German Courts at Epicenter of Global Patent Battles Among Tech Rivals

Is Germany’s system of litigating disputes over patents bad for business?

Microsoft’s decision to move its European logistics and distribution headquarters to the Netherlands from Germany has generated a debate over patent law in Germany, where it is easy to block the sale of a rival’s product even before an infringement claim is verified. Microsoft cited the potential consequences of a lawsuit brought against it in Germany by Motorola Mobility as a factor in its decision to move its logistics center to the Netherlands from Düren, a small German town near the Dutch border. Motorola Mobility has asked a court in Mannheim, Germany, to stop Microsoft from distributing its Xbox game consoles and Windows 7 operating system software because they employ a video streaming technology that Motorola claims to own. The court in Mannheim is scheduled to rule on Motorola’s request on April 17.