaining Claim on Data Transmission Patent, Remands Substitute Claims for Collateral Estoppel Determination