Lenovo to pay InterDigital $138.7m for FRAND royalty

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Lenovo to pay InterDigital $138.7m for FRAND royalty

Rolls 2k-comp.jpg

The England and Wales High Court handed down one of the most hotly anticipated FRAND rulings for some time

The England and Wales High Court ruled today, March 16, that Lenovo must pay InterDigital $138.7 million for a global licence to its 3G, 4G and 5G standard-essential patents.

The ruling, by Mr James Mellor, was the most hotly anticipated fair, reasonable and non-discriminatory (FRAND) judgment in the UK since the Supreme Court’s decision in Huawei v Unwired Planet in 2020.

Today’s ruling confirms the Supreme Court’s approach in that case, in which it said courts in England and Wales are able to set a global FRAND rate when the licensor and licensee cannot agree on terms.

In today’s judgment, Mellor found that neither InterDigital's 5G extended offer nor Lenovo's lump sum offer were FRAND or within the acceptable range.

The final amount of $138.7 million is around 40% lower than what InterDigital had originally sought. Lenovo made a pre-trial offer of around $80 million but InterDigital’s proposal amounted to more than $337 million.

Mark Marfé, partner at Pinsent Masons in London, said it was predictable that neither offer was FRAND as both were so far apart.

“These cases are very time-consuming and expensive, and it is likely the parties would have sought to agree a rate among themselves to avoid the need for litigation if their offers had not been so far apart,” he said.

Josh Schmidt, chief legal officer at InterDigital, said: “We welcome the court’s decision as the first major SEP FRAND judgment that recognises that a licensee should pay in full for the past infringement of SEPs, and we agree with the court that this could be a powerful way of guarding against patent holdout in the future.”

He added that InterDigital plans to appeal against the decision, as certain aspects of it did not accurately reflect the company's licensing programme.

John Mulgrew, Lenovo’s vice president, deputy general counsel and chief IP officer, said the company saw the ruling as a “major win for the technology industry and the customers we serve”.

“It underscores both the importance of FRAND terms for patent licensing and the requirement of transparency by patent holders engaged in licensing practices.

“The court has confirmed that Lenovo is, and always has been, a willing licensee – even in the face of InterDigital’s supra-FRAND offers and behaviour as an unwilling licensor,” he added.

InterDigital had previously secured a series of wins in technical trials, but the FRAND case was heard separately.

more from across site and SHARED ros bottom lb

More from across our site

News of Avanci hiring a senior vice president and the EPO teaming up with a French AI startup were also among the top talking points
Explosm, the independent Texas studio behind the hit webcomic Cyanide & Happiness, partnered with Temu’s IP protection team to combat counterfeiters infringing on its brand
The latest in a dispute over juicing machines, and a shakeup in judicial compositions were also among the top developments
Patent partner Robert Hollingshead explains why the firm remains committed to Japan despite several US firms exiting the Japanese and greater Asia market
Emma Green, partner at Bird & Bird, shares why the Iceland v Iceland dispute could prompt businesses and lawyers to think differently about brand enforcement
Attain IP, developed by two UK patent lawyers, will meet ‘forensic’ needs of patent attorneys by showing a verifiable reasoning chain, according to its co-founders
The High Court of Australia has allowed a fashion designer to retain her registered ‘Katie Perry’ trademark for clothing
Sim & San secured the win for Dr. Reddy’s, which will allow the pharma company to manufacture and export semaglutide, the active ingredient in Ozempic
Lucas Amodio joins our ‘Five minutes with’ series to discuss artificial intelligence systems and patent law
The Americas research cycle has commenced, so don't miss the opportunity to submit your work
Gift this article