A court bans the sale of Ford cars in Germany

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If it comes into effect, it would ban sales, paralyze production and order the destruction of cars from 2018

The Munich court has imposed a sales and production ban on the whole of Germany on American car manufacturer Ford. The verdict has to do with the mobile radio chips in the manufacturer’s cars. In total, Ford is being sued by eight patent holders for mobile phones required for the 4G standard.

Mobile radio chips are required by law to be equipped with the “eCall” system. This automatic emergency call system will be mandatory in new cars from April 1, 2018 and they are increasingly adopting entertainment and navigation functions.

In so-called ‘connected car’ processes, mobile phone patent holders are increasingly putting pressure on car manufacturers to pay license fees for the use of mobile phone technology. In this context,
Japanese patent exploiter IP Bridge has won Ford before the Munich court.

To execute the statement,
IP Bridge must deposit EUR 227 million in court Time is of the essence: The verdict can be carried out in a week or two if the automaker fails to reach a settlement with the plaintiff. You can also appeal the ruling.

in 2021,
Ford sold 126,400 cars in Germany (-35%), the country’s seventh largest manufacturer, with a market share of 4.8% The Munich verdict even provides for the withdrawal of all cars from dealers or their destruction and his lawyers are studying the precedents in Germany. In a similar process, Daimler threatened to stop production completely in 2020 after four rulings against Mercedes, three in Munich and one in Mannheim.

The mobile phone company Nokia, Sharp and the user Conversant had filed the related lawsuits for patent infringement. Like Ford, Volkswagen was also sued by IP Bridge in Munich over patents. Anyway,
the Wolfsburg-based company did not wait for a court decision and obtained a license from the Avanci patent platform, including those of 48 owners, including IP Bridge.

Car manufacturers also fear new requirements. The Munich ruling is the first against a carmaker since a reform of the patent law came into effect last summer. In reality, the reform should prevent lawsuits in which, for example, an entire production facility is paralyzed because of a small built-in chip.

“Last summer’s so-called patent law reform does not play a role again,” complains the patent law expert from Munich.
Florian Muller“Almost a year after the decisive Bundestag vote, it has served neither automakers nor other companies like Deutsche Telekom, who also defended it.”

German patent laws are considered particularly strict and there have been failed attempts to reform them specifically for the auto industry and prevent lawsuits from crippling manufacturers’ sales and production.

Ford declined to comment in a written statement, saying he had not yet received the court’s formal position. ABC has attempted to contact the brand’s Spanish subsidiary, but has not received a response either.

Source: La Verdad

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