All Galaxy smartphones affected: Samsung loses patent lawsuit
The Chinese company Datang has won in full against Samsung in the first instance. There is a threat of a sales ban, but Samsung is likely to take legal action.
(Image: c't)
The Regional Court of Munich I has ruled against Samsung in a patent lawsuit in the first instance (case no. 21 O 16085/22). Accordingly, Samsung infringes a patent of the Chinese plaintiff Datang Mobile, which is considered essential for the 4G / LTE mobile communications standard. The case concerns the national German part of the European patent EP2237607 and the ongoing discussion about what fair, reasonable and non-discriminatory (FRAND) patent licensing conditions look like.
EP2237607 describes a cell handover method in LTE/4G radio networks using time division duplex technology. Transmitters and receivers, i.e. 4G masts and smartphones, alternate in the same frequency range, whereby a seamless handover takes place between cells. This ensures a constant mobile connection while walking or driving.
Datang has held the German part of the patent since August 20, 2021. At that time, the rights were transferred from the China Academy of Telecommunications Technology to Datang – Datang was founded in 1998 out of the university. The company belongs to the state-owned China Information and Communication Technology Group. Datang actively develops radio technology and products, so it is not just a so-called patent troll that lives off patent lawsuits.
Judgment only provisionally enforceable
heise online has a redacted version of the judgment from April 12, 2024, according to which Datang won in full at first instance. The Munich I Regional Court stipulates a fixed compensation payment for all 4G-capable smartphones that Samsung has sold in Germany since August 21, 2021. In addition, all models on the market are to be destroyed – in practice, this would affect every Galaxy smartphone, as all devices have long been using 4G.
However, the ruling is not yet legally binding. Datang could only have it provisionally enforced against a security deposit of more than 2.5 million euros – this has not yet happened.
Samsung's side
Samsung was unable to provide us with a statement at short notice. However, if you look at other patent disputes, Samsung is likely to appeal. The Munich I Regional Court is considered to be plaintiff-friendly in patent law matters, meaning that it rules in favor of patent holders more often than other courts.
A counterclaim by Samsung was rejected. In it, the manufacturer apparently argued that a transfer of the patent right was initially not even known. In addition, Datang is said not to have submitted a non-exploitative and non-discriminatory (=FRAND) license offer.
The court stated in its reasoning:
"The defendant [editor's note: Samsung] cannot deny the alleged acquisition with mere ignorance, but must show substantiated reasons that the patent transfer did not take place and that the register content is therefore incorrect. [...] The defendant has not demonstrated this."
[...]
"It is not sufficiently definite or determinable what constitutes a 'non-exploitative and non-discriminatory (=FRAND) license offer' which the defendant and counterclaimant [Samsung] seeks from the plaintiff and counterdefendant [Datang]."
[...]
"In the present proceedings, it is precisely what FRAND is that is highly disputed between the parties. The dispute as to whether an offer is FRAND or not cannot and must not be shifted to the enforcement proceedings."
At the same time, Samsung has initiated a nullity action against the underlying patent. The Munich I Regional Court also refused to suspend the patent dispute until the nullity action has been resolved.
The legal dispute is unlikely to have any immediate impact on customers. It will be months before a new hearing in the next instance.
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