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Standard-essential patent disputes are no longer just national patent disputes. When products such as smartphones must comply with global telecommunications standards, the licensing fight often becomes worldwide.
The Samsung-ZTE dispute is a good example. The dispute arose after the parties’ prior cross-license expired at the end of 2023, with disputed royalties running from January 1, 2024, and possibly covering certain earlier uses. The dispute is about a global SEP cross-license between ZTE and Samsung for cellular standards, including 5G. Both sides own SEPs, but ZTE is treated as the net licensor and Samsung as the net licensee, meaning Samsung would likely owe a balancing payment to ZTE. The real fight is therefore not simply infringement, but the amount and structure of a FRAND payment Samsung must make for a worldwide license to ZTE’s SEP portfolio. Different courts have answered that question differently: the UK set a much lower rate, while China, Germany, and the UPC moved closer to ZTE’s valuation. This dispute therefore illustrates a growing problem in SEP law: “global FRAND” may depend heavily on which court is asked.
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