In a decision with significant implications for global patent licensing, the U.S. Court of Appeals for the Federal Circuit (CAFC) vacated a district court’s ruling in a dispute between Ericsson and Lenovo over Standard-Essential Patents (SEPs). Both companies are members of the European Telecommunications Standards Institute (ETSI), which requires members to license their SEPs under “fair, reasonable, and non-discriminatory” (FRAND) terms. After failing to obtain a global cross-license, Ericsson filed lawsuits in Colombia and Brazil, securing injunctions against Lenovo for allegedly infringing its SEPs. Lenovo, in turn, sought an “antisuit injunction” in the U.S. District Court for the Eastern District of North Carolina to prevent Ericsson from enforcing the foreign rulings, arguing that Ericsson had violated its FRAND obligations. The district court denied Lenovo’s request, reasoning that the U.S. case is not “dispositive” of the foreign disputes because it might not result in Lenovo obtaining a global cross-license. However, the CAFC held that determining whether Ericsson honored its FRAND obligations is dispositive because it could resolve key issues in the foreign disputes. The case was remanded to the district court to decide whether Lenovo is entitled to the antisuit injunction based on Ericsson’s FRAND commitments. |