After a ruling by the Munich 1 Regional Court on Friday, which previously ruled in favor of Nokia in a patent lawsuit, Oppo and OnePlus had to stop selling their own smartphones in Germany. This could also threaten Vivo, which also belongs to the parent company BBK Electronics.
Nokia enforces a sales ban
Oppo and OnePlus are no longer allowed to sell or advertise their own smartphones, which is why the smartphones are no longer mentioned on Oppo's website and at least are no longer listed in OnePlus' online store, which now only other devices such as headphones are also available. Sales and marketing will initially be discontinued in Germany, but Oppo does not want to withdraw from the German market, the company told ComputerBase.
What the future in Germany looks like for both brands is still uncertain. The smartphones of both manufacturers are currently still widely available in stores, but according to the current state of knowledge, this does not have to change immediately. As long as retailers still have Oppo and OnePlus smartphones in stock, they can still sell them. Whether the trade will do so, however, is currently not entirely clear. In order not to get caught in the firing line and face a lawsuit from Nokia, dealers could also withdraw the smartphones from sale as a precautionary measure. Only the next few days will show how this will develop and how retailers will react.
No external experts before judgment?
But there is also criticism of the judgments of the courts in Germany, which led to the sales ban and gave Nokia justice, as Foss Patents explains. Both the Munich 1 district court and the Mannheim district court failed to engage an economic expert to assess whether Nokia was complying with the FRAND principle. Instead, the judgments were made purely on the basis of Nokia's descriptions, according to which Oppo refused to make the license payments despite FRAND. The so-called FRAND principle obliges the owners of standard patents to offer them under fair and non-discriminatory conditions, which should lead to fewer conflicts and more competition.
OnePlus criticized in a statement to ComputerBase also that the license fees demanded by Nokia are too high – of 2.50 euros per smartphone was last mentioned.
OnePlus diligently complies with the laws and regulations in all markets where we operate. As a leading technology brand, we recognize the importance of intellectual property in driving innovation and highly value fair access to essential patents. Nokia's demand for an unreasonably high fee is detrimental to this effect.
We are actively working with the relevant parties to resolve the ongoing legal matter. While sales and marketing of the relevant products are on hold, OnePlus remains committed to the German market and will continue our operations. Meanwhile, OnePlus users in Germany can continue to enjoy our products and related services such as regular software updates and our after-sales service as before.
Statement from OnePlus to ComputerBase
Oppo made a very similar statement in a statement and criticized Nokia's actions and the amount of the required license fees.
As the holder of many 5G patents, OPPO highly respects the value of intellectual property in innovation. We have a history of cross-licensing agreements with many leading companies and are committed to promoting a healthy intellectual property ecosystem. The day after the 4G contract between OPPO and Nokia expired, Nokia immediately went to court. Previously, they charged an unreasonably high contract renewal fee.
Our long-term commitment to the German market remains unchanged and we are proactively working with the relevant parties to resolve the ongoing matter. Aside from having suspended the sale and marketing of certain products through OPPO Germany official channels, OPPO will continue operations in Germany. In the meantime, users can continue to use OPPO products, receive our after-sales service and receive future operating system updates.
Statement from Oppo to ComputerBase
Continued support and updates in Germany
However, Oppo assures that all smartphones already purchased can still be used without restrictions and support will continue to be offered. Software updates are also to be made available in Germany as before.
It's about many market shares
Oppo and OnePlus together have a market share of 12 to 13 percent in the German market – around 10 percent goes to Oppo, 2 to 3 percent to OnePlus. For Oppo, however, Germany's share of sales is only around 1 percent. Should a sales ban be imposed on other brands such as Vivo, which in turn hold a market share of almost 10 percent in Germany, and this will last for a longer period of time, the market shares in Germany will shift significantly – and the customer will have less choice, especially in the entry-level segment then there may be higher prices to choose from.
Agreement with Nokia on sale inevitable
In addition to Oppo's ongoing counterclaim, which will take some time before a verdict is reached, the only way for Oppo and OnePlus to re-enter the German market is to reach an agreement with Nokia, which has not yet been reached. No manufacturer has yet made concrete statements as to how far the talks have progressed and whether an agreement is in sight soon.
Litigation in other European countries
But the verdict in Germany is not enough, because Nokia is also suing Oppo in other European countries. The company could also enforce a sales ban on Oppo smartphones in Finland, France, Great Britain, the Netherlands, Spain and Sweden, leaving the manufacturer with the decision to exit its European business or pay royalties to Nokia.