“a. For the reasons explained in paragraphs 10-12 of Xu Jing 5, the Shenzhen judgment, which is awaited, will set out what the global rates would be for both parties’ one-way licences before going on to determine the rates which will apply for China. Huawei therefore undertakes to enter into a global cross-licence on the terms determined by the Shenzhen court (i.e., on the rates determined by the Shenzhen court for each party’s respective global 4G/5G portfolios). The licence terms determined by the Shenzhen court would apply to past sales, and for sales going forward to end of 2030, unless a different forward-looking term is set by the Shenzhen court in its judgment. b. Alternatively, as explained in paragraphs 11-12 of Xu Jing 5, if the parties file a joint petition to the Shenzhen court, the Shenzhen court will almost certainly re-open the proceedings in order to formally determine the terms of a global cross-licence. As explained in paragraphs 11-12 of Xu Jing 5, this process is unlikely to cause much (if any) delay to the Shenzhen court’s determination, given that both parties have advanced valuation cases which calculate global rates and then derive China rates from those global rates. If MediaTek consents, Huawei would agree to: (i) the Shenzhen court formally determining the terms of a global cross-licence; and (ii) undertake to enter into a cross-licence with MediaTek on the global terms determined by the Shenzhen court.”
“Huawei undertakes to enter into a global cross-licence on the terms determined by the Shenzhen Court for China (i.e., the China rates determined by the Shenzhen court for each party’s respective 4G/5G portfolios in China would apply globally). The licence terms (including China rates) determined by the Shenzhen court would apply to past global sales, and for global sales going forward to end of 2030, unless a different forward-looking term is set by the Shenzhen court in its judgment.” “On the condition that: (i) these proceedings are stayed pending the judgment by the Shenzhen court; (ii) MediaTek agrees to a stay or dismissal (without prejudice) of all non-rate setting actions brought by both parties globally, including but not limited to infringement and antitrust actions; and (iii) MediaTek undertakes to enter into a licence for products sold or manufactured in China on the terms determined by the Shenzhen court, Huawei would undertake to offer a licence for the rest of the world on terms determined by the English Court in these proceedings.”
“Undertaking A The Defendants and each of them hereby undertake to the Court that they will not seek to rely in these proceedings (HP-2024-000028) on MediaTek's ETSI FRAND obligations as a defence to a claim for infringement brought by the Claimants or either of them in these proceedings (HP-2024-000028) in respect of any UK designated cellular 4G/5G essential patents within MediaTek’s portfolio and, if any such patents are found to be valid and to have been infringed by the Defendants or either of them in these proceedings, will submit to an injunction and damages as determined by the Court after any appeals. Undertaking B The Defendants and each of them hereby undertake to the Court that they will not seek to enforce any UK designated 4G/5G essential patents within the Huawei portfolio (“Huawei UK Patents”) against the Claimants for any infringement of the Huawei UK Patents until31 December 2030 , and the First Defendant will procure the same in respect of affiliates in the Huawei group. Further, until31 December 2030 , the First Defendant will notify the existence of this undertaking to any assignee or exclusive licensee of any Huawei UK Patents and procure that the same undertaking be given by any such assignee or exclusive licensee as a condition of any assignment or exclusive licence. This undertaking also applies in respect of any claim that could be made in the UK against the Claimants with regards to procuring and/or acting pursuant to a common design (or being liable as joint tortfeasors in any way) in relation to infringement of Huawei UK Patents carried out through acts by third parties.”
“For the avoidance of doubt, this undertaking is not, and is not intended to be a: (i) licence to the Claimants in respect of any Huawei UK Patents; or (ii) waiver of any claims which Huawei may have against the Claimants in respect of any upstream acts carried out by the Claimants outside the UK based on non-UK designated patents (including, but without limitation, the supply of chipsets to any OEM customers); nor as a grant of any licence or covenant not to sue any third party. The Defendants reserve the right to take action against any third party in respect of their acts in the UK or elsewhere. 21. I should point out that the reference to “assignee or exclusive licensee” in the undertaking above obviously only relates to future assignees or exclusive licensees.”
“(1) The grounds of appeal must identify as concisely as possible the respects in which the judgment of the court below is— (a) wrong; or (b) unjust because of a serious procedural or other irregularity, as required by rule 52.21(3). (2) The reasons why the decision under appeal is wrong or unjust must not be included in the grounds of appeal and must be confined to the skeleton argument.”
