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10 February 2023PatentsLiz Hockley

Nokia offers deal to settle global SEP feud

Telecoms giant proposes arbitration at Delhi High Court | All lawsuits against Chinese rival worldwide would be stayed if the proposal is accepted.

Nokia has proposed arbitration in a move towards settling a high-profile dispute with Chinese rival Oppo over its mobile network standard-essential patent (SEP) portfolio.

The Finnish telecoms giant proposed the measure this week at the Delhi High Court in India. The deal would see Oppo pay Nokia the same amount as it did under the 2018 agreement between the firms as an interim payment—this would not represent the full fair, reasonable and non-discriminatory (FRAND) terms of a new licence agreement.

If accepted by Oppo, the firms would enter neutral, binding arbitration to “settle the whole global dispute and to arrive at a FRAND rate for the new licence agreement”. This would cover 2G to 5G cellular SEPs for five years from the expiry of the previous licence.

All lawsuits around the world between the pair would be halted if the arbitration  materialises.

A Nokia spokesperson said: “Right from the very beginning of this dispute we have tried to find an amicable resolution. Once again, we encourage Oppo to be reasonable, to play by the rules, and enter into binding arbitration to find a fair outcome that works for both parties.”

Nokia has proposed that the arbitration be held at Oppo’s choice of either Hong Kong or Singapore, and under the International Chamber of Commerce (ICC) Rules of Arbitration. The decision should take no more than 18 months from the constitution of the arbitration panel, according to the plan.

Oppo has until February 23 to accept or reject the offer.

Trials on hold

A global stay in court proceedings would pause the litigation battle between the two firms in the UK, where in January the High Court of England and Wales ruled in Nokia’s favour in the first of three SEP trials.

Oppo was found to have infringed one of Nokia’s SEPs through the sale of mobile phones with 4G and 5G functionality, and the court dismissed its claim that Nokia’s patent EP2981103 was invalid.

However, in November last year, the Delhi High Court rejected Nokia’s attempt to obtain a deposit of patent royalties from Oppo with infringement litigation pending.

Elsewhere, there were clashes in Germany and the Netherlands, with a Mannheim court ruling in summer 2022 that Oppo had infringed Nokia’s WiFi implementation patent and two cellular SEPs and the Dutch verdict also ruled in Nokia’s favour.

WIPR has approached Oppo for comment.

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