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Car Manufacturer and Nokia Agree to Mediation

Thursday, January, 2, 2020


 

Nokia and Daimler, as well as several vehicle parts suppliers, have agreed to participate in independent mediation in an effort to resolve their licensing dispute over technology.  The mediation announcement was issued recently by the Finnish telecoms equipment maker who will participate in the mediation.

 

Should mediation prove successful, it will likely stop the potential for a European Union antitrust investigation.  The dispute arose after Daimler, as well as several tech companies including Bury Technologies, Continental, Valeo and Gemalto complained to the EU.

 

Daimler and Nokia have been fighting for some time over who should apply and pay royalties for certain technologies key to the vehicles’ navigation systems, as well as vehicle communications and self-driving vehicles.

 

According to a representative from Nokia, “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 company proposed mediation just a few weeks ago and additionally offered to negotiate directly with car parts manufacturers.  The offer was welcomed by the European Competition Commissioner.

 

In the past, Nokia licensed its technologies at the car level, but Daimler claims component manufacturers should also be allowed to apply for licenses.  Nokia had previously suspended a court hearing right before requesting the attempt at mediation.  There is no official date and time set yet for the mediation and the holiday season could set the efforts back a bit, but it is still expected to take place soon.