InterDigital and Nokia Continue Patent Battle

5:30 am on January 28, 2006 | Category: Business, Mobile Devices

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Despite a ruling in against them last June, Nokia is still doing all it can to appeal the court order to pay $252 million in patent royalties to InterDigital Communications Corp.

InterDigital, meanwhile is doing its best to oppose these actions, and uphold last year’s decision from the International Chamber of Commerce.

“I am disappointed that Nokia has elected to pursue yet another legal challenge to its royalty obligations to InterDigital in spite of an unambiguous confirmation of the Final Award by the federal court,” commented InterDigital President and CEO, William Merritt, in a statement yesterday.

“Notwithstanding Nokia’s latest action, our resolve to prevail in this dispute remains steadfast and absolute. We will continue to pursue all legal remedies to secure payment and we remain confident that Nokia will pay the amounts due, either of its own accord or by court order,” Merritt went on to say.

The dispute originated due to patent concerns over the technology used in several 2G and 2.5G Nokia handsets.

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    1. Nokia’s actions with respect to paying royalties to Interdigital are nothing less than disgusting.

      Nokia voluntarily signed three agreements with IDCC in 1999 concerning 2G, 2.5G and 3G, and has paid nothing to IDCC since that time.

      As part of those agreements, Nokia gained access to and has admitted using IDCC’s patents for the past 5 years. Yet, when Ericsson and IDCC settled their patent suit and it came time to pay-up, Nokia chose arbitration rather than writing a check.

      After more than two years, Nokia lost this arbitration. But it still refused to honor the decision of the world’s preeminent arbitration association, the ICC.

      When IDCC asked the NY Circuit court to confirm the award, Nokia fought confirmation, and lost for a second time.

      After the NY Circuit reviewed the ICC decision and ruled in IDCC’s favor, (pointedly asking Nokia, “What are you doing in my courtroom?”, Nokia is still playing the delaying game. It is now whining to the court of appeals, like a little baby whose toy has fallen to the floor.

      A few days ago, one of Nokia’s top executives showed Nokia’s true colors in more detail. This so-called executive, who will take Jorma Olilla’s place in June, and who is a lawyer, tried to avoid paying duty on $11,000 in goods he brought from Switzerland to Finland.

      Did he just forget? Hardly. He filed in Switzerland to recover the value added tax, and entered Finland’s airport in a line for those who had nothing to declare.

      One wonders what his wife thought when he was fined $37,000 for failing to declare $11,000 in goods.

      I could say more, because the stories are endless, and would make an excellent book. But I think you get the drift.

      Frank Knope

      Comment by frank knope — January 28, 2006 #

    2. Interesting details. Nokia shouldn’t have much hope of a successful opposition with that kind of case against them.

      Comment by Jeremy — January 29, 2006 #

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