Summer of settlements: Nokia, Seoul Semiconductor and NST end disputes

A number of UPC disputes have been settled over the past few days: Nokia with Verifone, Seoul Semiconductor with Amazon and Samsung, Network System Technology with Texas Instruments. Is the UPC fuelling quick settlements?

Summer usually brings fewer verdicts than at other times of the year. The UPC is a different story. The court must officially decide on the withdrawal of claims by means of an application order. Thus, the public learns from the published judgments that the parties to a dispute must have reached a settlement. After all, why else would a plaintiff withdraw the action – especially if the court has not yet issued a judgment?

Settlement with Texas Instruments

This is what happened last week in the dispute between Network System Technologies and the US giant Texas Instruments.

In January 2024, the US company Network System Technologies, which focuses on the licensing business, sued Texas Instruments, Audi and Volkswagen for infringement of EP 1 552 669 as well as EP 1 875 683 and EP 1 552 399 (case IDs: ACT_597693/2023, ACT_597692/2023 and ACT_597691/2023). All patents relate to chip technology and cover methods for the transmission of signals in semiconductors. This system-on-chip and network-on-chip technology, known as SoC and NoC, is used in electronic devices, but also in cars. Philips originally developed the technology in Europe.

The actions were initially assigned to the first panel of the Munich local division under presiding judge Matthias Zigann, but were recently referred to the second panel consisting of presiding judge Ulrike Voß, Daniel Voß and Pierluigi Perrotti.

According to the UPC website, the NPE asked the court to withdraw its lawsuit against Texas Instruments for infringing EP 699, which the court granted (case ID: UPC_CFI_513/2023). JUVE Patent has now learned from sources that the two companies have likely reached a comprehensive agreement. Network System Technologies has also withdrawn two further lawsuits for semiconductor patents.

Cases against Audi and VW continue

However, the Munich local division’s application order shows the lawsuits against Audi and VW concerning the same patents are ongoing, thus indicating the two German car manufacturers do not yet want to settle.

EP 669 and EP 399 expire at the end of 2024. Accordingly, Network System Technologies is only seeking damages. In the action relating to EP 683, however, it is seeking an injunction and damages from all three defendants. Parallel lawsuits are running in the UK and the US.

Settlement with Samsung

In separate proceedings, Network System Technologies also filed actions at the UPC against Qualcomm and Samsung concerning the same three patents.

While the proceedings against Qualcomm are ongoing, Network System Technologies and Samsung have recently reached an agreement. According to JUVE Patent information, the NPE has withdrawn its claims at the UPC. However, the details remain confidential.

Global settlement between Nokia and Verifone

Nokia and Verifone have also ended their global dispute. Patrik Hammarén, head IoT licensing at Nokia, announced this on LinkedIn. Verifone has signed a multi-year licence with Nokia. The settlement brings all litigation in Germany, India and the UPC to an end.

Nokia had filed two lawsuits at the UPC against the Californian payment services provider in March 2024. While Nokia sued for infringement of EP 3 799 333 at the Mannheim local division under presiding judge Peter Tochtermann (case IDs: ACT_13491/2024), the company filed for infringement of EP 2 243 229 at the Munich local division (case IDs: ACT_13475/2024).

In addition to various European Verifone companies, Nokia also sued the CCV Group. JUVE Patent does not currently know whether the settlement also includes the Dutch payment service provider.

Amazon eliminates most UPC disputes

According to two UPC application orders, Seoul Semiconductor and Amazon have settled their dispute at the UPC by means of an agreement.

In March 2024, Seoul Semiconductor had sought to prevent the sale of allegedly infringing LEDs via the Amazon platform. A Linklaters team led by German partners Bolko Ehlgen and Julia Schönbohm filed a lawsuit on behalf of the company at the Düsseldorf local division for infringement of two patents. The division under presiding judge Ronny Thomas then split the action into two cases (case ID: UPC_CFI_87/2024 and UPC_CFI_281/2024)

Seoul Semiconductor’s aim was to prevent the sale of LED products centrally for Europe via industry leader Amazon’s platform. Seoul Semiconductor was therefore not suing Amazon for direct patent infringement, but for liability if the US company did not stop the sale of patent-infringing products.

The dispute was only pending with the UPC. Amazon relied on a Munich team led by Benjamin Schroer and Steffen Steininger from its regular counsel Hogan Lovells.

Amazon had previously settled another UPC dispute with Air Up over drinking bottles at a very early stage. Currently, the online retailer is now only involved in a UPC dispute with Nokia.