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12 December 2019PatentsRory O'Neill

Daimler agrees to SEP mediation with Nokia

German carmaker Daimler has agreed to enter mediation with Nokia with a view to ending its standard-essential patent (SEP) licensing dispute.

In a statement sent to WIPR, a Nokia spokesperson said: "Nokia is encouraged that Daimler and several of its tier 1 suppliers have agreed to independent mediation regarding our licensing dispute.”

“We expect the mediation to take place soon and look forward to constructive dialogue with all parties with the aim of reaching an amicable and definitive resolution,” the statement added.

On Tuesday, December 10 WIPR reported that Nokia had suspended its SEP infringement litigation against the Mercedez-Benz owner in German courts with a view to resolving the dispute out of court.

Nokia said it had taken the decision in order to give the proposed mediation process time to succeed.

Speaking to WIPR today, Daimler spokesperson said the auto company had a “different legal opinion on the issue how essential patents for telecommunications standards are to be licensed in the automotive industry”.

“This question will be the subject of mediation,” the spokesperson said.

The disputes relate to Nokia’s SEPs which have increasingly become essential for the automobile industry, particularly with new technologies such as including self-driving cars.

Daimler, as well as auto suppliers such as Continental, have accused Nokia of failing to license these SEPs on fair, reasonable, and non-discriminatory (FRAND) terms.

Nokia also told WIPR that the US District Court for the Northern District of California yesterday agreed to transfer an antitrust lawsuit brought by Continental against Nokia to the Finnish company’s preferred venue, the US District Court for the Northern District of Texas.

Continental manufactures and supplies auto parts including brakes, electronics and tyres to car manufacturers including Daimler.

Earlier this year, Continental joined an antitrust complaint filed by Daimler against Nokia at the European Commission.

Nokia wins ‘anti-anti-suit’ injunction

In today’s statement, Nokia said that it had this morning won a victory in a related case against Continental in Munich’s Higher Regional Court.

According to Nokia, the court today “upheld the earlier decision of the Munich Court to grant our anti-anti-suit injunction, confirming Nokia’s position”.

Nokia originally filed 10 patent infringement cases against Daimler in Germany. One of Daimler’s suppliers, Continental, through a US subsidiary, filed a competition lawsuit in Northern District of California against Nokia, Avanci and others, alleging that the SEP patent owners were acting uncompetitively by not granting Daimler a licence.

Continental subsequently filed an ‘anti-suit’ injunction request, also in Northern District of California, attempting to block Nokia’s German cases against its customer, Daimler.

The auto supplier also wanted the court to block any new patent infringement cases against any customer of Continental, until the US case had been resolved.

Nokia responded with an application to the Munich Higher Regional Court for an ‘anti-anti-suit’ injunction. This would effectively instruct Continental’s German parent company to direct its US subsidiary to withdraw its anti-suit injunction in California.

The court granted Nokia’s ‘anti-anti-suit injunction’, a decision which has today been upheld.

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