Photo: Ford
Most passenger vehicles sold today come with internet connectivity and other gadgets on board, as carmakers try to compete with technology companies in this area. But the fight is fierce, as the techies stand on a pile of patents that the car industry lack. This means they have to pay royalties or face the consequences. In Ford’s case, a German court is close to enforcing a sales ban for all internet-connected vehicles sold in Germany and possibly Europe.
The Munich regional court has put a nationwide sales and production ban on all Ford vehicles able to establish an Internet connection using 4G connectivity. The ban is not yet legally binding, but Ford would need to settle the dispute. The ruling is subject to appeal, but it could be enforced in two weeks if Ford does not settle with the plaintiffs.
“Reason of this court case is the licensing of standard-essential patents for LTE networks. Since we did not yet have received the written opinion of the court, we do not want to comment on this matter at this time,” Ford said in an emailed statement to Reuters.
According to German media, Ford is being sued by eight owners of 4G mobile communications patents. The case was brought to the Munich court by Japanese intellectual property management company IP Bridge. The same sources say that communication patents are essential for connected vehicles.
Tech firms had developed communication standards years before carmakers started to use technology inside their vehicles. They might have stayed under the radar while few internet-connected cars were sold. But as the car industry started to make more money using mobile communication technologies, the patent trolls were sure to come after them.
Ford is not the first major carmaker sued for the same 4G communications technologies. IP Bridge also brought a case against Volkswagen to the same court in Munich. The German carmaker settled the matter by purchasing a patent license from a platform called Avanci. The platform bundled patents from 48 owners, says Deutsche Welle. Daimler was not spared either, being sued by Nokia and Sharp over a similar matter.
The German patent laws are among the strictest, so many international companies choose to take patent disputes before German courts. According to German media, Ford risks the recall of all cars from dealers and their destruction if a settlement is not reached.
“Reason of this court case is the licensing of standard-essential patents for LTE networks. Since we did not yet have received the written opinion of the court, we do not want to comment on this matter at this time,” Ford said in an emailed statement to Reuters.
According to German media, Ford is being sued by eight owners of 4G mobile communications patents. The case was brought to the Munich court by Japanese intellectual property management company IP Bridge. The same sources say that communication patents are essential for connected vehicles.
Tech firms had developed communication standards years before carmakers started to use technology inside their vehicles. They might have stayed under the radar while few internet-connected cars were sold. But as the car industry started to make more money using mobile communication technologies, the patent trolls were sure to come after them.
Ford is not the first major carmaker sued for the same 4G communications technologies. IP Bridge also brought a case against Volkswagen to the same court in Munich. The German carmaker settled the matter by purchasing a patent license from a platform called Avanci. The platform bundled patents from 48 owners, says Deutsche Welle. Daimler was not spared either, being sued by Nokia and Sharp over a similar matter.
The German patent laws are among the strictest, so many international companies choose to take patent disputes before German courts. According to German media, Ford risks the recall of all cars from dealers and their destruction if a settlement is not reached.
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