A significant dispute emerged between a leading U.S.-based wireless technology innovator and a multinational electronics manufacturer over the licensing terms for a portfolio of Standard Essential Patents (SEPs) related to 3G, 4G, and 5G connectivity standards. The IP holder alleged that its patented technologies had been widely deployed by the electronics company without an adequate licensing agreement — a potential breach of Fair, Reasonable, and Non-Discriminatory (FRAND) licensing principles.
In early 2023, a UK High Court issued a landmark decision requiring the manufacturer to pay approximately $138.7 million for a global license covering historic sales through 2023, calculated using a royalty rate of 17.5 cents per unit. Both parties appealed.
By mid-2024, the UK Court of Appeal revised the rate to 22.5 cents per unit, increasing the total royalty obligation to over $240 million. The court also ruled that compensation should be retroactively applied to product sales dating back to 2007 — with added interest — and fully dismissed the manufacturer’s appeal.
This case has since become a cornerstone in the conversation around FRAND licensing enforcement, especially as global courts are increasingly asked to define what “reasonable and non-discriminatory” means in practice.
NovaTeq played a critical role in supporting the IP holder's case by providing technical, evidentiary, and strategic insights central to the outcome.
Our work included:
- Patent Claim Analysis
- We conducted in-depth analyses of the SEP portfolio to establish where and how the manufacturer’s products aligned with protected claims.
- Technical Evidence Compilation
- We gathered, organized, and synthesized detailed product-level evidence demonstrating the incorporation of the patented technologies — providing vital support to infringement claims.
- FRAND Rate Benchmarking Support
- We supported the development of a defensible royalty model by analyzing comparable licensing agreements and contributing to fair value assessment. (Source: LinkedIn)
Through a combination of technical rigor and legal coordination, NovaTeq helped enable a strong, well-substantiated argument that reinforced the enforceability of global FRAND obligations — and ultimately contributed to a favorable ruling.