Settling patent dispute, German multinational automotive corporation, Daimler has offered to pay Nokia for using its patents. The move is likely to end the long courtroom battle between the two companies over royalties for key technologies.
Technology company Nokia and carmaker Daimler had sued each other in German courts in recent years over the issue, which is still said to be dragging on. Nokia makes about 1.4 billion euros ($1.7 billion) in licensing revenues every year,
According to Nokia, the two companies entered in a dispute when as a tech firm Nokia sought royalties for technologies used in navigation systems, vehicle communications and self-driving cars from the automaker. Daimler refused and said that their suppliers should pay instead, which could reduce the fees for patent holders.
Meanwhile, the agreement jointly announced with Daimler marks the latest win for Nokia which in April struck a deal with China's Lenovo under which the world's biggest PC maker would make a net balancing payment to the Finnish telecoms equipment maker and resolve all pending litigation.
That followed a deal with Samsung the previous month in which the South Korean company agreed to make royalty payments for its technologies related to video standards.
Nokia and Daimler said that they had reached a patent licensing deal and will also halt their litigation. The German carmaker has to date never paid Nokia for using its patents. “We welcome the settlement, from an economic point of view and because we avoid lengthy … disputes,” a Daimler spokeswoman said.
“Under the agreement, Nokia licenses mobile telecommunications technology to Daimler and receives payment in return,” the companies said in a joint statement.
“The terms of the agreement remain confidential as agreed between the parties,” they added. The end of the dispute means a German court's request to the Luxembourg-based Court of Justice, Europe's highest, last year for guidance on the issue will be moot.
Audi, Bentley, BMW, Mini, Porsche, Rolls Royce, Seat, Skoda, Volkswagen and Volvo are already paying patent fees to Nokia.