Intellectual Property Rights Litigation: InterDigital
In 1999, we entered into a license agreement with InterDigital Technology Corporation and Interdigital Communications Corporation (together “IDT”). The license provided for a fixed royalty payment through 2001 and most favored licensee treatment from 2002 through 2006. In April 2006, Nokia and IDT resolved their contract dispute over the patent license terms related to 2G products, with Nokia obtaining a fully paidup, perpetual, irrevocable, worldwide license to all of IDT’s current and future patent, or purposes of making or selling 2G products. The IDT settlement terms did not address any prospective 3G license terms; however, our sale of 3G products was fully released through the date of the settlement agreements.
Nokia Corporation and Nokia Inc. (referred collectively as “Nokia” herein) and IDT currently have pending legal disputes in the United States regarding IDT’s alleged 3G patents. In particular, in August 2007, IDT filed a complaint against Nokia in the US International Trade Commission (“ITC”) alleging infringement of two declared essential WCDMA patents, amending the complaint later to add two additional patents. The consolidated action includes four patents, which were also asserted against Nokia in a parallel Delaware district court action, which was stayed pending the ITC action. Through its ITC action, IDT is seeking to exclude certain of our WCDMA handsets from importation and sale in the US.
A hearing on the merits of IDT’s ITC case was conducted in May 2009. On August 14, 2009, the Administrative Law Judge issued an opinion finding the patents valid, but not infringed by Nokia’s accused products. On review of the ALJ’s opinion, the International Trade Commission affirmed the finding of noninfringement and took no position on whether or not the patents were valid. IDT has filed a notice to appeal the Commission’s decision, and we expect the briefing for that appeal to proceed in the first half of 2010. We believe that the allegations described above are without merit, and we will continue to defend ourselves against these actions vigorously. ###
PDF Page 240: §F page 68 (IPR Infringement Provisions)
At December 31, 2009. Nokia made an IPR infringement provision of €390 Million up from €343 Million at 2008 end after utilizing €379 in 2008¹
>> ¹ The IPR provision is based on estimated future settlements for asserted and unasserted past IPR infringements. Final resolution of IPR claims generally occurs over several periods. In 2008, EUR 379 million usage of the provisions mainly relates to the settlements with Qualcomm, Eastman Kodak, Intertrust Technologies and ContentGuard.###
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