American router giant Netgear could be forced to cease operations in several European countries following a legal battle with Huawei. A recent decision by the Unified Patent Court concerning WiFi 6 technologies directly threatens the manufacturer’s presence on the European market.
A series of legal victories by Huawei against Netgear could have far-reaching consequences for the American router maker’s presence in Europe. The Unified Patent Court (CUB) just granted Huawei a multi-country injunction against Netgearfollowing a decision by its local division in Munich.
This decision, which concerns an essential patent linked to WiFi 6 technology, applies to seven major European countries, including France, Germany and Italy. According to intellectual property analyst Florian Mueller, this is one of the most important decisions in CUB history regarding essential patents.
Netgear could be forced to leave France
Netgear, known for its Nighthawk and Orbi ranges, finds itself in a delicate position. A new decision from the Munich I Regional Court, expected on January 9, 2025, could worsen his situation. This case concerns another Wi-Fi 6 patent that Huawei considers infringed.
Netgear’s defense relies on arguments related to FRAND (fair, reasonable and non-discriminatory) obligations and patent exhaustion. However, these arguments did not convince the court. Patent exhaustion protection, which Netgear relied on for devices using Qualcomm chips, only applies if these components were originally sold in the European Union.
The impact of this decision goes beyond the case of Netgear. It sets precedent on CUB’s position regarding essential patents and FRAND obligations. The court emphasizes that companies must participate constructively in licensing negotiations.
Faced with the imminent application of the injunction, Netgear must choose: negotiate a license or risk further sanctions. The company can appeal, but must quickly make a strategic decision for its future in the European market. Recently, OnePlus and Oppo were forced to leave Europe because of a battle over a patent owned by Nokia. The brand finally withdrew from the old continent, before recently making a comeback with new devices. For example, we will soon be entitled to the OnePlus 13R in January.
