Issue #18 : Pay Me To Shut Up
Happy Monday!
Hope you've having a great Labour's Day.
Here are the latest 🌶 legal headlines:
Australia: Australia's highest court rejects Spain's sovereign immunity defence to enforce €101 million ICSID award
China: Chongqing Court awards RMB 30 million in damages in trademark invalidation suit
India: WTO panel holds that India has violated global trading rules over import duties on IT products
Iran: ICC Court upholds challenge by National Iranian Oil Company against arbitrator Laurent Aynès
Ling Yah
P/S: Know of any interesting seminars happening? Drop us a note at editor@overheard.asia!
That $609 million fine! 😳
It’s tough being Qualcomm in South Korea.
And pricey too!
🍿 What Happened?
In 2009, Korea’s Fair Trade Commission slapped Qualcomm with a $211 million fine for dodgy discounts and royalties.
Fast forward to 2016, and Qualcomm was hit with another hefty fine for unfair practices, including:
blocking patents that its competitors needed to manufacture modern chips;
having unfair licensing terms for essential patents that affected smartphone makers like Samsung, LG, Apple, and Huawei; and
failing to pay its proper share of patent fees to manufacturers.
All this resulted in a record 1 trillion won ($761 million) fine. 😱
✍🏻 Appeal
Qualcomm appealed in 2018, but both the High Court and now the Supreme Court of Korea have upheld the antitrust body’s measures.
The Supreme Court even confirmed 80% of the fine, leaving Qualcomm with a whopping $609 million bill!
Ouch. 😅
Drills & Rigs
In 2018 and 2019, Awilco Rig 1 ordered 2 harsh environment semi-submersible drilling rigs (Nordic Winter & Nordic Spring) from Keppel FELS, but things didn’t go as planned.
🤔 Nordic Spring
Keppel terminated Nordic Spring after Awilco defaulted on a payment. It was later sold off to Asset Co after Sembmarine acquired Keppel Offshore & Marine.
The tribunal recently ruled in favour of Keppel over Nordic Spring, but the drama doesn’t end there.
🍿 Nordic Winter
Nordic Winter also carries a hefty price tag of USD 425 million.
Awilco itself had terminated the contract in June 2020, alleging breaches of “the project management, schedule, resourcing and compliance” under the Vessel Construction Contract.
In a cheeky move, Awilco served its termination notice a day before the USD 31.9 million instalment payment was due. 😏
The dispute is now headed to arbitration and a ruling is expected in Q3 of 2023 or Q1 of 2024.
🤑 The Moolah
But as we all know, arbitration is never cheap.
Awilco estimates they’ll need a further USD 7 million to pursue the case.
Disputes really are the playground of the rich, aren’t they? 😅
The USD 87.5 million Truth
Patents are a powerful commodity.
And one that is easily abused.
🍿 What Happened?
In 2010, Glenmark allegedly entered into an anticompetitive agreement with Merck to stifle generics of Zetia - a popular generic drug used in the treatment of cholesterol.
Unhappy drug purchasers, payers and retailers filed a US lawsuit in 2018.
They argued that Merck had paid Glenmark $800 million in an “unlawful reserve-payment” to delay the launch of Glenmark’s Zetia copycat for nearly 5 years.
💣 Saving Grace
Merck and Glenmark tried to have the case thrown out, but failed.
Not that it matters because at the last moment, a settlement emerged!
Glenmark denied all allegations, but has just agreed to pay a hefty USD 87.5 million.
🤔 Hmm…
We might never know the truth but with a price tag like that…
Does anyone really care? 😏
Spotlight: Chavah Apfelbaum (Associate, Asserson)
⚒️ What do you do?
I am a dual-qualified Associate in the Dispute Resolution team at Asserson - a UK firm with offices in Tel Aviv, London and Manchester. I specialise in cross-border disputes and international arbitration.
I am also the International Bar Association Young Lawyers’ Committee National Representative of Israel.
In addition to my practice, I am presently undertaking a LLM in International Dispute Resolution at the Queen Mary University of London.
🏆 What is your proudest achievement?
Prior to joining Asserson, I was a lawyer in the IP disputes team at a top-tier firm in Melbourne, Australia.
Back in 2019, I moved to Israel – a country in which I wasn’t qualified to practice law, and without a job lined up. I joined Asserson within a matter of months. I have since cross-qualified in the UK, expanded my practice to include arbitration and could not be happier. There’s something to be said for taking a chance, particularly when you’re young, and advocating for yourself.
⌛ There are now 25 hours in a day! How do you spend your extra hour?
No question – with my family. Life as a lawyer is a constant balancing act. Between billable work, non-billable team development, marketing and training (and the occasional meal) there is never enough time in the day.
Add to that pursuing a Masters in Law, and I can tell you that time with family and friends becomes even more precious.
🚀 If you weren't a lawyer, what would you do?
From as early as I can remember, I was always vacillating between Law and Medicine. If I wasn’t a lawyer, I like to think that I would be a medical practitioner in Israel, travelling the world in my spare time, penning best-seller thrillers.
😋 Your favourite food haunt (bonus points if it's off the beaten track!)
Gagou de Paris – a charming French pastry store located in Jerusalem, Israel. Their croissants are divine.
If anyone is visiting our wonderful country, please be in touch – I’d love to take you there.
*Note: This interview has been edited for clarity and brevity.
Food Feature
You can't go wrong with burgers.
If you're in Singapore, head to Wildfire Burgers to check out their Classic 001 Cheeseburger or Truffle Mushroom Burger. For those who can't take beef, there's also the Sriracha Chicken Burger & Eggstarter!
Just don't head over during lunchtime because it tends to get really packed!
Details: Facebook, Google Maps
Are you a student or young lawyer?
Want to get involved in helping to run Overheard? Meet senior practitioners? Do legal research with real world impact?
We're always looking for bright, young talent like yourself so if you're interested, give us a holler at editor@overheard.asia!
Special thanks to Overheard in Asia's sponsor:
David Grief was described as "the Law's Middleman" (Business Times, 2021). You can reach out to him at dg@davidgrief.com if you need help identifying the right lawyer, arbitrator or expert for your matters, or even if you just want to grab a drink 🍵🍺 with someone who has managed and mentored lawyers for almost 5️⃣0️⃣ years!