Nokia: Pay Up, RIM!

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RIM loses a dispute against Nokia in Swedish courts over the use of wifi patents-- and risks a sales ban of BlackBerry devices should it fail to reach a new royalties deal with the Finnish mobile maker. 

Blackberry NokiaIn other words, nothing too new in the world of mobile titans slugging at each other in courts around the world... 

The Nokia patents cover a number of crucial WLAN technologies (wifi, IEEE 802.11). The dispute follows a 2003 agreement (amended in 2008) allowing RIM to use a number of Nokia-owned patents, but since 2011 the two companies failed to agree license fees.

"RIM is liable to pay royalties and damages to Nokia for its ... sales of any subscriber terminals (handsets or tablets) ... compatible with the WLAN standard," the ruling says. "RIM has not contested that it manufactures and sells products using WLAN in accordance with Nokia's WLAN patents." 

Nokia filed similar suits in the UK, US and Canada.  

The legal squabble comes at the worst possible time for the struggling RIM, who hopes for success once the BlackBerry 10 platform launches early next year. 

On the other hand Nokia wants to bolster diminishing profits (Wall Street describes Nokia stock as "junk" these days) by monetising its impressive patent portfolio further. According to Reuters Nokia patents already generate annual royalty payments worth around €500 million... and the company surely wants more.  

Either that or it has to put more effort in selling, you know, phones. 

Now RIM will probably seek to reach agreement with Nokia-- patent consultancy General Patent Corp bluntly says the US courts will show little sympathy with the BlackBerry maker. Either that, or it risks sales bans. 

Go BlackBerry Maker RIM Loses Patent Dispute with Nokia (Reuters)