Nokia 2008 Annual Report Download - page 28

The government investigations may also harm Nokia Siemens Networks’ relationships with existing
customers, impair its ability to obtain new customers, business partners and public procurement
contracts, affect its ability to pursue strategic projects and transactions or result in the cancellation or
renegotiation of existing contracts on terms less favorable than those currently existing or affect its
reputation. Nokia Siemens Networks has terminated relationships, originated in the Siemens carrier
related operations, with certain business consultants and other thirdparty intermediaries in some
countries as their business terms and practices were contrary to Nokia Siemens Networks’ Code of
Conduct, thus foregoing business opportunities. It is not possible to predict the extent to which other
customer relationships and potential business may be affected by Nokia Siemens Networks legally
compliant business terms and practices. Thirdparty civil litigation may also be instigated against the
Siemens carrierrelated operations and/or employees transferred to Nokia Siemens Networks.
Siemens has agreed to indemnify Nokia and Nokia Siemens Networks for any government fines or
penalties and damages from civil law suits incurred by either, as well as in certain instances for loss
of business through terminated or renegotiated contracts, based on violations of law in the Siemens
carrierrelated operations that occurred prior to the transfer to Nokia Siemens Networks.
We cannot predict with any certainty the final outcome of the ongoing investigations related to this
matter, when and the terms upon which such investigations will be resolved, which could be a
number of years, or the consequences of the actual or alleged violations of law on the business of
Nokia Siemens Networks, including its relationships with customers.
An unfavorable outcome of litigation could have a material adverse effect on our business,
results of operations and financial condition.
We are a party to lawsuits in the normal course of our business. Litigation can be expensive, lengthy
and disruptive to normal business operations. Moreover, the results of complex legal proceedings are
difficult to predict. An unfavorable resolution of a particular lawsuit could have a material adverse
effect on our business, results of operations and financial condition.
See Item 8A7. “Litigation” for a more detailed discussion about litigation that we are party to.
Allegations of possible health risks from the electromagnetic fields generated by base stations
and mobile devices, and the lawsuits and publicity relating to this matter, regardless of merit,
could have a material adverse effect on our sales, results of operations, share price,
reputation and brand value by leading consumers to reduce their use of mobile devices, by
increasing difficulty in obtaining sites for base stations, or by leading regulatory bodies to set
arbitrary use restrictions and exposure limits, or by causing us to allocate additional
monetary and personnel resources to these issues.
There has been public speculation about possible health risks to individuals from exposure to
electromagnetic fields from base stations and from the use of mobile devices. A substantial amount
of scientific research conducted to date by various independent research bodies has indicated that
these radio signals, at levels within the limits prescribed by safety standards set by, and
recommendations of, public health authorities, present no adverse effect on human health. We
cannot, however, be certain that future studies, irrespective of their scientific basis, will not suggest a
link between electromagnetic fields and adverse health effects that would have a material adverse
effect on our sales, results of operations and share price. Research into these issues is ongoing by
government agencies, international health organizations and other scientific bodies in order to
develop a better scientific and public understanding of these issues.
Over the past eight years Nokia has been involved in several class action matters alleging that Nokia
and other manufacturers and cellular service providers failed to properly warn consumers of alleged
potential adverse health effects and failed to include headsets with every handset to reduce the
potential for alleged adverse health effects. All but one of these cases have been withdrawn or
dismissed, with one dismissal currently on appeal. The remaining pending case is currently the
subject of a motion to dismiss. In addition, Nokia and other mobile device manufacturers and cellular
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