Huawei sues InterDigital in China for failing to license its SEPs on fair terms

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InterDigital in its regulatory filing on January 7th said Huawei filed a lawsuit against it in China. Huawei alleged that InterDigital failed to license its standard essential patents (SEP) related to 3G, 4G & 5G standards on fair, reasonable and non-discriminatory terms and conditions. The complaint was filed in Shenzhen Intermediate People’s Court on January 2nd  against InterDigital and some of its subsidiaries though names of the subsidiaries are not mentioned in the filing. It was also mentioned in the filing that Huawei asked the court to determine the licensing terms for all InterDigital’s Chinese standard essential patents related to 3G, 4G and 5G standards for its products from 2019 to 2023.

InterDigital said the patent licensing agreement it had with Huawei ended on December 31, 2018.

The original filing is below:

2019 Huawei China Proceeding

On January 3, 2019, InterDigital was notified that a civil complaint was filed on January 2, 2019, by Huawei Technologies Co., Ltd. and certain of its subsidiaries against InterDigital, Inc. and certain of its subsidiaries in the Shenzhen Intermediate People’s Court. The complaint seeks a ruling that the InterDigital defendants have violated an obligation to license their patents that are essential to 3G, 4G and 5G wireless telecommunication standards on fair, reasonable and non-discriminatory terms and conditions. The complaint also seeks a determination of the terms for licensing all of the InterDigital defendants’ Chinese patents that are essential to 3G, 4G and 5G wireless telecommunication standards to the Huawei plaintiffs for the plaintiffs’ wireless terminal unit products made and/or sold in China from 2019 to 2023. InterDigital’s patent license agreement with Huawei expired on December 31, 2018.

From SEC

In Decemper 2018, InterDigital was granted a retrial by Chinese Supreme People’s court over another patent case from October 2013 with Huawei. This case is related to royalty payments for Huawei products.

InterDigital researches and develops wireless technologies and generates revenue by licensing its patent portfolio globally. Huawei is a global leader in networking equipment.

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