Research In Motion Limited (USA) (NASDAQ:RIMM) had decided to take its Nokia Corporation (ADR)(NYSE:NOK) patent licensing issues to an arbitrations committee. However, the plan has flopped since the judge found the Canadian company was not sticking to its side of the cross licensing deal the two companies nearly 10 years back.
The tribunal mentioned that Research In Motions is not supposed to make or sell products that are compatible with the WLAN standard unless it discusses royalties with Nokia.
This has resulted in Nokia to file lawsuits in Canada, the UK and the US to implement the adjudication order that was handed down by the Stockholm Chamber of Commerce. Nokia has also appealed to impose sales ban on the affected RIM products in case the Canadian company fails to agree to shell out royalties.
Nokia has declared in a statement that it has agreed with RIM for a cross-license for cellular patents that require meeting certain standards in 2003, which was amended in 2008. RIM sought arbitration by arguing that the license was extended beyond cellular essentials. In November of 2012, the adjudication committee ruled against RIM. It found RIM guilty of breaching the agreement.
The company’s filing in the US court said that when companies enter arbitrations with the Stockholm Chamber of Commerce, they be in agreement that the decision will be ultimate and binding both the parties. The loser must carry out any honor without causing any delay.
The filing stated that RIM and its US subsidiary kept on violating the award and breached the fundamental contract.
RIM has not yet commented on this matter.
RIM and Nokia are fighting over the leftovers of the mobile device market that is now ruled primarily by Samsung and Apple. The Finnish company has filed a lawsuit against RIM, along with Viewsonic and HTC, in Germany and the US.