Background
A leading wireless equipment producer was forced into global litigation by a leading handset manufacturer, each with significant 4G and 5G cellular Standard Essential Patent (SEP) portfolios. The dispute arose during their cross-license negotiations over a net payment to be paid by the handset manufacturer for a future fixed term. The net payment in question was to be based on their expected sales and fair, reasonable, and non-discriminatory (FRAND) royalty rates.
The litigation includes parallel offensive and defensive proceedings in China, the U.S., Brazil, the UK, the Unified Patent Court (UPC), and German Courts in Munich and Frankfurt. The courts in each of these venues were asked to consider whether their respective offers and counteroffers were based on FRAND rates. Given the legal, technical, and economic complexity of FRAND rate determinations, each company engaged independent experts to evaluate their respective positions.
Ankura Involvement
The wireless equipment producer retained Ankura to provide economic analyses and a series of expert reports for submission to the courts in the UPC and Germany addressing key issues related to FRAND royalty rate setting and the positions of the parties.
Our Work Included:
- Developing analytical frameworks to assess whether the parties’ license offers were compliant with FRAND principles and case law.
- Evaluating the comparability of (and unpacking) existing license agreements and market benchmarks (including patent pools).
- Providing expert reports, testimony and support in both the UPC and German courts.
- Supporting negotiation and strategy across coordinated offensive and defensive litigation efforts.
Ankura’s analyses, reports, and testimony were relied upon by the courts in evaluating if the parties’ offers and counteroffers are based on FRAND rates.
Results/Impact
Our client prevailed in both offensive and defensive FRAND cases in the UPC and German courts, with multiple findings that our client’s offer was fair and reasonable. The outcomes reflect the depth, clarity, and credibility of Ankura’s expert analysis and testimony.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
