ZTE seeks global FRAND rate for its own 4G portfolio

IAM has reported on a novel turn of events in the FRAND space, with it being revealed by ZTE that it has asked the Shenzhen Court to determine a global FRAND rate for its 4G portfolio. The identity of the defendant is not known, although IAM speculates it may be Tinno (in which case the trial is expected to take place by 8 May 2022, subject to any delays).

This is of particular interest given it represents a pivot to a SEP owner positively focusing on obtaining a court valuation of its SEP portfolio, presumably with the intent for that to have a persuasive (or perhaps binding, depending on the forum and relevant res judicata rules) effect against future defendants. The equivalent in the UK would be seeking to engage the English courts' declaratory judgment jurisdiction to rule on a FRAND benchmark rate for a portfolio.

Whilst there are complex international and geo-political issues at play, it will be interesting to see how the SEP landscape changes for a SEP owner who has at their disposal a global rate-setting judgment for their portfolio from a Chinese court. Aside from the obvious questions of comity and how the judgment should (and will) be treated by foreign courts, will it enable ZTE to leverage licences on the determined terms from anyone operating in the PRC?