Nokia patent dispute disrupts Acer and Asus PC sales in Germany

Nokia Patent Lawsuit Forces Acer and Asus to Halt PC Sales in Germany

Two of the world’s largest PC manufacturers have been hit with an immediate sales ban in Germany after a patent dispute with Nokia escalated in court. The ruling has already disrupted online access, product availability, and software support for German customers.

A decision by the Munich Regional Court I has effectively forced Acer and Asus to suspend the sale of desktops and notebooks in the country — at least for now.


Acer Website Offline, Asus Products Marked “Out of Stock”

German users attempting to access Acer’s website are currently greeted with an apology message stating: “Please excuse the inconvenience.” The entire site — including the online store — has been taken offline.

Meanwhile, Asus has marked all desktop PCs and notebooks as “out of stock” in its German store. While peripherals and other hardware remain available, the main Asus website pages outside the store display a “We’ll be back” message when accessed from Germany.

This disruption goes beyond product sales. Users seeking BIOS updates or motherboard firmware are unable to access official support pages without using a VPN connection outside Germany — a temporary workaround that adds further inconvenience.


Retailers Can Sell Existing Stock — But No New Shipments

Brick-and-mortar retailers and third-party online sellers are still allowed to sell existing inventory of Acer and Asus PCs. However, they will not receive replenishment stock while the injunction remains in force.

If the situation continues, it could lead to limited availability and price volatility in the German PC market.

In most patent disputes of this nature, companies reach settlements relatively quickly to avoid prolonged supply disruption. However, if negotiations stall, shortages could persist.


The Core Issue: Nokia’s HEVC (H.265) Patent

At the center of the legal battle is European patent EP2375749, which relates to the H.265 video compression standard — also known as HEVC (High Efficiency Video Coding).

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The patent covers a method of adjusting video frame rates efficiently using reference images — a core technology in modern video processing.

Because PCs rely on CPUs and GPUs to decode video streams, manufacturers must license patents essential to implementing the HEVC standard. Nokia argues that Acer and Asus devices incorporate technology covered under this patent without a finalized license agreement.

This is not the first enforcement action related to this patent. In 2024, Nokia successfully secured a sales ban against Amazon’s Fire TV devices in Germany before reaching a settlement in March 2025.


Why a FRAND Agreement Failed

The dispute largely revolves around licensing terms and what qualifies as “fair.”

FRAND stands for Fair, Reasonable, and Non-Discriminatory, a legal framework governing the licensing of standard-essential patents.

The Munich court found that Acer and Asus were generally willing to license the technology. However, negotiations broke down over two major issues:

  1. Cost Basis Disagreement
    Nokia reportedly seeks to calculate royalties based on the total price of a complete PC or notebook — not just the CPU or GPU component responsible for video decoding.
    This dramatically increases licensing fees.
  2. Disputed Fairness of License Offers
    While Nokia argues its licensing demands align with agreements signed by other manufacturers, those agreements were often reached after litigation.
    The interpretation of what qualifies as FRAND-compliant remains contested.

Parallel Proceedings in the UK

Interestingly, a related case is ongoing before the UK High Court. That court has temporarily set lower licensing fees pending a full hearing.

However, the Munich court interpreted the UK decision as merely an interim measure, suggesting final fees could ultimately be higher.

This cross-jurisdiction contrast adds another layer of complexity to the dispute.


Provisional Enforcement and Financial Risk

Nokia has provisionally enforced the German ruling, triggering the immediate sales halt. Because the injunction could later be overturned on appeal, Nokia is required to deposit several million euros as financial security.

Both Acer and Asus are widely expected to appeal the ruling. Acer has already confirmed it is reviewing further legal steps.

The Munich Regional Court I is known for being particularly plaintiff-friendly in patent litigation, which could influence how the appeals process unfolds.


What Happens Next?

For now, German consumers face:

  • Restricted access to Acer and Asus websites
  • No new shipments of affected PCs
  • Potential supply shortages if the dispute continues
  • Workarounds required for firmware and BIOS downloads

Whether this remains a temporary disruption or evolves into a longer-term market constraint will likely depend on how quickly the parties return to the negotiating table.

Given the financial impact and reputational risk, many industry observers expect a settlement — but timing remains uncertain.