Ford to ban sales, manufacturing in Germany; Here's why
"The licencing to standard patents for LTE networks is the cause for this litigation. We do not wish to comment on this issue at this time since we have not yet received the written statement from the court," Ford stated in a statement.
FollowA German court has ordered a national sales and manufacturing ban on Ford Internet-connected vehicles. The restriction is part of a patent infringement action involving wireless technologies. The orders were issued by a regional court in Munich and are not yet binding, which means Ford may still appeal them. However, the order might take effect if IP Bridge fails to pay a €227 million security deposit to the court or if Ford fails to negotiate a deal with the plaintiffs within two weeks.
Ford is reported to have utilised 4G microchips in its vehicles without paying licence costs. According to the German magazine Wirtschaftswoche, the US automaker has been sued by eight firms that have patents on mobile communications deemed fundamental to the 4G standard, and the matter has been taken to court by the Japanese intellectual property management company, IP Bridge.
According to Reuters, the verdict underscores rising dissatisfaction among technology companies, who want car makers to pay royalties for technologies used in navigation systems, vehicle communication, and self-driving cars.
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"The licencing to standard patents for LTE networks is the cause for this litigation. We do not wish to comment on this issue at this time since we have not yet received the written statement from the court," Ford stated in a statement.
Ford is hardly the first carmaker to face legal action from chipmakers. Mercedes-Benz manufacturer Daimler and Volkswagen have already been impacted. VW discovered an easy solution: it switched suppliers and obtained a licence, according to "Wirtschaftswoche."
Ford is the United States' second biggest carmaker. He is presently battling despite global supply chain issues and a chip crisis. Recently, the figures have fallen short of market expectations.
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