UPC: Munich Local Division grants second anti-anti-suit injunction

In a recently published Order dated 9 December 2024, the UPC Munich Local Division has issued a further anti-anti-suit injunction, this time to Avago Technologies (Broadcom) against Realtek Semiconductor. This is only the second AASI to be granted by the UPC, with the previously reported AASI also coming from Munich (see our reaction to this here).

This injunction is related to the global dispute between Broadcom and Tesla, in which Tesla (said to use Realtek’s products in their electric vehicles) have been sued for infringement of Broadcom’s patents directed to automotive ethernet standards. In response, Realtek brought action against Avago (Broadcom) in the United States for a breach of licence agreement, seeking an anti-suit injunction (ASI) and anti-enforcement injunction (AEI), specifically requesting that Avago are prohibited from pursuing claims and enforcing patent rights against Tesla in Germany. 

Once Avago became aware of the action brought in the US, they swiftly filed an ex parte application for interim measures, requesting the Court to prohibit Realtek from continuing prosecution of the US suit insofar as it relates to the ASI and AEI. The Court broadly agreed with the applicant's submissions and granted the interim Order. In particular, the Court stated that, in agreement with the first anti-anti-suit injunction issued by the Munich Local Division "an interference with the patentee's property right by prohibiting the assertion of his patent right" is also to be regarded as an infringement of the right, therefore "a (foreign) prohibition on conducting and/or enforcing proceedings violates the general European right to justice (Art. 47 EU Charter)”.

Interestingly, whilst this Order was only published after the recent AASI granted to Huawei, it was handed down earlier, with the Court noting that "the present application for the adoption of such measures is - as far as can be seen - the first to be decided by the UPC Agreement." Viewed together, these Orders suggest that the Munich Local Division is quickly becoming an attractive forum for claimants seeking an AASI against far reaching foreign suits