What you need to know
- Vivo faces a patent dispute in Germany with Nokia.
- The company is prepared to suspend all sales and marketing of products "if necessary."
- After talks to renew mutual licenses, Vivo believes Nokia has not "fulfilled its obligation to offer a license on 'FRAND' terms."
Dismay has arrived for another Chinese OEM in Germany as a dispute a ruling has been brought down.
After a decision by the District Court of Mannheim, Vivo is willing to suspend all operations (sales and marketing) of products in Germany, "if necessary," as stated in the company's press release. Vivo and Nokia have been in talks to renew mutual licenses, but neither has come to a satisfying agreement.
Vivo believes Nokia has not "fulfilled its obligation to offer a license on 'FRAND' (fair, reasonable and non-discriminatory) terms."
The Chinese-based company isn't entirely down and out as Vivo detailed its next step is to appeal the District Court's decision and review other possible options. The company will also re-engage in talks with Nokia to solve this dispute in accordance with FRAND terms.
Vivo assures German customers that it does not plan on altering its long-term commitment to the country. The company states that it will "continue to be present in Germany in the future, and our customers can continue to rely on our service," which seems to show some confidence that the company will rectify the present problems.
This isn't the first instance of companies coming into a patent dispute with Nokia. Last August, OPPO and OnePlus had to wrangle with a halt of sales in Germany due to Nokia's lawsuit against the Chinese OEMs over the use of 5G technology. Recently, both companies were rumored to pull out of the EU completely due to the challenges, but that was swiftly refuted.
Vivo launched its X90 Pro globally back in February, and sales of this phone could be impacted if the brand is required to cease all sales until the issue is resolved. There is also the matter of the Vivo X Flip and X Fold 2, which will launch on April 20 in China. While it hasn't explicitly stated if the devices, along with the Pad 2, will see a life outside of China's market, the current issue with Germany could very quickly turn things around from launching in the country.
