ZTE Corporation and another (Appellants) v Conversant Wireless Licensing Sarl (Respondent)

This appeal concerns the jurisdiction of the English courts in relation to the grant of injunctions and the determination of royalty rates for Standard Essential Patents (SEPs). The Appellants, Huawei and ZTE, challenged the decisions of the lower courts which found that they were required to enter into a global licence with the Respondents, Unwired and Conversant, to avoid an injunction for the infringement of the Respondents' UK patents. The Appellants argued that the English courts did not have jurisdiction to grant an injunction to restrain infringement of UK patents unless the Respondents agreed to take a global licence of the Appellants' foreign patents. They also argued that the English courts did not have jurisdiction to determine the royalty rates and other terms of a global licence for foreign patents.

The Supreme Court held that the English courts had jurisdiction to grant an injunction and to determine the terms of a global licence for foreign patents under the contractual arrangement created by the ETSI IPR Policy. The Court rejected the Appellants' arguments that the English courts should not grant an injunction or determine the terms of a global licence for foreign patents because it would involve the infringer compromising foreign rights and because it would be out of step with the approach of other national courts. The Court held that the IPR Policy allows the English courts to determine a global licence for foreign patents as it encourages parties to reach agreement on the terms of a licence and avoid litigation which might involve injunctions that would exclude an implementer from a national market. The Court also held that the grant of an injunction was necessary to ensure that the infringer had a strong incentive to negotiate and accept FRAND terms.

The Supreme Court dismissed the appeals and upheld the decisions of the lower courts that the Appellants were required to enter into a global licence with the Respondents to avoid an injunction for the infringement of the Respondents' UK patents.