International Sanctions and the FRAND Framework
Briefly

International Sanctions and the FRAND Framework
"The court ultimately settled on a $392 million lump-sum payment, balancing the interests of both parties while considering the significant disparity in their market positions."
"ZTE's request for $731 million was significantly higher than Samsung's proposal, highlighting the complexities involved in determining a fair and reasonable rate under FRAND obligations."
"The court's application of non-FRAND factors, particularly the impact of US export-control sanctions, played a crucial role in shaping the final determination of the license renewal price."
The English Patents Court ruled on a global FRAND rate of $392 million for a renewal cross-license between Samsung and ZTE. Samsung, as the net payer, faced a significant disparity in mobile-phone sales compared to ZTE. The court's decision followed a disagreement on pricing, with ZTE initially requesting $731 million. The final amount was influenced by non-FRAND factors, particularly the effect of US export-control sanctions on ZTE's negotiating power, leading to a discount on previous licenses due to the sanctions' impact.
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