Could European Courts Soon Be Litigating and Enforcing U.S. Patents?

Key Takeaways

• European courts test jurisdiction over U.S. patents for the first time. Onesta IP, LLC, a patent assertion entity, has asserted two U.S. patents against BMW in a court in Munich, Germany following a decision by the Court of Justice for the European Union that expands the ability of European courts to hear disputes involving other countries' patents.
• Foreign enforcement could reshape litigation strategy and leverage. Differences in how European courts approach injunctions may create new incentives for patent owners to test enforcement outside the U.S.
• U.S. courts may resist, but enforcement risk is far from resolved. The outcome of the dispute is uncertain, but the dispute raises legal and policy issues with major implications for businesses that locate portions of their supply chain in Europe.