Google has encountered a significant hurdle in Japan’s smartphone market, as a court has ordered a ban on the sale of its Pixel 7 and Pixel 7 Pro devices. This ruling stems from a patent infringement case involving LTE technology, which Google allegedly used without obtaining the necessary licenses. Given Japan’s importance as a smartphone market, this development could have far-reaching consequences for the tech giant.
Japan’s Smartphone Market and Google’s Position
Japan is a key battleground for smartphone makers. Although Google holds a respectable 5.81% market share—ranking second ahead of brands like Samsung and Xiaomi—it remains far behind Apple, which dominates with over 62% market control. The ban on Pixel 7 devices now threatens Google’s foothold in this competitive landscape.
The Patent Clash with South Korea’s Pantech
The legal dispute involves South Korean mobile phone company Pantech, which claims that Google’s Pixel smartphones infringe on one of its standard essential patents (SEP) related to LTE modems. These patents cover technologies crucial for the device’s ability to communicate efficiently with cellular networks.
According to Pantech, Google used a patented method to manage communication between the Pixel phone and cellular towers without securing a license. The Tokyo District Court agreed that this constituted patent infringement.
Court’s Rationale and Google’s Response
The court emphasized that injunctions against SEPs are justified only if a party refuses to negotiate licensing terms in good faith. Pantech accused Google of delaying negotiations and insisting on “confidentiality clauses” that were unnecessary. Furthermore, Google reportedly declined to propose a reasonable royalty rate, citing difficulties in calculating it.
When Google refused to submit sales data of Pixel phones in Japan during court proceedings, the court decided to impose a sales ban on the Pixel 7 series.
What Lies Ahead for Google in Japan?
Pantech has already extended its legal actions to include upcoming models like Pixel 8, Pixel 9, and their Pro variants. If Google fails to reach a settlement with Pantech, it could face a complete exit from the Japanese market.
This ongoing patent battle highlights the complex challenges international tech companies face while navigating local laws and intellectual property rights. For Google, the stakes are high—not just in Japan but as a marker for its global business strategies in fiercely competitive markets.