ESPOO, Finland and WATERLOO, Canada – Ailing smartphone-maker RIM met with another blow when it lost to Nokia in the patent dispute over usage of WLAN in its products.
As per the new ruling, RIM has to pay royalties to Nokia in whichever Wi-Fi-enabled smartphones it makes, otherwise the products could end up getting banned. The judgement was offered in a Swedish court.
Nokia has also filed a similar litigation against RIM in other major markets, such as the US, Canada and the UK.
BlackBerry-maker RIM entered into an agreement with Nokia in 2003 regarding the licensing of WLAN products. RIM initiated an arbitration proceeding in 2011 believing that it would benefit from the proceedings. However, the tribunal ruled in favor of Nokia.
The ruling resulted in the plummeting of RIM’s shares. Nokia has a good reserve of intellectual property patents and it is also in dispute with a few other companies, such as HTC, regarding its Wi-Fi patents.