Nokia Settles Old Dispute, To Pay $253 Million

Nokia has settled a long-running patent dispute with InterDigital, regarding the licensing of 2G cell phone technology, beginning in 1999. They agreed to pay $253 million to the intellectual property company, in exchange for full and undisputed ownership of all the patents in question.



Executives with the handset maker seem to believe that the extended legal proceedings were worth it in order to get a fair deal for both parties.

“Our prior contract agreement required us to respect the settlements that Ericsson and Sony Ericsson entered in 2003, but there was a dispute about the impact those other settlements should have on Nokia,” said the company’s vice president of intellectual property rights, Ilkka Rahnasto. “This case demonstrates that legal disputes are sometimes necessary in order to lower unrealistic demands.”

“Under the settlement agreements Nokia obtains a fully paid-up, perpetual, irrevocable licence to all of InterDigital’s current patent portfolio, and any patents InterDigital may later acquire, for purposes of making or selling 2G products, including handsets and infrastructure,” said a statement from Nokia on the issue.

Summary

Nokia has settled a long-running patent dispute with InterDigital, regarding the licensing of 2G cell phone technology, beginning in 1999.


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