Daimler has lost a patent case in Germany against Japanese electronics firm Sharp, the second such case it has lost in the past month. Ruling that the automaker used Sharp’s technology without a license, a German court has granted an injunction to the electronics company, allowing Sharp to ban sales of Mercedes-Benz vehicles specifically in Germany.
However, as Automotive News reports, Daimler has said it will appeal the decision, and doesn’t expect that vehicle production or sales will be stopped. Sharp will have to post a collateral of 5.5 billion euros (RM27 billion) before the ruling can be imposed, under German law. The sum is a security deposit so that the other party can use it to cover its losses if it ultimately wins its own appeal.
The latest ruling is similar to the one granted last month to former telco giant Nokia. The Finnish company had said that Daimler has been using technology related to mobile connectivity in its cars without agreement or acquiring licences from patent owners.
Technology companies are fighting for these patent rights, and have resorted to using legal action against the German carmaker to take a license from a pool of patent owners, essentially paying royalty for the use of the tech.
Like with Sharp, the court deciding in favour of Nokia last month said the company will only be able to proceed with imposing the ban on Daimler vehicles if it posts collateral of 7 billion euros (RM34.4 billion). Nokia has not posted the amount, and so the ruling is not enforced as yet.
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This looks like a form of Deutschland protectionism. Suing companies won the case but still need to post billions in deposit for the ban to take effect?
No. This was not the final ruling, Mercedes will go to a higher court now. What if the higher court rules that the patent is null and void? Who will cover the costs then?
In the past, many US law firms filed patent cases in Germany, which later found to be null and void (i.e. claimed patents on the “progress bar” (cannot be patented in the EU because it’s too simple), “round edges” of a LCD-screen (cannot be patented in the EU because it’s common practice for decades) etc.). To stop the law firms from filing patent cases like this, the current regulation was introduced.
mercedes behaving like their current crop of drivers in malaysia. arrogant and tasteless.