Nokia, a Finnish networking giant, might not be connecting people over its phones as it used to, but its technology is widely used for connection of the people and other things like cars. Nokia is generous to share its intellectual property, but the company needs to earn some profit out of it to continue working on better ways of connecting the world. German manufacturer Daimler has been using Nokia technology to connect its vehicles, but it was doing so without licensing Nokia’s intellectual property necessary for the connection to be established. A lawsuit happened between Nokia and Daimler, actually a dozen of them, and Nokia won. This lawsuit victory is important because Daimler will have to license a Nokia’s telecommunication systems necessary for their cars to be connected. Daimler isn’t so eager on taking the license and will appeal to the verdict of the German court in Mannheim. The biggest problem for Daimler is in Nokia’s seeking charges per produced automobile instead of a general license for the manufactured component, which would make a licensing deal price to high. However, Nokia is defending its stance by saying that the proposed licensing model has been approved by BMW and Volkswagen.
Today, we won a major legal case concerning the unauthorized use of our cellular technology in connected cars. The finding by the German court confirms the quality of our leading patent portfolio and further validates our automotive licensing program. https://t.co/0q2rmMf8vk pic.twitter.com/ex3l3TXW4Z— Nokia (@nokia) August 18, 2020
Nokia is now in a position to stop the sales of Mercedes cars in Germany, which would harm Daimler, but Nokia also since it would be hard to get profit out of that. It seems to e that Nokia now is in a great position to make a licensing deal with Daimler and get royalties for its intellectual property.