RIM dished out a one-time payment of $65 million to Nokia in patent license agreement

RIM and Nokia settled all their patent infringement issues last week. Nokia was granted a one-time payment plus ongoing royalties. At the time the terms of the deal were not disclosed, but according to a Securities and Exchange Commission filing (form 6-K) RIM has paid out a one-time payment of $65 million.


�On December 21, 2012, Nokia and RIM announced that they have entered into a new patent license agreement. The agreement will result in the settlement of all patent litigation between the companies and Nokia�s dismissal of all pending actions in the United States, United Kingdom, Canada and Germany. The financial structure of the agreement includes a lump sum �50 million (approximately $65 million) one-time payment, which has been recorded in the Company�s consolidated statement of operations in the third quarter of fiscal 2013.�

There was no word on the ongoing royalty payments. $65 million is still a big chunk of money, but in perspective, RIM recently announced their Q3 results and declared they have $2.9 billion in cash with no debt. RIM will be showing their new BlackBerry 10 OS and two new BlackBerry 10 smartphones on January 30th, 2012.

RIM dished out a one-time payment of $65 million to Nokia in patent license agreement | MobileSyrup.com

I wonder if RIM can file some law suit against Nokia too? Just to be even

Even if grounds exist it is probably pointless to sue Nokia. Are you familiar with the expressions "blood out of a stone" and "unsecured creditor"?

There goes the money from the sale of Newbay.

Nokia has been building phones for a long time, they have one of the best patent portfolios around... what do you believe RIM could sue them for??

Well, RIM supposed to have also quite strong patent portfolio. And I'm sure Nokia uses something that RIM patented. The problem is, would that trigger another series of patent law suits from Nokia against RIM? Ah... not a good time for RIM to loose money

Ironically, RIM largely brought this on themselves if the articles I've read are any guide.

This was just another patent dispute between companies, rumbling along, in no great hurry to conclude, as they do. :)

Then RIM insisted that the matter go to binding arbitration, which it did in September. RIM lost, and Nokia suddenly found themselves in the fast lane to settlement. They threw in a threat of a potential BB phone sales ban to concentrate RIM's mind, but the binding arbitration decision made the outcome inevitable - only the amount was debatable.

Thor: "Let's settle this so we can focus on BB10 and gaining market share. We have bigger things to worry about."

Its a share that companies feel threatened then turn to litigation. So weak.

Originally Posted by walt63

Its a shame that companies feel threatened then turn to litigation. So weak.

Hmm... if I invented something, patented it, then some other company made free use of my invention without paying for the privilege... then I'd turn to my lawyers too!

All sensible companies protect their IPR. RIM is no exception, and has sought legal redress against other companies over some of the patents that it holds.

Originally Posted by JeepBB

Hmm... if I invented something, patented it, then some other company made free use of my invention without paying for the privilege... then I'd turn to my lawyers too!

All sensible companies protect their IPR. RIM is no exception, and has sought legal redress against other companies over some of the patents that it holds.

Valid point, but to me it feels that companies are looking to sue now simply because the competition is tight. It's like when a women claims she's been sexually harassed for years by her boss, then 5 years after, finally feels the need to sue for a large amount of money. Not to press criminal charges, but to sue for money. Why not call it out when the incident first happened.

I guess all I'm trying to say is that, this patent game is bull crap. I would feel the same way even if RIM did it. But I dont recall RIM crying foul when the competition was really heating up. "You took this and that." Maybe they did, but I dont recall. Like bb10_fan said, "RIM is suppose to have a strong patent portfolio."

Originally Posted by walt63

...to me it feels that companies are looking to sue now simply because the competition is tight.

I think that's fair comment. :)

Certainly to a casual observer, several of the current disputes (e.g. Apple vs Samsung) seem to be more intent on stifling competition than being a genuine attempt to protect IPR. The imposition of sales-bans appears to be the end-in-itself, rather than as a legal weapon used to persuade the other party to seek agreement on licensing terms.

Originally Posted by JeepBB

The imposition of sales-bans appears to be the end-in-itself, rather than as a legal weapon used to persuade the other party to seek agreement on licensing terms.

There it is.

Originally Posted by walt63

Valid point, but to me it feels that companies are looking to sue now simply because the competition is tight. It's like when a women claims she's been sexually harassed for years by her boss, then 5 years after, finally feels the need to sue for a large amount of money. Not to press criminal charges, but to sue for money. Why not call it out when the incident first happened.

I guess all I'm trying to say is that, this patent game is bull crap. I would feel the same way even if RIM did it. But I dont recall RIM crying foul when the competition was really heating up. "You took this and that." Maybe they did, but I dont recall. Like bb10_fan said, "RIM is suppose to have a strong patent portfolio."

There's nothing 'childish' about protecting Intellectual property. In this case Nokia seems to have a very strong case.
This has nothing to do with 'competition'. With similar patent claims, even Apple under Steve Jobs lost and paid up hundreds of millions of dollars to Nokia.
RIM's paid up and moved on. I suggest we do the same :)


Sent from my GT-N7100 using Tapatalk 2

This is interesting:

Samsung may face $15 billion fine for attempting to ban Apple products in Europe - SlashGear

The patent in question between RIM and Nokia was also among "standard-essential" or not? If yes Nokia may also get kick in the balls. This is a question and not an attempt to say "kill Nokia" (I'm the owner of Nokia phones, N9 and Lumia 800, and they are beautiful, except second OS)

Originally Posted by texazzpete

This has nothing to do with 'competition'.

If you think this has nothing to do with competition, you dont know big businesses then.

About 90% of business decisions are made with the competition in mind. I work of a big business and we are constantly comparing our products to th competition or making enhancements base upon what the industry is doing.

Nokia and RIM are in the same business my friend. Its about competition. Going into litigation over patents is another way to stymie the competition, whether its a ban on products or a hefty check.

Using the term "intellectual protection" was thrown out when Apple wanted to sue for a patent on the rectangle shaped phone.

Sent from Bold 9930 #blackberrybychoice

Originally Posted by bb10_fan

This is interesting:

Samsung may face $15 billion fine for attempting to ban Apple products in Europe - SlashGear

The patent in question between RIM and Nokia was also among "standard-essential" or not? If yes Nokia may also get kick in the balls. This is a question and not an attempt to say "kill Nokia" (I'm the owner of Nokia phones, N9 and Lumia 800, and they are beautiful, except second OS)

I don't believe RIM is going to get it's money back! :)

The linked article basically says that Samsung abused its patent-holding rights by refusing Apple a licence... even though Apple were happy to stump up for the licence fees. And then went on to use the non-licenced status to impede sales of Apple products. That is pretty clear abuse if true.

In the Nokia case, RIM arbitrarily decided they didn't want to pay no stinkeen licence fee :) ... despite other industry players recognising that Nokia had patented this tech and were paying an agreed fee. A binding arbitration verdict said RIM had to as well... and, that's it really. Done deal... not reversible. Also, no evidence that Nokia abused their "standards-essential" position by refusing to grant licences, so no grounds for other legal actions either.