Google Pixel banned in Japan

A court has prohibited Google on selling the Pixel 7 smartphones in Japan. The reason is a patent dispute. The ban could also expand to newer Pixel models and Google cost one of its most important markets.

Heavy blow for Google’s smartphone business

Google has had many problems with its pixel smartphones lately. This was mainly due to the batteries of the devices, which in some models turned out to be a serious risk of fire. The Pixel 4a was partially called back and after dangerous incidents you throttled the battery with a mandatory update at Pixel 6a. With Pixel 7a, some owners even pay compensation or exchange the batteries for free. Now Google is no longer allowed to sell Pixel 7 in Japan.

However, this has nothing to do with the smartphone’s battery. Rather, a Tokyo district court decided that Google violated a patent of the South Korean company Pantech. The patent is a central technology for 4G/LTE communication standards, more precisely a procedure for controlling signal assignments between mobile phone masts and devices.

The court criticized the company’s “insignificant attitude” during the legal dispute. Because Google refused to disclose basic sales and delivery data for the affected products. The group also rejected it to submit a licensing proposal based on a formula that calculates the license fees based on the sales proceeds of the end products. This lack of willingness to cooperate ultimately led to the ban on sales. As Etnews reports, the judgment is a rare case in Japan, in which a court has issued an injunction based on a so-called “standard essential patent” (SEP). Such patents are essential for the implementation of technical standards and usually have to be licensed under fair, appropriate and non-discriminatory conditions (frand).

Pixel smartphones in danger

The judgment could have far -reaching consequences for Google. Japan is one of the most important markets for the Pixel smartphones. According to Statcounter, Google currently holds a market share of 5.81 percent and is therefore in second place behind Apple with 62.46 percent, but still ahead of Samsung and Xiaomi.

In recent years, Google has massively increased its market share in Japan. However, it is even more problematic that Pantech has already submitted further complaints to also stop the sale of the Pixel 8 and Pixel 9 series in Japan. If the company is also successful here, Google could completely lose one of its most important markets. That would be a bitter setback for the technology group.

Pantech and the patent strategy

Behind the lawsuit is not only a Pantech itself, but also the company Ideahub, a company specializing in patent monearization. Pantech, once an important smartphone manufacturer in South Korea, has now stopped his smartphone business and only focuses on the exploitation of its extensive patent portfolio.

The company was one of the largest smartphone manufacturers in South Korea in the 2000s and early 2010s and produced devices for both domestic and international markets. This strategy of patent monealization is widespread in the technology industry. Companies that have hired their operational business use their intellectual property rights through licenses or lawsuits against active market participants.

Effects and outlook

The injunction is temporarily enforceable if Pertech deposits a deposit of ten million yen (around 59,000 euros). Google has a 30-day period for an appointment and must bear the process costs. Nothing changes for owners of a Pixel 7 in Japan – the devices continue to work.

However, Google can no longer sell or apply for new devices. Since the Pixel 7 is now an older model, direct economic damage to Google is likely to be limited. However, if the ban extends to newer models, this could have a significant impact.