Daimler is in trouble. It lost a patent lawsuit to Nokia and its cars may be banned from sale.

Writer?/?Qin Dexing

Editor?/?Huang Dalu

Design?/?Du Kai

Design?/? bloomberg Author Karin Matussek

Finnish company Nokia has received court support in its patent dispute with Daimler, which will help Nokia defend its rights in the field of automotive mobile technology.

A judge in the Mannheim region of Germany said on August 18 that Daimler had infringed Nokia's mobile technology patents. The automaker's brands include Mercedes-Benz.

The core issue involved in the judge's ruling is how mobile communication systems, which are a standard feature of most modern cars, should be technically licensed.

For Nokia, these issues are crucial. Nokia's annual revenue from licensing is 1.4 billion euros (approximately 11.57 billion yuan).

Nokia said the court confirmed that the company acted reasonably in granting licenses for cellular standard-essential patents (SEPs) and that Daimler used Nokia's technology without authorization. .

The dispute between Nokia and Daimler highlights a broader battle between technology companies and the auto industry over royalties for technologies such as navigation systems, vehicle communications and autonomous driving.

Daimler said in an emailed statement: "We cannot understand the Mannheim court's decision and will appeal."

The court said that because Daimler Russia is unwilling to comply with the current regulations of the so-called SEP, so they side with Nokia.

The court said in a statement: "The facts show that Daimler and the company's supporters in this case are unwilling to obtain permission."

The ruling may allow Nokia imposed a sales ban to prevent Daimler from selling cars in Germany, but if Nokia did so, it would need to provide 7 billion euros in collateral. If the ban is overturned after Daimler appeals, these funds will be used as compensation. Daimler said it did not expect Nokia to seek a sales ban.

Nokia Technology President Jenni Lukander said in a statement: "Today's verdict is an important recognition of the long-standing engineering work of Nokia's innovators and underscores the We hope that Daimler will now meet its obligations and obtain licenses on reasonable terms.”

European car manufacturers rely on this technology to realize their cars. of electronic interconnection. Nokia seeks to charge a fee per vehicle rather than provide auto parts manufacturers with a license to produce parts. As a result, some suppliers, including Continental and Bosch, sided with Daimler in the lawsuit.

The case is being closely watched outside the automotive industry as mobile connectivity becomes increasingly important in nearly every product and industry and the outcome could have implications for the Internet of Things. focus on.

In a rare move that signaled the scope of the case, Germany's Federal Cartel Office asked a judge in Mannheim in June to seek guidance from the European Union Court of Justice before ruling. A judge in Mannheim rejected the request on August 18.

Nokia has sued Daimler in three German courts over its mobile technology patent portfolio. The Mannheim court dismissed a similar lawsuit from Nokia in February but reserved two others for ruling.

Nokia has also filed lawsuits in Munich and Dusseldorf, and there are eight more similar lawsuits. The results of the ruling will be announced on September 5. Daimler has also filed suit in another court seeking to invalidate Nokia's patents.

Nokia wants Daimler to pay royalties based on the number of cars sold, but Daimler thinks the fee will be too high. The company wants Nokia to license the technology to equipment suppliers that integrate mobile devices into its vehicles and then charge Daimler a fee.

Some of the company's suppliers, including Daimler and Continental, have asked the European Commission to review Nokia's behavior and declare that the Finnish company abused its market power.

Auto parts makers also believe their business models are at risk, so they joined the lawsuit in support of Daimler against Nokia.

Continental said it was willing to buy the license at a reasonable price but accused Nokia of refusing to make a deal. The parts maker has sued Nokia in the United States and asked EU enforcement agencies to intervene in early 2019.

Continental said in a statement that the European Commission's intervention seemed more important than ever, taking into account the ruling of the Mannheim Regional Court.

Nokia has previously said its licensing model has been accepted by other carmakers such as BMW and Volkswagen.

The winning party in a patent lawsuit must weigh the risks of enforcing an award, including the possibility of an injunction being overturned on appeal, which could result in substantial damages. This is why the courts require the successful party to set aside a substantial sum of money before allowing the sale ban to be enforced.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.