Delhi High Court Allows Nokia’s Global FRAND Rate Claim Against Oppo
Update of the post
Nokia has reached us and shared new info that affects the meaning of the original text.
“The Delhi High Court, in a landmark order issued on November 15, 2023, rejected Oppo’s objections and allowed Nokia’s suit to proceed to trial.”
- There has been no order of 15 November, and Oppo’s “objections” (i.e. their defenses) have not been rejected. The most recent hearings and orders have been about the possibility to go to an expedited main trial, and the court has in this context proposed a global rate-setting subject to both parties’ consent.
“The court also noted that Oppo had agreed to submit to the jurisdiction of the Indian courts and had not challenged the global rate option in its written statement.”
- Oppo are yet to inform the court of their position on a global rate-setting.
“However, the court clarified that it would not interfere with the ongoing suit in China, where Oppo had filed a counterclaim against Nokia, seeking a declaration of non-infringement and invalidity of the patents, as well as a local FRAND rate. The court stated that it would respect the sovereignty of the Chinese courts and would not issue any order that would conflict with their decisions.”
- The court has asked the parties to consent to the global rate-setting subject to the withdrawal of BOTH the Chinese and UK actions dealing with FRAND determination. It is also incorrect that Oppo’s claim in China would be for a “local” FRAND rate.
“Additionally, the court directed Nokia and Oppo to engage in mediation within four weeks to explore the possibility of an amicable settlement.”
- We are not sure where this is coming from as there is no mediation.
In India, Nokia filed a suit against Oppo in the Delhi High Court, seeking an injunction to prevent Oppo from selling its infringing products in the country. Oppo challenged Nokia’s suit on various grounds, such as jurisdiction, validity, essentiality, and infringement of the patents, as well as the FRAND terms offered by Nokia.
The Delhi High Court, in a landmark order issued on November 15, 2023, rejected Oppo’s objections and allowed Nokia’s suit to proceed to trial. The court also opened up the possibility of setting a global FRAND rate for Nokia’s SEPs (Standard Essential Patents), which would apply to all of Oppo’s products worldwide, not just in India. The court reasoned that this would avoid the problems of forum shopping, multiplicity of suits, conflicting judgments, and royalty stacking that arise from having different rates in different countries.
The court also noted that Oppo had agreed to submit to the jurisdiction of the Indian courts and had not challenged the global rate option in its written statement. Furthermore, the court observed that Nokia had agreed to drop its parallel suit in the UK, where it had also sought a global rate, in order to enable the Indian court to decide the issue.
However, the court clarified that it would not interfere with the ongoing suit in China, where Oppo had filed a counterclaim against Nokia, seeking a declaration of non-infringement and invalidity of the patents, as well as a local FRAND rate. The court stated that it would respect the sovereignty of the Chinese courts and would not issue any order that would conflict with their decisions.
Additionally, the court directed Nokia and Oppo to engage in mediation within four weeks to explore the possibility of an amicable settlement. The court’s order is significant as it is the first time that an Indian court has expressed its willingness to set a global FRAND rate for SEPs, which could have a major impact on the patent licensing landscape in the country and beyond.
