UPC Grants Protection Against Suspected Anti-Suit Injunction

On 19 February 2025 the Munich Local Division of the UPC granted interim measures to prevent Sunmi from applying for an Anti-Suit Injunction (ASI) in China. The decision stipulates that Sunmi faces penalties of up to €250, 000 per day if they apply for an ASI against Nokia in any Chinese court.

Following licensing negotiations, Sunmi began FRAND rate-setting proceedings in China without informing Nokia. While Sunmi is free to “legitimately avail itself of legal remedies available to them in their home country,” the Court dubbed Sunmi’s failure to inform Nokia of commencement of the FRAND rate-setting proceedings as “unconstructive.” 

Nokia had served Sunmi with infringement actions on 18 February 2025. The Court opined that Sunmi would likely be motivated to ensure the rate-setting proceedings continue unhindered by a potential decision of infringement from the UPC. The Court also acknowledged that Sunmi could file for an ASI at any time without informing Nokia, which could be granted at short notice and result in Nokia accruing hefty fines without their knowledge.

The Court stated that imminent infringement was predominantly probable. Rather than grant an Anti-Anti-Suit Injunction after a potential Anti-Suit Injunction had been applied for in China, as was the case in Huawei v. Netgear in the US courts, the Court has shown willingness to grant interim measures against a suspected ASI, thereby protecting the patent proprietors’ access to justice in Europe.