Daimler and Nokia have agreed on a dispute over the licensing of wireless technology patents used in cars. This put an end to the legal battle, the waves of which spread beyond the car industry and threatened the sale of Mercedes cars.
All legal proceedings, including Daimler’s complaint against Nokia to the European Commission, have been settled. is. The companies stated in a joint statement that they would not disclose the terms of the agreement.
The agreement is “an extremely significant milestone demonstrating the quality of our patent portfolio, Nokia’s R&D contribution to the networked automotive industry and the automotive industry. growth opportunities for our licensing program, “said Jenni Lukander, President of Nokia Technologies, in a statement.
Nokia and Daimler clashed in German courts last year because Mercedes-Benz’s manufacturer rejected the Finnish company’s claim, to pay a lump sum for the patents used in his vehicles. Instead, Daimler wanted its suppliers to buy the technology from Nokia, which would mean a lower fee for the use of intellectual property.
Modern vehicles are full of electronic gadgets and the industry’s products are comparable to wheeled smartphones, as wireless technology allows passengers to make phone calls, stream music, or dial emergency services in the event of an accident. Car manufacturers have traditionally required component suppliers, such as Continental AG, to address patent royalties issues and compensate them for future claims.
Last year’s German lawsuit in a Düsseldorf court ruling culminated in the matter being referred to the Court of Justice of the European Union for it to examine the matter. Nokia has also won two lawsuits against Daimler in German courts for finding that the carmaker infringed its patents. Although these orders formally authorized Nokia to stop selling its opponent’s car, Daimler was able to block their execution while the appeals were pending. “We welcome the agreement, both economically and because we avoid lengthy disputes,” Daimler said in a separate statement.
Wireless technology companies including Qualcomm, Sharp and Nokia also joined the Avanci patent pool, which is trying to collect royalties from the automotive industry by offering a fixed price per vehicle, which is currently $ 15 per car for a 4G standard license.
Auto parts supplier Continental AG that it will continue to fight and file its own EU-wide complaint against Nokia, as well as sue in the United States. As the deal means that the EU Supreme Court is no longer dealing with the issue, the EU executive should intervene to provide a legal framework, the company said in a statement.
“Technology companies such as Continental and all other Internet-of-Things companies that want to use standard technology are once again facing economic and legal uncertainty. The European Commission must now intervene, “said Helmut Matschi, Member of the Board of Continental.
Bloomberg’s report highlights that so-called standard-essential patents protect a technology that is used as a common standard in mobile communications in this case. The lawsuit has been monitored beyond the automotive industry, as licensed models are a hot topic for almost every product that promises wireless connectivity, be it a refrigerator, combine, or medical device. Earlier this year, Nokia also agreed to a global litigation over patents against the Lenovo Group.
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