“Chinese Battery Manufacturers ATL and CosMX Engage in Patent Dispute in Europe”
In a significant development in the world of technology, China-based company Ningde Amperex Technology Limited (ATL), one of the largest manufacturers of rechargeable lithium-ion batteries globally, has accused various subsidiaries of CosMX Power of infringing its European patent EP 3 627 606 B1. The patent pertains to an electrolyte and electrochemical device used in lithium-ion batteries, which are primarily installed in laptops.
The Munich Regional Court confirmed the infringement in mid-March, marking a significant victory for ATL. The case IDs are 44 O 11698/22 and 44 O 11725/22.
In addition to CosMX Power, ATL also sued the German, Italian, and Dutch subsidiaries of computer manufacturer Acer, which uses CosMX batteries in its laptops. As a result of the court’s ruling, these Acer subsidiaries are now prohibited from selling these specific laptops in Germany. A separate case against Acer’s parent company is still pending, with the Munich Regional Court yet to deliver a verdict (case ID: 44 O 138/24).
This patent dispute is a rare occurrence between Chinese companies in Europe, with the last significant case being between Huawei and ZTE in 2015. However, since 2022, ATL and CosMX, two major Chinese manufacturers of laptop and computer batteries, have been locked in a legal battle in Munich over the use of patented technology.
Following the court’s ruling, CosMX Power is now prohibited from offering or selling its batteries individually in Germany. While the company claims it has not yet sold any batteries individually in the country, the products were advertised on its website, which the Munich Regional Court has also now prohibited. Consequently, CosMX Power can no longer offer its batteries to other manufacturers for installation in their laptops if they are intended for the German market.
The judgment also included a recall of products, as well as the provision of information and rendering of accounts. Both CosMX and Acer have confirmed that they will appeal the judgment at the Munich Higher Regional Court.
The dispute between ATL and CosMX Power is part of a larger series of proceedings between the parties, which are also pending in the US and China. The main nullity hearing is scheduled for 2025.
In another major dispute over battery technology, Japanese company MU Ionic is embroiled in a legal battle with CATL and German car manufacturer Opel over lithium-ion batteries used in cars. In February 2023, Düsseldorf Regional Court rejected a claim by MU Ionic against CATL and Opel. However, the dispute remains ongoing.
During the proceedings, the defendants changed their advisors. Initially, a Munich-based team from Finnegan Henderson Farabow Garrett & Dunner led proceedings. However, following the oral hearing, in January, CosMX and Acer instructed a team from Eisenführ Speiser, led by Munich partner Michael Schneider.
ATL retained Hogan Lovells for the first time in a patent case, with partner Steffen Steininger leading the patent litigation campaign in Germany. Patent attorney Stephan Jellbauer of IP firm Weickmann & Weickmann provided support.
This case marks a significant development in the technology industry, particularly in the realm of battery manufacturing. The outcome of the appeal and the ongoing cases in the US and China will undoubtedly have far-reaching implications for the sector.