Nokia halts legal action against Daimler with mediation offer

Daimler, along with Bury Technologies, Continental (CONG.DE), Valeo (VLOF.PA) and Thales-owned (TCFP.PA) Gemalto had complained to the European Commission this year about fees demanded by Nokia for patents crucial to car communications.

Nokia’s case in pursuit of fees from Daimler has thrown a spotlight on the wider battle between tech companies and the car industry over royalties for technologies essential for navigation systems, vehicle communications and self-driving cars.

Nokia has in recent years initiated 10 court cases against Daimler in Germany for alleged patent infringements. Daimler, meanwhile, has issued its own lawsuits against Nokia.

However, Nokia said on Monday that constructive negotiation is the best way to resolve matters, having last week offered independent mediation as part of efforts to avoid an EU antitrust investigation.

“To ensure there is time for this mediation to be successful, we have unilaterally chosen to postpone the pending hearing on 10 December in Germany,” Nokia spokesman Mark Durrant said.

“We trust that Daimler and its tier 1 suppliers will now engage in these meaningful efforts to reach settlement. There is more to gain for all if we work together.”

EU antitrust chief Margrethe Vestager welcomed the mediation efforts, saying postponement of the court hearing was a positive move.

“This is why we think it is a good thing that they now try mediation at the International Chamber of Commerce,” she told reporters. “It would be a good thing if there could be a mutual understanding.”

Nokia has also offered to negotiate with the car parts makers instead of only Daimler on licensing fees.

Carmakers argue that car parts makers should deal with the licensing fees rather than them and that patent holders should be open to negotiations with whichever company is interested in using their patents.

Sources had told Reuters that EU competition enforcers had been poised to open an investigation into the matter until Nokia made the mediation offer.

Reporting by Foo Yun Chee; Editing by David Goodman

Our Standards:The Thomson Reuters Trust Principles.
Reuters, 09 Dec, 2019

More Business & Finance News

Global shares set fresh records, lifted by U.S. housing data

View detail

Wall Street strikes new high as housing data fuels optimism

View detail

Netflix opens Paris office, plans new French-language series

View detail

Disclaimer: All information on this page are taken from third party reliable sources of relevant industry channels, with simple aim just for general information for our users. Hamariweb never endorse or recommend for any trading advice as well as accuracy of data provided here.