German automaker Daimler and Finnish telecommunications giant Nokia settle their long-running dispute over licensing fees for use of technology.
The companies announce they have signed a patent licensing agreement under which Nokia licenses mobile telecommunications technology to Daimler and receives payment in return. The parties have agreed to settle all pending litigation, including Daimler’s complaint against Nokia to the European Commission. Neither will disclose terms of the settlement.
However, the move, coming after settlement over Nokia’s technology-use fees by both Lenovo and Samsung earlier this year, could have far-reaching ramifications for automakers over who pays for technology licensing. Daimler wanted to treat the supplier as responsible for paying licensing fees for auto technology that would be used for connectivity, navigation and, ultimately, driverless cars, reports Reuters.
The news agency quotes a Daimler spokesperson saying, “We welcome the settlement, from an economic point of view and because we avoid lengthy...disputes.”
Now that Nokia has won the argument, carmakers could face ongoing fees for the burgeoning amount of technology entering the modern automobile with the obvious hit to their bottom line.