Nokia SEP Lawsuit Halts PC Sales
A German court has banned the sale of PCs from Acer and Asus following a patent enforcement campaign by Nokia. The ruling targets violations of Nokia's standard-essential patents (SEPs) for HEVC video coding. The decision is causing major supply chain disruptions and underscores the significant commercial risks associated with SEP litigation for device manufacturers.
- The ruling was issued by the Munich I Regional Court, which found that Acer and Asus were not "willing licensees" under the Fair, Reasonable, and Non-Discriminatory (FRAND) framework for licensing standard-essential patents. This particular court has a reputation for its strict enforcement of patent law. - The legal dispute is not confined to Germany; Nokia has also filed lawsuits against both companies in the US, and the companies have sought a determination of a RAND licensing rate from the UK High Court. In a related UK case, the court ruled that Nokia's RAND licensing undertakings for H.264 and H.265 standards are contractually binding. - Nokia's initial lawsuit, filed in the spring of 2025, also targeted Hisense for infringing on three of its H.265 video codec patents with their smart TVs. Hisense opted to secure a license from Nokia in January 2026, leading to the withdrawal of the lawsuit against them. - While Acer and Asus are banned from direct sales and importing new units into Germany, retailers are permitted to sell their existing inventory. This is expected to lead to shortages of their products in the medium term in one of Europe's largest tech markets. - This is not the first time Nokia has used litigation in Germany to enforce its patents; the company previously won a sales ban against OnePlus in 2023 and settled a significant dispute with Daimler in 2021 after German courts had ordered injunctions on Mercedes vehicle sales. - In response to the HEVC patent suit, Acer has filed its own lawsuit against Nokia in Munich concerning wireless communication technology patents. - Nokia has stated that litigation is a last resort and that the vast majority of its over 250 patent licensing agreements are concluded amicably, including a recent agreement with Samsung for video technologies in their TVs. - The specific patent at the center of the Munich hearing on January 22, 2026, was EP 2 375 749, which pertains to video coding. The court delivered its cease-and-desist order on the same day as the hearing.
