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US broadband manufacturer Broadcom has sued VW in a $ 1 billion patent litigation threatening to stop production.
4:12 pm, November 02, 2018
There are still hard times for the VW group. In Germany, because of the diesel scandal and the pursuit of another model, VW is also facing the same day today, the US semiconductor manufacturer Broadcom also seized the court.
According to a magazine article, Volkswagen would face a billion-dollar claim from broadcom semiconductor maker in the context of a patent litigation. The group is demanding a billion dollars from the automaker and threatens otherwise to stop production of several models of the VW, Porsche and Audi brands, said Friday the "Spiegel".
Broadcom filed a patent complaint in Munich and Mannheim. It concerns the use of 18 patents in navigation and entertainment systems, which Volkswagen uses in many car models.
Broadcom is also against Toyota
Volkswagen confirmed that Broadcom had filed patent lawsuits, but did not want to comment on the content. The automaker had legalized the allegations and started legal action to protect its interests, a spokesman said. The courts were initially unable to obtain an opinion.
According to the report, Broadcom would also be in the United States against Toyota and Panasonic. The companies concerned would be under pressure to agree with the supplier before the courts decide. Because these could temporarily prohibit the use of the affected semiconductor and thus stop the production. The auto industry has been complaining for some time that so-called patent processors would exploit the legal situation to demand excessive royalties.
"Economic war" for patents
Such complaints are a big problem for companies in the face of increasing digitization. The "Handelsblatt" recently reported an "economic war" for patents. Entire legal departments were only concerned with defending patent lawsuits. According to industry experts, critically acclaimed patent writers benefit from the fact that an applicant can choose the law against the company that he pursues in the value chain. Semiconductors are installed in devices of all kinds, which in turn are part of larger systems such as electronic cars, refrigerators or washing machines. (Internet of Things) will increase the share of electronics. Experts are therefore concerned that such complaints will increase with the progress of digitization and networking in the years to come.
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