GO
Loading...

RIM to Pay Nokia to Settle Patent Dispute

Friday, 21 Dec 2012 | 4:29 AM ET
Nokia Chief Executive Stephen Elop stands with Steve Ballmer, Chief Executive Officer of Microsoft, during the introduction of the new Nokia Lumia 920 and 820 Windows smartphones.
Getty Images
Nokia Chief Executive Stephen Elop stands with Steve Ballmer, Chief Executive Officer of Microsoft, during the introduction of the new Nokia Lumia 920 and 820 Windows smartphones.

Struggling Finnish mobile phone maker Nokia has settled its patent dispute with BlackBerry maker Research in Motion in return for payments, as it tries to exploit its trove of technology patents to boost its finances.

Terms of the agreement were confidential, but Nokia said on Friday it included a one-time payment to be booked in the fourth quarter, as well as ongoing fees, all to be paid by RIM.

Nokia is one of the industry's top patent holders, having invested 45 billion euros ($60 billion) in mobile research and development over the past two decades.

It has been trying to make use of that legacy to ensure its survival, amid a fall in sales as well as cash. The Finnish firm is battling to recover lost ground in the lucrative smartphone market to the likes of Apple and Samsung.

The agreement with RIM settles all existing patent litigation between the two companies, Nokia said, adding similar disputes with HTC and ViewSonic still stood.

"This agreement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market," said Paul Melin, Nokia's chief intellectual property officer.

Nokia has earned around 500 million euros a year from patent royalties in key areas of mobile telephony.

Some analysts have said it could earn hundreds of millions more if it can negotiate with more companies successfully.

Analysts estimated its June 2011 settlement with Apple was worth hundreds of millions of euros.

  Price   Change %Change
NOK
---

Featured

Contact Technology

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.