Nokia Secures Injunction in Germany; Acer and ASUS Face PC Sales Ban Over Patent Dispute
In a significant ruling that could reshape licensing negotiations in the European tech market, the Munich I Regional Court has granted injunctions against Acer and ASUS, temporarily barring them from directly offering, marketing, importing, or selling certain laptops and desktop PCs in Germany.
The decision follows a patent dispute with Nokia, which holds a substantial portfolio of standard-essential patents (SEPs) covering widely used video codec technologies.
Court’s Key Finding: “Not Willing Licensees”
In its judgment, the Munich court ruled that Acer and ASUS were not acting as “willing licensees” under the FRAND framework — short for fair, reasonable, and non-discriminatory licensing terms.
Under international patent law standards, companies that implement standard-essential technologies must negotiate licences in good faith. Courts typically assess whether both parties are making genuine efforts to reach a licensing agreement on FRAND terms.
The court concluded that Acer and ASUS had failed to demonstrate sufficient willingness to negotiate or accept what it considered fair licensing conditions for Nokia’s patents. This finding paved the way for the court to issue injunctions restricting the sale of affected products in Germany.
Technologies at the Centre of the Dispute
Nokia’s portfolio includes patents essential to video compression standards such as HEVC (H.265), VVC (H.266), and AVC — technologies widely embedded in streaming platforms, multimedia applications, and consumer electronics hardware.
These codecs enable high-quality video transmission at lower bandwidths, making them foundational to modern digital services. Any device that supports video playback or streaming typically incorporates such standards, requiring manufacturers to secure appropriate licences.
The ruling underscores the legal weight carried by standard-essential patents in global markets, particularly in jurisdictions like Germany, which has become a prominent venue for SEP litigation.
Timeline of the Case
The dispute stems from Nokia’s claim that Acer and ASUS were using patented video technologies in their personal computers without agreeing to appropriate FRAND-based licensing terms.
Following failed negotiations, Nokia initiated legal proceedings in Germany. The Munich I Regional Court heard arguments regarding the companies’ conduct during licensing discussions, ultimately determining that the manufacturers had not acted as willing licensees.
With the injunction now in place, affected products cannot be directly marketed, imported, or sold in Germany until a licensing resolution is reached.
Industry and Market Implications
Germany is one of Europe’s largest technology markets, and any restriction on PC sales could have notable commercial consequences.
Legal experts suggest the ruling may intensify pressure on Acer and ASUS to negotiate a settlement with Nokia to resume full operations in the German market. The case also sends a broader signal to global manufacturers about the risks of prolonged SEP licensing disputes in Europe.
In recent years, Germany has emerged as a key battleground for patent enforcement due to its comparatively swift injunction process. Companies engaged in high-tech manufacturing often face heightened litigation risks if licensing talks break down.
Why It Matters
The outcome reinforces the importance of FRAND compliance in industries reliant on shared technical standards. As video codecs and communication protocols become increasingly complex, the intersection of innovation and intellectual property law grows more critical.
For Nokia, the decision strengthens its position in ongoing negotiations and affirms the enforceability of its patent portfolio. For Acer and ASUS, it raises immediate operational and reputational concerns in one of Europe’s most important markets.
The ruling could also influence future negotiations across the technology sector, particularly among device manufacturers navigating the evolving landscape of standard-essential patents.
Our Thought
This judgment highlights the delicate balance between innovation and intellectual property rights in the global technology ecosystem. While open standards drive interoperability and growth, the obligation to secure licences on FRAND terms remains central to fair competition. The Munich court’s decision underscores that reluctance or delay in negotiations can carry significant commercial consequences. As digital technologies continue to evolve, structured and transparent licensing frameworks will remain essential to sustaining global tech markets.