In a first for the company, Europe's Nokia Corporation
(ADR)(NYSE:NOK) is trying to get devices of Research In Motion Limited (NASDAQ:RIMM)
banned in certain countries such as the United States, United Kingdom and
Canada on an alleged patents violation.
Nokia has always been a friendly company, maintaining
good relations with its competitors and rivals. It rarely takes companies to
court, using the legal route only as a last resort and usually prefers to
settle patents disputes with royalty payments.
Nokia has spent a good deal of money (about $40
billion, according to reports) in the last ten years building formidable
portfolio of patents, many of which are used in the development of wireless
phones and tablets. As many as 40 companies pay Nokia a royalty for the use of
those patents.
So this pursuit of RIM comes as something of a
surprise.
Incidentally Blackberry devices made by RIM, use WiFi
technology known as WLAN, which Nokia has patented.
The Finnish handset maker was able to get an
arbitration ruling in its favour in a Swedish court and its current action
appears to be related to that.
According to the arbitration award, Nokia will receive
a royalty payment from RIM for every phone the Canadian firm sells. In fact if
it does not pay the royalty to Nokia it will not be able to produce phones with
the WLAN technology, the patent for which is held by Nokia.
In 2003, both companies had signed a contract, which
enabled RIM to use the technology for its WiFi networks.
If Nokia succeeds in banning RIM's devices, it will
hit the company hard as it is struggling for survival and is on the verge of
releasing its new operating system Blackberry 10, that is generating positive
response from network carriers and the tech world in general.
hmmm so Rim is trying to get out of paying royalties? i wonder what investors think of this? i thought you were trying to win in this game, Rim remember honesty is the best policy. well at least i know now that i will not present any advanced technologies to Rim unless paid up front. Freelance Eng.(designer of smartphone tech)
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