NEC (Nippon Electric Company) recently secured a preliminary injunction (PI) against HMD (Human Mobile Devices) in a Rio de Janeiro court. The court order mandates HMD to immediately cease using the disputed technology and halt sales of infringing mobile devices in the Brazilian market, subject to a daily fine of 50,000 Brazilian reais (approximately 65,000 yuan) for non-compliance.

NEC's primary business involves providing information technology (IT) and network products to commercial enterprises, communication services, and governments. HMD, established in May 2016, is a Finnish company developing Android mobile devices under the Nokia brand.

The core dispute centers on NEC's claim that HMD implemented NEC's Brazilian patent PI 0306434-4 (audio decoding device and method) in its mobile devices without authorization. The court's ruling primarily relied on a technical report from a designated expert, which preliminarily determined through technical comparison that HMD's devices infringed NEC's patent.

The court emphasized that Via Licensing Alliance's offer was transparent and compliant with FRAND principles. NEC has entered into licensing agreements with multiple parties, and a normal licensing system is in operation. Therefore, the court stressed the necessity of preventing “free-riding effects,” as failure to do so would distort market competition.