Statement from ACT | The App Association on Federal Circuit Appeals Decision in Ericsson v Lenovo on Standard Essential Patents (SEPs)

Today, the Federal Circuit took a significant step to curb standard essential patent (SEP) licensing abuses by vacating and remanding the lower court’s decision.

This decision follows ACT | The App Association recently filing an amicus brief on behalf of our small and medium-sized developer community in an appeal to the Federal Circuit to reverse a North Carolina federal court’s denial of an anti-suit injunction (ASI). The ASI was sought against a standard essential patent (SEP) holder that was simultaneously seeking injunctions in foreign courts in a campaign to force a licensee into agreeing to a supra-FRAND license before a U.S. court could determine if their behavior was fair, reasonable, and non-discriminatory (FRAND). 

The court rightfully determined that “the ETSI FRAND commitment precludes Ericsson from pursuing SEP-based injunctive relief unless it has first complied with the commitment’s obligation to negotiate in good faith over a license to those SEPs,”  and that meeting such an obligation is dispositive with respect to whether an ASI will be permitted. 

Reinforcing that the voluntary FRAND commitment made by an SEP holder prevents the systematic seeking of injunctions, as well as the gaming court systems across different jurisdictions. The App Association’s small business innovator community, which is developing a wide range of IoT-connected devices based on standardized protocols, welcomes the certainty this decision provides and appreciates its contribution to pro-innovation law and policy in the United States.

 ###

About ACT | The App Association & Members

The App Association is a global trade association for small and medium-sized technology companies. Our members are entrepreneurs, innovators, and independent developers within the global app ecosystem that engage with verticals across every industry. We work with and for our members to promote a policy environment that rewards and inspires innovation while providing resources that help them raise capital, create jobs, and continue to build incredible technology.