Japan Introduces New Guidelines for Global SEP Licensing Disputes
The Tokyo District Court has released new guidelines and mediation procedures for Standard Essential Patent (SEP) disputes, aiming to provide a model for resolving global FRAND licensing disagreements. This development contrasts with earlier European approaches and seeks to facilitate consensus on licensing fees for global SEP portfolios. The guidelines and mediation process were influenced by the Pantech v. Google case, where Google was deemed an 'unwilling licensee' for failing to disclose sales volumes.
Key Takeaways
- Japanese courts will recommend court-supervised settlement conferences and may present nonbinding proposals for global FRAND royalties at the outset of litigation.
- An implementer's failure to provide sales data for royalty calculation may lead the court to determine they lack willingness to license on FRAND terms, as seen with Google.
- The new guidelines allow SEP holders to propose FRAND royalties using comparable licenses in addition to, or instead of, the previously favored top-down methodology.
- Japanese mediation procedures aim to resolve disputes within three sessions over a six-month period, overseen by an expert committee.
Why It Matters
Japan's refined approach aims to provide a clearer framework for resolving global SEP disputes, offering an alternative to the diverging methods seen in European courts. For streaming and device manufacturers, this could mean new pathways for licensing negotiations, but also increased pressure to demonstrate good faith and data transparency in court-supervised processes. The effectiveness of these guidelines will hinge on whether they can achieve consensus on global FRAND rates and attract participation from involved parties, warranting close observation of initial case outcomes.
Read full article at alston.com