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In patent litigation, Samsung claims less than $200 million, while ZTE claims $730 million.
A store in India [Reuters Yonhap News file photo]
A British court has set the lump-sum amount that Samsung Electronics must pay to Chinese telecommunications equipment manufacturer ZTE for global wireless communication technology patent licensing at $392 million (approximately 576 billion won).
According to Reuters and the decision document from the High Court of Justice in London, UK, Justice Richard Meade ruled on the 1st (local time) that the lump-sum settlement for global patent licenses under 'fair, reasonable, and non-discriminatory' (FRAND) terms, which Samsung Electronics must pay to ZTE, would be this amount.
This amount is higher than the maximum of $200 million (approximately 294 billion won) claimed by Samsung Electronics, but lower than the $731 million (approximately 1.073 trillion won) claimed by ZTE.
Samsung Electronics and ZTE failed to reach an agreement to renew their patent license contract from 2021. Following this, Samsung Electronics filed a lawsuit in 2024, asking the UK court to determine the patent license under FRAND terms.
Such licensing issues often lead to legal disputes in the global telecommunications technology industry.
In the UK, the Supreme Court ruled in 2020 that British courts can determine FRAND royalty amounts applicable worldwide. However, Chinese courts can also determine global FRAND terms, and ZTE is requesting this from a Chinese court.
Both Samsung Electronics and ZTE have the right to appeal the court's decision. The companies did not immediately respond to requests for comment.
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