After a ruling in favor of Nokia for the violation of a series of patents, Oppo e OnePlus they have smartphone sales in Germany blocked. And with Nokia taking legal action in other countries as well, the dispute could become international. Also because the same patents that are the cause of the trial are also about to expire for other companies such as Vivo, realme and even Apple e Samsung. Should we worry? let’s try to clarify by explaining to you in a simple way costa is happening.
Nokia’s patents and the stop to sales in Germany of Oppo and OnePlus: what is happening?
The legal case begins in 2021, on the initiative of Nokia. For clarity: we are talking about the Finnish telecommunications brand, formally separated from Nokia smartphones which instead remain under HMD Global. Nokia had sold under license some technologies for 4G and 5G communication, used by many smartphone manufacturers.
Upon the expiration of these patented technology licenses in 2018, Nokia would take it to court Oppo e OnePlustogether with Lenovo for his brand Motorola. The Finnish company then asked for payment of € 2.50 in royalties for each smartphone sold infringing the patent. Lenovo has found a business deal, while Oppo and OnePlus have appealed to the Munich court.
After several legal proceedings, Oppo and OnePlus have lost the appeal to the German court in Mannheim on August 5, 2022. To avoid penalties, they blocked the sale of smartphones in Germany.
What is happening in Germany (and what risk is there for Italy)?
Oppo and OnePlus have removed from their German online stores (and only from the German ones) its own catalog of smartphones. Retailers like Amazon e Media market (our MediaWorld) will continue to sell until stocks run out but will not be able to ask for new stocks.
On their own sites, Oppo and OnePlus have explained that after-sales service will not be interrupted or limited in Germany. Indeed, the two companies intend to be present in the German market anyway, certain of being able to resolve the situation.
But Nokia didn’t just sue Oppo e OnePlusbut also a Vivo e realme (all smartphone brands of the group BBK Electronics). And not only in Germany: France, Finland, Sweden, Spain, the United Kingdom and the Netherlands are also at the center of this legal battle. Italy is not involved at the moment, therefore the risk for our country does not exist at the moment.
Opp and OnePlus’ response to the Nokia patent dispute
Oppo has released an official note explaining that: “As the owner of numerous 5G patents, Oppo places great value on the role of intellectual property in innovation. We have a history of cross-licensing agreements with many leading companies and are committed to promote a fair and principled intellectual property ecosystem. The day after the expiry of the 4G contract between Oppo and Nokia, the latter immediately turned to the court after requesting an unreasonably high fee for the renewal ”.
Despite this legal debate, Oppo confirms its interest in the German market. “Our long-term commitment to the German market remains unchanged and we are working proactively with stakeholders to resolve the ongoing issue. With the exception of the suspension of sales and marketing of the products in question on the channels owned by Oppothe latter will continue to operate in Germany. Meanwhile, users can continue to use Oppo products, access after-sales services, receive future operating system updates and more. “
It therefore seems that the Chinese brand has every interest in resolving the issue. However, some analysts note that sales in Germany for Oppo are under 5% of the brand’s total sales in Europe. This suggests that it would be much more cost for Oppo and OnePlus to pay royalties asked by Nokia that they abandon the German market.
A huge stake
Although at the moment the Nokia patent dispute concerns only Germany and only Oppo and OnePlus, several experts believe the game is even wider. AGI explains that Nokia’s patents for 4G and 5G will soon expire Apple, Samsung e Xiaomi, currently the top three smartphone brands for sales in the world. If they too value Nokia’s demands too high, the cost of withdrawing from markets like Germany would be much higher for these companies.
On the other hand, it is more difficult to assess the global impact. Germany has special patent laws, which many lawyers consider to be favorable to right holders. So measures like Mannheim’s may not take place outside Germany. But even in Germany the situation is far from over: the higher German courts could overturn this sentence.
It seems likely that, with the arrival of September, this story returns to the fore, with the possibility of an agreement between the brands involved which allows to resolve the issue and return to sell in Germany.
However, Italian users do not have to worry at the moment: there is no European ban on the way, the smartphone brands we have come to appreciate will all remain available on our market. We will keep you updated on the evolution of the situation.