Three attempts to use U.S. courts against German (or UPC) patent enforcement actions have failed in recent years: disproven recipe?


In the complex landscape of U.S. antitrust and patent litigation, Netgear's recent settlement with Huawei marks a culmination of a series of legal maneuvers that sought to leverage U.S. courts against German and Unified Patent Court (UPC) actions. Following a failed attempt to secure a U.S. antisuit injunction (ASI) and a loss in a UPC case, Netgear's decision to settle illustrates the challenges faced by companies attempting to replicate strategies that once benefitted Microsoft in 2012. Microsoft's successful ASI against Motorola Mobility was a unique case, characterized by direct negotiations between two U.S. firms and a specific context that allowed for a temporary restraining order to be transformed into a preliminary injunction. However, subsequent attempts by other entities, such as automotive supplier Continental, to replicate this success were met with disappointment, as they faced dismissals from U.S. courts and ultimately withdrew their cases. The legal landscape shifted further with the introduction of anti-antisuit injunctions (AASIs) in Germany, which provided a countermeasure to U.S. ASIs. Notably, Nokia's legal team successfully argued for an AASI, positioning it as a necessary defense against perceived interference with German judicial proceedings. This precedent has since influenced the outcomes of various ASI attempts, including those by companies like ADVA and Netgear, both of which faced setbacks against Huawei's strategic use of AASIs. As these legal battles unfold, the prevailing sentiment suggests that parties considering U.S. litigation as a means to counteract European patent enforcement may need to reconsider their strategies, given the recent history of failures in this arena. The question remains whether future litigants will heed the lessons learned from these high-stakes encounters, recognizing the futility of pursuing a path that has consistently yielded unfavorable results.



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