Mercedes loses e-connectivity patent dispute against Nokia

Nokia may not be as dominant in the mobile technology industry as it once was, however, the company’s pioneering reputation could potentially affect Mercedes-Benz. The latter company’s owner is Daimler, whom lost a patent dispute against Nokia in a German Court this week. The judges favoured Nokia on the dispute over mobile technology within cars, insisting that  the German company, Mercedes,  are liable for patent infringement.

Although Nokia may no longer be dominators in their market, the company are still able to generate a revenue of a billion euros per year, from licensing their patents. The aspect of e-connectivity is a necessity in the modern car world, with Mercedes making use of the technology in their vehicles. The issue that arises here is that Nokia seeks a licensing fee charge per car, rather than an overall sum for the license itself, meaning Daimler owe high fees to the Finnish company.

Nokia are now hoping that Daimler will accept their obligations and prepare to license the patent, with a charged fee per car. With this court ruling, Nokia could prevent Daimler from selling Mercedes cars in Germany, however that would also require Nokia to show collateral of €7 billion, to cover for damages if the ruling is overturned in an appeal. In other news, Nokia currently has two other pending cases against Daimler. The latter have also filed to disqualify the patent claims made by the Finnish mobile-phone company, in a separate court.

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