HTC appeals against limited stayed injunction in favour of Nokia in patent infringement case

Before: Lord Justice Jackson, Lord Justice Patten, Lord Justice Tomlinson and Lord Justice Floyd

Between

Appellant/Claimant
Counteraction Defendant

HTC Corporation

and

Respondent/Defendant
Counteraction Claimant

Nokia Corp
Judgment Date: 12 December 2013

Facts

Nokia’s patent was for a modulator structure using a Gilbert cell in mobile telecommunications. HTC claimed that the patent was invalid for reasons of lack of novelty and for obviousness over two prior art patents. Nokia contended that HTC infringed the patent by use of the patented modulator structure in various of its mobile telephone products. HTC denied this, saying the modulator structure used in its products did not fall within the claims of Nokia’s patent. HTC also raised a defence of Licence.

Arnold J found Nokia’s patent valid and infringed. On the defence of a license he applied SA des Manufactures de Glaces v Tighman’s Patent Sand Blast Co (1883) 25 Ch. D. 1, that HTC could not have acquired greater rights on purchasing chips from Qualcomm  than Qualcomm had under the Agreement, that Nokia’s rights were not exhausted and there was no consent to HTC’s acts under the Agreement.

HTC contended that their should be no injunction and damages should be awarded in lieu of an injunction.  ArnoldJ granted an injunction which was stayed pending appeal in respect of HTC’s flagship product only. HTC appealed against the limited stay.

The appeal was allowed as the Judge’s approach was held to be wrong in principle.