Mercedes Loses Patent Dispute Against Nokia, Risks German Sales Ban

Nokia may not have been able to keep up with the pace in terms of mobile technology, but its reputation as a pioneer haunts Mercedes-Benz today. Mercedes owner Daimler this week lost a patent dispute against the Finnish company in German court.

As reported by Automotive News, judges in Mannheim, Germany, favored Nokia in a court ruling to fight mobile technology in cars. Mercedes allegedly infringed Nokia’s mobile technology patents.

Interior of the Mercedes S-Class 2021

It should be noted that Nokia has made money from the licensing of patents on mobile technology, more than one billion euros per year. On the other hand, electronic connectivity is becoming an important selling factor in modern cars. Mercedes-Benz is one of those automakers that are making the most of this technology, as can be seen in the interior of the upcoming S-Class.

However, Nokia’s licensing model, which seeks to charge a license fee per car instead of a blanket license for produced components, would justify high fees from Daimler.

“We cannot understand the Mannheim court verdict and will appeal,” Daimler said in an emailed statement.

Nokia is adamant about its rights to mobile technology in cars and has welcomed the recent court ruling.

“Today’s discovery is a major endorsement of the long-term engineering work of Nokia innovators and of the important principle that innovators should receive fair rewards,” said Jenni Lukander, president of Nokia Technologies. “We hope that Daimler will now accept its obligations. and take a license on fair terms. “

With this court ruling, Nokia could prevent Daimler from selling Mercedes cars in Germany. However, the move would force Nokia to present a guarantee of 7 billion euros ($ 8.3 billion). This amount will serve as a margin for the brand to cover massive damages if the decision is overturned in an appeal.

Nokia has two other pending cases against Daimler in German courts, Munich and Düsseldorf. Daimler, on the other hand, brought an action to disqualify Nokia’s patent claims in a separate court.

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