The Unified Patent Court’s Local Division in Mannheim issued a decision on February 25 2026 that finds IPG Photonics’ adjustable‑mode‑beam (AMB) laser designs infringe European Patent 2,951,625, a patent owned by Trumpf SE & Co. KG. The ruling specifically targets AMB models used in welding and cutting applications, covering sales in seven UPC member states, including Germany, France, and Italy.
The decision affects less than 1 % of IPG’s total sales, but the court has not yet determined the full scope of remedies. Potential outcomes include an injunction, recall, and damages, all of which could impose additional costs and operational disruptions for the affected product lines.
IPG has formally disagreed with the ruling and intends to appeal to the UPC Court of Appeal. In the meantime, the company is implementing contingency measures to support customers who rely on AMB lasers, such as providing technical assistance and ensuring supply of spare parts. The company’s management has emphasized that the ruling does not alter its broader strategy of expanding into welding, cleaning, 3D printing, and medical applications while reducing exposure to legacy cutting markets.
The ruling comes amid a period of declining revenue for IPG. Q4 2023 revenue fell 10 % to $299 million, and Q1 2024 revenue dropped 27 % to $252 million, driven by softer industrial demand in China and Europe, increased competition from Chinese players, and inventory work‑downs by customers. Management has highlighted that the company is pursuing diversification and cost discipline to offset these headwinds, and it remains confident in its ability to generate strong cash flow despite short‑term margin pressure.
The decision underscores the competitive tension between IPG and Trumpf, a major rival in the laser industry. While the legal outcome is limited in immediate financial terms, it signals the importance of protecting intellectual property in a market where patent disputes can quickly translate into market share losses. IPG’s appeal and contingency plans aim to mitigate the impact, but the company will need to monitor potential injunctions and recall requirements closely as the case proceeds.
Overall, the ruling is a material legal event that could influence IPG’s operational focus and financial outlook. The company’s proactive response and ongoing appeal suggest it is prepared to defend its technology while continuing to pursue growth in high‑margin segments.
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