After years of patent battle with Nokia, Daimler wants to avoid similarly expensive disputes with other companies in the mobile communications sector in the future. The car company has therefore acquired a license from the Avanci patent exploitation pool, which is set up in this area. The contract also includes the right to use cellular technology for 4G / LTE networks, reports Wirtschaftswoche.
The Stuttgart-based car manufacturer has to pay Avanci a license fee of 15 euros for every car sold, regardless of the price and equipment class. In return, he receives the right to use commercially protected cellular technology up to the 4G standard from 47 companies such as Ericsson, Nokia, Qualcomm, Acer, Deutsche Telekom, Orange, China Mobile, Philips, Siemens and Vodafone.
License fee per car
Instead of entering into a legal dispute for each license of these companies and conducting separate negotiations, Daimler now decided to acquire the rights of use in one fell swoop and for an unlimited period via the pool. For years, the manufacturer was reluctant to take such a step – in contrast to BMW, for example, Daimler rejected Avanci’s approach of holding up the hand for the vehicle as the end product, instead of starting with the included components in terms of licensing.
With this point of view, Daimler entered into the legal dispute with Nokia before numerous German courts. The group argued in the proceedings that the claims asserted by the Finnish network equipment supplier affected basic mobile radio standards such as UMTS and LTE and that these had already been implemented in basic technical components. You are therefore not the right addressee of infringement suits as long as Nokia refused to grant equipment manufacturers such as Huawei or Continental a full license.
The Düsseldorf Regional Court showed understanding for this position last year. According to the presiding judge, Sabine Klepsch, Nokia would first have to offer automotive suppliers licenses for standard-essential patents relating to mobile communication technologies in vehicles. The technology in question belongs to a recognized industry standard (4G). The 4th Civil Chamber entrusted with the case therefore again submitted questions to the European Court of Justice (ECJ) on the obligation to license standard patents under fair, reasonable and non-discriminatory conditions (FRAND).
Buried hatchet
In June, Daimler and Nokia buried the hatchet out of court, which meant that the ECJ was left out. They agreed that the car manufacturer would purchase a license from the Finns in return for unspecified payments. Daimler had already come to an understanding with the patent holders in proceedings with Sharp and Conversant Wireless, both of which also belong to Avanci.
This result raises the question of why the Stuttgart-based company even started a fight with Nokia and other Avanci licensors, says the sponsor blogger Florian Müller. Ultimately, Daimler squandered “millions and billions of euros on litigation” through the law firm Quinn Emanuel, which is known for its high fees, only to receive four injunctions last year. If you get involved in such a fight, it must be clear that you can win it. However, the car manufacturer did not have sufficient experience in the patent area.
A Daimler spokeswoman justified the change in attitude towards Wirtschaftswoche by saying that mobile communications technology in vehicles was gaining in importance and that the agreement with Avanci was seen as a strategic investment with a view to future 5G licenses: This would make it possible to meet the requirements for the pool in the area to help shape the new cellular standard. However, the licensing of standard-essential patents still raises many questions that urgently need to be clarified by case law and the legislature.
“Unpredictable Risks”
As early as 2020, experts warned that the growing thicket of 5G patents would entail unpredictable risks for the automotive industry. Commercial property rights that flow into the 5G standard would have to be licensed according to the FRAND principle. Avanci advertises traditionally forging price compromises between the affiliated patent holders and the 26 car brands that have now come on board. Pool boss Kasim Alfalahi recently encouraged all parties to search for solutions for the upcoming 5G program via the platform.
Daimler’s turn in should also force Volkswagen to take action. The Wolfsburg-based company has already joined Avanci, but so far only pay license fees for 2G and 3G. Acer has therefore now sued VW for several patent infringements in the USA. The Japanese computer manufacturer wants to enforce that the golf producer also takes a 4G license. VW will find it difficult to excuse itself, as the group has already acquired 4G rights from Avanci for premium models from its subsidiary Audi.
(vbr)