The winner in the Samsung-ZTE patent crisis has been announced! Exactly 392 million dollars

The London High Court ruled that Samsung Electronics should pay a lump sum of $392 million to use ZTE’s mobile phone patents. The case focused on the conditions under which Samsung would use ZTE patents and how much it would pay for it. The patents in question cover the technologies required for smartphones to access mobile networks. Therefore, the decision is not just a commercial dispute between two companies, but an important example of how standard patent licenses are priced in the telecom industry.

Samsung will pay ZTE 392 million dollars. In the case in England, Judge Richard Meade ruled that Samsung should pay ZTE a collective license fee of 392 million dollars. This amount was well above the upper limit defended by Samsung. Samsung argued that the payment amount should be a maximum of 200 million dollars. ZTE, on the other hand, had requested 731 million dollars. In this respect, the court decision stands at a point between the demands of the two parties.

The amount suggested by Samsung was not accepted, and the amount requested by ZTE was not found fully appropriate by the court. Ultimately, the lump sum payment of $392 million was determined following the two companies’ previous licensing agreement, which was not renewed. Samsung and ZTE were previously working under an agreement dated 2021. However, the parties could not agree on the renewal of this agreement. After this, the license fee and terms of use were taken to court.

Samsung filed a lawsuit against ZTE in London in December 2024. The company requested that fair, reasonable and non-discriminatory licensing terms be determined for ZTE patents. This framework, known as FRAND in the telecom industry, refers to the licensing of patents required for standards under reasonable conditions. Such patents are of great importance in areas such as smartphones, modems and network technologies.

ZTE filed parallel lawsuits against Samsung in China, Germany and Brazil. Thus, the licensing dispute between the two companies was not limited to a single country and turned into a global legal struggle. The parties are conducting court proceedings in different countries regarding the conditions under which Samsung will use ZTE patents and what the cost will be. England stands out as one of the countries frequently referenced in patent cases.

This is because English courts can set global FRAND terms. Following the landmark decision of the UK Supreme Court in 2020, the UK has become a more critical jurisdiction in such global licensing disputes. Chinese courts can similarly make decisions that can have a global impact on FRAND terms. ZTE also wants FRAND conditions to be determined in the process in China. This situation shows that the dispute between Samsung and ZTE may not be completely closed with the decision made in England alone.

There was no immediate statement from Samsung and ZTE after the court decision. Both companies have the right to appeal the decision. Therefore, although the decision to pay 392 million dollars is an important turning point at the current stage of the process, the legal process is not completely over. The decision once again showed how critical standard patents are for manufacturers in the smartphone industry. Patents required for access to mobile networks are essential for device manufacturers to operate in the global market.

For one of the world’s largest smartphone manufacturers, such as Samsung, these licenses are directly effective in ensuring that the products can be sold and used in different countries without any problems. From ZTE’s perspective, the decision was an important result that revealed the commercial value of the company’s patent portfolio. Although the Chinese company demanded a much higher payment from Samsung, the amount of $ 392 million determined by the court is almost double the figure defended by Samsung.

The case between Samsung and ZTE shows that patent wars between technology companies are still at the center of the smartphone market. Basic patents that enable connection to mobile networks, as well as hardware design, camera technologies or processor performance, can lead to multibillion-dollar disputes for companies.