26 August 2020 - 15:54UK judges can set global royalty rates for the use of telecommunications technology, Britain’s highest court said in a pair of cases over how much Huawei Technologies owes a US patent owner.
Huawei and ZTE were challenging rulings that would effectively make British courts a one-stop shop to set global royalty rates. Since the original ruling, the country’s tribunals have become increasingly popular. Regulators and courts around the world have grappled with how to value patents for essential technology and whether their owners have any rights to limit the use of the inventions. The confusing rules have frustrated automakers and other manufacturers of so-called internet of things devices poised to adopt 5G for everything from connected cars to robotic surgery.
Since patents are limited to national borders, judges hearing these disputes decide the appropriate rate for the inventions in their home country. Each side files lawsuits in courts they consider favourable, in hopes that a ruling will give them an advantage in negotiations.