Daimler infringed Conversant patent, Munich court rules
Lawyers for Conversant Wireless are claiming a “significant victory” over German automobile manufacturer Daimler in a connected cars patent dispute in Munich.
The Munich Regional Court found that Daimler cars infringed Conversant’s European patent relating to the Long Term Evolution (LTE) telecommunications standard.
The case involved arguments over who should be required to license standard-essential patents (SEP) covering key telecommunications technology.
Carmakers such as Daimler typically argue that these patents should be licensed to individual suppliers, or on the component level, rather than the manufacturers of end-products like connected cars.
But patent owners say this model undervalues their IP and prevents them from getting an equitable return on investment in research and development.
The Munich court rejected Daimler’s argument and issued an injunction. The judgment can still be appealed.
The court also declined to refer the case to the Court of Justice of the European Union (CJEU) to clarify SEP licensing obligations in the automobile supply chain.
Christof Höhne, partner at EIP, which represented Conversant, said the latest decision was part of a wider trend turning in favour of SEP owners.
“Germany is Europe’s number one court battleground on SEPs; recent judgments have turned the tide for patentees,” Höhne said.
Höhne cited the trend for German courts to require implementers like Daimler to prove they are willing to take a licence on fair, reasonable, and non-discriminatory (FRAND) terms.
“German courts place much more emphasis now on the actual willingness of an implementer to take a license. A mere abstract declaration to take a license may not suffice to demonstrate willingness,” the EIP partner added.
Höhne said: “The key message for implementers is to engage in any licensing discussions in a productive and timely manner, and not practice hold-out.”
WIPR has contacted Daimler for comment.
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