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RIM Loses Patent Dispute With Nokia, Must Pay Royalties

By - Source: Reuters | B 15 comments

BlackBerry maker not permitted to lodge an appeal.

Following Nokia's request to have BlackBerry handsets banned, a judge has ruled that RIM owes the former license fees for every Wi-Fi enabled smartphone it sold.

An arbitration proceeding sought to extend a 2003 patent deal between the two financially struggling companies to include devices with Wi-Fi support. Ultimately, the ruling favored Nokia.

"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 stated. "RIM has not contested that it manufactures and sells products using WLAN in accordance with Nokia's WLAN patents."

The ruling itself can't be appealed; essentially, Research in Motion has no other option but to reach a royalty agreement with Nokia, or risk an injunction being applied against all its products.

BlackBerry's creator had previously argued that an earlier licensing deal should cover the Wi-Fi patent, with the Stockholm Chamber of Commerce, who is mediating the discussions, disagreeing with that notion.

"This could have a significant financial impact to RIM, as all BlackBerry devices support WLAN," IDC analyst Francisco Jeronimo said. "The arbitration decision is not appealable and the U.S. Court can be expected to enforce the judgment by issuing an injunction against RIM, which would effectively put RIM out of business," added Alexander Poltorak, chief executive of patent consultancy General Patent Corp.

"RIM has only one choice now - to license Nokia's patents," Poltorak said. "It should be a quick process. No substantive issue will be re-litigated. The U.S. court merely needs to enforce the verdict of the Swedish arbitration tribunal."

Nokia's court win over its rival comes at an inopportune time for RIM, who is already making losses within every quarter. It's also a few months away from releasing what it hopes to turn its fortunes around with the oft-delayed BlackBerry 10 mobile operating system.

 

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  • -5 Hide
    shqtth , November 29, 2012 4:58 PM
    WTF? Since when Nokia owns the WIFI Patent? I thought it was an open standard threw the wifi alliance?
  • 7 Hide
    rocknrollz , November 29, 2012 5:06 PM
    You shouldn't take what TH has to say very seriously, I do not believe it was WI-FI in general but a technology about how they were using it.
  • 7 Hide
    Bloob , November 29, 2012 5:09 PM
    shqtthWTF? Since when Nokia owns the WIFI Patent? I thought it was an open standard threw the wifi alliance?

    Not THE, A. Or likely, a buttload of them.
  • -4 Hide
    spookie , November 29, 2012 5:18 PM
    Take all their money while they still exist
  • -3 Hide
    murzar , November 29, 2012 5:33 PM
    Nokia, you too? Why are large corporate losers acting like bullies when they fail miserably?
  • 2 Hide
    fonzy , November 29, 2012 5:51 PM
    It's almost like a conspiracy to take down RIM/Blackberry.
  • 0 Hide
    zzz_b , November 29, 2012 6:52 PM
    They will have to pay lots of $$$.
    I think they can change their name from RIM to RIP :( 
  • -1 Hide
    bllue , November 29, 2012 7:17 PM
    RIP RIM
  • -3 Hide
    Kami3k , November 29, 2012 7:26 PM
    Well, there goes all my interest in a Nokia phone.
  • -4 Hide
    darkavenger123 , November 29, 2012 11:10 PM
    Ok, we have two losers suing each other. Don't make much difference. Both will be dead in the water in a few years. RIM will probably goes down before end of next year.
  • 2 Hide
    f-14 , November 29, 2012 11:35 PM
    i remember when RIM were being patent aholes, now their time has come. this is what apple has to look forward to.
  • 1 Hide
    Anonymous , November 29, 2012 11:57 PM
    Awesome. "Patents: The Innovation Stifling System" in action. What a great system for consumers, workers, and... wait, no one other than a bunch of greedy jackasses.
  • -3 Hide
    mayankleoboy1 , November 30, 2012 12:47 AM
    Two losers hating on each other
  • 2 Hide
    azraa , November 30, 2012 12:55 AM
    murzarNokia, you too? Why are large corporate losers acting like bullies when they fail miserably?

    If you ask me, the new Lumia is quite a success within its price range in the smartphone world.
  • 1 Hide
    Bloob , November 30, 2012 3:16 AM
    murzarNokia, you too? Why are large corporate losers acting like bullies when they fail miserably?

    Even RIM didn't argue against the patents themselves, but whether a previous licencing deal covered their use. Pretty much everyone else thought it didn't.