Daimler risks ending sales in GermanyAugust 18, 2020
Nokia won a lawsuit against Daimler AG, in particular the parent company Mercedes-Benz. As a result, there is a threat of a ban on sales of Daimler brands in Germany.
A German court in Mannheim found Daimler AG guilty of illegal use of software patented by the technology company Nokia. Nokia filed a lawsuit in this regard, and the judge ruled in favor of the Finnish company. The software that connects Mercedes-Benz vehicles to mobile networks, among other things, was used without purchasing a license from Nokia. This is probably not a pirated copy of Nokia software, but the technology is patented by Nokia. Therefore Daimler is obliged to pay Nokia to use such systems.
According to various media reports, the judge ruled that Daimler must pay compensation to Nokia and in the future can no longer use this technology without payment, so the carmaker should look for alternative ways or pay for it. However, Daimler does not give up and is appealing. Thanks to this decision, Nokia can theoretically already try to get a ban on the sale in German courts, but for this the Finnish company must file a claim with a bond of at least 7 billion euros in case of loss of the case, and Daimler is subsequently entitled to compensation. Therefore, it is very doubtful whether Nokia will dare to do this. Daimler is not yet worried about a possible ban on sales.
According to Nokia, Daimler has a simple task: it is enough to pay for the technology, and then the parties will find a common language. According to the company, the current state of affairs is unacceptable because “it emphasizes the principle that innovative companies should receive fair remuneration for the use of their inventions. We hope that Daimler will now accept this commitment and the license will be purchased on fair terms. Working together, we achieve more, ”said Jenny Lukander, CEO of Nokia Technologies.
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