“208. As explained above, Tesla served the claim form on IDPH within the jurisdiction in reliance upon rule 63.14(2) . It is common ground that that was valid service in relation to the Patent Claims. Tesla contend that this was also valid service in relation to the Licensing Claims, and the judge accepted this. InterDigital contend that he was wrong on this point. There is no dispute that rule 63.14(2) is to be interpreted as meaning "a claim form in so far as relating to a registered right may be served". The issue is whether the Licensing Claims "relate to" the Challenged Patents. This is not an issue about corporate identity: as noted in paragraph 167 above, InterDigital accept that the FRAND obligations arising from IDH's declarations to ETSI extend to IDPH as IDH's Affiliate. Furthermore, although InterDigital point out that Tesla only purported to serve the claim form on IPDH with respect to the Challenged Patents, the issue would be the same with respect to all of InterDigital's other UK SEPs. 209. InterDigital argue that the Licensing Claims do not "relate to" their UK SEPs for two reasons. First, because they are contractual claims. Secondly, because they relate to all SEPs owned by members of the Avanci 5G Platform worldwide. 210. So far as the first point is concerned, it is true that the FRAND obligation is a contractual one, but it entitles an implementer who is a beneficiary of the obligation to a licence under the relevant SEP(s). Once the implementer has such a licence, they cannot infringe the SEP(s). This is why the FRAND obligation is commonly raised by way of defence to infringement proceedings brought by SEP owners against implementers. Tesla have undertaken to take a licence to ( inter alia ) InterDigital's UK SEPs on the terms determined by the Patents Court to be FRAND, and they seek a determination as to what terms are FRAND. This is in order to ensure that they cannot be sued for infringement of those SEPs (among others). In my view it is impossible to say that that claim does not "relate to" InterDigital's UK SEPs. 211. The second point is a more substantial one. In Actavis Group HF v Eli Lilly & Co[2013] EWCA Civ 517 ,[2013] RPC 37 this Court held that a claim form seeking declarations of non-infringement had not been validly served pursuant to rule 63.14(2) in so far it related to French, German, Italian and Spanish designations of a European Patent as opposed to the UK designation. This is because, once granted, European Patents are distinct national patents even though they are the result of a single application to the European Patent Office. Thus they are commonly referred to as "bundle patents". A European Patent (UK) is, by virtue of provisions of thePatents Act 1977 which it is unnecessary to set out, a patent under the 1977 Act, but European Patents (DE), (FR), (IT) and (SP) are not. 212. InterDigital argue that this reasoning applies to the Licensing Claims. I disagree. Once again, the point depends upon the proper characterisation of the Licensing Claims. The Licensing Claims seek to enforce the FRAND obligations attaching to InterDigital's UK SEPs, and thus "relate to" patents under the 1977 Act as explained above. It makes no difference that Tesla contend that a FRAND licence of InterDigital's UK SEPs is a licence which extends to InterDigital's non UK-SEPs, and indeed non-UK SEPs of other members of the Avanci 5G Platform.”
“Secondly, the Licensing Claims relate wholly to property within the jurisdiction because the claims concern UK SEPs. InterDigital argue that the jurisdiction question cannot be determined by what InterDigital characterise as the artificial framing of the declarations sought by Tesla, when in reality the claim on Tesla's own case is a contractual claim to a global licence of SEPs, the vast majority of which are non-UK SEPs. While I appreciate the superficial attraction of this argument, I do not accept it for reasons which should be familiar to students of the English courts' jurisprudence in this field. In short, it is necessary to distinguish between the property on the one hand and the FRAND obligation which affects it on the other hand. Patents are territorial rights, but (i) standards such as the ETSI Standards are global standards which are exploited globally, (ii) the FRAND obligation under clause 6.1 is a global one and (iii) a licence on FRAND terms may well be a global one (meaning that a UK-only licence is not FRAND). Thus a licence to a single UK SEP on FRAND terms can be, and often is, a global licence to all corresponding SEPs (and indeed other families of SEPs in the same portfolio). In Nokia v OPPO this Court upheld the jurisdiction of the English courts in respect of the claim even though the UK represented less than 0.5% of the relevant market (which does not necessarily mean that only 0.5% of the SEPs were UK ones, but nevertheless gives a sense of the order of magnitude). That case concerned an infringement claim, and so the jurisdictional analysis was somewhat different, but nevertheless it illustrates the point. Thus the Licensing Claims relate wholly to UK SEPs even though it is Tesla's case that the FRAND obligations attaching to those UK SEPs carry with them an obligation to grant a licence of global, and not merely UK, extent. Indeed, neither Avanci nor InterDigital dispute that a licence on FRAND terms of the relevant SEPs would be a global one.”