Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Daimler to pay Nokia patent fees, ending German legal spat

Stock MarketsJun 01, 2021 12:11
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Mercedes-Benz "Vision URBANETIC" concept car is seen in front of the Daimler AG logo during the company's annual news conference in Stuttgart, Germany, February 6, 2019. REUTERS/Michael Dalder

By Foo Yun Chee

BRUSSELS (Reuters) -Daimler has agreed to pay Nokia (HE:NOKIA) for using its patents, ending a row that highlighted a battle between tech and car companies over royalties for key technologies.

Nokia, which makes 1.4 billion euros ($1.7 billion) in licensing revenues every year, and carmaker Daimler had sued each other in German courts in recent years, with mixed results.

Tech firms want automakers to pay royalties for technologies used in navigation systems, vehicle communications and self-driving cars, but the latter say their suppliers should pay instead, which could reduce the fees for patent holders.

The agreement announced jointly on Tuesday marks the latest win for Nokia which in April struck a deal with China's Lenovo under which the world's biggest PC maker would make a net balancing payment to the Finnish telecoms equipment maker and resolve all pending litigation.

That followed a deal with Samsung (LON:0593xq) the previous month in which the South Korean company agreed to make royalty payments for its technologies related to video standards.

Nokia and Daimler did not disclose the terms of their patent licensing deal, but said they would halt litigation. The German carmaker has to date never paid Nokia for using its patents.

"We welcome the settlement, from an economic point of view and because we avoid lengthy ... disputes," a Daimler spokeswoman said.

The deal is good news for Nokia, said Danske Bank analyst Mads Rosendal.

"The revenue stream is not likely to be material but at the very least it will be very stable and high margin. Also, ending of the dispute should save a fair amount of legal costs going forward. Slightly credit positive for Nokia, in our view," he said.

According to sources familiar with the settlement, Nokia receives fees of a little over $2 per vehicle under patent licensing deals for similar technologies.

The end of the dispute means a German court's request last year to the Luxembourg-based Court of Justice, Europe's highest, for guidance on the issue will be moot.

However, German car parts maker Continental, which together with Daimler, Bury Technologies, Valeo (PA:VLOF) and Thales-owned Gemalto (AS:GTO) complained about Nokia's patent fees to EU antitrust regulators in 2019, said it was not dropping its complaint nor legal fight in the United States.

It urged the European Commission to set out a binding patent licensing framework.

"It must ... define this framework otherwise European companies will face an insurmountable competitive disadvantage in the future market of the Internet of Things compared to Asian and American market participants," Continental board member and head of its vehicle networking and information business unit Helmut Matschi said in a statement.

Audi, Bentley, BMW, Mini, Porsche, Rolls Royce (LON:RR), Seat, Skoda, Volkswagen (DE:VOWG_p) and Volvo already pay patent fees to Nokia.

($1 = 0.8179 euros)

Daimler to pay Nokia patent fees, ending German legal spat
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email