A court in Munich has ruled against French automaker Renault in a patent dispute with American tech firm Broadcom. This decision prohibits Renault from selling its best-selling model, the Clio, along with its electric crossover, the Megane, in Germany. The court has ordered that any previously sold cars must also be destroyed, leading to a significant potential loss for the company.

The root cause of the ruling is a patent issue relating to the Ethernet interface, which is utilized in vehicles for data transmission between navigation systems and telematics. Renault has failed to pay Broadcom in accordance with the internationally recognized framework known as FRAND (Fair, Reasonable, and Non-Discriminatory). The company's proposed payment was substantially lower than what Broadcom deemed reasonable for the patents it holds.

According to specialized patent law site IP Fray, the actual destruction of the cars may not occur in a traditional sense; instead, it might involve dismantling the relevant components that leverage the disputed patents. Specifically, this will focus on the navigation systems found in the impacted vehicles, suggesting that Renault will have to navigate a complicated legal and operational landscape in the wake of the ruling.