After Oppo and OnePlus had to stop their sales in Germany last year, Vivo is also facing the same issue currently. The company is facing this issue amid a long-standing patent dispute with Nokia. This is a significant challenge for the leading Chinese manufacturer that has a stronghold in its home country as well as markets across the Middle East and Asia.
The Patent Issue
Germany’s District Court of Mannheim recently adjourned a decision regarding the Vivo and Nokia patent dispute. According to the decision, Vivo will not be able to sell smartphones in Germany if they include Nokia’s patented technology. Earlier in 2021, both companies had signed a license deal regarding this, however, the deal was not renewed. Moreover, negotiations related to licensing fees were also not successful.
Vivo, in its press release, said that the company is ready to halt selling its phones in the country if required. Moreover, it is planning to appeal against the decision in the high court and also review other options to get the issue sorted. The company said, “We firmly believe that Nokia has not yet fulfilled its obligation to offer a license on FRAND (fair, reasonable, and non-discriminatory) terms.”
Samsung: The Unintended Beneficiary?
Last year, Oppo faced the same issue in Germany with Nokia and since it wasn’t resolved, the company had to give up on the German market. If a similar thing happens with Vivo, chances are that it will also have to back out. This will open up opportunities for companies like Samsung that have a Nokia Patent license.
Over the past few years, Chinese smartphone companies taking on the Western market, strongly competing against the likes of Samsung. And if Vivo also backs out, there is no doubt that Samsung will be the unintended beneficiary in the German market.