Nokia and RIM, the two former mobile phone industry majors have decided to put aside all of their current patent litigations and join hands with a new patent license agreement, Nokia announced today in a press release. The new settlement means that all existing proceedings between Nokia and RIM in the United States, the United Kingdom and Canada will be withdrawn to a recent arbitration tribunal decision.
Though the details of the financial transactions and terms have not been disclosed due to their confidential nature this much has been announced that under the new agreement RIM will make a one-time payment and on-going payments to Nokia.
“We are very pleased to have resolved our patent licensing issues with RIM and reached this new agreement, while maintaining Nokia’s ability to protect our unique product differentiation,” said Paul Melin, chief intellectual property officer at Nokia. “This agreement demonstrates Nokia’s industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market,” he added.
“During the last two decades, Nokia has invested approximately EUR 45 billion in research and development and built the wireless industry’s strongest and broadest IPR portfolio, with around 10,000 patent families. Nokia is a world leader in the development of handheld device and mobile communications technologies, which is also demonstrated by Nokia’s strong patent position.”
This development is certainly something that will certainly do good to both companies, which are both struggling to survive in the market, with one being in a more dire situation than the other. Nevertheless, the settlement means both Nokia and RIM now have one less thing to worry about. RIM, however, will still bleed some more as it still has to make the payments to Nokia, which will show up once the quarterly financial reports come out.
As January nears we get closer to the much anticipated ‘rebirth’ of RIM, with their completely redesigned BlackBerry 10 OS operating full touch screen smartphones. While the fate of RIM depends on the success of the upcoming devices, a patent license agreement with Nokia will help it in some ways, however small it might be.