BlackBerry loses payment dispute with Nokia, to pay $137M

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The BlackBerry logo is pictured at the BlackBerry campus in Waterloo September 23, 2013. REUTERS/Mark Blinch (CANADA - Tags: BUSINESS LOGO TELECOMS)
HELSINKI/TORONTO (Reuters) – An arbitration courtroom requested smartphone pioneer BlackBerry Ltd to pay for $137 million to Nokia to settle a payment dispute as well as Canadian firm stated it might go after a independent patent infringement scenario in opposition to the Finnish organization.

The Intercontinental Court of Arbitration ruled previously this 7 days that BlackBerry experienced failed for making particular payments to Nokia under a patent licence agreement, BlackBerry mentioned on Friday.

The ruling, in a earlier undisclosed disagreement over a smartphone engineering licensing deal signed in 2012, highlights the money threats technologies corporations face from disputes in excess of mental property, that happen to be sometimes settled through private arbitration processes mysterious to traders.

BlackBerry received a $940 million payout from chipmaker Qualcomm Inc earlier this yr inside of a very similar situation of disputed payments.

BlackBerry has beforehand explained it truly is looking to make additional revenue from its portfolio of some forty,000 patents by licensing them to other know-how companies, as well as in November stated that U.S.-based Marconi Team would enable it license out a wide choice of its patents.

It is normally challenging for investors to value a company’s patent portfolio provided the opaque nature of licensing deals and disputes.

“Patent difficulties are going to occur up from time to time and as one-offs,” said Todd Coupland, an analyst at CIBC Entire world Marketplaces. “Getting in front of them, until there may be some detail, is going to generally be hard.”

BlackBerry shares ended up down one.9 per cent in midday Toronto trading, Nokia shut 2 % lower in Helsinki.

BlackBerry disclosed in February that it experienced filed individual patent infringement complaints versus Nokia, alleging that many from the Finnish community devices maker’s foundation stations and similar computer software infringed on 11 of its patents.

Nokia, which sells these products and solutions to telecom operators, said in a very assertion on Friday that it believes those people infringement claims “are without advantage.”

BlackBerry stated it will take a GAAP demand on its effects, but did not say once the ruling would hit its financials.

Nokia reported a major portion with the quantity awarded experienced now been recognised in its financials.

Nokia bought its once-dominant telephone business in 2014, sticking to its community products business and broad patent portfolio. It’s got accredited technological know-how to smartphone makers Samsung Electronics, Apple, Xiaomi Know-how and LG Electronics.