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Supreme Court Reiterated Jurisdiction of China on SEP Royalties in Dispute of OPPO vs Nokia

On September 7, 2022, the Intellectual Property Court under Supreme People's Court made the final ruling on the jurisdiction of OPPO v. Nokia's in their global license fee dispute. The court rejected Nokia's appeal, and upheld the first-instance ruling made by Chongqing No.1 Intermediate Court. 

The IP court held that according to the pleadings of the parties and the facts preliminarily ascertained by the court of first instance, the focus of the dispute in the second instance is whether the court of first instance has jurisdiction over this case. The main grounds specifically involve the following three aspects: (I) whether the court in China has jurisdiction over this case; (II) on the premise that the court in China has jurisdiction over this case, whether it is appropriate for the court of first instance to exercise jurisdiction over this case; (III) on the ground that the court of first instance has jurisdiction, whether it is appropriate to judge the licensing conditions of the standard essential patents involved in this case on a global scale. 

In the end, the IP court held that China is one of the major places where the granting, the negotiation of license agreements, the performance of reasonably foreseeable post-contracting contract and the licensing of the standard essential patents took place, which has a close geographical connection with the dispute in this case, making the jurisdiction of the courts in China indisputable in this case. As the major place where the standard essential patent is implemented, the court has appropriate contact with the dispute, as well as jurisdiction over the dispute, and is eligible to try the civil dispute involved (namely, the licensing conditions of the standard essential patent involved). 

This is the first time that China's highest judicial organ made clear the jurisdiction of its courts over SEP royalties disputes ever since the OPPO vs Sharp disputes, and it is also the first time that China's highest judicial organ has stated its position on 5G global license disputes, which is of great significance for building the right to speak on global rules of standard essential patents that match China's 5G strength.