In-depth reporting and analytical commentary on intellectual property disputes and debates. No legal advice.

Philips and OPPO settle patent licensing dispute: UK court order

Context: In 2022, Philips brought standard-essential patent (SEP) infringement actions against OPPO and its affiliates in different jurisdictions. The first (and only known) court decision of significance was a UK anti-antisuit injunction in July 2022 (court document).

What’s new: The parties have settled their dispute through a license agreement. ip fray has not seen a press release, but has just obtained what is called an office copy of a Tomlin Order by Mr Justice Meade of the High Court of Justice in London. On January 8, 2024, the court stayed all proceedings and vacated the trial dates as per a confidential agreement between the parties.

Direct impact: The agreement frees up litigation resources on both sides. Given OPPO’s parallel disputes with Nokia and InterDigital, Philips would have been unlikely to gain significant leverage over OPPO in any European market anytime soon.

Wider ramifications: The terms of the agreement with Philips may play a role in the further proceedings with Nokia and InterDigital as a comparable license agreement. Therefore, it is a given that OPPO has agreed to terms that do not undermine its position on what is in fact FRAND.

The court order refers to a confidential agreement between the parties dated 1 January 2024. Mr Justice Meade stayed all proceedings between the parties except for the purpose of enforcing the terms of the license agreement. The parties don’t have to bring a new claim if any dispute arises under that agreement: they can go straight to the High Court of Justice in that (unlikely) event. UK trials between these parties had been scheduled for this month but also later in the year (May and November). The trial dates have been vacated as a result of the settlement. There is no order as to costs.

Not only OPPO’s core brand but also its upmarket OnePlus affiliate and the lower-priced realme brand were being sued by Philips.

For a multi-jurisdictional SEP dispute, this one had a low profile. Before anything spectacular (apart from the anti-antisuit injunction back in the summer of 2022) happened, it has been resolved amicably.

Philips settled litigation with another major Chinese smartphone maker, Xiaomi, in the spring of 2022. Generally, OPPO has a reputation in the industry for defending itself more vigorously, though OPPO does reach most license agreements without anyone resorting to litigation.