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The standard-essential patent battle between InterDigital and Chinese handset makers Huawei and ZTE rages on in the U.S. District Court for the District of Delaware.  Recall that the parties are awaiting an Initial Determination in ITC Inv. No. 337-TA-800, and are also involved in Inv. No. 337-TA-868.  In the companion district court cases to the -868 investigation, Huawei and ZTE attempted to have the Delaware court expedite a determination of FRAND terms for InterDigital’s portfolio, an attempt that was rebuffed by the court.  But now, in motion filed yesterday, InterDigital seeks to have Huawei and ZTE’s FRAND-related claims dismissed altogether.  InterDigital argues that the FRAND counterclaims should have been asserted in an earlier litigation, are not ripe, and merely seek an advisory opinion.  InterDigital also claims that Huawei and ZTE have failed to allege the existence of an enforceable contractual commitment under the applicable law.
Continue Reading InterDigital asks Delaware court to dismiss Huawei, ZTE’s FRAND counterclaims

In recent posts, we covered the briefs submitted by Samsung and Apple and the ITC Staff in response to the U.S. International Trade Commission’s request for additional briefing in Inv. No. 337-TA-794.  We noted that several other parties also submitted responses, offering their views on how an exclusion order in this case might affect the public interest.  These parties include:

Each of these parties warns the ITC that allowing exclusion orders for FRAND-pledged standard-essential patents may have adverse effects on U.S. consumers and the U.S. economy, particularly future standards-setting activity.  A brief summary of these public interest submissions is after the jump.
Continue Reading A final round-up of new public interest submissions in Samsung-Apple ITC case (Inv. No. 337-TA-794)

We recently came across a new paper written by noted scholars Mark Lemley and Carl Shapiro that we thought was worth passing along.  Lemley and Shapiro have written extensively about the interplay between patent issues and standard-setting, including the oft-cited article “Patent Holdup and Royalty Stacking.”  In their new paper, titled “A Simple Approach to Setting Reasonable Royalties for Standard-Essential Patents,” Lemley and Shapiro propose a way to tackle the difficult task of determining the appropriate terms for a FRAND-encumbered standard-essential portfolio (if the parties are unable to agree on terms).

Their solution to this common problem?  Requiring the parties to enter into a binding “baseball-style” arbitration — where each party must propose its final offer, and the arbitrator picks which one is the most reasonable (the arbitrator cannot choose a different number).  In their paper, Lemley and Shapiro describe how their proposed system would work in practice, and claim it would moot many of the FRAND-related disputes ongoing today.
Continue Reading Lemley, Shapiro propose “baseball-style” arbitration as solution to FRAND disputes

ITC LogoLast week, both Apple and Samsung filed their initial submissions in response to the U.S. International Trade Commission’s March 13 order for additional briefing in In the Matter of Certain Electronic Devices, Including Wireless Communication Devices, Portable Music and Data Processing Devices, and Table Computers (Inv. No. 337-TA-794).  In a post last Friday, we discussed the submission by the ITC’s Office of Unfair Import Investigations.  After the jump, we’ll give an overview of the positions set forth in the parties’ respective briefs.  It will not be a surprise to anyone following the smartphone wars or standard-essential patent issues that Apple and Samsung vehemently disagree over nearly everything having to do with the standard-essential patent and FRAND issues in this case.
Continue Reading New ITC briefs filed by Apple, Samsung demonstrate fundamental dispute over standard-essential patents and meaning of FRAND

Last week we discussed a couple of amicus briefs in the Apple-Motorola Federal Circuit appeal that addressed standard-essential patent issues.  Intel supported Apple’s view that injunctions should generally not be available for FRAND-pledges SEPs, while Qualcomm supported Motorola’s contention that there is no such blanket restriction.  In this post, we’ll address two more briefs, both of which were filed by parties supporting Apple: (1) the Business Software Alliance, which is a trade association of software and hardware technology companies; and (2) a group of law school professors.


