In a significant move that highlights the continued importance of Germany as a forum for standard-essential patent (SEP) enforcement, a group of licensors from the VIA LA patent pool has filed suit against Microsoft for the unlicensed use of patents covering the High Efficiency Video Coding (HEVC) standard. The lawsuit is pending before the Düsseldorf Regional Court, one of the most experienced venues for SEP litigation in Europe.
Microsoft stands accused of deploying HEVC-compliant technology across a suite of its most commercially relevant products—including Xbox consoles, Windows 11, and Surface tablets—without obtaining a license from the VIA LA pool. This is in contrast to several of Microsoft’s competitors, including Apple, who have taken licenses and accepted the FRAND-based terms offered by the pool.
The plaintiffs assert that Microsoft’s conduct constitutes a knowing circumvention of SEP obligations and FRAND norms. Of particular note is Microsoft’s decision to market an HEVC software extension via its online store at a price point that would, in effect, cover the licensing fees required under both HEVC patent pools—while simultaneously refusing to enter into an agreement with VIA LA. The plaintiffs argue that such behavior creates an unlevel playing field and undermines the principle of non-discrimination central to FRAND licensing.
The German legal framework offers several key advantages to SEP holders:
- Bifurcation of validity and infringement proceedings, allowing patentees to pursue injunctive relief while the validity of the patents is separately assessed.
- Predictable application of FRAND jurisprudence, particularly following the landmark decisions in cases such as Sisvel vs. Haier.
- Expedited timelines and procedural clarity, especially before specialized chambers in Düsseldorf, Mannheim, and Munich.
The case against Microsoft may engage key aspects of German FRAND doctrine, such as the evaluation of the parties’ behavior in license negotiations and the role of proportionality in potential injunctive relief under § 139 PatG. It may also shed light on the market behavior of implementers who exploit SEPs while strategically delaying or avoiding licensing negotiations— raising concerns about strategic holdout behavior and the potential misuse of market power by implementers who avoid entering into good-faith licensing negotiations.Given the global relevance of HEVC as a video compression standard, this case is expected to attract international attention from licensing practitioners, SEP owners, and antitrust regulators alike. If the Düsseldorf court finds in favor of the plaintiffs, Microsoft could face a sales injunction in Germany—significantly impacting its European business operations.
The outcome of this case will contribute to the evolving body of case law around SEP enforcement and could reinforce Germany’s role as a venue of choice for high-stakes technology litigation.
A video interview with Gottfried Schüll on the topic is available at this link.
Another article on this topic has been published by ip fray. Read more here.
Header: metamorworks_AdobeStock.de
