The Chongqing First Intermediate People’s Court (“Chongqing First Intermediate Court“) recently issued the first-instance judgment on the dispute over standard essential patent (SEP) royalty rates between OPPO companies, including Guangdong Oppo Mobile Telecommunications Corporation Ltd. (collectively, “OPPO“) and Nokia companies, including Nokia Corporation and Nokia Technologies (collectively, “Nokia“) in Case No. (2021) Yu 01 Min Chu 1232. Fangda Partners represented OPPO throughout the entire first-instance litigation proceeding in this case.

The judgment is a landmark decision made by a Chinese court on global licensing rate-setting for 5G SEPs. Chongqing First Intermediate Court’s decision signaled the China judiciary’s active exploration of, and clear determination in, deciding 5G SEP licensing fees. The judgment is also of significance and far-reaching importance in promoting a healthy ecosystem for global SEP licensing.

The dispute between OPPO and Nokia over SEP licensing has drawn widespread global attention. Following the expiration of their previous licensing agreement in 2021 and the failure to reach a consensus on new licensing terms, including 5G SEPs, Nokia initiated lawsuits in multiple countries. As an active counter action, OPPO engaged Fangda to file a lawsuit in the Chongqing First Intermediate Court in July 2021, seeking a Chinese court decision to determine licensing conditions, including global licensing rates, for 5G SEPs.

After over two years and nearly 20 days of cumulative trial, the Chongqing First Intermediate Court, based on considerations and a thoroughly review of highly technical arguments, counterarguments, expert opinions and a large amount of evidence, rendered a first-instance judgment. The court determined the FRAND (Fair, Reasonable, and Non-Discriminatory) licensing fees and related terms that OPPO is obligated to pay Nokia. This judgment is expected to contribute to resolving the longstanding dispute between OPPO and Nokia over SEP licensing, with broader implications for similar cases in China and globally.

The Fangda team was led by partner James HU, and key members included partner Tingting Liao, partner Muran Sun and associate Kaimai Pan.