Continue Reading More amici support Apple’s opinion of FRAND: Business Software Alliance and law professors give their views

If anyone needed more evidence that the U.S. International Trade Commission is paying a lot of attention to standard-essential patents and FRAND-related issues, they received some yesterday.  The Office of Unfair Import Investigations (OUII), a neutral third party who commonly participates in ITC investigations as a representative of the public interest, notified the ITC…

CAFCEarlier today we summarized the amicus brief filed by Intel in the Apple v. Motorola Federal Circuit appeal, and we noted that a number of other not-yet-publicly-available amicus briefs were also filed with the court.  Today, the amicus brief filed by Qualcomm hit the docket — and out of all of the recent amicus briefs, it’s the only one that was expressly filed in support of Motorola.

As it has consistently argued in the past, Qualcomm — a holder of a significant portfolio of SEPs — argues here that a FRAND commitment does not categorically preclude injunctive relief, and it urges the Federal Circuit to refrain from adopting such a rule.  Qualcomm also argues against the particular methodologies of calculating reasonable royalty damages for both FRAND-pledged essential patents and non-essential patents (e.g., the so-called ex ante or incremental value rules) that certain amici have advocated for.
Continue Reading Qualcomm sides with Motorola on FRAND/SEP issues in Apple v. Motorola Federal Circuit appeal

CAFCBack in January, we summarized a number of amicus briefs filed by a diverse group of companies and organizations concerning the issues in the Apple v. Motorola Inc. Federal Circuit appeal of Judge Posner’s decision to dismiss the parties’ respective patent infringement cases.  We noted that because the Federal Circuit extended the deadline to file amicus briefs until seven days after Motorola’s opening brief was due, more parties were certain to make their views on standard-essential patent and FRAND issues known to the court.  Sure enough, several others filed amicus briefs last week.  Yesterday, the amicus brief filed by Intel became publicly available.

As you can see from our summary below, Intel’s brief clearly supports Apple, at least with respect to Apple’s cross-appeal of the standard-essential patent issues in the case.
Continue Reading Intel files amicus brief supporting Apple in Federal Circuit appeal of Judge Posner decision

For the last few months, Samsung and Ericsson have been engaged in a wide-ranging patent infringement skirmish, both in the Eastern District of Texas and in the U.S. International Trade Commission (Inv. Nos. 337-TA-862, 337-TA-866).  Many of the infringement assertions in these cases relate to the 4th-generation Long-Term Evolution (LTE) wireless communications standard, as well as other wireless communications standards promulgated by ETSI and IEEE.  Earlier this week, Samsung filed its Answer and Counterclaims in response to Ericsson’s complaint in case no. 6:12-cv-00894 in the Eastern District of Texas.

Pulling no punches, Samsung not only accuses Ericsson of breaching its FRAND obligations (an accusation it has previously made), but also asserts additional patents against Ericsson — including patents already being asserted in the ITC.  And notably, Samsung also paints Ericsson as a non-practicing entity that is trying to engage in patent hold up — Samsung states that Ericsson “now feels unhinged as a non-practicing entity in the mobile phone market to extort vastly unreasonable and discriminatory license fees,” and that it “seeks to ignore over a decade of licensing history between the companies and to travel down a new road as an NPE extracting irrational sums from Samsung under threat of an ITC exclusion order.”  Rhetoric aside, though, the meat of Samsung’s answer is really about its FRAND-related defenses and infringement counterclaims.


Continue Reading Samsung-Ericsson standard-essential patent battle heats up as Samsung asserts additional patents in E.D. Tex.

Late last week, Motorola Mobility filed its Responsive and Opening Brief in Federal Circuit Appeal No. 2012-1548 (the appeal from Judge Posner’s June 2012 decision to dismiss competing infringement claims in a case between Apple and Motorola).  We’ve previously discussed the large number of amicus briefs filed with the Federal Circuit by a wide variety of parties addressing the issues of damages and injunctive relief with respect to standard-essential patents.  Here, Motorola characterizes Apple as an “unwilling licensee” who wants to change the rules of how standard-essential patent licensing has long been done in the cellular industry.  Motorola claims that Judge Posner’s rulings — which barred injunctive relief for Motorola’s FRAND-pledged standard-essential patent at issue, and limited damages to ex ante (pre-standard) value of the patent — “devalue essential patents,” “upset the settled expectations” of patent holders who contribute to industry standards, and “create disincentives” to participate in standard-setting activities.
Continue Reading Motorola tells Federal Circuit Judge Posner’s ruling would inappropriately create a “categorical rule” against standard-essential patent injunctions