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Nokia wins tribunal ruling against RIM over wireless patents

Nokia wins tribunal ruling against RIM over wireless patents

By Reuters | Updated: 28 November 2012 16:21 IST

Nokia has won its dispute with BlackBerry maker Research In Motion (RIM) over use of its patents related to wireless local access network (WLAN) technology, the Finnish company said on Wednesday.

Announcing that an arbitrator had ruled in its favour, Nokia said: "It found that RIM was in breach of contract and is not entitled to manufacture or sell WLAN products without first agreeing royalties."

Nokia, which is trying to boost its royalty income as its phone business tumbles, said that it had filed cases in the United States, Britain and Canada to enforce the arbitrator's ruling.

"This could have a significant financial impact, as all BlackBerry devices support WLAN, although the volumes are currently very low in these countries," IDC analyst Francisco Jeronimo said.

RIM was not immediately available to comment.

Nokia said it signed a cross-license agreement with RIM covering standards-essential cellular patents in 2003; a deal that was amended in 2008. RIM sought arbitration in 2011, arguing that the licence should be extended to cover WLAN patents.

Nokia, along with Ericsson and Qualcomm, is among the leading patent holders in the wireless industry. Patent royalties generate annual revenue of about 500 million euros for Nokia.

Based on a Nortel patent sale and Google's acquisition of Motorola Mobility, some investors and analysts say that Nokia's patent portfolio alone merits its current share price of 2.50 euros.

However, the patent market has cooled since those deals were made and industry experts say that fair value of patents in large portfolios is $100,000 to $200,000, pricing Nokia's portfolio at up to 0.50 euros per share.

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