Nokia 2009 Annual Report Download - page 30

policies and taking other measures to attract and motivate skilled personnel. Nevertheless, we have
encountered in the past, and may encounter in the future, shortages of appropriately skilled
personnel, which may hamper our ability to implement our strategies and materially harm our
business and results of operations.
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,
disruptive to normal business operations and divert the efforts of our management. 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.
We record provisions for pending litigation when we determine that an unfavorable outcome is
probable and the amount of loss can be reasonably estimated. Due to the inherent uncertain nature
of litigation, the ultimate outcome or actual cost of settlement may vary materially from estimates.
We believe that our provisions for pending litigation are appropriate. The ultimate outcome, however,
may differ from the provided level which could have a positive or negative impact on our 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 could 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 nine 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. In addition, Nokia and other mobile device
manufacturers and cellular service providers were named in five lawsuits by individual plaintiffs who
allege that radio emissions from mobile phones caused or contributed to each plaintiff’s brain tumor.
Although Nokia products and services and their combinations are designed to meet all relevant safety
standards and recommendations globally, even a perceived risk of adverse health effects of mobile
devices or base stations could have a material adverse effect on us through a reduction in sales of
mobile devices or increased difficulty in obtaining sites for base stations, and could have a material
adverse effect on our reputation and brand value, results of operations as well as share price.
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