Lenovo and Motorola phones, tablets and other devices prohibited in Germany

On May 11, 2024, a new development in the ongoing patent dispute between Lenovo, Motorola and InterDigital hit the public. According to the court’s decision, sales of several Lenovo and Motorola devices that use WWAN modules, which are crucial for mobile Internet connectivity, are now banned in Germany. This ban affects not only Motorola smartphones, but also Lenovo’s wider range of mobile devices. This includes tablets and laptops that use mobile networks such as GSM, UMTS, LTE and 5G. Now, Motorola’s German website does not list any of its smartphones or tablets for sale. There are only a few accessories that do not use the disputed technology.

Background to the dispute

The dispute centers around the licensing terms for the WWAN technology used in Lenovo products. This includes recently launched smartphone models like the Edge 50 Ultra. These devices use technology for which InterDigital holds patents. Disagreements arose over the fees Lenovo should pay for their use. InterDigital alleges that Lenovo failed to meet its requirements for fair and reasonable license fees. This prompted them to seek legal help. Lenovo, on the other hand, claims InterDigital’s terms are unfair and plans to appeal the decision.

The dispute has its roots in the complex world of standard essential patents (SEP) and fair, reasonable and non-discriminatory (FRAND) licensing terms. SEPs are critical to key technological functions in mobile communications, and companies like InterDigital own many of these patents. The lack of specific provisions on what the FRAND principle entails within the EU leaves room for interpretation and further disputes. Disagreements often hinge on the interpretation of what constitutes fair, reasonable and non-discriminatory licensing terms. Germany has become a focal point for these disputes because of its plaintiff-friendly legal framework for patent disputes. Courts across the country have issued several injunctions against companies such as Lenovo and Motorola, prohibiting them from selling devices that allegedly infringe SEPs.

The decision of the court

The District Court of Munich I ruled in early May in favor of InterDigital, leading to the immediate enforcement of the ban after the claimant deposited a guarantee deposit of four million euros. The court ruling prohibits Lenovo from selling, offering or importing WWAN-enabled devices, including smartphones, tablets and laptops that use mobile networks such as GSM, UMTS, LTE and 5G.

Impact on consumers and retailers

For German consumers, the impact of the ban is gradually becoming apparent. Although Lenovo and Motorola Mobility have stopped listing the affected products on their German websites, some retailers continue to sell existing stock. Once these stocks are depleted, potential shortages and supply issues may occur.

Wider implications

This legal battle is not an isolated one, but part of a wider pattern of disputes over so-called standard-essential patents, which are critical to key technological functions in mobile communications. Disagreements often hinge on the interpretation of what constitutes fair, reasonable and non-discriminatory (FRAND) license terms, a matter that is not yet clearly defined in European law. This situation highlights ongoing tensions in global technology over patent licensing, with Germany becoming a focal point due to its plaintiff-friendly legal framework for patent disputes. This has significant implications for the technology industry, potentially affecting the way companies negotiate licensing agreements and manage their intellectual property in key markets around the world.

History of patent litigation

The dispute between Lenovo and InterDigital is not the first of its kind. Last year, Britain’s High Court ruled that InterDigital’s patent license fee should not be higher than $0.175 per device. This decision was part of a larger fight over the FRAND (fair, reasonable and non-discriminatory terms) principle in patent licensing. Lenovo and Motorola disagree with InterDigital’s principle of combining and can still overturn the ban through the appeals process. The lack of specific provisions on what constitutes FRAND within the EU also leaves room for reversal.

The future of dispute

The next big clash between the two opponents will take place in London on June 10, where the UK Court of Appeal will review the sweeping FRAND ruling by High Court judge James Mellor. Lenovo launched a second FRAND trial in the battle, asking the UK High Court to set a global license rate for InterDigital’s entire portfolio, which includes implementation patents as well as SEPs. The court should calculate the FRAND rate from 2024 onwards.

Conclusion

The legal dispute between Lenovo, Motorola and InterDigital in Germany led to a ban on the sale of devices equipped with WWAN modules, which are crucial for mobile Internet connectivity. This ban affects a wide range of Lenovo and Motorola products, including smartphones, tablets and laptops using mobile networks such as GSM, UMTS, LTE and 5G. The conflict stems from disagreements over fair licensing fees for technology patented by InterDigital. The decision of the District Court Munich I in favor of InterDigital has immediate consequences, restricting Lenovo from selling these devices in Germany.

Despite the ban, retailers still have existing stocks, but shortages may occur once they run out. This dispute highlights wider tensions in the technology industry over standard patents and fair licensing terms, with Germany’s legal framework playing an important role in such disputes. The ongoing legal battle highlights the complexity of patent disputes and the challenges companies face in negotiating licensing agreements and managing intellectual property globally. The future of this dispute is likely to involve further litigation and negotiations to resolve the issues surrounding FRAND license terms and patent fees. What do you think about this ban? Let us know your thoughts in the comments section below