Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Litigation
September 13, 2020 08:48 AM

Continental antitrust suit against telecom group dismissed in U.S. court

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Continental grille web.jpg

    Continental Group, which makes control units for Daimler cars, can’t pursue antitrust claims against a group of patent owners including Qualcomm that are seeking royalties on telecommunications technology, a federal judge in Texas ruled.

    Avanci LLC -- a licensing pool formed by Qualcomm, Nokia Oyj, Sharp and other owners of patents on technology standards -- is not violating antitrust laws when it negotiates license agreements with automakers rather than the component makers, U.S. District Judge Barbara Lynn said in dismissing the suit in a decision posted Friday.

    The licensing group charges $15 per vehicle for the use of patented technology that is key to an industry standard for 4G telecommunications, and is developing a price for 5G, the next generation of wireless technology that promises to alter everything from driverless cars to robotic surgery.

    Companies that develop standardized technology so electronics can work together agree to license any relevant patents on fair, reasonable and non-discriminatory terms, known as FRAND. It’s a phrase that’s never been defined, though Continental argued that Avanci’s licensing plan is neither fair nor reasonable.

    Automakers traditionally have their components makers handle any patent licensing issues and indemnify the automaker from infringement suits. Continental, which makes the telematics control units for Daimler vehicles, argued that the $15 charge would more than wipe out any profit it makes from the $100 part it sells Daimler.

    'Price discrimination' allowed

    In dismissing the lawsuit, Lynn relied in part on a U.S. appeals court decision that threw out an antitrust lawsuit the U.S. Federal Trade Commission had lodged against Qualcomm over its licensing practices. The court in that ruling said Qualcomm was within its rights to demand royalties from the end product rather than a component part.

    “A patent owner may use price discrimination to maximize the patent’s value without violating antitrust law,” Lynn wrote.

    Avanci’s request to dismiss the lawsuit was bolstered by the U.S. Justice Department’s antitrust division, which wrote the judge in February to argue that any breach of the FRAND obligation is a contract dispute, not an antitrust case.

    The case was part of a closely-watched group of lawsuits in the U.S. and Europe pitting Daimler and its parts makers against the telecom industry. Nokia has been winning court rulings in Germany.

    “This decision further confirms that Avanci’s one-stop licensing solution for the auto industry is consistent with U.S. antitrust law,” Kasim Alfalahi, founder and CEO of Avanci, said in a statement.

    The case is Continental Automotive Systems Inc. v. Avanci LLC, 19-2933, U.S. District Court for the Northern District of Texas (Dallas)

    RECOMMENDED FOR YOU
    Swiss robotics giant ABB to invest $20M in Michigan plant expansion
    Recommended for You
    ABB Robotics
    Swiss robotics giant ABB to invest $20M in Michigan plant expansion
    Harman Christian Sobottka
    Harman CEO reveals secret to keeping pace with new rivals
    Harman Ignite Store app store screenshot image
    VW Group deepens ties with Harman
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us