Nokia (NOK) Beats RIM (RIMM) in WLAN Patent Litigation; Will Begin Receiving Royalties
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Nokia Oyj (NYSE: NOK) shares are ticking higher in early trading following headlines it might have bested a key rival in patent litigation.
According to Reuters, Research In Motion (Nasdaq: RIMM) lost a case with Nokia which may cause the maker of BlackBerry devices to lose sales rights if it does not come to an agreement over payments to Nokia.
Nokia said that a Swedish arbitrator ruled RIM to be in breach of contract and may not make nor sell WLAN devices unless it starts paying royalties to Nokia.
One analyst from IDC said the ruling could have a "significant" financial impact on RIM, with all of its BlackBerry devices supporting WLAN.
Nokia and RIM entered a standards-essential cellular patent license in 2003, which was amended in 2008. Reuters notes that RIM moved to have the agreement cover WLAN patents in March 2011.
It's not clear what RIM might have to pay, but logic sides with the two coming to an agreement. Shares of Nokia are indicated higher Wednesday morning, while RIM appears to be lower for a second day.
According to Reuters, Research In Motion (Nasdaq: RIMM) lost a case with Nokia which may cause the maker of BlackBerry devices to lose sales rights if it does not come to an agreement over payments to Nokia.
Nokia said that a Swedish arbitrator ruled RIM to be in breach of contract and may not make nor sell WLAN devices unless it starts paying royalties to Nokia.
One analyst from IDC said the ruling could have a "significant" financial impact on RIM, with all of its BlackBerry devices supporting WLAN.
Nokia and RIM entered a standards-essential cellular patent license in 2003, which was amended in 2008. Reuters notes that RIM moved to have the agreement cover WLAN patents in March 2011.
It's not clear what RIM might have to pay, but logic sides with the two coming to an agreement. Shares of Nokia are indicated higher Wednesday morning, while RIM appears to be lower for a second day.
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