Nokia 2009 Annual Report Download - page 153

accused products. On review of the ALJ’s opinion, the International Trade Commission affirmed the
finding of noninfringement and took no position on whether or not the patents were valid. IDT has
filed a notice to appeal the Commission’s decision, and we expect the briefing for that appeal to
proceed in the first half of 2010.
We believe that the allegations described above are without merit, and we will continue to defend
ourselves against these actions vigorously.
IPCom
In December 2006, we filed an action in Mannheim, Germany for a declaration that Robert Bosch
GmbH was obliged to grant Nokia a license on fair, reasonable and nondiscriminatory (“FRAND”)
terms. Bosch’s patent portfolio was sold to IPCom GmbH & Co KG, and IPCom was joined to the action.
Bosch and IPCom counterclaimed against us demanding payment of royalties. In April 2009, the
Mannheim Court dismissed all claims. Both IPCom and Nokia have appealed.
From December 2007 to May 2009, IPCom has filed action against Nokia in Mannheim, Germany
claiming infringement of 14 patents and two utility models. Nokia has responded by filing nullity
actions in the German Patents Court and Patent Office, and oppositions before the European Patent
Office in relation to these patents and utility models, along with other IPCom patents, included in
IPCom’s so called proud list of patents. To date, all patents and utility models of IPCom that have
reached trial have been found to be invalid.
In September 2008, Nokia commenced revocation proceedings in England against 15 of IPCom’s UK
patents. IPCom responded by bringing infringement actions in relation to three of the patents in
issue. On January 18, 2010, two IPCom patents which were subject to the first trial were found
invalid. IPCom has said that it will appeal this ruling. IPCom has conceded that all 13 other patents
should be revoked. Nokia is seeking to recover costs for all trials. In December 2009, Nokia sought
revocation in the United Kingdom of one further IPCom patent. That case remains ongoing.
In January 2009, IPCom brought an infringement a claim in Dusseldorf, Germany against certain
members of Nokia’s Group Executive Board in their personal capacities, but not any company in the
Nokia Group. The trial is set for April 27, 2010.
In October 2008, Nokia filed a complaint with the European Commission alleging that IPCom and/or
Robert Bosch GmbH were in breach of European competition law to the extent that Bosch had sold its
patent portfolio to IPCom free of the commitments that Bosch had made to the Standards Setting
Organizations to grant licenses to the patent portfolio on FRAND terms. On December 10, 2009, IPCom
and the Commission issued public statements that IPCom was ready to take on Bosch’s FRAND
commitments. Consequently, Nokia has now withdrawn this complaint.
We believe that the allegations of IPCom described above are without merit, and will continue to
defend ourselves against these actions vigorously.
Apple
On October 22, 2009, after an impasse was reached on license negotiations that had commenced in
2007, Nokia filed suit against Apple in the US Federal District Court, District of Delaware, alleging that
Apple’s iPhones infringe ten of Nokia’s essential patents and seeking damages based on FRAND
royalty rates. On February 19, 2010, Apple counterclaimed, alleging that various Nokia handsets
infringe nine Apple implementation patents and seeking unspecified damages and an injunction
preventing Nokia from selling the accused handsets in the US. Apple also claimed that Nokia has
breached certain contractual commitments to standards setting organizations and violated federal
antitrust laws based on certain positions Nokia allegedly took during the parties’ license negotiation,
Nokia’s purported delay in declaring patents essential to certain standards, and Nokia’s filing of the
infringement suit.
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