IMO:Nokia is cautious not to VIOLATE its 1999 2G/3G Contract and act within its provisions..
Jul 2005 13:47 GMT Nokia Intends To Oppose InterDigital Royalty Claims
Copyright © 2005, Dow Jones Newswires
Edited Press Release
STOCKHOLM -(Dow Jones)- Finnish telecommunications equipment maker Nokia Oyj (NOK) Tuesday said it received a decision from the International Chamber of Commerce in its pending arbitration with InterDigital Communications Corp. (IDCC) and InterDigital Technology Corp.
In the award, a split ICC arbitration panel purported to set royalty rates payable by Nokia to InterDigital on certain handsets and infrastructure equipment sold by Nokia.
The arbitration involved a license agreement entered into by Nokia and InterDigital in 1999 and Nokia's most favored licensee rights under that agreement following InterDigital's execution of licenses with telecommunications companies Telefon AB LM Ericsson (ERICY) and Sony-Ericsson Mobile Communications, owned by Ericsson and Sony Corp. (SNE).
One of the three arbitrators presiding over the arbitration issued a lengthy and detailed dissent that raises significant issues regarding the enforceability of the decision.
Nokia said it is currently evaluating its options in light of the dissent.
The royalty rates demanded by InterDigital have consistently served as an impediment to consensual resolution of the parties' dispute over the last two years.
Nokia said it is pleased that all three arbitrators concluded that the royalties being sought by InterDigital were unwarranted and reduced them by more than half.
At the same time, Nokia said it must give due consideration to the issues regarding the enforceability of the decision, and will consider the option of moving to vacate or modify the majority decision in this matter.
InterDigital also commenced an action against Nokia on July 1 in the U.S. District Court for the Southern District of New York seeking to enforce the decision.
If InterDigital pursues its enforcement action, Nokia said it intends to fully and vigorously oppose it and seek all remedies available to it under the parties' agreement.
(END) Dow Jones Newswires
