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Gun Manufacturer Heckler & Koch Challenges Market Rivals

Haenel is outmatched in competition by Heckler & Koch

Heckler & Koch Triumphs Over Rival Haenel: A Saga of Assault Rifles and Patent Rights

- Gun Manufacturer Heckler & Koch Challenges Market Rivals

In a long-standing legal squabble, Heckler & Koch (H&K) has clinched victory over rival armory Haenel. The Federal Court of Justice in Karlsruhe has dismissed Haenel's appeal against a 2022 judgment by the Federal Patent Court (Case No. X ZR 30/23), ruling in favor of H&K's patent claims over a unique bolt system.

This aggressive legal battle, which has spanned years and wound its way through various courts, erupted in 2020 over the legality of Haenel manufacturing an assault rifle with a distinctive bolt system. The debated design, dubbed as the Haenel CR 223, offered soldiers a quick-drying asset during water landings, enabling them to restart firing quickly.

Haenel's unexpected success in bagging a high-profile federal tender for the German Armed Forces' rearmament in 2020, centered on their water-resilient assault rifle, threatened to decimate H&K's market share. However, H&K's intervention swiftly led to Haenel's loss of the contract to supply 120,000 assault rifles, ultimately reinforcing H&K's dominance in the market as the supplier of the German Armed Forces' standard rifle for many years.

Haenel maintained that the patent in question was fraudulent and unenforceable. In 2022, both the Higher Regional Court of Düsseldorf and the Federal Patent Court ruled against Haenel. Despite a partial patent invalidation by the Federal Patent Court, the patent remained intact for the essential bolt system. However, with the recent decision by the Federal Court of Justice in Karlsruhe, Haenel's bid to overturn the ruling appears to have been exhausted.

  • Heckler & Koch
  • Assault Rifle Dispute
  • Karlsruhe
  • Federal Court of Justice
  • German Armed Forces

Enrichment Data

Background

  • The tender and bidding process: Haenel's MK 556 model, priced at around €152 million, was significantly cheaper than H&K's initial offer of €235 million, which H&K later reduced to €179 million. Haenel's lower price made their bid about €27 million or 18% cheaper than H&K's final offer[1].

Judicial Proceedings

  • Düsseldorf Regional Court: An evidence preservation order was issued by the Düsseldorf Regional Court, and a patent lawsuit initiated by Heckler & Koch was expected to proceed. However, there is no mention of the involvement of the Federal Court of Justice in Karlsruhe in the available information[1].
  • Federal Patent Court in Munich: Haenel launched a patent nullity suit at the Federal Patent Court, but the timeline for this decision was uncertain, possibly stretching into 2022 or 2023[1].

Current Status

  • The disputed assault rifle contract's decision has been temporarily stalled due to the ongoing legal wrangling. As of 2021, Haenel did not anticipate a judicial verdict until the second quarter of 2022. Series production was subsequently scheduled for 2024, following rigorous testing by the Bundeswehr[1].

Haenel's legal challenge against Heckler & Koch's patent claims over a unique bolt system for assault rifles, known as the Assault Rifle Dispute, reached the Federal Court of Justice in Karlsruhe in 2022. Despite Haenel's arguments that the patent was fraudulent, the Federal Court of Justice upheld the previous rulings made by both the Higher Regional Court of Düsseldorf and the Federal Patent Court in Munich.

The outcome of this ongoing legal battle has significant implications for both Heckler & Koch and Haenel, as the German Armed Forces' contract for rearmament is at stake, with Haenel having initially won the tender in 2020. The contract, worth around €152 million, was eventually lost by Haenel following Heckler & Koch's intervention.

Currently, the decisions regarding the disputed assault rifle contract have been temporarily stalled due to the ongoing legal proceedings, with series production scheduled for 2024, assuming the matter is resolved in due course.

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