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Setback for Nokia in German patent battle with Lenovo

·1-min read
FILE PHOTO: A Nokia sign is seen at the company's headquarters in Espoo
FILE PHOTO: A Nokia sign is seen at the company's headquarters in Espoo

BERLIN (Reuters) - A German appeals court on Monday lifted the enforcement of an injunction won by Nokia Oyj <NOKIA.HE> in a patent dispute with Lenovo Group Ltd <0992.HK> to block the world's largest PC maker from selling its products in Europe's largest economy.

Nokia last month enforced the order issued by a lower court in Munich, which found Lenovo had violated the terms of its patented H.264 video-compression technology that is widely used in smartphones and computers.

Lenovo said the appeals court had granted its request to stay enforcement of the Munich ruling "based on the high probability that the decision cannot be expected to be upheld on appeal."

Responding, Nokia said the appeals court's decision did not signal it would side with Lenovo on the merits of the case: "We are confident that our case will hold on appeal."

Nokia launched its legal battle against Lenovo last year over alleged infringement of 20 patents. The Finnish company has ongoing cases against Lenovo in the United States, Brazil and India, in addition to six in Germany.

Such stays are common in German court battles and typically remain in force until a final judgment on the merits of the case. The case revolves around whether license fees for H.264 sought by Nokia from Lenovo are fair and reasonable.

(Reporting by Douglas Busvine; Editing by Richard Chang)