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FRAND Jurisdiction: Global Rate-Setting After Optis v. Apple

June 2023

What Happened

The UK Supreme Court decided that British courts can set global FRAND licensing rates for standard essential patents—not just UK rates, but worldwide terms. If an implementer refuses to accept the court-determined global rate, the patent owner can get an injunction.

Why It Matters

This creates a race to the courthouse. Patent owners want to file in the UK where they can get a global rate and potentially an injunction. Implementers want to file in China where courts have issued anti-suit injunctions blocking foreign litigation. Everyone is racing to their preferred forum.

The result is a mess of conflicting orders. UK courts say "we set the global rate." Chinese courts say "no, we do." U.S. courts say "stop suing each other elsewhere." Anti-suit injunctions pile up, and nobody knows which court actually has the final say.

The underlying issue is that SEPs are global—standards like 4G and 5G are used worldwide. But patent rights are national. Courts are trying to solve this mismatch by asserting jurisdiction over global licenses, even though they only have authority over their own country's patents.

What You Should Know

If you're licensing SEPs, forum selection is critical. File first in your preferred jurisdiction. Be prepared for anti-suit injunctions from the other side. Understand that different courts may reach different rates using different methodologies.

If you're an implementer, engage in licensing negotiations early and in good faith. Document your willingness to take a FRAND license. Courts are less sympathetic to parties that appear to be delaying or avoiding deals.

The system needs harmonization, but none is coming soon. For now, it's a strategic game of chess played across multiple jurisdictions simultaneously.

Contact

Call for a consultation.

512-327-8932 · admin@austinpatentfirm.com