A valuation perspective on the FRAND injunction issued in Unwired Planet vs Huawei

Abstract

On August 26, 2020 the UK Supreme issued a landmark decision in the matter of Unwired Planet vs Huawei. The decision revolutionised the debate on standard essential patents as the Court held that a Global FRAND (fair, reasonable and non-discriminatory) rate can be sanctioned with an injunction in/the U.K. Against this background the article assesses whether the issuance of an injunction in that case was commensurate with the FRAND licensing rate set by the Court itself. In doing so, the article builds upon the valuation approaches contained in the judgment itself. It does so, by comparing the value of the injunction to the implied FRAND value of the SEPs that caused the British injunction. Comparing a slightly adjusted FRAND valuation approach accepted by the Court to the direct value of the injunction, shows that the direct value of the injunction outweighs the estimated value of the SEPs in question. Whether this is commensurate with the FRAND commitment should be further examined.