UK Court of Appeal Rules on Side of Fairness in Ongoing Lenovo v InterDigital Case

Rhea-AI Summary

The UK Court of Appeal has ruled in favor of Lenovo in its ongoing legal dispute with InterDigital regarding license rates for 3G, 4G, and 5G patents. The court established a modest royalty rate increase to 22.5 US cents per unit, which is only 6.5 cents more than Lenovo's proposed FRAND rate and significantly lower than the 49-50 US cents per unit sought by InterDigital. This decision upholds Justice Mellor’s initial ruling, including his finding of InterDigital's non-FRAND behavior. Lenovo has publicly offered InterDigital the court-determined rate of 22.5 US cents per unit to demonstrate its commitment to fair licensing practices.

Positive

• UK Court of Appeal sets a modest royalty rate of 22.5 US cents per unit, favorable to Lenovo compared to InterDigital's sought rate of 49-50 US cents.
• Justice Mellor’s original ruling, which included a finding of InterDigital’s un-FRAND conduct, remains undisturbed.

Negative

• None.

LONDON--(BUSINESS WIRE)-- The UK Court of Appeal today ruled in the ongoing landmark case between InterDigital and Lenovo for license rates for 3G, 4G, and 5G patents, ruling a limited and very modest uplift of the original royalty rate to 22.5 US cents per unit, only 6.5 cents higher than what Lenovo argued at trial was Fair, Reasonable, and Non-Discriminatory (FRAND).

The amount ruled on appeal is only 5 US cents off the rate set by Justice Mellor (17.5 US cents), but significantly less than half (27 US cents lower) the 49-50 US cents rate that InterDigital sought as a per-unit rate both at trial and appeal. Beyond the royalty rate, Justice Mellor’s original ruling otherwise remained undisturbed, including his determination of InterDigital’s un-FRAND conduct. As further evidence of its willingness and commitment to FRAND licensing, Lenovo is publicly offering InterDigital 22.5 US cents per cellular unit for a forward-looking license and hope this fully resolves the parties’ disputes.

Commenting on the ruling, Lenovo’s John Mulgrew, Vice President, Deputy General Counsel & Chief Intellectual Property Officer, welcomes the decision:

“We are pleased with the Court’s commitment to confirm fair, reasonable, and non-discriminatory terms for licensing, and are encouraged by what this decision means for ongoing negotiations with InterDigital, wider industry IP litigation cases, and most importantly, how this facilitates the proliferation of affordable innovation to customers around the world. Given the decision is far closer to Lenovo’s original position than InterDigital’s, we believe this is a further win for Lenovo and reinforces our continued commitment to FRAND licensing and being a willing licensee in the face of supra-FRAND offers and behavior.”

About Lenovo

Lenovo is a US$57 billion revenue global technology powerhouse, ranked #217 in the Fortune Global 500, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver Smarter Technology for All, Lenovo has built on its success as the world’s largest PC company with a pocket-to cloud portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo’s continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit https://www.lenovo.com, and read about the latest news via our StoryHub.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240711992728/en/

Stuart Gill

+44 (0)7917 437 532

sgill@lenovo.com

Source: Lenovo

FAQ

What was the UK Court of Appeal's decision in the Lenovo v InterDigital case?

The court ruled a modest royalty rate increase to 22.5 US cents per unit, which is only 6.5 cents more than Lenovo argued was fair and significantly lower than InterDigital's sought rate of 49-50 US cents.

How does the recent court ruling affect Lenovo's licensing fees?

The ruling results in a and modest royalty rate increase to 22.5 US cents per unit, close to Lenovo's proposed rate and much lower than InterDigital's desired 49-50 US cents per unit.

What was the original royalty rate set by Justice Mellor in the Lenovo v InterDigital case?

Justice Mellor initially set a royalty rate of 17.5 US cents per unit.

What did InterDigital seek as a per-unit rate in its case against Lenovo?

InterDigital sought a per-unit rate of 49-50 US cents.

How did the UK Court of Appeal rule on InterDigital's conduct?

The court upheld Justice Mellor’s ruling that InterDigital's conduct was non-FRAND.