Update: As pointed out in the linked page found below in the comments, the problem I describe is caused by biber and is promised to be fixed in version 2.8 DEV.
So I don't expect there will be another satisfying answer.
I have my problems to get German umlauts capitalized correctly in the references.
Here is the minimal non-working example:
The bibliography file
ref.bib:
@Article{ ÜüzÜdÜ,
author = {\"Uding, G\"unther},
title = {\"Uber {\"{U}}berlegungen zur \"{U}berwindung des {Ü}bels},
year = {1996}
}
The main TeX file:
\documentclass{article}
\usepackage[utf8]{inputenc}
\usepackage[T1]{fontenc}
\usepackage[backend=biber, style=ieee-alphabetic]{biblatex}
\addbibresource{ref.bib}
\begin{document}
\nocite{*}
\printbibliography
\end{document}
The output I get is:
Of course, I'd like it to read "Über Überlegungen zur Überwindung des Übels" instead.


pdfTeX 3.14159265-2.6-1.40.17andbiber 2.6. (But I know the problem you mention, since I always run into it when compiling a LaTeX file on my university computer.) – Johnny TeX Dec 17 '16 at 14:03