Court of Justice provides further direction on the path between patent hold-up and hold-out

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Last month, the Court of Justice of the European Union issued its ruling on a preliminary reference in Huawei Technologies Co v ZTE, regarding the licensing of standards essential patents. The judgment addresses the controversial question of when a FRAND commitment is compatible with the right to seek an injunction against implementers who use the technology without a licence. The Court's ruling provides some helpful practical guidance but leaves a number of areas of uncertainty unresolved. Further litigation can be expected in this field.