US chip company files patent case against VW
Author: Mario Schmidtgen
Broadcom demands one billion dollars from VW
Volkswagen is now facing another lawsuit: According to the magazine Der Spiegel, the semiconductor group Broadcom has filed a patent suit against the German car manufacturer. VW should pay one billion US dollars, otherwise the production of several models would be stopped by court order. The variants of the Golf, Passat, Touran, Tiguan and other Porsche and Audi models will be affected.
The chip company has filed its lawsuit in Munich and Mannheim. The reason for this is that VW used 18 Broadcom patents for its navigation and entertainment systems and implemented them in several car models.
In the USA, Broadcom is also taking Toyota and Panasonic to court. The companies are now under great pressure to reach an agreement with the supplier. This could prohibit the use of the relevant semiconductors and stop production, which would certainly make the verdict milder.
The automotive industry is feeling exploited for a long time by patent exploiters, who use the legal situation to demand too expensive license fees. VW is now in dialogue with Broadcom. A VW spokesman confirmed that Broadcom had filed lawsuits “in connection with allegations of patent law issues”. The carmaker did not provide any further information.