IP analysis: Nick Smee, Associate at Browne Jacobson considers the case Koninklijke Philips NV v Asustek Computer Incorporation and others. In a patent infringement claim brought by Philips against a number of parties, one of the defendants, HTC, sought to argue that its activities fell within a covenant not to assert patents against third parties contained in a 1998 patent cross-licensing agreement between Philips and Qualcomm. The agreement was governed by the law of California, which allows for ‘extrinsic evidence’ to be taken into account where a clause is open to opposing interpretations. The Court of Appeal, upholding the decision of Arnold J in the High Court, found that the relevant covenant was limited in scope and did not extend to HTC’s activities.