Munich Court Grants Groundbreaking Anti-Suit Injunction in Nokia-Daimler Patent Dispute

On July 11, 2019, the Munich I District Court (Landgericht München I) issued a preliminary anti-suit injunction in a patent litigation dispute involving Nokia, Daimler, and Continental. This ruling prevented Continental from pursuing an anti-suit injunction in the United States that sought to restrain Nokia from continuing its German patent infringement proceedings against Daimler. The decision is notable because German courts have traditionally been reluctant to grant anti-suit injunctions, making this a potentially landmark case in cross-border patent enforcement.

The dispute arises in the context of the rapidly evolving "internet of things" (IoT) sector, particularly as mobile connectivity technologies become integral to the automotive industry. Standard-essential patents (SEPs), which cover technologies essential to wireless communication standards such as 4G, 5G, and WiFi, are central to this conflict. SEPs must be licensed on fair, reasonable, and non-discriminatory (FRAND) terms, but the parties involved continue to contest the scope and application of these obligations.

Nokia, a former mobile phone giant holding numerous mobile connectivity SEPs, sought to license these patents to Daimler. However, negotiations failed to produce an agreement on licensing terms or on whether Daimler or its suppliers should obtain licenses. Daimler and its suppliers alleged that Nokia breached its FRAND commitments and filed antitrust complaints with the European Commission.

While these antitrust complaints were pending, Nokia initiated ten patent infringement lawsuits against Daimler and other German entities on March 21, 2019, before the Munich I District Court and additional German courts. Two Continental group companies intervened in support of Daimler in these infringement actions.

In response, Continental filed a lawsuit on May 10, 2019, in the US District Court for the Northern District of California against the patent pool Avanci, Nokia, and other members, alleging violations of FRAND and antitrust obligations. This case is currently before Judge Lucy Koh.

On June 12, 2019, Continental sought an interim anti-suit injunction from the US court, requesting that Nokia be enjoined from pursuing its German patent infringement lawsuits against Daimler and from initiating infringement actions against Continental or its customers involving Nokia’s global 2G, 3G, and 4G SEPs during the pendency of the US FRAND litigation.

In a countermove, Nokia filed a motion on July 9, 2019, before the Munich I District Court for a preliminary injunction—effectively an "anti-anti-suit injunction"—to prohibit Continental from seeking or continuing its US anti-suit injunction application.

Nokia argued that the US court had set a deadline of July 24, 2019, for Nokia’s response to Continental’s anti-suit injunction request and that the US court could grant Continental’s injunction shortly thereafter. To prevent this, Nokia emphasized the urgency of the Munich court’s intervention.

The Munich I District Court granted Nokia’s preliminary injunction on July 11, 2019, in ex parte proceedings without hearing Continental beforehand. The court ordered Continental to refrain from applying for any anti-suit injunction that would bar Nokia from pursuing its German patent infringement lawsuits. The injunction carries penalties of up to EUR 250,000 (approximately US$280,000) or detention for up to six months per violation, with a maximum of two years for repeated breaches. Continental was also ordered to withdraw its pending US anti-suit injunction motion.

Procedurally, the court justified the ex parte decision by citing the exceptional urgency of the matter. Normally, the principle of procedural equality requires hearing both parties before issuing a ruling. However, the court found that scheduling an oral hearing before the July 24 US deadline was not feasible and that hearing Continental first could have jeopardized Nokia’s rights by allowing Continental to alert the US court and seek countermeasures.

The Munich court noted that Continental’s right to be heard would be preserved through possible appeal proceedings against the preliminary injunction.

This case highlights the increasing complexity of patent enforcement in the automotive connectivity sector, where multinational litigation strategies intersect with FRAND licensing disputes and antitrust considerations. The Munich court’s willingness to issue an anti-suit injunction signals a potential shift in German courts’ approach to managing parallel litigation and protecting parties’ rights in cross-border patent conflicts.