InterDigital wins big in Nokia royalty spat

That will be $250m. Plus interest, please

By Team Register, 29th December 2005

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A US federal judge yesterday confirmed that Nokia must cough up $232-$252m in disputed patent royalties to InterDigital.

Nokia had contested the decision made by in June 2005 by the International Court of Arbitration that it should pay InterDigital this amount in royalties on GSM handsets and network equipment sold between 2002 and 2006.

Following the US court's ruling that it must pay in full the amount determined by arbitrators, Nokia's room for manoeuvre looks decidedly limited. The company is to examine the possibility of appeal and notes that Interdigital has expressed willingness to negotiate over the money it must pay. But it is difficult to see this as anything other than a comprehensive defeat for the handset maker. Oh, and it has to pay interest too.

Now for an un-canned quote from William Merrit, InterDigital's CEO:

"We have always believed that any challenge to the Final Award would ultimately fail. In rejecting all of Nokia's arguments, the federal court confirmed our belief. With yet another legal challenge dismissed, we are hopeful that Nokia will finally comply with its signed license agreement with InterDigital. If not, we will continue to pursue all legal remedies to secure payment. In that vein, as we announced yesterday, we have taken action to utilize the contractual dispute resolution process with Nokia in order to accelerate the resolution of any outstanding issues that Nokia might allege. We remain confident that Nokia will pay the amounts due." ®