Nokia 2008 Annual Report Download - page 124

8A2. See Item 18 for our consolidated financial statements, which cover the last three financial years.
8A3. See page F1 for the audit report of our accountants, entitled “Report of Independent Registered
Public Accounting Firm.”
8A4. Not applicable.
8A5. Not applicable.
8A6. See Note 2 to our audited consolidated financial statements included in Item 18 of this annual
report for the amount of our export sales.
8A7. Litigation
Intellectual Property Rights Litigation
InterDigital
In 1999, we entered into a license agreement with InterDigital Technology Corporation and
Interdigital Communications Corporation (together “IDT”) for certain technology. 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 originally
agreed to in 1999 and the impact on Nokia of IDT’s licenses with Ericsson and SonyEricsson. The
agreed settlement terms resolved the legal disputes related to 2G products, with Nokia obtaining a
fully paidup, perpetual, irrevocable, worldwide license to all of IDT’s current patent portfolio, and any
patents IDT may later acquire, for purposes of making or selling 2G products, including handsets and
infrastructure. The settlement terms also resolved disputes related to all our products up to the
agreement date. 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 and IDT currently have pending legal disputes in the United States regarding IDT’s alleged 3G
patents. In August 2007, IDT filed a complaint against us in the US International Trade Commission
(“ITC”) alleging infringement of two declared essential WCDMA patents. In October 2007, the ITC
announced that it was consolidating the IDT action against us with an action IDT had brought against
Samsung. IDT then amended the complaint to add two additional declared essential WCDMA patents.
The consolidated action includes four patents, also asserted against us in Delaware. Through its ITC
action, IDT is seeking to exclude certain of our WCDMA handsets from importation and sale in the US.
In this situation, IDT has committed itself to grant a license on fair, reasonable, and nondiscriminatory
terms with regard to the patents in suit. Nokia also filed a motion in the Southern District of New
York court on February 13, 2008 to prevent IDT from proceeding with its claim in the ITC because we
believe the patents at issue are also licensed to us as part of an R&D agreement signed in 1999.
Nokia’s motion was granted by the district court on March 20, 2008, and the ITC case against Nokia
was deconsolidated from the Samsung case and stayed pending IDT’s appeal of the district court’s
decision. After the injunction was entered by the New York Southern District Court, Nokia initiated an
arbitration proceeding on April 1, 2008 to determine its rights under the 1999 R&D Agreement. On
appeal, the Second Circuit reversed the injunction entered by the New York Southern District Court on
July 31, 2008 and remanded the case to that court for further proceedings. Nokia has requested a
status conference before the New York Southern District Court to determine how the case should
proceed. Nokia’s arbitration is stayed pending a decision by the New York Southern District Court on
further proceedings.
Following the Second Circuit’s decision reversing the injunction, a hearing on the merits of the ITC
case was scheduled to begin on May 26, 2009 with an initial determination currently scheduled for
August 14, 2009 and a final determination currently scheduled for December 14, 2009.
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