Mercedes-Benz lost the patent lawsuit against Nokia

KUALA LUMPUR: Last year, Finnish tech company Nokia sued Daimler for patent infringement as the two were unable to make an agreement related to patent licensing. According to the recent report of Bloomberg, the judges in Mannheim, Germany, found Daimler guilty of using Nokia technology without seeking its permission, which is a form of corporate looting.

The ruling would allow the tech company to stop the automaker from selling cars in Germany. Still, for that, Nokia would require to post collateral of €7 billion (more than RM 34 billion) in a separate proceeding. 

The case surrounds Daimler’s use of phone pairing and synching technology, which now has become a significant feature in Mercedes-Benz cars. Nokia’s 4G technology handles phone-to-car functionality, but it appears that the firm was never duly compensated for it.

However, the licensing model offered by Nokia seeks to charge a licensing fee per vehicle rather than a one-time license fee for the components produced, which calls for high prices from Daimler. According to the sources, Nokia earns €1.4 billion (RM 6.9 billion) in licensing revenues every year.

“We hope that Daimler will now accept its obligations and take a license on fair terms. There is more to gain if we work together,” Jenni Lukander, president of Nokia Technologies, said in a statement, adding that “innovators should receive a fair reward for the use of their inventions.

While on the other hand, Daimler says, “We cannot understand the verdict of the Mannheim court and will appeal.” The company further added, “We don’t assume there’ll be a sales ban.” 

Although, it is unlikely that the tech company will pursue the route of enforcing a sales ban on Mercedes-Benz vehicles.

Automakers are becoming more and more dependent on mobile-telecommunication systems for enabling e-connectivity in their vehicles. The reported dispute is just a part of the huge battle between the automobile industry and tech companies over the royalty charges for technologies used in cars’ navigation and communications systems as well as in automated vehicles. 

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