This huge American router brand could be banned from operating in most of Europe due to patent dispute

Huawei has won a number of court rulings in its legal disputes with Netgear
The patents involved are crucial to the WiFi 6 technology used in Netgear’s wireless routers
Netgear produces the popular Nighthawk and Orbi family of products

Huawei has won a series of legal victories against Netgear in its ongoing patent disputes regarding WiFi 6 technology, with the latest development potentially having far-reaching implications for Netgear’s operations across Europe.

As reported by an intellectual property activist Florian MuellerThe Unified Patent Court (UPC) recently granted Huawei a multi-country injunction against Netgear, following a ruling by its local Munich division.

This decision, centered on a patent essential to the WiFi 6 standard (SEP), applies to seven countries, including Germany, France and Italy. Mueller says this is one of the most commercially impactful SEP decisions in UPC history.

Netgear faces a difficult choice

Netgear, a major American brand of routers best known for its Nightjar and Orbi, has defended itself against Huawei’s claims, but faces growing challenges. A new judgment from the Munich I Regional Court, expected on January 9, 2025, could further complicate matters. In this case, Huawei claims another WiFi 6 SEP, which seems likely to be considered valid and infringed, based on legal proceedings.

Netgear’s defenses rely on arguments related to FRAND (fair, reasonable and non-discriminatory) licensing obligations and patent exhaustion. However, Mueller says the court has always been skeptical of such defenses unless they are supported by solid evidence. Patent exhaustion, which Netgear hoped would protect devices using Qualcomm chips, has limited applicability. According to the UPC ruling, the exhaustion defense only applies if Qualcomm chips were first sold within the European Union, creating logistical and manufacturing hurdles for Netgear.

The ramifications extend beyond Netgear, as the decision strengthens UPC’s position on SEP and FRAND bonds. The court emphasized that implementers must engage constructively in licensing negotiations and, in some cases, accept bundled licensing offers. Netgear’s rejection of a pool license, combined with its litigation strategies, has not improved its position.

With enforcement of the injunction looming, Mueller says Netgear faces a difficult choice: negotiate a license or risk further legal and operational setbacks. This case not only highlights the complexities of enforcing the SEP in Europe, but also sets a precedent for similar litigation in the future.