BBK Electronics brand Oppo has already been dumped by European retailers because of a royalty payment dispute with Nokia, now Vivo, which is a struggling brand in Australia, is also facing being dropped after Nokia obtained an injunction against the Chinese Company who appear to believe they don’t need to pay for patented technology.
Last week, Finish Company Nokia obtained a preliminary injunction from a German Court prohibiting the sale of Vivo smartphones that incorporate Nokia patented technology in Germany.
The injunction comes in the wake of failed negotiations between the two Companies. Nokia claims the court’s decision validates Vivo’s infringement of the company’s patents, which cover a variety of mobile and 5G technologies.
Management at BBK Electronics and their Vivo management team refused to pay the licensing fees demanded by Nokia after a previously existing agreement between the two companies expired in December 2021.
The Court was told Nokia had taken “every possible step to reach an out-of-court settlement and initiate negotiations on extending the license” before initiating legal proceedings against Vivo in May 2021.
Currently, according to the Finnish company, the distribution of Vivo smartphones using Nokia’s patented technologies without the payment of appropriate licensing fees is illegal.
Last month Vivo was bragging on their website that they were not affected by the Oppo ban.
Last week Oppo reportedly issued a statement to European journalists, asserting that it’s only temporarily halting operations in Germany due to legal action by Nokia.
“OPPO is not leaving the German market, but the business has been put on hold due to the current injunction in the German market. OPPO is still negotiating with Nokia proactively and we believe the matter will be resolved eventually,” they said.
Vivo has announced that it would appeal the decision, asserting that Nokia has not licensed its patents on fair terms.
Nokia has already countered this claim, stating that the Mannheim District Court confirmed that the company had acted fairly.
Now Vivo is making preparations for the possibility that retailers could strip their product from shelves.
Oppo, OnePlus, and Vivo are all part of the same Chinese conglomerate, BBK Electronics.
While Oppo and Vivo operate as independent brands under the BBK umbrella, Vivo’s presence in Germany has been comparatively limited, with fewer products and significantly less marketing effort. Consequently, the number of models potentially affected by a sales ban would be relatively small.
