Gilstrap Refuses to Rule That PanOptis Met US FRAND Obligations in Huawei Suit but Awards Enhanced Damages

March 24, 2019

In September 2017, three subsidiaries of PanOptis Holdings, LLCOptis Cellular Technology LLC; Optis Wireless Technology, LLC; and PanOptis Patent Management, LLC (collectively, PanOptis)—sued Huawei over a fair, reasonable, and nondiscriminatory (FRAND) patent licensing dispute, in part seeking a declaratory judgment that the NPE had complied with its FRAND obligations by offering certain global licensing terms to its international patent portfolio. However, the following August, District Judge Rodney Gilstrap ruled that PanOptis could only seek such a judgment for its US patents, shortly before the entry of a $10.6M willful infringement verdict later that month. Judge Gilstrap has now denied the NPE’s request for declaratory judgment, holding that the record lacked any evidence that would allow the court to rule on a US-only FRAND license. In the resulting final judgment, Judge Gilstrap awarded PanOptis $2.6M in enhanced damages, also imposing additional royalties based on a percentage of sales revenues for the accused products. These rulings come just over a month after the NPE’s acquisition by private equity firm Brevet Capital.

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