The spat highlights a wider battle between tech companies and the car industry over royalties for technologies used in navigation systems, vehicle communications and self-driving cars.
The Mannheim court in Germany said neither Daimler nor other parties involved in the case were “seriously prepared or ready to conclude a license agreement” with Nokia on fair, reasonable and non-discriminatory terms.
Daimler said it did not understand how the court could come to this conclusion and that it would appeal.
Nokia said the court confirmed it had acted in a fair way in licensing its cellular standard-essential patents (SEPs), and that Daimler was using Nokia technologies without authorisation.
“We hope that Daimler will now accept its obligations and take a license on fair terms,” Jenni Lukander, president of Nokia Technologies, said in a statement.
Nokia lost the first of its lawsuits against Daimler.