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Lenovo and Motorola face sales ban in Germany

  • May 11, 2024
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Lenovo and its subsidiary Motorola Mobility are facing a major legal challenge in Germany following a court decision banning the sale of their devices equipped with WWAN modules

Lenovo and Motorola face sales ban in Germany

Lenovo and its subsidiary Motorola Mobility are facing a major legal challenge in Germany following a court decision banning the sale of their devices equipped with WWAN modules needed to connect to the mobile internet. This drastic measure is the result of a patent dispute with American technology firm InterDigital. The First District Court of Munich ruled in favor of InterDigital in early May, leading to the immediate implementation of the measure after the plaintiff made a deposit of four million euros.


Resolving patent issues: Lenovo sales banned in Germany

At the center of the dispute are the licensing terms of WWAN technology used in Lenovo products, including recently released smartphone models such as the Edge 50 Ultra. The devices use technology that InterDigital has patented, and there is a dispute over the fees Lenovo must pay for their use. InterDigital claims that Lenovo failed to meet fair and reasonable licensing fee requirements, which took them to court. Lenovo claims InterDigital’s terms are unfair and plans to appeal the decision.

The court’s decision had immediate consequences for Lenovo’s operations in Germany. According to the decision, Lenovo is prohibited from selling, offering or importing any WWAN-enabled devices, including smartphones, tablets and laptops that use mobile networks such as GSM, UMTS, LTE and 5G. This applies not only to Motorola smartphones, but also to a wide range of Lenovo mobile devices.

For German consumers, the impact is becoming increasingly evident. Although Lenovo and Motorola Mobility have stopped listing the affected products on their websites in Germany, some retailers continue to sell existing stock. However, when these stocks run out, possible shortages and delivery problems may occur.

This legal battle is not an isolated fight but is part of a broader pattern of disputes over standard patents that are critical to the basic technological functions of mobile communications. Disputes often depend on the interpretation of what constitutes fair, reasonable and non-discriminatory (FRAND) license terms; This issue is still not clearly defined in European law.

This highlights ongoing tensions around patent licensing in the tech world; Germany emerges as a focal point for patent cases due to its plaintiff-friendly legal framework. This has significant implications for the technology industry, potentially affecting the way companies enter into licensing agreements and manage their intellectual property in key markets around the world. Although the ban is currently in effect, history suggests that companies may eventually reach an agreement that could soften the terms of the court’s initial decision.

Source: Port Altele

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