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Daimler to pay Nokia patent charges, ending German authorized spat By Reuters 

© Reuters. FILE PHOTO: The Daimler emblem is seen earlier than the Daimler annual shareholder assembly in Berlin, Germany, April 5, 2018. REUTERS/Hannibal Hanschke/File Photograph

By Foo Yun Chee

BRUSSELS (Reuters) -Daimler has agreed to pay Nokia (NYSE:) for utilizing its patents, ending a row that highlighted a battle between tech and automotive firms over royalties for key applied sciences.

Nokia, which makes 1.4 billion euros ($1.7 billion) in licensing revenues yearly, and carmaker Daimler (OTC:) had sued one another in German courts in recent times, with combined outcomes.

Tech corporations need automakers to pay royalties for applied sciences utilized in navigation techniques, automobile communications and self-driving vehicles, however the latter say their suppliers ought to pay as a substitute, which may scale back the charges for patent holders.

The settlement introduced collectively on Tuesday marks the newest win for Nokia which in April struck a cope with China’s Lenovo below which the world’s largest PC maker would make a web balancing cost to the Finnish telecoms gear maker and resolve all pending litigation.

That adopted a cope with Samsung (KS:) the earlier month through which the South Korean firm agreed to make royalty funds for its applied sciences associated to video requirements.

Nokia and Daimler didn’t disclose the phrases of their patent licensing deal, however mentioned they’d halt litigation. The German carmaker has up to now by no means paid Nokia for utilizing its patents.

“We welcome the settlement, from an financial viewpoint and since we keep away from prolonged … disputes,” a Daimler spokeswoman mentioned.

The deal is sweet information for Nokia, mentioned Danske Financial institution analyst Mads Rosendal.

“The income stream will not be more likely to be materials however on the very least it will likely be very secure and excessive margin. Additionally, ending of the dispute ought to save a good quantity of authorized prices going ahead. Barely credit score optimistic for Nokia, in our view,” he mentioned.

The top of the dispute means a German court docket’s request final yr to the Luxembourg-based Court docket of Justice, Europe’s highest, for steering on the problem will probably be moot.

Nonetheless, German automotive elements maker Continental, which along with Daimler, Bury Applied sciences, Valeo (PA:) and Thales-owned Gemalto (AS:) complained about Nokia’s patent charges to EU antitrust regulators in 2019, mentioned it was not dropping its criticism nor authorized struggle in the USA.

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

“It should … outline this framework in any other case European firms will face an insurmountable aggressive drawback sooner or later market of the Web of Issues in comparison with Asian and American market contributors,” Continental board member and head of its automobile networking and knowledge enterprise unit Helmut Matschi mentioned in a press release.

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

($1 = 0.8179 euros)

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