Huawei owned patents essential to the LTE (4G) standard and sued ZTE for infringement, seeking an injunction against the marketing of its products. The problem was that Huawei had previously committed to the standard-setting organisation to offer licences on FRAND terms, fair, reasonable and non-discriminatory.
‍

Can an SEP holder block a competitor without first offering a FRAND licence? The CJEU answered through a balanced mechanism.
‍

The proprietor must notify the infringement and make a FRAND licence offer. The alleged infringer must respond diligently. If negotiations fail because of the infringer’s conduct, an injunction becomes justified.
‍

This decision structures SEP licence negotiations across the telecoms and electronics sectors. Companies manufacturing devices compatible with global standards such as Wi-Fi, 4G, 5G or Bluetooth operate within the legal framework established by this ruling.