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4 September 2020PatentsRory O'Neill

Nokia vs Daimler SEP dispute could go to CJEU

A Düsseldorf court will rule in mid-November on a patent dispute between Daimler and Nokia, in a case which has raised major antitrust questions over patent licensing.

At a hearing yesterday, September 3, Judge Sabine Klepsch of the Düsseldorf Regional Court said the court was considering referring the dispute to the Court of Justice of the European Union (CJEU).

The court said it would issue its decision on November 12. The antitrust issues at play concern whether standard-essential patent (SEP) owners must agree to license their IP to auto suppliers.

SEP owners, such as Nokia, favour a system whereby they license to end-level manufacturers such as Daimler as it produces a greater return on investment.

Daimler has argued that Nokia’s refusal to make its SEPs available to the carmaker’s suppliers violates the Finnish telecoms company’s licensing obligations.

SEP owners must agree to license their patents on fair, reasonable, and non-discriminatory terms.

Germany’s competition regulator has argued that the issue should be referred to the EU’s top court.

Klepsch indicated at yesterday’s hearing that the court was considering whether to make such a referral.

The judge also suggested that the court was inclined to favour Daimler’s position on component-level licensing, but no final decision has yet been made.

A Daimler spokesperson told WIPR that the carmaker would appeal should the court side with Nokia.

“We do not anticipate any stoppage of production or sales,” the spokesperson added.

A Nokia spokesperson said: “We have made fair and reasonable offers to Daimler and their tier-one suppliers but both repeatedly refused to agree a licence and continue to use our inventions without authorisation and compensation.”

“We encourage them to act responsibly and agree a licence. There is more to gain if we work together to bring innovation to consumers rather than fight in the courts,” the Nokia spokesperson added.

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24 June 2020   The Federal Cartel Office of Germany has stepped into a standard-essential patent licensing dispute between Nokia and Daimler, urging a court to ask the Court of Justice of the European Union to clarify fundamental questions.
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3 November 2020   A German appeals court has lifted the enforcement of an injunction secured by Nokia against Lenovo in a standard-essential patent suit.
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26 November 2020   Düsseldorf Regional Court has referred a standard-essential patent licensing dispute between Nokia and Daimler to the Court of Justice of the European Union.