Nokia pays the disputed USD 253 million to InterDigital — MobileMonday Global: Industry News

^{Ends 2G-contract dispute} Nokia pays the disputed USD 253 million to InterDigital

28 Apr 2006 at 18:38 GMT Timo Poropudas

Nokia has paid InterDigital USD 253 royalty fees and ended the contract dispute over the patent license agreement originally signed in 1999. The parties had a dispute regarding the impact to Nokia of InterDigital’s licenses with Ericsson and Sony-Ericsson.

The settlements resolve the legal disputes related to 2G products, stated Nokia press release.

Under the settlement agreements, Nokia obtains a fully paid-up, perpetual, irrevocable license to all of InterDigital’s current patent portfolio, and any patents InterDigital may later acquire, for purposes of making or selling 2G products, including handsets and infrastructure.

The settlements also resolve disputes related to all Nokia products up to the agreement date. “Our prior contract agreement required us to respect the settlements that Ericsson and Sony-Ericsson entered in 2003, but there was a dispute about the impact those other settlements should have on Nokia, ” said Ilkka Rahnasto, Vice President, Intellectual Property Rights, Nokia.

“This case demonstrates that legal disputes are sometimes necessary in order to lower unrealistic demands”.

The USD 253 million payment required under the settlement is in line with Nokia’s earlier provisions.

In 2003, InterDigital signed licensing agreements with L.M. Ericsson and Sony Ericsson Mobile Communications L.P. and told Nokia it would be subject to the same licensing terms as Ericsson and Sony Ericsson. Nokia disagreed and took the issue to an arbitral tribunal. The tribunal sided with InterDigital. InterDigital’s position was further solidified late last year when a U.S. court confirmed a ruling that called for Nokia to pay InterDigital USD 250 million in the dispute.

InterDigital said the companies also agreed to end their 1999 third-generation patent license, which was scheduled to run through this year. InterDigital said it released Nokia from infringement liability for sales of its 3G products through the date of the settlement and that 3G products sold by Nokia after that date will be unlicensed. It is not clear if InterDigital’s patents cover Nokia 3G equipment.