Lenovo must pay InterDigital $138.7 million for patents
Lenovo must pay US patent holder InterDigital $138.7 million to settle a licencing dispute that has been going on for years over the use of 3G, 4G, and 5G essential technologies.
The decision by London High Court Judge James Mellor, which required the Chinese Manufacturer to pay InterDigital a flat amount for all past and present gadget sales through the end of the year, was viewed as a victory by Lenovo executives.
"Lenovo thanks the court for its decision in InterDigital v. Lenovo. We view this as a major win for the IT industry and the customers we serve "John Mulgrew, vice president and assistant general counsel for Lenovo, made the announcement in a statement.
It may seem like an odd response from someone who has been asked to pay a substantial sum of money, but InterDigital intended to have Lenovo pay an even higher price—$337 million—for a six-year licence. Yet, Mellor came to the judgement that FRAND principles had not been followed in the past settlement attempts undertaken by both parties.
Because the patents in dispute are essential to cellular communication as we know it, they are covered by FRAND, which obliges IP owners to licence the technology at a fair price. In fact, Lenovo said InterDigital did not behave in this manner.
Based on the findings of his comparables investigation, Mellor came to the conclusion that neither Lenovo's lump sum offer nor InterDigital's 5G extended offer "were FRAND or within the FRAND range".
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The sixth trial between InterDigital and Lenovo is over thanks to the ruling. According to court records, the first five of these cases were strictly technical in nature, while the most recent trial was exclusively focused on fair licensure conditions.
The legal battle may still be ongoing even if this trial may be ended. The court's decision, according to InterDigital's senior legal officer Josh Schmidt, is the "first significant SEP FRAND finding that accepts that a licensee should pay in full." Accepting the decision and agreeing with all of Judge Mellor's conclusions appear to be two very different things.