Daimler, Nokia call truce to end war over mobile patents


Nokia Oyj and Daimler AG settled their dispute over the licensing of wireless technology patents in cars, wanting to avoid a length court case. — REUTERS

Daimler AG and Nokia Oyj settled their dispute over the licensing of wireless technology patents in cars, ending a legal battle that has been been watched beyond the auto industry.

The deal resolves all legal proceedings between the two, including a complaint made by Daimler to the European Commission about Nokia. The companies agreed not to disclose the terms of the pact in a joint statement.

The settlement "is a hugely significant milestone which validates the quality of our patent portfolio, the contribution of Nokia’s R&D to the connected vehicle industry, and the growth opportunities for our automotive licensing program,” Jenni Lukander, president of Nokia Technologies, said in the statement.

Nokia and Daimler locked horns in Germany’s courts last year because the maker of the Mercedes-Benz refused the Finnish company’s demand to pay a lump sum for patents used in its vehicles.

Daimler instead wanted its suppliers to buy the technology from Nokia, which would mean lower fees for the use of the intellectual property.

Modern automobiles are brimming with electronic gadgetry and the industry has casually likened its products to smartphones on wheels because the wireless technology allows occupants to make calls, stream music or dial emergency services in case of an accident. Traditionally, automakers require that parts suppliers like Continental AG handle patent royalty issues and indemnify them for any demands that may come later.

The German litigation last year culminated in a decision by a Dusseldorf court to refer the case to the European Union’s Court of Justice to examine the issue. At that point, Nokia had won two rulings in German courts against Daimler saying the carmaker violated its patents.

"We welcome the settlement — from an economic point of view and because we avoid lengthy disputes, ” Daimler said in a separate statement.

Wireless-technology companies including Qualcomm Inc., Sharp Corp. and Nokia joined forces in the Avanci LLC patent pool, which seeks to collect royalties from the car industry by offering a fixed price per vehicle, currently running at US$15 (RM61.93) a car for a 4G-standard license.

Earlier this year, Nokia also settled a global litigation dispute it had fought against Lenovo Group Ltd. over patents. – Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Tech News

Russia's Yandex says Q2 adj. net income up 34% y/y, upgrades revenue outlook
After Flipkart, Amazon files appeal at India's Supreme Court in antitrust probe
Spotify's quarterly revenue beats estimates, paid subscribers rise 20%
With the suit against Activision Blizzard, gaming faces another #MeToo moment. Will it finally bring change?
Casio Pac Man collar for super retro digital watch
In spats with Twitter, India's government begins messaging shift to rival Koo
Euro 2020 deliver record June ad revenue for ITV
How a grandpa’s death and lucrative Twitter handle sent US man to prison
Exclusive: Walmart's Flipkart asks India's top court to stall antitrust queries, probe
TotalEnergies to buy EV charging network in Singapore

Stories You'll Enjoy


Vouchers