Samsung Electronics Co. Ltd v. Apple Inc. et al, joined cases, District Court The Hague, The Netherlands, 14 March 2012, Case numbers 400367 / HA ZA 11-2212, 400376 / HA ZA 11-2213 and 400385 / HA ZA 11-2215
Samsung recently accused Apple of patent infringement. The four patents that were invoked by Samsung in the four proceedings before the District Court of The Hague relate to the 3G technology. Before discussing the infringement and validity of each of these patents, the Court ordered a hearing applicable to all four cases regarding Apple’s FRAND defense and its other preliminary defenses.
In this interlocutory judgment, the Court denies the injunction requested by Samsung.
The general FRAND statement made by Samsung in combination with the applying of the standard by Apple does (unlike Apple's arguments that it would) not mount to a contract. According to the Court Samsung does not have to assume in general that each user wants a FRAND license and not every user may assume that they by using the standard are contractually bound with Samsung. This is the more so since a discussion on what conditions are FRAND is possible.
The Court held that in view of the negotiations on the terms of a FRAND license between the parties, the request for an injunction by Samsung in light of the circumstances should be seen as an abuse of authority and/or contrary to the pre contractual obligation to negotiate in good faith. The Court held that it could not be maintained that Apple was not negotiating in good faith.
This, since the counter offer made by Apple and the way it was calculated was not unreasonable (though the Court explicitly did not state whether it was FRAND). The counter offer by Apple was calculated based on a cumulative royalty ceiling of an x (confidential) percentage, a proportional division of that ceiling over all 1889 declared essential patent families in the standard, a royalty base of 20% of the sales price of its end products and moreover was only limited to the Dutch parts of the four patents invoked by Samsung.
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