Nokia Vs. RIM Patent War

The patent wars among cell phone market giants is heating up. As a matter of fact, the recent news about Ericsson Vs. Samsung  patent dispute, was nothing else but a precursor for another battle between Nokia And Research in Motion.

A short background
In 2003, these companies reached a licensing agreement providing RIM with mobile technologies patented by the Finnish heavyweight. This deal was, warm-heartedly, reenforced in 2008, and the cell phone patent world was fine with such state of things.
The point of discord between these two companies was whether the original deal covered WLAN (Wi-Fi) technology patented by Nokia. Thus, three years later RIM contacted Swedish authorities to arbitrate, saying WLAN patents should be covered.

So, now what?
RIM (Research in Motion), the company that stands behind the innovative BlackBerry® product line, is now facing a sales ban in the United States and other markets unless it reaches a brand-new royalties agreement with the Finnish mobile giant.
Nokia has asked American, Canadian, and British courts to enforce a Swedish arbitrator’s ruling to keep RIM from selling WLAN-enabled smartphones untill the companies sign royalties agreement.
According the arbitrator’s ruling Nov. 6, RIM is required to pay not only royalties, but also damages to Nokia for the … sales of any reader terminals (handsets or tablets) … with WLAN capability”.
This is obviously a great win for Nokia.
According to the press release from IDG News Service, the Finnish giant has asked a California courtroom to back an arbitration honor. Nokia claims that RIM along with its U.S. subsidiary keeps violating  the honor and breaching the underlying agreement inside the district of Northern California and throughout the United States.

This presents a big problem for Research in Motion since BlackBerry products use Wireless Local Access Network (WLAN).
The Finnish company, which has suffered a sales decrease due to a stiff competition, demonstrates its intention to increase income through royalty fees. In case a sales ban is imposed, it would be a huge blow for RIM as it has started marketing its new platform.
Meanwhile, pre-market trading shows that RIM went down by 29 cents, or 2.7 percent.

Analysts think Research in Motion has no way out but to sign a royalty agreement with Nokia to prevent the ban on its products.
RIM haven’t  given any comments yet.

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