Nokia sues for breach of contract
Nokia has said that it is suing Research In Motion (RIM), the maker of the BlackBerry, for breach of contract in Britain, the United States and Canada over cellular patents the two companies agreed on nine years ago.
RIM has since claimed the licence should also have covered patents for non-essential parts and it filed arbitration proceedings with the Stockholm Chamber of Commerce in March 2011. Earlier this month, the Arbitration Institute of Stockholm Chamber of Commerce ruled against RIM's claims.
Nokia said it filed a suit earlier this week to enforce the tribunal's ruling, which says that the Canadian company is "not entitled to manufacture or sell products compatible with the WLAN Standard without first agreeing with Nokia on the royalty to be paid."
RIM said it "will respond to Nokia's petitions in due course."
"Research In Motion has worked hard to develop its leading-edge BlackBerry technology and has built an industry-leading intellectual property portfolio of its own," said RIM spokeswoman Crystal Roberts.
Peter Misek, an analyst at Jefferies in New York, said Nokia's filings mean that RIM is likely to end up paying royalties of two to five dollars per phone.
Nokia is among leading patent holders in the wireless industry. Major manufacturers of phones and wireless equipment are increasingly turning to patent litigation as they jockey for an edge to expand their share of the rapidly growing smartphone market.
Last year, Nokia received a 565 million dollar royalty payment from Apple to settle long-standing patent disputes. It also has filed claims in the United States and Germany alleging that products from HTC and Viewsonic infringe a number of its patents.