Tagged: competition law

Are Remedies for Breaching Standard Essential Patents Prohibited by Article 102 TFEU?

By Sam Abboud

In Case C-170/13 Huawei Technologies Co. Ltd v ZTE Corp & ZTE Deutschland GmbH, (Judgment of the 5th Chamber, CJEU, 16 July 2015)the CJEU was asked to rule for the first time on whether seeking an injunction and other associated remedies by the owner of a Standard Essential Patent (SEP) against a company in breach of the patent (but one willing to become a licensee) can amount to an abuse of a dominant position in breach of EU competition law (Article 102 TFEU). It concluded that an injunction or an action to recall products can amount to an abuse of dominance in certain circumstances.

 In this post, I first provide a primer on Standards and Standard Essential Patents (‘SEPs’) before summarizing the Court’s reasoning and setting out some initial observations on the judgment’s significance.

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Delimitation of jurisdiction in competition law

What happens to the allocation of respective competences of the Commission and national competition authorities in if an international cartel is implemented both in the EU and the Czech Republic before accession to the EU but action is taken after accession? A number of undertakings had formed a worldwide cartel on the market for gas insulated switchgear and those companies were fined by the Commission and the Czech competition authority. The Commission decision concerned the implementation of the cartel within the EU, while the Czech competition authority concerned the implementation of the cartel within the Czech Republic before accession. However, the decisions were dated after the date of accession of the Czech Republic and after the entry into force of Regulation 1/2003. Does this preclude the Czech competition authority from fining the undertakings in question for the implementation of the cartel in Czech territory? The Court does not think so. The Court first holds that

 the provisions of Article 81 EC and Article 3(1) of Regulation No 1/2003 must be interpreted as meaning that, in the context of a proceeding initiated after 1 May 2004, they do not apply to a cartel which produced effects, in the territory of a Member State with acceded to the Union on 1 May 2004, during periods prior to that date.

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