London High Court orders Samsung to pay China's ZTE $392 million in a landmark global patent licensing ruling

London's High Court has ordered Samsung Electronics to pay ZTE, the Chinese telecommunications equipment manufacturer, a lump sum of $392 million for a licence to use ZTE's portfolio of patents covering mobile phone technology. The ruling was handed down on 1 May 2026 and represents the English leg of a multi-jurisdictional global licensing dispute between the two companies. The judgment is a FRAND (fair, reasonable, and non-discriminatory) rate-setting decision — a specialised area of patent law in which courts are asked to determine the appropriate royalty rate for standard-essential patents (SEPs), which are patents that are technically necessary to implement an agreed industry standard such as 4G or 5G mobile communications. Holders of SEPs are contractually committed to licensing them on FRAND terms, but disputes about what those terms should be frequently end up in court. The $392 million lump sum structure is notable. Rather than setting an ongoing royalty rate, the court has imposed a single payment covering the licence period in dispute — a resolution mechanism that provides finality to both parties but requires the court to calculate the net present value of future royalty streams. The UK's High Court has established itself as a preferred forum for global FRAND litigation, with courts in Germany, the US, and China also hearing related proceedings in the same underlying dispute. English courts have jurisdiction to set global FRAND rates where both parties consent or where the court determines it appropriate, making London a strategically significant venue for patent holders seeking to crystallise global licensing revenues.

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