A judgment with perhaps far-reaching consequences: Ford must stop selling cars in Germany. The verdict even provides for the recall of all vehicles from dealers and the destruction of the cars. However, the car company still has the opportunity to reach an agreement with the plaintiff.
In the dispute over licenses, the Munich Regional Court has imposed a harsh judgment on Ford. The US automaker is no longer allowed to sell and produce models with mobile phone technology in Germany. The verdict is not yet final, Ford can appeal.
However, the judgment could be enforced by the Japanese plaintiff IP Bridge against a security deposit of 227 million euros, according to the court. “Since we do not have the written reasoning behind the judgment, we do not want to comment on it at this time,” said Ford in a statement.
The court saw it as proven that the US carmaker infringed a patent held by the Japanese company with its LTE-enabled vehicles. According to the “Wirtschaftswoche” it is about the so-called e-call system. This emergency call function is mandatory for all new cars in the EU. The system requires mobile radio chips that are installed in the cars. These chips are also increasingly being used in vehicles for navigation and entertainment.
It is quite likely that Ford is now seeking a quick agreement with the Japanese on paying royalties. According to the magazine, the verdict also includes the recall of all cars from dealers and even their destruction.
The procedure in Munich is not the first of its kind. According to “Wirtschaftswoche”, Daimler threatened to shut down production in 2020 after four prohibition judgments had been made. The plaintiffs were Nokia, Sharp and the patent exploiter Conversant. Meanwhile, IP Bridge also sued Volkswagen. Before the court decision, the group agreed with the Japanese on the payment of license fees.
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