EU antitrust regulators question Daimler, others question failed talks over Nokia fees

Author: Foo Yun Chee

BRUSSELS (Reuters) – European Union antitrust regulators have turned to Daimler ,Continental and other car parts manufacturers for details of failed mediation talks with Nokia in a dispute regarding patent royalties.

Daimler, Continental, Bury Technologies, Valeo and owned by Thales Gemalto filed a complaint with the European Commission last year about the fees charged by Finland’s Nokia demanded for patents related to car communication.

The dispute underscores a broader battle between technology companies and the auto industry over licensing fees for technologies key to navigation systems, vehicle communications and autonomous cars.

Europe wants to protect its technological sovereignty because Nokia and Ericsson are seen as leading forces in the development of such technologies, while others argue that this should not be at the expense of other sectors such as automotive.

Nokia entered into mediation with the companies, which sources said ended without an agreement earlier this month. According to citizens, EU competition enforcement authorities now want to know what happened.

Daimler, owner of the Mercedes-Benz luxury car brand, announced that the European Commission had sent a request for information.

The German company said it has a different legal opinion on how it licenses key patents to the car industry.

“Nokia has so far refused to grant comprehensive and direct licenses to our suppliers,” Daimler said.

“Fair and non-discriminatory access to these standards for all users of underlying telecommunications standards patents is a key prerequisite for the development of new connected vehicle products and services.”

The commission declined to comment, saying only that the investigation was ongoing.

In an emailed statement, Nokia said it had made fair licensing offers to automakers, tier one suppliers and through a collective licensing pool.

“Nokia made several offers for a fair settlement… but unfortunately these offers were rejected,” he added.

Continental, which is seeking a direct license to Nokia’s core 3G and 4G network patents, said it would continue its antitrust complaint against the telecommunications equipment maker.

(Reporting by Foo Yun Chee; Editing by Kirsten Donovan and Alexander Smith)